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5.12 rkr A� ( ITEM 5.12. City of 1k1k, River MEMORANDUM TO: Planning Commission FROM: Kendra Lindahl, Zoning Assistant DATE: May 28, 1996 SUBJECT: Request by the City of Elk River to amend the City Code of Ordinances, relating to the Sale of Vehicles on Public and Private Property, Public Hearing Case No. OA 96-07 Request At the direction of the City Council, staff is recommending that the Elk River Code of Ordinances be amended to address the sale of vehicles on public and private property. • Attachments • Proposed Amendment • Ordinance amendment OA 96-_ • Parking ordinances from Fridley, Blaine and Mounds View Background The City of Elk River has had a number of complaints relating to vehicles for sale. Frequently, problems arise because residents park these vehicles in the public right-of-way (ROW) or in their front yards. Unfortunately, this leads to traffic problems, erosion, and other safety issues. The City Council directed staff to prepare an ordinance amendment to address these issues. One of the best examples of this problem is on Hwy. 169 and 197th Avenue NW. Residents park their vehicles in the ROW because they know it is a high traffic area where their vehicle is likely to be seen. Unfortunately, the land they are parking on is in the highway ROW, and the land behind the ROW is not owned by them. Trespassing is but one of the issues associated with the sale of vehicles. • S:\PLANNING\KENDRA\OA96-07.DOC 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 If you take a look at this area, you will see that the grass is gone and it is a • muddy mess (this was true even before they started grading the site for Menards). The erosion was caused by all of the vehicle traffic on this formerly grassy location. Staff visited the site this spring to investigate the vehicles for sale in the ROW and found that the traffic problems associated with that site are tremendous. It is an unsafe area for interested people to pull over and take a look at the vehicles for sale. If they drive up next to the vehicles on the grass, they are contributing to the erosion problem, and if they try to park on the street or highway they are blocking traffic. The same issues arise when residents park vehicles for sale on private property. They may still be contributing to the erosion problem by parking on the landscaped area and may cause safety or visibility problems if they park the vehicles on the corner of their lots. This issue is addressed, to some extent, in our zoning ordinance by prohibiting parking on landscaped areas, but staff believes it is important to address it in the parking section of Chapter 11 as well. Analysis The city has had limited success in resolving these parking issues. Part of the problem is that the zoning department frequently gets the complaint • calls, but we have a limited ability to resolve the problems. The zoning department can try to contact the vehicle owners and ask them to move the vehicles, but we have limited ability to enforce it. On the other hand, the police department has the power to tag the offending vehicles and have them towed. I spoke to Chief Zerwas and he believes that this ordinance would be most effective if the police have the power to tag violators. Therefore, staff is recommending that the parking regulations in Chapter 11 be amended. I have contacted a number of other cities to find out how they deal with the issue of vehicle sales on public and private property. In most of these cities, this issue is a police issue and not a zoning issue. Blaine, Fridley and Mounds View all have essentially the same ordinance. Staff in these cities seem to be happy with this ordinance from both a zoning and a police standpoint. These cities have found the ordinance to be complete and legally sound. I have included a copy for your review. It is staffs opinion that the best way to deal with the sale of vehicles is to address these concerns in the parking regulations in Chapter 11. This way, problem areas can be immediately addressed and corrected by city staff. This ordinance will have no adverse effect on the sale of personal vehicles on private property, but will become a tool to work with properties that have • become safety problems because of the parking location of vehicles for sale. S:\PLANNING\KENDRA\OA90-07.DOC • Recommendation Staff recommends that the Planning Commission recommend approval of the ordinance amendment to regulate the sale of vehicles on public and private property. • • S:\PLANNING\KENDRA\OA96-07.DOC