6.9.C. SR 05-16-2005
Item 6.9.C.
MEMORANDUM
TO: Mayor and City Council
FROM: Catherine Mehelich, Director of Economic Developmen~
DATE: May 16, 2005
SUBJECT: Consider Approval of Construction Plans for Conformance with
Development Agreement - MetroPlains Development, LLC
Attachments
. Construction Plans for Jackson Place and The Bluffs of Elk River projects
. Development Program for Development District No.1
. Memo dated May 16, 200S from Planner Chris Leeseberg re: Design Review
Background
The City entered into a Development Agreement with MetroPlains Development, LLC at the
end of last year. Since that time staff has been working closely with MetroPlains to make
progress on a number of activities leading up to the anticipated summer project construction.
Issue
Following the substantial completion of the parking lot improvement and a number of
contingencies outlined in the Development Agreement, the city-owned Jackson Block property
will be transferred to the developer. One of the conditions of the sale is the City Council review
and approval of the project Construction Plans. The Construction Plans include the parking
plans for the construction staging period and post construction period. The sworn construction
cost statement has been reviewed by the city fInancial advisor, Ehlers & Associates, as evidence
that the project is ready to be built. The construction staging plan was approved by the Council
at its December 20, 2004 meeting. Representatives from MetroPlains will be at the meeting to
provide a brief PowerPoint presentation of the Construction Plans.
Analysis
Section 4.1 (a) of the Development Agreement states that the City Council shall approve the
Construction Plans if:
(i) the Construction Plans substantially conform to the terns and conditions of this
(Development) Agreement;
(ii) the Construction Plans are consistent with the goals and objectives of the (City's Tax
Increment Financing) Development Program; and
Consider Approval of Construction Plans - MetroPlains Development
May 16, 2005 City Council Meeting
Page 2 of3
(ill) the Construction Plans do not violate any applicable federal, State or local laws,
ordinances, rules or regulations except as set forth in approved variances (provided,
however, that a fInding of no such violations does not necessarily constitute a fInding
that the Construction Plans meet all requirements of such federal, State or local laws,
ordinances, rules or regulations).
The review and approval of the Construction Plans is only a requirement as it relates to the
Development Agreement and does not constitute review and approvals normally required from
the city planning, zoning and building permit process.
The Construction Plans substantially conform to the terms and conditions of the Development
Agreement which requires the demolition and clearing of existing structures to construct
approximately 68 units of owner-occupied housing and approximately 10,820 square feet of retail
space, together with related parking facilities (The Bluffs of Elk River); and the construction of
approximately 32 units of rental housing and approximately 13,000 square feet of retail space,
together with related parking facilities (Jackson Place).
The Construction Plans for The Bluffs of Elk River includes:
. 67 units of owner-occupied housing
. 11,000 square feet of retail space
. 110 underground parking spaces
The Construction Plans for Jackson Place includes:
. 32 units of rental housing
. 10,695 square feet of retail space
. 44 underground parking spaces and 12 surface parking spaces
The Construction Plans are consistent with the objectives of the attached Tax Increment
Financing Development Program for the City of Elk River, namely to:
. Increase employment opportunities by encouraging additional commercial development;
. Preserve and enhance the tax base;
. Preserve and enhance the quality of life; and,
. Provide an impetus for residential development
The Construction Plans appear to conform to applicable federal, State or local laws, ordinances,
rules or regulations. The City's Planning Department has reviewed the plans for conformance
with the Downtown District ordinance and other local ordinances. Planner Chris Leeseberg has
written the attached memo regarding staff's review of the building design and suggested changes
to the design of Jackson Place. The City Council should determine if the Developer should make
these suggested changes.
The remaining items before construction can begin are the approval of the fmal plats and
issuance of the building permit. The fmal plats are scheduled to be considered by the Council at
its June 6th meeting. The Construction Plans are currendy under review by the City's Building
Inspections Department.
Consider Approval of Construction Plans - MetroPlains Development
May 16, 2005 City Council Meeting
Page 3 of3
Recommendation
Staff recommends that the City Council consider approval of the Construction Plans as it meets
the requirements of the Development Agreement.
MODIFICATION TO THE
DEVELOPMENT PROGRAM
for
DEVELOPMENT DISTRICT NO.1
CITY OF ELK RIVER
COUNTY OF SHERBURNE
STATE OF MINNESOTA
Public Hearing: Apri11, 1985
Adopted: Apri11, 1985
Modified: February 12, 1990
Modified: November 1,2004
Modified by: EHLERS & ASSOCIATES, INC.
