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5.13 PCSR 05-23-1995 r-Q ty of / ITEM 5.13. lk River MEMORANDUM TO: Planning Commission FROM: Steven B. Ach, City Planner)' DATE: May 23, 1995 SUBJECT: Planning Commission Review of Tax Increment Financing Plan for Tax Increment Financing District No. 12 As presented in the attached memo from William Rubin, EDA Executive Director, the Planning Commission is being asked to adopt a resolution which finds a proposed tax increment financing plan to be consistent with the City's comprehensive land use plan. The proposed district will apply to two lots in the McChesney Industrial Park which is located immediately north of Meadowvale Road, along both sides of York Street. This new TIF district will • provide for a local company to construct a new 16,000 square foot facility within this industrial area. Recommendation It is recommended the Planning Commission recommend approving the resolution attached to William Rubin's memo with the following finding: 1. The present zoning of I-1 (Light Industrial) and land use designation of L-I (Light Industrial) is the appropriate zoning and land use to allow industrial development. 2. The comprehensive land use for this area is not envisioned to change in the immediate future; therefore, expanding industrial businesses at this location is consistent with the comprehensive plan. 3. One of the comprehensive plan goals is to encourage industrial development to assist the City's tax base. • s:pla n nin g:pc:rubintif 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 ITEM 5.13. ty of 1k River MEMORANDUM TO: Elk River Planning Commission FROM: William Rubin, EDA Executive Directo L_ DATE: May 23, 1995 SUBJECT: Planning Commission Review of Tax Increment Financing Plan for Tax Increment Financing District No. 12 Introduction On Monday, June 19, 1995, the Elk River City Council will conduct a public hearing to consider a Tax Increment Financing Plan for Tax Increment Financing District No. 12. Pursuant to Minnesota Statutes, the Planning Commission is required to review and comment on each proposed Tax • Increment Financing Plan prior to the City Council conducting a public hearing. This is done to ensure that the project within the proposed Tax Increment Financing District is consistent with the city's Comprehensive Land Use Plan. Background The Elk River Economic Development Authority (EDA) is proposing the creation of Tax Increment Financing District No. 12. The District will be comprised of two parcels, Lots 6 and 7, Block 1, McChesney Industrial Park. The request for tax increment assistance comes from a local manufacturing company, Neos, Inc., 12797 Meadowvale Road, Suite B, Elk River, Minnesota. Neos designs and builds machinery - specializing in packaging machinery. The company seeks $80,000 in tax increment financing assistance to support its proposed construction of a 16,000 square foot facility on Lots 6 and 7. Tax increment funds would be used to write down the acquisition price of the lot and for general site preparation and site development costs. To support the request for assistance, the EDA proposes to create an • Economic Development TIF District. New property taxes generated by the 16,000 square foot facility would be "captured" by the EDA/City in order to 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 • pay back the $80,000 TIF grant. It is estimated that the Neos TIF District would last approximately six (6) years. The new property taxes (otherwise known as the tax increment) would be collected for four (4) years. Action Requested The Elk River Planning Commission is asked to adopt the attached resolution which finds that the proposed TIF Plan is consistent with the city's Comprehensive Land Use Plan. The Planning Commission's resolution and findings will then be forwarded to the City Council for consideration at is June 19 public hearing. 9 • s:eda:minutes:pctifl2 • RESOLUTION 95 - A RESOLUTION OF THE ELK RIVER PLANNING COMMISSION FINDING THE ECONOMIC DEVELOPMENT AUTHORITY'S TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 12 LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1 IS CONSISTENT WITH THE COMPREHENSIVE PLAN FOR THE CITY OF ELK RIVER WHEREAS, the Economic Development Authority's proposed Tax Increment Plan for Tax Increment Financing District No. 12 (the Plan) to be located within Development District No. 1, has been submitted to the Elk River Planning Commission; and, WHEREAS, the Planning Commission has reviewed the Plan to determine the consistency of the Plan to the Comprehensive Plan of the City of Elk River. NOW, THEREFORE, BE IT RESOLVED by the Elk River Planning Commission that the Tax Increment Financing Plan for Tax Increment Financing District No. 12 is consistent with the Elk River Comprehensive Plan. Adopted this 23rd day of May, 1995. • Louis Kuester, Chair ATTEST: Steven B. Ach, City Planner • 0 DRAFT TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 • CITY OF ELK RIVER, MINNESOTA JUNE 19, 1995 •, TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 SUMMARY Neos, Inc., 12797 Meadowvale Road, Suite B, Elk River, Minnesota seeks $80,000 in Tax Increment Financing assistance to support its proposed construction of a 16,000 square foot facility in the McChesney Industrial Park. Neos designs and builds machinery - specializing in packaging machinery. It currently occupies leased space at 12797 Meadowvale Road, Elk River, Minnesota. Neos currently