PROPOSED AMENDMENT • CHAPTER 11 TRAFFIC AND MOTOR VEHICLES SECTION 1100 - GENERAL TRAFFIC AND MOTOR VEHICLE REGULATIONS 1100 .10 - PARKING REGULATIONS 1 . Angle and Parallel Parking. Angle parking may be permitted on any street by resolution of the Council . On any such street every vehicle parked shall be parked with the front of the vehicle facing the curb or the edge of the traveled portion of the street at an angle of approximately forty-five degrees (450) . On all other streets, cars shall be parked parallel to the curb or edge of the roadway in accordance with law. 2 . No Parking, Stopping, or Standing Zones . The Council may, by resolution, designate certain streets as no parking or no stopping or standing zones and may limit the hours in which the restriction apply. The City Administrator or such other official as the Council may designate shall mark by appropriate signs each such • zone so designated. Except when necessary to avoid conflict with other traffic or in compliance with the directions of a police officer or a traffic control device, no person shall stop or park a vehicle in an established no stopping or standing zone when stopping or standing is prohibited. No vehicle shall be parked in a no parking zone during hours when parking is prohibited except that a vehicle may be parked temporarily in such zone for the purpose of forming a funeral procession and a truck may be parked temporarily between the hours of 8 :00 a.m. and 6 :00 p.m. of any business day for the purpose of loading or unloading where access to the premises is not otherwise available . 3 . Sale of Vehicles on Public and Private Property A. In order to preserve civic beauty, to assure public health, safety and welfare by preventing congestion and traffic hazards, to prevent unauthorized use and trespass on vacant land and to prevent damage and erosion problems associated with off-road vehicle traffic on unimproved surfaces, it is necessary to regulate the individual sale of vehicles within the city. B. No person, business, association or corporation shall • park, store, display or permit the parking, storage or s:\document\ordinance\oa96-7.doc display of a motor vehicle for the purpose of sale • consignment, lease, trade or exchange upon: i . ) Any public property including public right of way and easements; or ii . ) Any private property unless the vehicle is parked on an improved hard surface designed and improved for vehicle travel and only if the vehicle is registered to the property owner or occupant of said property. 4 . Time Limit Parking Zones. A. The Council may, by resolution, designate certain areas where the right to park is limited during hours specified. The City Administrator, or such other appropriate official as the Council may designate, shall mark by appropriate signs each zone so designated. During the hours specified on the sign, no person shall park a vehicle in any limited parking zone for a longer period than is so specified. B. Pursuant to Section 1100 . 10 (3) (A) hereof, the City Council hereby designates the following areas where the right to park is limited to no more than three (3) consecutive • hours : i. Main Street from Highway 10 to Lowed Avenue; ii . King Avenue from Highway 10 to Main Street; iii. Jackson Avenue from Highway 10 to Main Street; iv. Jackson Place from Highway 10 to Main Street; v. Parking lot between Jackson Place and Jackson Avenue . Vehicles shall be parked parallel to the curb or edge of the roadway on all of the three hour time limited parking areas established in this subparagraph provided, however, that angle parking may be permitted on any of the above parking areas which have been duly designated by the Council and marked by appropriate stripping. • s:\document\or dinance\oa96-7.doc 5 . General Time Limit. No vehicle shall be parked between 2 :00 • a.m. and 6 :00 a.m. in the business district . 6 . Impoundment. Any police officer may remove a vehicle from a street to a garage or other place of safety when the vehicle is left unattended and constitutes an obstruction to traffic or hinders snow removal or street improvement or maintenance operations . Such vehicle shall not be released until the fees for towing and storage are paid in addition to any fine imposed for violation of this ordinance . 7 . Prima Facie Violation. The presence of any motor vehicle on any street when standing or parked in violation of this ordinance is prima facie evidence that the registered owner or current owner of the vehicle committed or authorized the commission of the violation. 