9.B.3. PRSR 06-14-2000 r--(./ A(
Item #9.B.3.
4„ ,t ty of ,�1
jlk River MEMORANDUM
TO: Park and Recreatio Commission
FROM: Michele McPherso ',I irector of Planning
DATE: June 14, 2000
SUBJECT: Request by Brookstone, Inc. to Waive Park Dedication Fees
Staff received the attached letter from Brookstone, Inc. to request from the City
Council waiving of the park dedication fees required as part of the final plat for
the east Elk River Business Park. Park dedication fees for this plat total $63,940.
Recommendation
This item will be considered by the City Council at their June 19th meeting. Staff
recommends that the Park and Recreation Commission attend this meeting to
• express the Commission's position regarding Brookstone's request.
•
S:\PLANNING\M ICHMC\PARKNREC\BROOKSTO.DOC
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • TDD &Phone: (612)441-7420 • Fax: (612) 441-7425
FILE No.223 05/26 '00 14:13 ID:FACSIMILE FAX:952 837 8010 PAGE 2i 3
BROOKS 10N1,INC.
• y3tr/Vkziple_
7400 Metro Blvd.,Suite 212
Edina,Minnesota 55439
Friday,May 26, 2000 62,837.9167 phone
612,837,8010 fax
Ms. Michele McPherson
Director of Planning
City of Elk River
13065 Orono Parkway
PO Box 490
Elk River,Minnesota 55330
Dear Michele:
I am writing with reference to your transmittal dated May 12, 2000 regarding the Development
Agreement for the Elk River Business Park together with the letter dated May 16, 2000, from
Debbie Heubner, planning secretary, regarding conditions attached to final plat approval. While
we have continued to enthusiastically move forward on implementing both the land development
component of this project and the first 50,000 square foot building, we need to resolve some
• issues that came out from the above referenced correspondence before we can start grading and
the first building.
From past notes of meetings with various city staff members,other correspondence and from our
discussions we are requesting reconsideration of the following matters:
1. The requirement for a Letter of Credit. This did come up in discussions, particularly with
former City Development Director, Paul Steiman, as well as Peter Beck and we had agreed
that no Letter of Credit would he required. I believe it was initially part of the preliminary
planning commission plat resolution but was clearly to have been eliminated for the
reason that the public improvements were all being installed by the City and assessed to
the property. While you indicated that there are some improvements we will be
installing, I believe the only thing we have responsibility for is the mass grading, which is
also reimbursed from the City.
2. With regard to the surface water management fee,we are in agreement that we have some
responsibility in this regard. However,in our meeting of May 12, 1999,when we requested
information on a comprehensive list of fees related to this project, it was indicated that
the surface water management fee would be $136 per acre. This is less than shown in the
draft Development Agreement.
3. We are in agreement that we are responsible for the seal coating fee and it was indicated
• that this would be $0.40 per square foot of asphalted road area. I believe a preliminary
estimate of that was only several thousand dollars. We would request clarification on
this.
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FILE No.223 05/26 '00 14:13 ID:FACSIMILE FAX:952 837 8010 PAGE 3/ 3
•
4. The park dedication fee is a significant matter to us. We have not budgeted any funds for
this expense. From my file information, it was not referenced in the preliminary plat
approval and my understanding is that the City implemented this fee during the time that
we were negotiating this transaction, and to the best of my knowledge, we were not
informed of that. Certainly, it there was increased tax increment available,we could cake
another look at this. However, we have already had to absorb an increase in some of the
special assessments costs without any commensurate increase in the tax increment
reimbursement and have no additional cushion of any sort to absorb this.
5. With regard to sidewalks,we have always understood that these were a part of the City's
plans and costs and to be assessed to the property along with other public improvements.
This was confirmed to us in our meeting with you of April 25, 2000. Our understanding
was that our only responsibility was to provide a sidewalk connection to the property to
the north,and we are in agreement with that.
6. Finally,with regard to streetlights,we have not been aware of any requirement,and would
certainly consider this a public improvement that would customarily be part of the street
development cost. We again,have no budget cushion to absorb this.
We are hoping that most of these matters can be cleared up in our meeting on Tuesday, May 30,
• 2000, but my understanding is that we will need to address the question of the park dedication
to your City Council on June 19, 2000. We will attend that meeting and make this request and
would ask that you use this letter as a basis to indicate our formal request with regard thereto.
We obviously are hopeful that we can resolve this quickly; we are moving forward with the
working drawings for our multi tenant building and are carrying on discussions with several
prospects at this time. It is imperative that we resolve this in order to move forward. In order to
meet the deadlines in our Development Agreement and to move this project forward, we need to
start in early July with the first building. Our mass grading needs to begin in early June and from
discussions with Dennis Cornelius, I understand that you are requiring that the Letter of Credit
issue be resolved prior to start of that work.
We look forward to meeting you next week and are hopeful of a quick resolution.
Yours/very truly,Webirdiza)
Richard V. Martens
President
RV • •
Cc:Dennis Cornelius
Mel Ammon