employs five persons at this facility. As a result of the expansion, approximately six new full-time jobs will be created by Neos, Inc. In addition, the business incubator component of this facility is expected to create ten full-time jobs and retain another eleven positions. The Economic Development Authority for the City of Elk River, Minnesota is proposing the creation of an Economic Development District pursuant to the Tax Increment Financing Act. Tax increment funds will be used to "write- down" the acquisition price of the development site. Additional tax increment funds will be used for site preparation and site development costs. • The site, Lots 6 and 7, Block 1, McChesney Industrial Park, is currently owned by Jerry and Joanne McChesney. The Economic Development Authority for the City of Elk River proposes to acquire Lots 6 and 7 on behalf of Neos, Inc. Subject to the terms and conditions of a Contract for Private Development, Lots 6 and 7 will be conveyed to Neos, Inc. The 16,000 square foot facility will have a finished market value estimated at $585,000 which produces new property taxes of approximately $24,000 per year. These funds will be "captured" by the Economic Development Authority so that the City of Elk River can recover the $80,000 in tax increment assistance. After these funds have been repaid, Tax Increment Financing District No. 12 will be decertified, thereby enabling all local taxing jurisdictions (county, school, city, etc.) to share in the project's property taxes. The Economic Development Authority for the City of Elk River, Minnesota anticipates that Tax Increment Financing District No. 12 will exist for approximately six (6) years; during which time tax increment funds will be collected for four (4) years. • • TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 12 A. STATEMENT OF OBJECTIVES Tax Increment Financing District No. 12 is located entirely within the City's Development District No. 1, a Municipal Development District created and established pursuant to the Development District Act. The Development Program for Development District No. 1, was adopted by the City Council on April 1, 1985, and was amended on January 27, 1986, and November 30, 1987. The objectives of the Development District, as amended, and as set forth in the Development Program, are hereby incorporated into this Tax Increment Financing_ Plan. Attached as Exhibit A is a map of Development District No. 1. The specific objectives of the Tax Increment Financing Plan for Tax Increment Financing District No. 12 are: 1. To provide incentive financing for the sale of Lots 6 and 7, Block 1, McChesney Industrial Park; (the development site); 2. To encourage a manufacturing company to expand in the • McChesney Industrial Park; said expansion includes the construction of a new facility estimated at approximately 16,000 square feet; 3. To increase employment opportunities in the community and in the State of Minnesota; said expansion will create 6 to 10 full time positions and 5 to 11 positions will be retained; and, 4. To preserve and enhance the local tax base and the tax base in the State of Minnesota; said expansion will generate new property taxes of approximately $24,000. B. CLASSIFICATION OF THE DISTRICT The City Council of the City of Elk River, Minnesota determines that it is necessary, desirable, and in the public interest to designate, establish, develop, and administer an Economic Development Tax Increment Financing District in the City of Elk River pursuant to the provisions of the Tax Increment Financing Act, Minnesota Statutes 469.174, Subdivision 12. The purpose of the Tax Increment Financing Plan and Tax Increment Financing District No. 12 is to encourage the expansion of a manufacturing company in • the McChesney Industrial Park, thereby increasing local employment opportunities and preserving and enhancing the local tax base of the State of Minnesota. C. DEVELOPMENT PROGRAM 1. Overview Neos, Inc., 12797 Meadowvale Road, Suite B, Elk River, Minnesota, seeks Tax Increment Financing assistance to support its proposed construction of a 16,000 square foot facility in the McChesney Industrial Park. The Tax Increment funds will be used to "write down" the acquisition of the development site. In addition, funds will be used for site preparation and site development costs. 2. Property Included in Tax Increment Financing District No. 12 The legal descriptions of the properties'included in TIF District No. 12 are as follows: Lot 6, Block 1, McChesney Industrial Park (PID No. 75- 433-0150) Lot 7, Block 1, McChesney Industrial Park (PID No. 75- 433-0160) Attached as Exhibits B-1 and B-2 are maps showing the exact • location of the property included in Tax Increment Financing District No. 12. 3. Property to be Acquired by the Authority Lots 6 and 7, Block 1, McChesney Industrial Park are proposed for acquisition by the Economic Development Authority for the City of Elk River, Minnesota. Subject to the terms and conditions of a Contract for Private Development, Lots 6 and 7, Block 1, McChesney Industrial Park will be conveyed to Neos, Inc. D. DEVELOPMENT ACTIVITIES 1. Development Overview Neos, Inc., proposes to construct a new facility containing approximately 16,000 square feet on Lots 6 and 7. The new facility will have a finished market value estimated at $585,000. Construction may begin during the summer of 1995 and will be completed by the winter of 1995. Neos, Inc., currently employs 5 persons at its leased space at the 12797 Meadowvale Road facility. As a result of the expansion, approximately 6 new full-time jobs will be created by Neos, Inc. • In addition, the business incubator component of this facility is expected to create 10 full-time jobs and retain another 11 positions. 