8 . Duty to Comply with State Law. The City of Elk River hereby adopts all parking regulations set forth in Minnesota Statutes, Chapter 169, and other applicable State Laws. 9 . Regulation of Certain Parking Areas. A. The Municipal Parking lot along the Burlington Northern • Railroad is designated contract or reserve parking, the use of which requires payment to the City of an annual fee of Seventy-five Dollars ($75 . 00) per parking space . B. The twenty-three (23) parking spaces on the north side of the Municipal Parking Lot adjacent to Highway 10 are designated contract or reserve parking, until such time as the additional three hundred fifty (350) feet of parking lot along the Burlington Northern Railroad tracks have been blacktopped for contract or reserve parking. At such time, said twenty-three (23) parking spaces shall become public spaces and the contract or reserve parking shall be moved to the new additional parking lot along the Burlington Northern Railroad tracks . Prior to the completion of the above-described blacktopping, the use of said twenty-three (23) parking spaces requires payment to the City of an annual fee of Seventy-five Dollars ($75 . 00) per parking space . i s:\document\ordinance\oa96-7.doc 10 . Fire Lanes • A. The Chief of Police may, when authorized by resolution of the Council, designate certain streets or blocks, or portions of streets or blocks as prohibited parking zones for fire lanes . B. Whenever the owner of the property used, for or in connection with business purposes, is required by ordinance or by the conditions applicable to the issuance of a use, building or occupancy permit, or by written order of the Fire Marshal or the Chief of Police to maintain driveways, access lanes, or other areas unobstructed by parked or stopped vehicles for the purpose of ensuring access or egress for police, fire, and emergency vehicles, the owner or person in lawful possession of such property shall place or cause to be placed a sign or signs as follows: i . The sign shall be placed in such a position that it is visible to anyone attempting to use the way or area for parking, stating: "No Stopping or Parking - Violators Tagged and Towed by Order of the City Council, " or "No Parking - Fire Lane. " • ii . The signs shall be permanent, nonportable signs, except when temporary signs are approved by written order of the Fire Marshal or Chief of Police. iii . The signs shall be placed at appropriate locations under the supervision of the City. iv. At the entrance to a business or an establishment where such signs have been placed as set forth in this Section. Exceptions may be made for persons who let passengers off from their vehicles at such an entrance . 11. Petty Misdemeanor; Penalty. Any violation of any of the provisions of Section 1100 . 10 shall constitute a petty misdemeanor punishable by payment, upon conviction, of a Five Dollar ($5 . 00) minimum fine provided that the violator has no prior parking violation within the thirty (30) days immediately preceding the date of violation. If such prior parking violation has occurred, a Ten Dollar ($10 .00) minimum fine shall be imposed. In any event, the fine for violation of any of the provisions of Section 1100 .10 shall not exceed One Hundred Dollars ($100 . 00) . • s:\document\ordinance\oa96-7.doc ORDINANCE 96- • CITY OF ELK RIVER AN ORDINANCE AMENDING SECTION 1100.10 OF THE CITY OF ELK RIVER CODE OF ORDINANCES PARKING REGULATIONS CASE NO. OA 96-7 The City Council of the City of Elk River does hereby ordain as follows: Section 1. Section 1100.10 of the Elk River Code of Ordinances is hereby amended to read as follows: See Attached Exhibit A Section 2. That this Ordinance shall take effect and be in full force from and after the date of its publication. Passed and adopted this day of , 1996, by the City Council of the City of Elk River. • Henry A. Duitsman, Mayor ATTEST: Sandra A. Thackeray, City Clerk • s:\document\ordinance\oa96-7x.doc SECTION 1100 - GENERAL TRAFFIC AND MOTOR VEHICLE REGULATIONS • 1100 . 