3060 Centre Pointe Drive, Roseville, Minnesota 55113-1105
TABLE OF CONTENTS
(for reference purposes only)
SECTION I - DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. ............................................1
SUBSECTION A. FORWARD................................................................................................................................ 1
SUBSECTION B. STATUTORY AUTHORITy............................................................................................................ 1
SUBSECTION C. STATEMENT OF PUBLIC PURPOSE............................................................................................. 1
SUBSECTION D. BOUNDARIES OF THE DEVELOPMENT DISTRICT ..........................................................................4
SUBSECTION E. LAND USE IN THE DEVELOPMENT DISTRICT ................................................................................5
SUBSECTION F . STATEMENT OF OBJECTiVES...................................................................................................... 5
SUBSECTION G. STATEMENT OF AND FINDING OF PUBLIC PURPOSE ....................................................................5
SUBSECTION H. PUBLic LAND............................................................................................................................ 6
SUBSECTION I. ENVIRONMENTAL CONTROLS..................................................................................................... 6
SUBSECTION J . ADMINISTRATION OF THE DEVELOPMENT DISTRICT ....................................................................7
EXHIBIT A - MAP OF DEVELOPMENT DISTRICT NO.1
SECTION I - DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.1
(As Modified November 1,2004, to read asfollows)
Subsection A.
Forward
This document constitutes the City of Elk River's Development Program for Development District No. 1.
The Development Program for Development District No.1 was originally adopted by the City Council of
the City of Elk River on April 1, 1985. The City Council transferred jurisdiction over Development
District No.1 to the Economic Development Authority (the "EDA") pursuant to City Council Resolution
87-63. This document incorporates amendments to the Development Program adopted by the City
Council pursuant to MS. 469.124, et seq., between February 12,1990 and November 1,2004.
Subsection B.
Statutory Authority
The statutory authority empowering the City to establish the Development District in April 1985 was
Minnesota Statutes Chapter 472A, the Minnesota Municipal Development Districts Act. In 1987, the
Development Districts Act was recodified as Minnesota Statutes 469,124, et seq. This Development
Program has been prepared and amended in accordance with the applicable provisions of the
Development Districts Act.
Subsection C.
Statement of Public Purpose
The City Council and the Economic Development Authority of the City of Elk River, Minnesota,
determine that it is necessary, desirable, and in the public interest to designate, establish, develop, and
administer a Development District in the City of Elk River pursuant to the Development Districts Act.
The purpose of the Development District is to provide a means for financing public improvements and
facilities necessary if the City is to attract additional commercial and industrial development and increase
employment opportunities in those areas of the City designated for these uses.
The City Council and the Economic Development Authority find that there is a demand within the City
for increased commercial, industrial, and residential development and, that the Development District, as
amended, includes all of the areas in the City designated for business, industrial, and residential
development. However, extensive commercial, residential and industrial development in many of these
areas is not possible absent the installation of certain public facilities, including improved water and
sanitary sewer service, additional streets and roads, and others. The high cost of constructing such
facilities cannot be met, and additional commercial, residential, and industrial development is therefore
not possible without public intervention. Therefore, the Development District is created by the City to
make public intervention and assistance possible, construction of the required public facilities possible,
and to encourage development of designated commercial, residential, and industrial areas of the City.
(As Modified February 12, 1990)
On February 12, 1990 the City of Elk River established Tax Increment Financing District No.7, within
the Development Program. The Development Program identifies an approximately 5.6 acre site of
property acquired in the TIF Redevelopment District for the construction of a 42-unit motel, along with
necessary permanent and temporary easements for public improvements, and is the only property to be
acquired in the TIF Redevelopment District.
City of Elk River Development Program for Development District No.1
All of the property within the TIF District No.7 will be acquired by the EDA and conveyed to ERM
Properties. ERM Properties has or will have entered into a Redevelopment Agreement and an Assessment
Agreement for development of the Redevelopment site, which provides recourse for the EDA if the ERM
Properties development is not completed.
Development within TIF District No. 7 will include the removal of substandard structures, site
preparation, and construction of a 42-unit motel.
(As Modified August 13,1990)
On August 13, 1990 the City of Elk River established Tax Increment Financing District No.8, within the
Development Program. The Development Program identifies an approximately .38 acre site of property
acquired in the TIF Redevelopment District for the construction of a 5,900 square foot dental clinic, along
with necessary permanent and temporary easements for public improvements, and is the only property to
be acquired in the TIF Redevelopment District.