2. Contracts No contracts have been entered into at the time of the preparation of this Tax Increment Financing Plan. Proposed contracts for services associated with Tax Increment Financing District No. 12 include: • Option Agreement for Lots 6 and 7 • Contract for Construction of a 16,000 Square Foot Facility (by Neos, Inc.) • Soil Borings and Analysis • Site Preparation and Development E. FINANCIAL ANALYSIS OF TAX INCREMENT FINANCING DISTRICT NO. 12 1. Tax Increment Financing District No. 12 Cost Estimates Budget Amount Land Write Down $60,000 Site Survey Site Preparation $20,000 Soil Borings and Analysis Administration Legal $ 2,500 DRAFT Cost of Issuance Fees Bond Discount Capitalized Interest Miscellaneous $ 2.500 Total $85,000 2. Bonded Indebtedness The City of Elk River anticipates a pay-as-you-Tax Increment Financing District No. 12 and no bonds will be issued. 3. Sources of Revenue to Pay Public Costs Tax Increments collected from the Neos, Inc., expansion will be used to pay the public costs associated with Tax Increment Financing District No. 12. 4. Original Tax Capacity The original net tax capacity, based on the 1994 valuation, for the real property in Tax Increment District No. 12 is estimated • to be $2,300. The County Auditor Certification attributable to this value is attached as Exhibit C. 5. Estimated Captured Tax Capacity The finished market value upon completion of the improvements in Tax Increment Financing District No. 12 is estimated at $585,000. This value translates into a completed net tax capacity estimated at $25,310. The captured net tax capacity is estimated as follows: Completed Net Tax Capacity $25,310 Less Original Net Tax Capacity 2,300 Equals Captured Net Tax Capacity $23,010 One hundred percent of the captured net tax capacity of Tax Increment Financing District No. 12 will be required to finance the public costs associated with District No. 12. As a result, the City of Elk River elects, pursuant to Minnesota Statute 469.177 Subdivision 2 (a)(1), to retain the full captured net tax capacity of Tax Increment Financing District No. 12. 6. Duration of the Tax Increment Financing District No. 12 The City of Elk River expects that the first increment it will receive from Tax Increment Financing District No. 12 will be for taxes payable in 1997, and will be based on a completed value as of January 2, 1996. The City expects to continue to receive tax increment from Tax Increment District No. 12 up to and • including the year 2000, or until $85,000 in tax increment has been received. Thereafter, no further increments may be received and Tax Increment Financing District No. 12 will terminate. F. CASH FLOW ANALYSIS Attached as Exhibit D is the Cash Flow Analysis for Tax Increment Financing District No. 12. G. IMPACT ON OTHER LOCAL TAXING JURISDICTIONS 1. Estimated Impact of District No. 12 on the Taxing Jurisdictions Assuming the Captured Net Tax Capacity is Available to the Taxing Jurisdictions Without Creation of District No. 12: Pursuant to Minnesota law, tax increment generated by development within the Tax Increment Financing District may be captured by the City for a period of up to eight years. During this period other taxing jurisdictions will continue to receive taxes from the property within the Tax Increment Financing District based on the current net tax capacity. • 110 2. Estimated Impact of District No. 12 on the Taxing Jurisdictions Assuming None of the Captured Net Tax Capacity is Available to Taxing Jurisdictions Without Creation of District No. 12: The Economic Development Authority of the City of Elk River has determined that the Neos, Inc., project would not reasonably be expected to occur without the creation of TIF District No. 12 and the use of tax increment financing is necessary. Therefore, none of the net tax capacity captured during the term of this TIF District would be available to other taxing jurisdictions without the creation of this district. 3. Additional information on the impact of Tax Increment Financing District No. 12 on the other local taxing jurisdictions can be found in Exhibit E. H. STUDIES AND ANALYSIS USED TO DETERMINE THE NEED FOR TAX INCREMENT FINANCING The Elk River EDA and City Council have determined that the Neos, Inc., expansion project cannot reasonably be expected to occur solely through private investment within the reasonably foreseeable future. Therefore, the use of Tax Increment Financing assistance is deemed necessary. • This determination has been made based on the following: • The company currently occupies leased space at 12797 Meadowvale Road and this expansion into a permanent facility is its first. Tax increment assistance is needed to reduce the overall project costs - thereby preserving scarce capital to ensure that Neos, Inc., remains financially stable after the expansion. • In addition, tax increment assistance is necessary because the project will result in increased employment in the State, and, it will result in the preservation and enhancement of the tax base of the State. PARCELS INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 12 Tax Increment Financing District No. 12 is comprised of two parcels of land. They are listed below: 1994 Original Parcel 1994 EMV Payable 1995 Net Tax Capacity 75-433-0150 $25,000 $1,150 75-433-0160 $25,000 $1,150 • Please refer to Exhibit C for the County Auditor Certification of this parcel in Tax Increment Financing District No. 12 • • = IiiiiiiililMItili;IJ iil9liiiii'liifill !