10 - PARKING REGULATIONS 3 . Sale of Vehicles on Public and Private Property A. In order to preserve civic beauty, to assure public health, safety and welfare by preventing congestion and traffic hazards, to prevent unauthorized use and trespass on vacant land and to prevent damage and erosion problems associated with off-road vehicle traffic on unimproved surfaces, it is necessary to regulate the individual sale of vehicles within the city. B. No person, business, association or corporation shall park, store, display or permit the parking, storage or display of a motor vehicle for the purpose of sale consignment, lease, trade or exchange upon: i) Any public property including public right of way and easements; or ii) Any private property unless the vehicle is parked on an • improved hard surface designed and improved for vehicle travel and only if the vehicle is registered to the property owner or occupant of said property. • 3:\PLANNING\KENDRA\OA96-7.DOC APR 22 '96 02:45PM FRIDLEY,MN POLICE DP y CITY OF FRIDLEY ORDINANCE • ORDINANCE NO. 869 . ORDINANCE RECODIFYING IHE FRIDLEY CITY CODE, CHAPTER 506 , ENTITLED "VEHICLE PARKING' BY AMENDING SECTIONS 506,02 AND 506.10. The City Council of the City of Fridley hereby ordains as follows: • 506. VEHICLE PARKING. 506.02. DEFINITIONS. r 9. Vehicle. Motor vehicle as defined in Minnesota Statutes, Section 168.011 Subdivision 4. 506.10. FOR SALE OR WASHING. 1. In order to preserve civic beauty, to assure public health, safety, and Welfare by preventing congestion and traffic hazards, to prevent unauthorized use and trespass on vacant property, and to prevent damage and erosion problems associated with off-road vehicle travel on unimproved surfaces, it is • necessary to regulate the individual sales of vehicles within the city. No .,, person, business, association or corporation shall store, display or park, or • allow the storage, display or parking of an individual vehicle for the purpose of displaying on or near it a sign indicating a phone number, address , or other identifying information, or a sign indicating that the vehicle is for sale, consignment, lease, trade or exchange: i a. Upon any public property including public right of way and easements ; ? or ' b. Upon any private property, unless the vehicle is stored, displayed, or i parked on an improved hard surface designed and improved for vehicle • travel and only if the vehicle is registered to the property owner or } occupant of the property upon which it is stored, displayed, or parked, i unless the property owners or occupants have a current license to sell vehicles on the property. 2. No person shall park a vehicle upon any roadway for the purpose of: washing, greasing or repairing such vehicle except repairs necessitated by an ` emergency. i j 1 i I 1 i 1Q . e I i i 4 I APR 22 '96 03:45PM FRIDLEY,MN POLICE DP P.3/3 Page 2 • Ordinance No, 869 • • S PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS 3RD DAY OF NOVEMBER, 1986 WILLIAM J. NEE - MAYOR • ATTEST: SHIRLEY A. HAAPALA • CITY CLERK First Reading: October 20, 1986 } Second Reading: November 3, 1986 • Publication: November 10, 1986 1110 • • 1 • U; CITY OF iNE E:2 7E4 OO447:-.22/22 CITY OF BLAINE ORDINANCE • TRAFFIC AND VEHICLES § 19.10 Sec. 19.8. Bicycle registration and license required. No person shall ride or use a bicycle upon any public street, highway,boulevard or alley in the city unless the bicycle shall be registered and licensed in the name of the actual owner as re- quired by law. (Code 1963, § 64.01; Ord. No. 360, 5-2-74) State law reference—Bicycle lanes and ways,MSA§ 160.263 ct seq. Sec. 19-9. Sales of vehicles on public and private property. in order to preserve civic beauty,to assure public health,safety, and welfare by preventing congestion and traffic hazards, to pre- vent unauthorized use and trespass on vacant property, and to prevent damage and erosion problems associated with off-road vehicle travel on unimproved surfaces, it is necessary to regulate the individual sales of vehicles within the city. No person, busi- ness, association or corporation shall store, display or park, or allow the storage, display or parking of an individual vehicle which has displayed on or near it a sign indicating a phone number, address, or other identifying information, or a sign in- dicating that the vehicle is for sale, consignment, lease, trade or exchange: • (a) Upon any public property including public right-of-way and easements; or (b) Upon any private property, unless the vehicle is stored, displayed,or parked on an improved hard surface designed and improved for vehicle travel and only if the vehicle is registered to the property upon which it is stored, dis- played, or parked. (Ord. No. 86-944, 5-1-86) • Sec. 19-10. Release of motor vehicles from impoundment. • If a motor vehicle is impounded by a peace officer following the arrest or taking into custody of a driver for a violation of MSA § 169.121, or ordinance in conformity with it, or MSA § 169.129, the impounded vehicle shall only be released from impoundment. (1) To