All of the property within the TIF District No.8 will be acquired by the City and conveyed to Jarmo1uk.
Jarmo1uk has or will have entered into a Redevelopment Agreement and an Assessment Agreement for
development of the Redevelopment site, which provides recourse for the EDA if the Jarmo1uk
development is not completed.
(As Modified March 8, 1993)
On March 8, 1993 the City of Elk River established Tax Increment Financing District No.9, within the
Development Program. Tescom Corporation, Inc., proposes to construct a new facility of approximately
30,000 square feet on the Development Property. The facility will have a finished market value estimated
at $900,000.
The Tax Increment funds will be used to "write down" the acquisition of the development site. In
addition, funds will be used to conduct borings and analysis of the property, site survey, and for civil and
engineering costs.
(As Modified September 8,1992)
On September 8, 1992 the City of Elk River established Tax Increment Financing District No. 10, within
the Development Program. Elk Terrace Limited Partnership proposes to construct a 23-unit apartment for
occupancy by seniors. The apartment project will have a finished market value estimated at $800,000.
The Tax Increment funds will be used to cap utility lines, to demolish existing structures, to grade on the
site in preparation for construction, and to pay for or to reimburse then Limited Partnership for public
improvements required by the project.
(As Modified November 16,1992)
On November 16, 1992 the City of Elk River established Tax Increment Financing District No. 11, within
the Development Program. Timron Precision Gear proposes to construct a new facility containing
approximately 10,000 square feet on Lot 1. The new facility will have a finished market value estimated
at $230,000.
The Tax Increment funds will be used to "write down" the acquisition of the development site as an
City of Elk River
Development Program for Development District No.1
2
incentive for Timron Precision Gear to locate in Elk River.
(As Modified April 8, 1996)
On April 8, 1996 the City of Elk River established Tax Increment Financing District No. 14, within the
Development Program. Marketech, Inc. proposes to construct a new facility containing approximately
9,324 square feet on Lots 6 and 7. The new facility will have a finished market value estimated at
$400,000.
The Tax Increment funds will be used to reimburse Marketech, Inc. for the acquisition of the development
site.
(As Modified June 10,1996)
On June 10, 1996 the City of Elk River established Tax Increment Financing District No. 15, within the
Development Program. TIF District No. 15 was established to provide pay-as-you-go reimbursement for
the value of Lot 9, Block 1, McChesney Industrial Park; to encourage a manufacturing company to
expand in the McChesney Industrial Park; to increase employment opportunities in the community; and to
preserve and enhance the local tax base and the tax base in the State.
(As Modified January 27,1997)
On January 27, 1997 the Housing and Redevelopment Authority for the City of Elk River established Tax
Increment Financing District No. 16, within the Development Program. District No. 16 consists of 3
parcels of land and adjacent and internal rights-of-way. The current plans for the new development on the
site include a 14,000 square foot commercial facility.
(As Modified February 17,1998)
On February 17, 1998 the Economic Development Authority for the City of Elk River established Tax
Increment Financing District No. 17, within the Development Program. TIF district No. 17 consists of 1
parcel of land and adjacent and internal rights-of-way. The current plans for the new development on the
site include a 25,000 square foot industrial facility.
(As Modified April 6, 1998)
On April 6, 1998 the Economic Development Authority for the City of Elk River established Tax
Increment Financing District No. 18, within the Development Program. TIF district No. 18 consists of 2
parcels of land and adjacent and internal rights-of-way. The current plans for the new development on the
site include a 45,000 square foot office/warehouse/trucking facility.
(As Modified July 13, 1998)
On July 13, 1998 the Economic Development Authority for the City of Elk River established Tax
Increment Financing District No. 19, within the Development Program. Anticipated development with the
TIF District consists of several mixed-use projects. Commercial development on approximately 70 acres
of the TIF District will encompass approximately 1.5 million square feet of retail space and
approximately 300,000 square feet of restaurant and convenience store space.
City of Elk River
Development Program for Development District No. 1
3
(As Modified July 13,1998)
On July 13, 1998 the Economic Development Authority for the City of Elk River established Tax
Increment Financing District No. 20, within the Development Program. The plan for this development
project is to build a 40,000 square foot industrial facility.