�iMlidiilialrlilliiiiiiiiiitllliiiiii w — f ,' - y O --• ti - J miMII=MINSOL , y Ja _ _.i - , ,_ _ JL \ JL r -.___._._...__._... _....-.-_ ----___ JLL T i Ji 1 -_ Jct mnimIMMIM Ja yu _ .(... .F., .............. I- . -M1 \ 4 0 _.„, ....._ / ,, . .0._ ....._ ..p___ _ II_ _____, , „„,,, , _ _ _..... ,... ,,,, =... , , i we 1.-- ...d —art , r _ - -I I' - --- ' — _ Jtwal , i A ;a . _... .m • ,-7-', :_,s /__ I 2 Jn •;4_'''. a .I O '-'". ,1▪ 1 -;.----;---;- --,_..-_____, L_ , t. .,. , ...mm ' •I 1 J '/ ,s r y am= '� .. '.� • • iq . r vim. \,.aEEt a\i wiNli s „..-1.---C:IP ---. 1� 1, I JIM.1 Y 901/11111illIIM""fill Will hi -1 0.-...-_,__ _ Iiiiiimillimi ,* i 11 J< 111164 a _ BOUNDARY OF ( - - J< DEVELOPMENT DISTRICT NO. 1 -p. i -! _ , _t (CITY LIMITS) - ELK RIVER, MINNESOTA iE t • lkRner 1 4� , � - �1.1 � - iliL ,V = 1 EXHIBIT A 1 � 1 ;\1 ti 1 111 DEVELOPMENT DISTRICT NO. 1 1 1 l!i I ( 1 1 lc ___ ____\ I ., O 1 (., „:, o ,, T' L .. l N . ; J _ _` I 193RD ST1110 j I RD AVE. w I ti III SeRVIG� DR. �` tea. I.S.•! , ______________ R/YER z �yK 1 , 2 _� ippapoo7."4. .. TRJAL •2MD/ ' .._ TRI �� Rqut i s ADDITION BLViii.v.,,, nillu !1lRONI.P. ADD. • t �,,, _- A 1 ,. ,.. 011 y4C F RD ,.r Y• V��V� ? , ii a 110111,„-.-----....; -•-il a ,..,7„,, . ... (L'-k:V V 1 C' , �,. �� R7 1 9i 9i \ � 72,7,41 , \ \ , ,8 co �.i s:M 11137 L�� 9 L \104° �,W ,a arm b ADO • 0 14.'9°. �IlhI :✓ 1; \ \� e se I misenun , . �� II— � (view s Fj i - I IA - -� __) HiRo� I Op II W C!— ■ 11/ F` I A40 ! ' II ■ 111 �' / 1 Ryi �. f/ \ 2liwai 111: C:IPC4 'AI„:4111111rR AUpItOi . n� solo. C 'Vtr* • i 6 /1110 EgillwI !rail 11(/* � /�” \ LAKE ORONO )\ •� j . 4-. \ \iv I., '1 I l'cl ! 41. I. T15111E1 soneao.NTyu Oti' 1)110 . )� YjOW ` 1 e wMr ` � ' ytD' I \• ,raa O �. Cr I r ' �\ jam .. W. ;._1-1:::"'N 444t. I 183RD 2 AVE' �we Q `" �' WO ;4* \�1` // \\ \ It IIII 1111;7 441 0 II,,,,44,'N o i „i+f.,_ ,0 '81 2N0 ' :AVE 1 u MI Q 11111 • ,D k\ 9T. ,Ji9 \ III • up% .. — I• ,.•2 \ I J h !i PIRK', j :• ���;! I %\ iii `"\SS\S�\QP\ r 2 HI , I D p I l��I A' \� TAX INCREMENT FINANCING DISTRICT NO. 12 �'i1 • ...JAr,Jbp} „-^ dal6FRAi.r /41C s :1 nn zl . t . w�I �, - sti, S' 'r• t .ti`tswl L .. 40' '.'ter2.. 114At.% •.� -- tPr, 4"6.%. 5 it ot i ♦ ♦•0 ♦ • •••♦. >♦ •••• ••♦•••♦•AO•• ••O. II 3 r '� � ♦ • ♦ �E /0A .*/ rj� ���♦• �0••••••4* •••••r ♦ • ir . •0r••♦%r•►• r00.0`rrrrrr••••••••01;04. •• -� `1, 00;00.....„-•....040 •1• ♦ ♦ •♦ t6 3,04,•••••••••••••••,' II,i �� — - __� •••r •♦•••v0t•r ..04 .440to, •I ♦ r‘•••••••••••••••• r• •••♦•♦ • ♦ *v.**. •i -.*s •••••♦• • • ♦j♦♦rV• ••• - • • • -rrr • • • • • • • • 0. i. • • • • •♦ ♦••• i• 2 • ! •♦•••♦•••♦•♦•••i•♦♦•••♦••♦•♦••♦• ♦•••'OO * ` lie • • • • '.l 1 w Q'1 ' ` _V^A•.p♦i♦:•♦•♦.•♦••.•♦l•♦♦'4 r ) , •••.O•!+t 3 8 / 1 ,i �, °DAc., ss ,��� 1264..y 1 1./ l fi i 8 I tea. .. I; ' --4)04, 7 ,„'� :;t c rte`. is- . tib N., ,,, '- g'F/ !� i a i i.*.»....r *a.....at i i l I Scale: 1 inch = 1 0 0 feet. Bearings are assumed. O Denotes iron pipe set with a plastic plug stamped R. L.S. 8194 . Denotes drainage and utility easen,.. nts. 10 feet in width unless otherwise rioted. _ i 1 1 . - LAND SURVEYORS /O �� • Elk Rlv.r•,M;,,,,. EXHIBIT B-2 TAX INCREMENT FINANCING DISTRICT NO. 12 DRAFT • EXHIBIT C COUNTY AUDITOR CERTIFICATION TAX INCREMENT FINANCING DISTRICT NO. 12 The original net tax capacity of the following listed parcel(s) as of January 2, 1994, is certified to be $2,300. The parcel(s) contained in Tax Increment District No. 12 are listed below. 1994 EMV 1994 Original Parcel Number Payable 1995 Net Tax Capacity 75-433-0150 $25,000 $1,150 75-433-0160 $25,000 $1,150 TOTAL $50,000 $2,300 The Base Tax Rate will be the rate calculated for taxes payable in 1995. In accordance with Minnesota Statutes, Section 469.177, Subdivision 1, the average percentage increase in the original Net Tax Capacity shall be zero percent (0%). • Ramona Doebler Sherburne County Auditor SHERBURNE COUNTY SEAL June , 1995 • DRAFT EXHIBIT D TAX INCREMENT FINANCING DISTRICT NO. 12 CASH FLOW ANALYSIS *1996 1997 1998 1999 2000 2001*** Original Net Tax Capacity(1) "*$2,300 $2,369 $2,440 $2,513 $2,588 $2,665 Total Net Tax Capacity $2,300 $25,310 $25,310 $25,310 $25,310 $25,310 Captured Net Tax Capacity $0 $22,941 $22,870 $22,797 $22,722 $22,645 Estimated Tax Rate (2) 1.04247 1.04247 1.04247 1.04247 1.04247 1.04247 Captured Tax Increment $23,915 $23,841 $23,765 $23,687 $0 Cumulative Captured Tax Increment $47,756 $71,521 $95,208 $95,208 (1) Assumes a three percent (3%) annual increase in original tax capacity. (2) Based on a payable 1995 tax rate. This rate will change in 1996 and in subsequent years; This will result in a change in the actual amount of tax increment collected by the city. * Taxes will be generated in 1996, but no increment will be collected. The first year an increment • will be collected is 1997 and is based on a finished market value as of January 1, 1996. ** Assumes no construction value as a January 1, 1995. ***The District is decertified December 31, 2000, and taxes generated in 2001 will be collected by the local taxing jurisdictions. • . : III EXHIBIT E IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 12 