the registered owner, a person authorized by the regis- tered owner, a lien owner of record, or a person who has purchased the vehicle from the registered owner, who pro- vides proof of ownership of the vehicle, proof of valid Min- Supp. No, 46 1485 • TOTAL P.22 CITY OF MOUNDS VIEW ORDINANCE 802.08 802.09 / by a police officer or traffic-control device. The City Council may , authorize exceptions from this Section. Any street or highway so excepted • must be posted with a sign indicating that parking between two o'clock (2:00) A.M. and six o'clock (6:00) A.M. is allowed_ (Ord. 511, 6-22-92) Subd. 2. Specific Areas, 9:00 P.M. to 2:00 A.M.: No person shall stop, stand or park a motor vehicle on the following sections of City streets between the hours of nine o'clock (9.00) P.M. and two o'clock (2:00) A.M., except as otherwise authorized by this Code or unless directed to do so by a police officer or traffic-control device: Bronson Drive. north side between Edgewood Drive and Jackson Drive; • Clearview Avenue, between Irondale Road and Edgewood Drive; Edgewood Drive, between Woodale Drive and County Road H-2 except adjacent to 2400 County Road H-2; Greenfield Avenue, between Woodale Drive and County Road H-2 except adjacent to 24.00 County Road H-2; O'Connell Drive, between Jeffrey Drive and Greenfield Avenue. (Ord. 540, 6-13-94) 802.09: PARKING VEHICLES FOR SALE: • Subd. 1. Purpose: In order to preserve civic beauty, to insure public health, safety and welfare by preventing congestion and traffic hazards, to prevent unauthorized use and trespass on vacant land and to prevent damage and erosion problems associated with off-road vehicle traffic on unimproved surfaces, the following prohibitions are required. Subd. 2. Vehicle Parking for Sale Prohibited: No person shall park. store, display or permit the parking, storage or display of a motor vehicle, as defined in subdivision 802.01(4) of this Chapter for the purpose of sale, consignment, lease, trade or exchange upon: a. Any public property including public right of way and easements: or 4110 b. Any private property unless the vehicle is parked on an improved hard surface designed and improved for vehicle travel and only if the vehicle is registered to the property owner or occupant of said property and, when applicable, if said owner or occupant has a license issued pursuant to Chapter 510 of this Municipal Code. (1988 Code §81.03) S • 1294 City of Mounds View ek,/ *-\ ( ( ITEM NO. 5.13 it ikRiver y of � MEMORANDUM TO: Planning Commission FROM: Pat Klaers, City Ad . istra,,,or DATE: May 22, 1996 SUBJECT: Review of TIF Plan for TIF District No. 15 On Monday, June 10, 1996, the Elk River City Council will hold a public hearing to consider a Tax Increment Financing (TIF) Plan for TIF District No. 15. Pursuant to Minnesota Statutes, the Planning Commission is required to review and comment on the proposed TIF Plan prior to the City Council conducting a public hearing. This is done to ensure that the land use of the project is consistent with the city's Comprehensive Plan. The Elk River Economic Development Authority (EDA) is proposing the • creation of TIF District No. 15. We are proposing the creation of TIF District No. 15 for McChesney Cabinets. The District will be for one parcel: Lot 9, Block 1, McChesney Industrial Park. With the completion of this project there will be only one lot remaining in the McChesney Industrial Park. McChesney Cabinets is a manufacturer of custom cabinets and countertops and specialty wood items. The company seeks approximately $35,000 in TIF assistance to support the construction of an approximately 10,000 square foot facility on Lot 9. Tax increment funds will be used to write down the value of this lot on a pay-as-you-go basis. With this project, McChesney Cabinets will go from a 3,000 square foot facility to a 5,000 square foot facility. The balance of the facility will be leased out to another local company, Winlectric, for its expansion. With this project, McChesney Cabinets will add two new employees over the next three years. McChesney Cabinets currently has two employees. Additionally, it is anticipated that Winlectric will be adding another employee with their expansion. Overall this project adds 10,000 square feet of industrial space in the community and adds another few employees, plus the spin-off benefit of another company expanding into the space that McChesney Cabinets and Winlectric currently occupies. To support the request for assistance, the EDA proposes to create an • economic development TIF