(As Modified August 28, 2000)
On August 28,2000 the City of Elk River established Tax Increment Financing District No. 21, within
the Development Program. TIF District No. 21 consists of 1 parcel of land and adjacent and internal
rights-of-way. Current plans for this development project are to build a 73,000 square foot industrial
facility.
(As Modified November 1,2004)
On November 1, 2004 the City of Elk River established Downtown Phase I Tax Increment Financing
District No. 22, within the Development Program.
TIF District No. 22 is being established to facilitate the redevelopment of the Bluff Block and Jackson
Block in downtown Elk River. The project is part of the Downtown Revitalization Project, with the
primary goal being to assume the long-term viability of downtown by making a connection to the rest of
the community and by utilizing the riverfront location. The redevelopment will enhance downtown Elk
River's role as a residential, retail and commercial area and revitalize investment in the downtown
business district.
The Bluff Block Development will include 10,000 square feet of commercial development on the first
floor along Main Street and 60 units of for-sale housing above the commercial. The development will
also include 70-80 below grade parking stalls for the housing and commercial residents.
The Jackson Block Development will also include 10,000 square feet of commercial development on the
first floor along Jackson Street and at the corner of Jackson and Main. Above the commer.cial
development will be 32 units of 1- and 2-bedroom rental housing. The development will also include up
to 52 below grade parking units for housing and commercial residents.
Subsection D.
Boundaries of the Development District
The geographic boundaries of Development District No. 1 are set forth on the map attached as Exhibit A
to this Development Program.
These boundaries have been selected to include those areas of the City which:
1. Are zoned and planned for commercial, residential, and industrial development but require that
certain public improvements be installed to make such development possible;
2. May have water and sanitary sewer service made available by the proposed water and sanitary
sewer improvements, therefore, making development possible;
3. Have existing water and sanitary sewer service, which may be improved by the proposed water
and sanitary sewer improvements.
City of Elk River
Development Program for Development District No. I
4
Subsection E.
Land Use in the Development District
Present Land Use
The Development District includes all of the developed areas of the City. Present land uses include the
central business area of the City; urban and semi-urban residential uses; free-standing highway and
general business uses; industrial uses; recreational uses; and educational uses. The Development District
also includes the undeveloped areas of the City designated for business and industrial uses.
Future Land Use
The purpose of the Development district is to encourage increased business, residential, and industrial
development in those areas of the City designated for these uses. It is anticipated that installation of
public improvements contemplated in and made possible by the amended Development Program will
make possible future land uses and development within the expanded Development District including
increased business and industrial uses in the industrial park in the development districts of the City, and in
several other areas of the City designated for those uses. It is also anticipated that these public
improvements will make residential development possible in those areas of the Development District
planned for residential use.
Subsection F.
Statement of Objectives
The City Council of the City of Elk River seeks to achieve the following objectives through the creation
of the Development District and the implementation of this Development Program:
1. Provide impetus for commercial, residential, and industrial development by constructing the
public facilities necessary to make such development possible;
2. Increase employment opportunities in the City by encouraging additional commercial and
industrial development;
3. Provide adequately serviced commercial and industrial areas of the City to accommodate
desirable users;
4. Remedy deficiencies in the existing water and sanitary sewer systems, which deficiencies have
restricted development in areas of the City planned and designated for commercial, residential,
and industrial uses;
5. Preserve and enhance the tax base of the City;
6. Preserve and enhance the quality of life in the City;
7. Provide maximum opportunity, consistent with the needs of the City for development by private
enterprise; and,
8. Provide an impetus for residential development, which is desirable and necessary for increased
population and increase need for life-cycle housing in the City.
Subsection G.
Statement of and Finding of Public Purpose
In recent months, the City has been reviewing the future development of the community. This review has
City of Elk River Development Program for Development District No.1 5
defined several important roles for the City of Elk River.
. Facilitating development activities that are compatible with overall community development
objectives of the City.
. Removing the physical and economic barriers to development.
. Providing the infrastructure needed to support development.
. Providing sites for future development.
The City intends to use the powers allowed under the Municipal Development District Act to fill these
roles, to promote development and redevelopment throughout the City, and to pool resources in order to
reduce financial barriers to providing decent housing and development and redevelopment opportunities.
The City has found that there is a need for development and redevelopment within the Development
District based upon the following conditions:
1. The Development District suffers from a lack of necessary streets, utilities and site improvements
essential to preparing and making sites available for meaningful development.
2. The Development District requires active promotion, attraction, encouragement and development
of economically sound commerce through government action for the purpose of preventing
emergence and continuation of blight and the occurrence of conditions requiring redevelopment.