ON OTHER MAJOR TAXING JURISDICTIONS City of Elk River,Minnesota Without Project With Project Projected Negative 1994/95 1994/95 1994/95 1994/95 Projected New Tax 1994/95 Adjusted Tax Capacity Captured Impact On Tax Capacity Ad Valorem Tax Capacity Tax Capacity Captured Tax Capacity Ad Valorem Tax Capacity Rate Tax Capacity Other Taxing Value Taxes Levied Rate Value Capacity Value Value Taxes Levied Rate Impact Value Jurisdictions City of Elk River $9,324,360 $2,223,347 23.958% $9,324,360 $23,010 $9,347,370 $2,223,347 23.785 0.173 $23,010 $5,472 Sherburne County $54,255,803 $12,128,779 22.380% $54,255,803 $23,010 $54,278,813 $12,128,779 22.345 0.035 $23,010 $5,141 ISD 728 $19,431,867 $11,032,065 56.511% $19,431,867 $23,010 $19,454,877 $11,032,065 56.443 0.068 $23,010 $12,988 Other 1.398% $23,010 1.398 $23,010 $321 TOTALS 104.247 103.971 0.276% $23,922 STATEMENT 1: The 1994/95 tax capacity value times the 1994/95 tax capacity rate produces 1994/95 taxes generated. If the captured tax capacity value was available to each taxing jurisdiction,the result would be a lower or adjusted tax capacity rate which would produce the same amount of taxes. Thus,with the addition of captured value of$23,010,the tax capacity rate for the above-selected major taxing jurisdictions would be reduced by a rate of.276%to an adjusted tax capacity of 103.971%. The captured tax capacity times the adjusted tax capacity rate of 103.971% would generate$23,922 in increment income,which represents the loss of new revenues if the development had not occurred without inclusion in a Tax Increment District. STATEMENT 2: If no captured tax capacity value is available to each of the taxing jurisdictions,there is no impact on the taxes heretofore levied,and therefore,no impact on tax capacity rates. NOTE: The impact on"other"taxing jurisdictions is negligible since those jurisdictions represent approximately 1.0%of the overall tax levy , „ . . . , • . . , s . , .-. . -- .,,-id-!,,:-*•‘-e"—^-r.'•-.----,,-•.,• -..t7-;•'-'-'-.--:.:•7'..:'-'7.`t.'"7----'7-.7-.---„,--z-i-rw4.57. *.k:''.10F444--•rz.-.7.:-,,-. .---:-.--;;..._•-•;a<,:c,e,,,, .,:44, 7:-_,,,-;...„,....),,,--,,,-,..-A_...,....,--,.-- -,„.4_,._•• , swir4r*' - 0,,,,q0 ,v- . . _• _.,..,. It Star Tribune ,__ ,.,„, , Iiii,,,,.;?;., ,:t , 0 . 0 1:4;1,44,y:16;4 _. ,i, 1 ,i b 4 44 0°, Metro/Region . , Monday y lc c: 4- .41:t..." it . _.t , -. gi" Of MPaleYals5eirle9a9d5and recycle 1 Bw _ •ogrf..- -' — ... . . ., . • . lcould see it coming all the time. When you're that close to the Cities, you can't fight it.' - Ex-Mayor BielenbergWoodbury struggles : 1 . Wayne th the Schilling, Woodbury's ''"- - ',:•. , k' , • ''''i'':4' .1+ •.'::':)'''' '...Z1.40 • 'i'. d ' ..'" . . '' last dairy farmer, looked d........ . b -46,T .itawew back to avoid a .! :,i::-' .1-.• :- , • --) . '„'...., f -- --------, "rteattt -:,-;144 ., rock as he ' -i',. •.;„„P9. 110.,,K*. 41116.4t, er' • Auk W.V,',...: ,• 31.;;;;,,o.,-,,,;.,.:4..,:t ,„ ' prepared his rdn..„ft-ti• -•' ' . 1 i•IF ,.; 41'.:1 1 .1«...-re:74itFzter.t., downside of housing success field for ,1-4. ii•,4,...,:, i",i, c.t., 1 4 •,,,,i.dif ,t1:1- I-, .•••.,. •• .,...,. „.;,:,„.,.,..,:,4'..,,, til planting.A tki't, *-711 - -0'• t. • 4 :4`4,:1‘.-i..' '3. '..e. . . subdivision c'''-'' "''`,:,-- '117 - ...Ai* "u. ''"-- -•-••..4.01 '-`1 -,.; •ttt'' .,t,'-'4,1:-, .-,- - By Conrad deFiebre 1857. Not that the sewer isn't handy enough. It looms in the "r/F-04144' 14v4,44 -••••mt4,v----— ' '' '' 444 ' .t• %r .2::—P1/04r4' "..: . t 7 Staff Writer almost stretches to the end of Schilling's dirt - ' 7 , .;.V '''',7•-t- 1,7;;.L 01 .".7."', 41.1 ;145"it ,z background. :'t3,-,4,4 . 7,4. -.• ,44--.... -.:',14'/• , - -•-' 14- ,...._ . •AK,. Schilling 50,is Woodbury's last dairy driveway on Bailey Rd. c,••.',„..,V '1:--- r ...... ' ..!...,ro :!--;‘, -,v.* . Woodbury has •',-,., 4 ....t.:.4,0".4.:%,, • 41..'?„;,.. , k4.,-„,*;, - ,-............--k•it-'14;' -* , ',.....„t;--y. For 25 years, Wayne Schilling,a fifth- farmer.So far,he has kept going by renting become the . -4ge44-• • ""'",',•-'''It4,4t.!- -ii ,' ‘..• ''• 4."' ' generation dairy farmer in what has become cropland from many owners-22 this year This year,Woodbury officials are studying fastest- -1%3. •'•••• • Minnesota's fastest-developingcit has i A: ,...1-.1..,....f. ..._: . .... . :... ., 7`t..". - _'• 'Sp,,-::. . fr.- y' -and staying one step ahead of the whether to extend that line past Schilling's indeveloping city - ,...--• 4 - - - t:- ''. ir F.,„L ' St41.'ti „,,.• raised calves,milked cows and spread bulldozers. But he wonders when there 40 acres and all the way to Cottage Grove Minnesota. ,t, • ..k., ,,. 3.1.1.04.„ '\.Thi .... ..'" ,4 ' 1- ‘" 7".X.T4)..140#114... . . ' 4 : ' 1. ,.-.,...,--4 manure on fields to help grow cattle feed, won't be enough open acreage left to absorb and Afton.Should they opt for full ,- ,.-i ,. .4t.-q ,_,,...,4- :.,... ,...-,..-.....t -• - , .., ,, .; ,a4p the 600,000 gallons of fertilizer his cows development,Woodbury,a hamlet ofjust t ' ' -"‹.' ".).1-1. • --"s` -.2.14;,...:A.41P% .'t•,.A.. ' '-:\1..\- •-*`,7- Nowthat 6,100 people as recently as 1970,could grow 1 in... ,, Iv.... -•.. • . ,,..-,t- .. __,,... . -. . ., . cycle is being eclipsed by another produce annually. fc ffilvA.,, ....4; „"_''..'......e-r44P• .... ---;,•;... t-- • '- •- - et, > q kind of growth-the sprawl of housing to 60,000 by 2020. i 1 • - ' --., :4.,-,-, •••:-• -• . ''clItik.- , _., ..,..- , . ..441..,.