District. New property taxes generated by the 13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441-7420 • Fax: (612) 441-7425 10,000 square foot facility will be captured by the city/EDA in order to pay • back the $35,000 TIF grant. It is estimated that the McChesney TIF District will last approximately five years. New property taxes, or the increment, will be collected for four years. Action Requested The Elk River Planning Commission is requested 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 action and findings will be forwarded to the City Council for its consideration at the June 10„ 1996, public hearing. • III s:\planning\p c\tif 15 RESOLUTION 96- A RESOLUTION OF THE ELK RIVER PLANNING COMMISSION FINDING THE ECONOMIC DEVELOPMENT AUTHORITY'S TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 15 LOCATED WITHIN DEVELOPMENT DISTRICT NO. 1 TO BE 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. 15 (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. 15 is consistent with the Elk River Comprehensive IIIPlan based on the following findings: 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 and employment base. Passed and adopted by the Planning Commission of the City of Elk River this 28th day of May, 1996. Tom Dillon, Chair ATTEST: Steven B. 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R1d si 31 " el-t,ZEIL'11., 59,...a.. . — _.....` lelL'AinifilljeW.w1111 460.44, 116•Jihrrianuitir iii.•1 ....... (..) -,,,;;Etz0 -1- , I . ' Al • p 0 '22111 411111 ,..• ______ ,, ,,••._ - , _______,______ „„... -- - ••••,,,,,,,,,. ------- , --- --- 5 E 6 1 E 0 = I 176711 C4 Community Commercial 0 <SI Qz 2 -' c.., z Ill Light Industrial 5 1751}1 _ 0 0 V 0 0 ni ,-,3, 2 2 ...= 7.. ..,7, -.,.:. ,..7.. •.,:. I 12 I Medium Industrial .7.. Z.: Z., i 174 • SWF Solid Waste Facility — 8 . )n §- . . = . TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 15 DEVELOPMENT PROGRAM • DEVELOPMENT DISTRICT NO. 1 CITY OF ELK RIVER, MINNESOTA JUNE 10, 1996 • TAX INCREMENT FINANCING PLAN TAX INCREMENT FINANCING DISTRICT NO. 15 • SUMMARY McChesney Cabinets, 18983 York Street, Elk River, Minnesota seeks $35,000 in Tax Increment Financing assistance to support its proposed construction of a 10,000 square foot facility in the McChesney Industrial Park. McChesney Cabinets is a manufacturer and installer of custom cabinets and countertops and specialty wood items. McChesney Cabinets currently occupies 3,000 square feet at 18983 York Street in Elk River, Minnesota, and currently has two (2) full time employees at this facility. As a result of the expansion, approximately two new full-time jobs will be created in 1997. 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 price or value of the development site. The Economic Development Authority for the City of Elk River proposes to reimburse McChesney Cabinets for the value associated with Lot 9 under a pay-as-you-go Tax Increment Financing District. The 10,000 square foot facility will have a finished market value estimated at • $300,000 which produces property taxes of approximately $12,600 per year. Of this total, $11,400 will be new additional taxes. These new funds will be "captured" by the Economic Development Authority so that the City of Elk River can recover the $35,000 in tax increment assistance. After these funds have been repaid, Tax Increment Financing District No. 15 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. 15 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. 15 A. STATEMENT OF OBJECTIVES Tax Increment Financing District No. 15 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. 15 are: 1. To provide pay-as-you-go reimbursement for the value of Lot 9, 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 10,000 square feet; 3. To increase employment opportunities in the community and in the State of Minnesota; said expansion will create approximately two (2) full time positions over the next three (3) years and approximately two (2) 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 total property taxes of approximately $12,600 including new additional property taxes of approximately $11,400. 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. 