3. The Development District contains vacant, unused, underused and inappropriately used land.
Subsection H.
Public Land
Acquisition of lands for the parks and trails system is to be through land dedications and purchase when
funds are available.
Subsection I.
Environmental Controls
All development within the Development District will be subject to existing environmental controls
established by state and federa11aw and the Elk River Code of Ordinances, including but not limited to
the following:
1. The National Environmental Protection Act, and related regulations;
2. The Minnesota Environmental Protection Act, and related regulations;
3. The Minnesota Environmental Rights Act;
4. The Minnesota Critical Areas Act, and related regulations;
5. The Elk River Flood Plain Management Ordinance;
6. The Elk River Shore land and Wild and Scenic River Management Ordinance;
7. The Elk River Subdivision Ordinance;
8. The Elk River Zoning Ordinance;
9. Sections 1300 and 1302 of the Elk River Code of Ordinances regulating sanitary sewage disposal;
10. National Pollutant Discharge Elimination System permit, and related regulations.
City of Elk River
Development Program for Development District No. 1
6
No additional environmental controls are proposed.
Subsection J .
Administration of the Development District
Administration of the Development District is the responsibility of the City Administrator, under the
supervision of the City Council. Public streets, parklands, and other public property are the responsibility
of the City Public Works Department and shall be maintained in the same manner as all other public
property in the City. The water tower, water mains, and other water facilities will be operated and
maintained by the Elk River Municipal Utilities Commission in the same manner as existing water
facilities and systems.
Private property owners will be responsible for the maintenance of their parcels following development.
City of Elk River
Development Program for Development District No. 1
7
EXHIBIT A - MAP OF DEVELOPMENT DISTRICT NO.1
(As Modified November 1,2004)
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DEVELOPMENT DISTRICT NO.1
(CITY LIMITS) ELK RIVER, MINNESOTA
DATE,
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DRAWN BY,
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SCALE,
NOT TO SCALE
Item #6.9 .c.
MEMORANDUM
TO: Catherine Mehelich, Director of Economic Development
FROM: Chris Leeseberg, Planner Ck-
DATE: May 16, 2005
SUBJECT: Design Review of Jackson Place and The Bluffs of Elk River
Overview
Staff met with the applicant on April 18, 2005 to give feedback on the proposed designs for
both Jackson Place and The Bluffs of Elk River.
Putpose
The intent of the Downtown district is to preserve this distinctive character with the
appearance that there are multiple buildings that are distinctly different from one another yet
allow a uniform mass of building with the appearance of vertical separation.
Jackson Place
Staff felt the "end units" of this building facing Jackson Avenue and Main Street are done
exceptionally well and interact with the existing architecture across the street and meet the
District's intent. They look like buildings in a small town downtown.
The biggest concern raised with this building is the overall mass of it. The entire roof line
has no change in height and about half of the cornice does not have an articulated design.
Design applications are implemented in the building between the "end units" (mid section)
that tries to create the feel of different height buildings with a change in material, but that
alone is not enough. The guidelines indicate that "Cornice heights.. .vary in height from unit
to unit by at least 24 inches." Staff recommended that both "end units" have the cornice
height raised by at least 24 inches to help create the appearance of different buildings. This
recommendation should not affect any of the interior space or structural integrity of the
building.
The repetitive "mid section" should try to create some variation to meet the intent. This
could be accomplished with color/material changes and/or changes in cornice design and
Planning Department Mission: the orderly development of a livable and sustainable Elk River community.
City Council / P 05-04
May 16, 2005
Page 2
detailing, similar to what is being proposed on the south elevation. An articulated cornice at
least 24 inches in height shall be required for each building unit width. Cornice detailing shall be achieved
through, but not limited to, corbelling, varied ornamental moldings and reliifs. . . The same cornice detail shall
not be the same as the two atfjacent units to each side. Staff would recommend that further design
studies of the "mid section" be provided that help achieve a design more reflective of the
District's intent.
The Bluffi of Elk River
The staff consensus of this building was that it was an appropriate design. The issues staff
raised at the April 18th meeting were addressed. Although this building has some similarities
to Jackson Place such as "end units" and a repetitive "mid section", this building does not
have existing downtown fabric across the street to interact with and works as a stand alone
project.
Recommendation
Staff recommends that further design studies of the west and south facades of Jackson Place
be executed and changes to the building exterior be made to comply with District
requirements.
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