- subdivisions across the Woodbury "Where do I put the manure?"he said."1 , <,,,...-...-- • ,-.........s74-'<-,'"u• j -c. . '-writ. u. - • ' gillar-' ,yli'li • • • , Staff Photo by .„.- ,...:.. _ - v ,,..-.1.-;„-Ir .. -1.1 -F•tt--- „, .1. :.-4, 1.0%, • ,.,.. countryside where Schilling s great-great- can't imagine I could hook up to the sewer Joey McLeister grandfather,a German immigrant,settled in line." Woodbury continued on page 3B ; 1 • , welfare Many find there's Following the lead of Lanesboro, small no better way to . - i' , .,t.I i•e-1T-Rifttr, 7 ,, * cool down after a ••• T. i$, I"' t-,til V l''' ,•1• Minnesota cities are using everything f.k____..4,,,,,,,:rt ! / ii tr (74\‘‘ / I i i.:‘ b. Root River trail 1 •,`.71 ,. E,$: il41,7 ,', ''‘, \I - i. .., • from cappuccinos to bed-and- than to stop for a ' ...' ;:. , :e.''t '''' ' ••. ,• • . • - . z - 4., .,. ! , ' 1 ' ; , .! '-::::,'.'-. . ,, ,• breakfasts to draw the business of cold one in a Y! • Ili takes Lanesboroce 4 ^A,/, ! h,- • . &'1.-' ,' • •,, ; . , . , -,4.;-0, , I.- k t • bicyclists - and the economic boost tavern.Sin 1986,a year after T,.:,..•:,:--,,f, l'y -?:', ;. -jr ...1.rli ', at the tourists bring. — the trail's first l' ',/?''''111,,,',1 .",f v4 i 0 i.,N,d: .',";:i,. . it miles opened, ',i ' ', 1 tvfi1br•i."2 ,;/- .!.6.,, L ' •it • • a mixed food and drinking t ,/ . •J , 'IP'..i4f4 `. ,t,':-• I I a C (NI 'rich-Pr% ref e N i es receipts in the FO N ••, • Ili MI I oct ti]te c011111- f "• ••• •. •"•••e, ou•u 0„l., u,c �:iu an tiling. were going to be wrestling., r n " movement—significantly reducing federal mation. Likely to be confirmed. I n the year. with this a long time." . spending while taking moderate positions ,, - -:i, on social issues.There's also a strong • emphasis on reforming the way Congress .. 1. does business and the way political Woodbury/ Growth has Rea ,-,./ I fa campaigns are financed. ping a whirlwind of gl"OWtf1 '"" It r '4 .t The movement has affiliates in some 20 states.Another major source of muscle suburban life to man The fastest-growing suburb in the OAKDALE s �} .. r , givenv metro olitan area last LANDFALLfrAi„ , comes from United We Stand America,the J Woodbury,facesyear, ,. .,:-,r„ ` � W '1 M3 . organization created by Ross Perot in the ry, the possibility of �, fi ,.. 9a ? -, Continued from page lB completion in 1996 less than 2 miles even more rapid development in ,� ,r A wake of his strong showing in the 1992 from a similar shopping mall that the future.Nearly half of its 36- �`; 4 3 presidential campaign. And why not? After all, Woodbu gj<, - F . • Tim Penny:The former ry's opened in 1992;at the 1,300-employ- square-mile area is still , C� • explosive growth already has brought ee State Farm Insurance Co. regional undeveloped,and recent efforts to 5 0 ai i • congressman will be About 125 delegates are expected at the the sweet suburban life to thousands headquarters under construction; at lure retail and office projects have j 16 Valley eek Rd. :' doing some keynote convention.Minnesota was picked as the of families. It has put the east metro two large fitness centers being built the community poised for furthertEp speaking. convention site because the Independence area on the map in the rich move-up this year, and at 56 subdivisions in increases in population. WOODBURY 0 ”` ' ' Party officially achieved major party status housing market for affluent mid-lif- development. t when its U.S.Senate candidate,Dean Barkley,received 5 percent of the ers. And after languishing long in the ` vote last year.Since losing that election, Barkley has been active in the shadow of the booming western sub- And the ball keeps rolling. State Population } o ' o iy.n Bailey Rd.. r , national movement,and earlier this month the Plymouth attorney was urbs, the city has attained a critical Farm is relocating from Roseville 1980: 10,297 ►–'`., © elected state chairman of the Independence Party.Another unsuccessful mass of commercial and office devel- and "quite of few of their people 1990: 20,075 in' ¢ o r candidate, Deb Skogen from Coon Rapids,was elected vice chair.She opment that promises to fuel even have already moved out here,” said INGTO had previously run for the Legislature as an Independent-Republican �more expansion. Dwight Picha, Woodbury's1995: 30,706' 1 mile 3. INGTON before becoming the Independence Party's standard bearer in a recent g commu- AlG� special election for the state House. nity development director. "Estimate z COUNTY To be sure, its success has come with ; _;GOTTAG } RQ�ig"t*j4 4 , , There will be seating for spectators at the conventiqn,which is a downside. Some critics say that, "It's a big change, but I could see it Racial breakdown(1990) despite recent signs of change,Wood- coming all the time," said Orville1.Proposed new school scheduled to convene at 2 p.m. Friday. bury purposely has excluded people Bielenberg, Woodbury'sWhite: 19,076 Woodbury P y P P g first mayor 1 2.Woodbury Recreation Center Ig I. `Up north' taxes may head south of modest means. Others decry the after it incorporated in 1967. "When Black: 329 3.State Farm Insurance office environmental woes that can come you're that close to the Cities, you American Indian: 15 building(under construction) Cabin owners have done a good job of getting a toehold in both the when so much of the natural land- can't fight it." House and the Senate omnibus tax bills.Theyare demandingrelief Asian::' 610 4.Tamarack Village