15 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 McChesney Cabinets, 18983 York Street NW, Elk River, Minnesota, seeks Tax Increment Financing assistance to support its proposed construction of a 10,000 square foot facility in the McChesney Industrial Park. The Tax Increment funds will be used to reimburse McChesney Cabinets for the value of the development site. 2. Property Included in Tax Increment Financing District No. 15 The legal description of the property included in TIF District No. 15 are is follows: Lot 9, Block 1, McChesney Industrial Park (PID No. 75- 433-0180) Attached as Exhibits B-1 and B-2 are maps showing the exact location of the property included in Tax Increment Financing District No. 15. • 3. Property to be Acquired by the Authority No property will be acquired by the Authority. D. DEVELOPMENT ACTIVITIES 1. Development Overview McChesney Cabinets, proposes to construct a new facility containing approximately 10,000 square feet on Lot 9. The new facility will have a finished market value estimated at $300,000. Construction may begin during the summer of 1996 and will be completed by December 31, 1996. McChesney Cabinets currently employs two (2) individuals at its 3,000 square foot space in Elk River. As a result of the expansion, two (2) new full-time jobs will be created by McChesney Cabinets in the next three (3) years. • 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. 15 include: • Contract for Construction of a 10,000 Square Foot Facility (by McChesney Cabinets) • Soil Borings and Analysis • Site Preparation and Development E. FINANCIAL ANALYSIS OF TAX INCREMENT FINANCING DISTRICT NO. 15 1. Tax Increment Financing District No. 15 Cost Estimates Budget Amount Land Write Down $35,000 Administration & Legal $ 1,000 Miscellaneous $ 1.000 Total $37,000 • 2. Bonded Indebtedness The City of Elk River anticipates a pay-as-you-go Tax Increment Financing District No. 15 and no bonds will be issued. 3. Sources of Revenue to Pay Public Costs Tax Increments collected from the McChesney Cabinets expansion will be used to pay the public costs associated with Tax Increment Financing District No. 15. 4. Original Tax Capacity The original net tax capacity, based on the 1995 valuation, for the real property in Tax Increment District No. 15 is estimated to be $1,150. 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. 15 is estimated at $300,000. This value translates into a completed • net tax capacity estimated at $12,200. The captured net tax capacity is estimated as follows: • Completed Net Tax Capacity $12,200 Less Original Net Tax Capacity 1150 Equals Captured Net Tax Capacity $11,050 One hundred percent of the captured net tax capacity of Tax Increment Financing District No. 15 will be required to finance the public costs associated with District No. 15. 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. 15. 6. Duration of the Tax Increment Financing District No. 15 The City of Elk River expects that the first increment it will receive from Tax Increment Financing District No. 15 will be for taxes payable in 1998, and will be based on a completed value as of January 2, 1997. The City expects to continue to receive tax increment from Tax Increment District No. 15 up to and including the year 2001, or until approximately $37,000 in tax increment has been received. Thereafter, no further increments may be received and Tax Increment Financing District No. 15 will terminate. F. CASH FLOW ANALYSIS • Attached as Exhibit D is the Cash Flow Analysis for Tax Increment Financing District No. 15. G. IMPACT ON OTHER LOCAL TAXING JURISDICTIONS 1. Estimated Impact of District No. 15 on the Taxing Jurisdictions Assuming the Captured Net Tax Capacity is Available to the Taxing Jurisdictions Without Creation of District No. 15: 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. 2. Estimated Impact of District No. 15 on the Taxing Jurisdictions Assuming None of the Captured Net Tax Capacity is Available to Taxing Jurisdictions Without Creation of District No. 15: The Economic Development Authority of the City of Elk River has determined that the McChesney Cabinets project would not reasonably be expected to occur without the creation of TIF District No. 15 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. 15 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 McChesney Cabinets 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 3,000 square feet in Elk River and is planning this expansion into a larger 5,000 square foot facility. The balance of the facility, 5,000 square feet, will be leased to another local company - Winlectric Company - for its expansion. Tax increment assistance is needed to reduce the overall project costs - thereby preserving scarce capital to ensure that McChesney Cabinets remains financially stable after the expansion. • In addition, tax increment assistance is necessary because i 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. PARCEL INCLUDED IN TAX INCREMENT FINANCING DISTRICT NO. 15 Tax Increment Financing District No. 15 is comprised of one parcel of land. It is listed below: 1995 Original Parcel 1995 EMV Payable 1996 Net Tax Capacity 75-433-0180 $25,000 $1,150 Please refer to Exhibit C for the County Auditor Certification of this parcel in Tax Increment Financing District No. 15. • - i1I1ii , 1 u11 : 1i , ; i1i'I : 11 , ilii !i;: lill ; 11illiii1 : : i1iri11I1 :: 111 ! � Ii1III111i1111 —• ... ,...... • . b i „7„:,:c?-0-v I \.‘ : - i 'A-.7. :I. ..P....N.:.d I 1 .-...'V........../: ...... 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IOW ! �i� Ii —1 NosunN (oocc l) .. ... {t .___.,.‘ .,.,:, \ \_ ____ii.irfrs .,, 1�r1-7.11'ritob ;1 •M II S mi,, IIJW, ww - --1 :7_- H.:07., IT! i—.t\---\----l\-- \\ 14- • Law .v,7, 1 ittits°: - , _ 1N3x (/1i1 Os t „. u., II i MINIM Nll'JVry tc — ----- _ i \ 1 `��> 1 ;1 rf l t o r -- .1) - — /r7` J ..- � ( 1 1 it /If—� f I f I �� Fir�,,.� • EXHIBIT B-2 TAX INCREMENT FINANCING DISTRICT NO. 15 *4.----.....4....t: 144.4r ft.t...".....4. 1.40 t 1 ....-.. ...... A. Vii.,.,,,,,,, rr 1 ,— ;47)4 /1,•_27*—•uyr--...C... u. I I . -•sw../4,,, oQ -� 5. •' , . 111 X46 4c.'/- �! ! •+ r, �'�'��r.' ,41.r)00,40•0...c......,- • 5 _ rev— _ i /�BAc.Y_ R it / 3 ,tel ../ ► 1`' .../ z Olii `t. a (� \ = -tel BL2 I ; � tiL. 7 r-0o z •4c.*� CO � ` fir gc. ' :- , ___, x_ , t • , . I .. .. 8 �, • _ __/ x V, I /-0DAc., Lzi -�' ..4•.•• ••••••••••••••••••••. . \C4 4./ Ir \�„r : .,�, �t .••••••• •••••••••••• �•••••••••4°••••�•�., '� - 19‘% l'• ‘''%.. . 7 ..f.A!”.1411$$:**::::::::::::".../•••:::1•1. 1 42°4c''x / :...;:-_• . 6••••••••••••••••••••••••••••�•••••:•f -,, ��,•44+►"ip•s ♦....... ....•..♦ �'y x•4.4•.. ' 4••••••••••••••••••••••••O••••1� / /5i7 � �`.�'•.4• _ ..•..❖...••...•••❖•.•••••••••••••�•.• ~'� ,� 7 J • TIF District No. 15 • of 9 , Block 1 �` Chesney Industrial Park \ EXHIBIT C 11/ COUNTY AUDITOR CERTIFICATION TAX INCREMENT FINANCING DISTRICT NO. 15 The original net tax capacity of the following listed parcel as of January 2, 1995, is certified to be $1,150. The parcel contained in Tax Increment District No. 15 is listed below. 1995 EMV 1995 Original Parcel Number Payable 1996 Net Tax Capacity 75-433-0180 $25,000 $1,150 The Base Tax Rate will be the rate calculated for taxes payable in 1996. In accordance with Minnesota Statutes, Section 469.177, Subdivision 1, the average percentage increase in the original Net Tax Capacity shall be three percent (3%). 1111 Ramona Doebler Sherburne County Auditor SHERBURNE COUNTY SEAL June , 1996 • • • • EXHIBIT D TAX INCREMENT FINANCING DISTRICT NO. 15 CASH FLOW ANALYSIS *1997 1998 1999 2000 2001 Original Net Tax Capacity(1) $1,150 $1,185 $1,220 $1,257 $1,294 Total Net Tax Capacity $1.150 $12,200 $12.200 $12.200 $12.200 Captured Net Tax Capacity $0 $11,016 $10,980 $10,943 $10,906 Estimated Tax Rate(2) 103.497 103.497 103.497 103.497 103.497 Captured Tax Increment 0 $11,401 $11,364 $11,326 $11,287 Cumulative Captured Tax Increment $11,401 $22,765 $34,091 $45,378 (1) Assumes a three percent (3%) annual increase in original tax capacity. (2) Based on a payable 1996 tax rate. This rate may change in 1997 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 1997, but no increment will be collected. The first year an increment will be collected is 1998 and is based on a finished market value as a January 1, 1997. • i 0 - EXHIBIT E IMPACT OF TAX INCREMENT FINANCING DISTRICT NO. 15 ON OTHER MAJOR TAXING JURISDICTIONS City of Elk River,Minnesota Without Project With Project Projected Negative 1995/1996 1996 1996 1995/1996 Projected New Tax 1995/1996 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 $10,694,856 S 2,570,439 24.033% $10,694,856 $11,000 $10,705,856 $ 2,570,439 24.010 0.023 SI 1,000 $253 Sherbume Country $54,255,803 $13,555,651 23.574% $57,579,856 $11,000 $57,590,856 $13,555,651 23.538 0.036 S11,000 $396 ISD 728 $19,431,867 $12,305,019 54.530% $22,502,787 $11,000 $22,513,787 $12,305,019 54.503 0.027 $11,000 $297 Other 1.3600/u $11,000 1.360 $11,000 , Q TOTALS 103.497 103.411 0.086 $946 STATEMENT 1: The 1995/1996 tax capacity value times the 1995/1996 tax capacity rate produces 1995/1996 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$11,000.the tax capacity rate for the above-selected major taxing jurisdictions would be reduced by a rate of.086%to an adjusted tax capacity of$103.411%. The captured tax capacity times the adjusted tax capacity rate of 103.411%would generate$946 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.