Center scope is transformed so fast. (planned) from their property tax rates,which are at least twice as high as what people pay on year-round homes.In a normal gettingsome So Bielenberg, 77, the grandson of a Other: 45 1 5.Valley Creek and Woodbury year, Still others mourn the loss of the old German farmer who settled next >.F• provision for cabin tax relief in both the House and Senate tax bills Village Shopping centers t�-' i would almost certainlytaresult in ry for the cabin owners. Not this barn-raising community spirit tog a door to the Schillings in 1876,joined tit•., cul-de-sac culture so short of neigh- it. He drafted a comprehensive plan, Time in Woodbury(1993) 6.Evergreen housing development year.Senate Tax Chair Doug Johnson, DFL-Cook,has shown little borliness that a citywide block party started a police department and tried Less than 1 year: 3.. "-, interest in passing a tax bill. It's not needed this year,because the was held last summer just to help to entice developers to the metro Medianm (1993 est.) )' Legislature's no-tax pledge means there is no need to raise tax rates to1 2 years: 15% income(1993 est.) Median age(1990•)" collect more revenue. While there are dozens of provisions in the people get to know one another. It's area's eastern frontier. .r little wonder: Fully 98 percent of 3-5 years: 22% I Woodbury: $62,500 ( Over 65: 971 "' omnibus tax bills,none is essential.And if there's no tax bill,there's no Woodbury's adults have moved in At first, it was a hard sell. With two- 27% • cabin tax relief, unless it can be grafted onto another bill. 6 10 years: �` from someplace else. thirds of the region's jobs concentrat- Metropolitan area 45-64: 3,575-i� They said it ed in its western half, developers 11-20 years: 20% Suburbs: $42,750 18-44: 9,338 I:r From Maple Grove to Cottage III"If only took a weekend to turn a good Idea into a bad one."— flocked to the Minneapolis suburbs. More than 20 years: 15% Under 18: 6,191 Grove, developing Twin Cities sub- Plus, Picha said, the Metropolitan Gov.Arne Carlson,referring to House Speaker Iry Anderson's urbs are struggling with similar is- Council was slow togrant sewer- proposal to finance the purchase of an NHL franchise byallowingSource:U.S.Census,Decision Resources Inc.,City of Woodbury. . bars to install video slot machines. sues. But perhaps nowhere else are building authority to Woodbury. they written as large as in Woodbury, , "Inconsistencyls what makes this place go around."—Rep.Jeff which over the past three years has But a breakthrough came in 1977 Many were settling in Edina and oth- pieces. He learned the land was for added 2,930 housing t un ire, co more withsthe platting of Evergreen, the er upscale western suburbs. sale and in line for sewer service. Bertram,DFL-Paynesville,extolling his House colleagues to vote than its nearest metro area comped- eastern suburbs' first executive- • against sending a bill to a House-Senate conference committee, tor,Eagan. homes subdivision. Realtor Dan Do- Then Dolan discovered an unusual Armed with $1.4 million in limited ; despite the wishes of the chief sponsor. Ian had been trying without much 275-acre Christmas tree farm in partnership guarantees from 3M ofli-• In Woodbury,the signs of growth are success to find homes in the St. Paul Woodbury, where customers climbed cers, Dolan gave the St. Paul City.: all around — at the Tamarack Vil- area for 3M executives transferred to ladders to harvest just the tops of :.., I nage "power center," scheduled for the corporate offices in Maplewood. tJ,a �y [1 P ' giant spruces for their holiday center- Woodbury continued on page SB r h�. r� III III .... .. _ . . . - -`r'al ]ir ii �w►nm'tr`.640.w.t'•g id-New--o-ince tr 4 ur-Kw►nv.0.•-•+im dr--m...,-M,P--w gr....-.rte..-�--'...-...�•le r.•.,.. u._...-- Star Tribune/Monday/May 15/1995 •5B = „S1.0 tate recreation trails Woodbury/ Some houses in $450,000 range priced •Tite state has developed 224 miles of trails with asphalt or crushed rock �stirfaces for biking and other nonmotorized sports. Here are the major Continued from page 3B ville had more. Woodbury still has "We know people in some of those On the social front, beyond block • If?creational trails being developed by the DNR or local groups.Some of the 5,000 lots ready for development, projects, and they're nice people,” parties, there are hopes that a new i''• Council a good laugh with his pro- enough to last at least five more Hargis routes shown,especially in northern Minnesota, posal to build $110,000 homes there. said. "Some of our friends' school and an 80-acre city athletic are unpaved and are used mainly for snowmobilyears,Picha said. children who are just out of college complex will z is p y Prices in Woodbury'sg p promote community handful of sub- and some divorced couples ing,hiking or off-road biking.Not shown are local) divisions at that time topped out ■Soaringlandprices in western sub- stayin town, but it's tough h ton find beha jpro ect of ththree oschool ;. � 9 9 g ' developed trail corridors in the Twin Cities area. y gjointproject under$50,000. urbs similar distances from Minne- housing they can afford. So we arc districts that divide the city.The$6.8 apolis. "It's hard to find a lot in open to a diversity of housing stock." million athletic complex, being built I ' This year, Dolan is selling the last Plymouth for less than $70,000," on Bielenberg's old farm,will include ' Arrowhead 1 nine of 408 single-family homes in said Anne Hurlburt, that city's com- Construction began this month on a lighted ballfields and domed hockey • •'' i his development graced by hundreds munity development director. In 36-unit low-income apartment pro- rinks. — , i of towering evergreens. Prices range Woodbury, lot prices start at ject, only the second of its kind in t _._.r 1 Taconite .• up to$450,000. $32,000,Picha said. Woodbury. Meanwhile, Hargis vow;; City officials say the planning review t:. I • Grand j North to develop scattered-site subsidized now underway will consider scenari- Shore Evergreen and Wedgewood, a vast 111 Woodbury's emphasis on upscale, housing, and the City Council has os ranging from full development to ;`' I, ;•1' Rapids planned development of Minnesota single-family homes as Baby Boom moved to ease some zoning and no more growth. As in manysub- Heartland I Mutual Life Insurance Co. that cov- families shop for dream houses. building codes that discourage low- urbs, a significant faction of ood- �J Willard Munger: K--�-_._ ers one-tenth of Woodbury's 36 cost construction. bury residents opposes further 3'1 Carlton-West Duluth — Developed square miles, set a conservative,cor- That emphasis has been so strong growth: In a 1993 survey, 23 percent •I I • trails porate tone for the town that persists that even Bielenberg had to move to "Those are steps in the right dices- called it the worst thing about the • •. Duluth •••. Partially today. House designs tend to be more Maplewood to find a townhouse after tion," said Jim Heltzer of the Wash- town. I Brainerd • developed traditional than in the western sub- he sold the family homestead in ington County Housing and Redevel- 0 : --- Acquisition urbs. And 30 percent of Woodbury's 1992. opment Authority. The authority's But officials say Woodbury's future authorized breadwinners are 3Mers, includingApartmentsproject will depend largely on economics. 1 ( Willard Munger: � - Tamarack 11 Hinckley Fire , ---- the past three mayors. According to the 1990 census, Wood- "took considerable discussion," he; While it would cost an estimated $40 ti i Willard Munger: bury had the region's lowest percent- said, but is "sort of a breakthrough million to extend roads and utilities 9 Woodbury's median household in- age of low-income housing. And a for us." to Woodbury's rural edges, officials '' i F I Boundary come surpassed that of west-subur- 1994 studyof 10 developing Twin ••• P 8 are countingon taxes from the new 'i'ii l Twin ban strongholds such as Edina and Cities suburbs found that Wood- Woodbury also gets improving development to pay for existing in- hi t Luce Line Cities Willard Munger: Minnetonka during the 1980s, even bury's development rules and politi- grades from a state official who less frastructure. i .;, b I Gateway while its population was doubling to cal climate hampered construction of than two years ago criticized the city _ ' 20,000. The housing boom of the low-income housing. for letting unchecked development Hargis said the current review was i Minnesota Valley r'� O Red Wing 1990s has added 10,000 more resi- cause severe water runoff After a delayed when Sara Prow, the city's I I dents in just five years. Former Mayor Kenneth Mahle, who mile-long lake suddenly appeared, longtime senior planner, was asci- ! ' , Fatrbault O ' Cannon Valley J g • 50 miles resigned in 1993 and pleaded guilty flooding a principal road and killing dentally shot and killed by her hus- �r Iles Mankato O -� t Dou las Experts cite several reasons for such to solicitingsex from a I4-year-old 100 century-old bur oaks, the city band in January at their Woodbury w,• i 9 rapid growth: boy in south Minneapolis,vehement- bought two houses to relocate the home. Now a report is expected by ' __ I I '+ Austin ly opposed low-income housing in families so the water could be fall. Sakatah Singing Hills ' ., - � ' Root River III The opening of the final legs of Woodbury.Advocates of one project, drained. Interstate Hwys. 494 and 94 in 1986 he said, wanted to "invite all of the Schilling, for one, has few doubts and 1987, respectively, linking indigent people walking the streets in Since then, the city has hired an about its findings. When his wife, Star Tribune Map Woodbury to the rest of the Twin downtown St. Paul to come and live environmental planner and is coop- Betty, complains that the farmhouse : Cities. Bike trail in Woodbury. We don't need that." crating with the state Department of needs new siding,he says:"We aren't Natural Resources (DNR) on man- going to live here long enough to pay • Continued from page 2B ■Woodbury's large supply of land His successor, Bill Hargis, said cur- agement of its many wetlands, said for it." inside the Metro Council's sewer rent officials don't share Mahle's Molly Shodeen,a DNR hydrologist. i The DNR estimated almost 19,000 But development comes with a price. boundaries.At last count, only Lake- hard-line views. people used the trails in 1990, a "Property values have skyrocketed," _ f figure some think has doubled, with said city administrator Stephen • overnight weekend trail users spend- Sarvi. "There's a critical housing 1 ipg almost $50 per person per day. shortage," affecting young families - Lodging receipts in Fillmore County the most. Tourism and a new cheese i jumped eightfctween 1986 and plant strain the city's sewage plant. • • 1992; the nuc.• of lodging bus]- • nesses leaped from eight to 30. "It was generally accepted that peo-