6. HRSR 10-03-2005ITEM # 6.
City of
Elk -~-~
River
MEMORANDUM
TO: Housing and Redevelopment Authority
FROM: Scott Clark, Community Development Director y
DATE: October 3, 2005
SUBJECT: Direction to Commence Formal Redevelopment Plan for
Downtown Area
Purpose and Background
The purpose of this memorandum is to seek direction from the HRA regarding proceeding
with a formal redevelopment plan for the "downtown area." By definition, staff views that
there are, for redevelopment and planning purposes, two distinct areas that are divided by
Highway 10. At this time, staff is recommending that a redevelopment plan for the north
side of Highway 10 be started first, and then a separate process to conclude a second plan
for the south area. The purpose of doing a formal plan includes:
1) The need for such a plan was identified by the City on December 6, 2004 as part of
the "2004-2007 Economic Development Strategic Plan." (Attachment 1).
2) State Statute 469.028 requires a redevelopment plan to be completed, and approved
by the Council, prior to commencing redevelopment actions. (Attachment II).
3) A formal plan creates a consensus for future actions. The process that is undertaken
to finalize a redevelopment plan incorporates both citizen and other City Boards and
Commissions concerns and comments. The planning process, and subsequent
redevelopment plans acted on by the Council, serves to compromise and finalize
differing opinions.
4) A plan is critical for any future eminent domain proceedings by establishing public
purpose.
5) The redevelopment plan is a critical tool in budgeting future City capital costs.
6) A redevelopment plan assists in identifying how related City services (park
improvements, street reconstruction and future capital improvement projects) can be
better timed and implemented to provide efficiencies in redevelopment actions.
Memo to HRA
October 3, 2005
Page 2
7) A redevelopment plan is a key document when applying for grant funds.
8) A plan assists staff in seeking developers who are desirous of being part of the
redevelopment. It is critical that staff understands official City direction in
discussions with developers so conflicting direction and priorities are avoided.
9) A plan that illustrates detailed financial analysis, based on sub-planning area
scenarios, will assist in generating financial strategies and possible modifications to
land use, in order to make various redevelopment projects economically feasible.
10) Incorporates different City disciplines including zoning and design issues, traffic and
public safety concerns.
Staff recognizes that significant work has already been done on this redevelopment
(Attachment III), but equally important is to place this information into a context that meets
the purpose and intent of a redevelopment plan, as stated previously, and to ensure that
proper citizen input has been made. A typical redevelopment plan would contain the
following sections:
1) Introduction including background (history ), site analysis, study area and public
purpose
2) Visioning process, demographic and market data
3) Public Improvements/Redevelopment Issues (Goals and Strategies)- This could
include redevelopment and land use issues, design and regulatory issues, economic
issues, historical considerations and property acquisition, rehabilitation, traffic and
transit
4) Illustrative Master Plan
5) Design Guidelines
6) Sources and Uses of Funds Phasing and Priorities
7) Financial Strategies
8) Phasing and Priorities
9) Final Conclusions and Recommendations
Recommendation
Staff is seeking action from the HRA to 1) proceed with formalizing a redevelopment plan
for the north side of Highway 10, as previously discussed, and then 2) as a separate process
to construct a second separate plan for the south side. If the aforementioned process is
agreeable staff will construct a detailed work plan, including timelines, for these two efforts.
S:\PLANNING\Seott Clark\HI2t1 Memo-10-3-05.doc
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Minnesota Statutes 2004, 469.028
Minne_sota_Statutes_2004,_Table__of Chapters
Table of contents for Chapter 469
469.028 Municipal governing body.
Subdivision 1. Findings, notice, determination. When
an authority determines that a redevelopment project should be
undertaken, it shall apply to the governing body of the city in
which the project is located for approval. The application
shall be accompanied by a redevelopment plan, a statement of the
method proposed for financing the project, and the written
opinion of the planning agency, if there is one. Before
approving any redevelopment plan, the governing body shall hold
a public hearing thereon after published notice in a newspaper
of general circulation in the municipality at least once not
less than ten days nor more than 30 days prior to the date of
the hearing.
Subd. 2. Findings, notice, determination; governing
body. The authority shall not proceed with the project unless
the governing body finds by resolution that:
(1) the land in the project area would not be made
available for redevelopment without the financial aid to be
sought;
(2) the redevelopment plans for the redevelopment areas in
the locality will afford maximum opportunity, consistent with
the needs of the locality as a whole, for the redevelopment of
the areas by private enterprise; and
(3) the redevelopment plan conforms to a general plan for
the development of the locality as a whole.
The governing body shall within 30 days after submission of
the application, or resubmission as hereinafter provided, give
written notice to the authority of its decision with respect to
the project. When an authority has determined the location of a
proposed redevelopment project, it may, without awaiting the
approval of the governing body, proceed, by option or otherwise,
to obtain control of the real property within the area, but it
shall not, without the prior approval by the governing body of
the redevelopment plan, unconditionally obligate itself to
purchase any such property. A plan which has not been approved
by the governing body when submitted to it may be again
submitted to it with the modifications necessary to meet its
objections. Once approved, the determination of the authority
to undertake the project and the resolution of the governing
body shall be conclusive, in any condemnation proceeding, of the
public need for the project.
Subd. 3. Acquisition of open land. A redevelopment
project may include any work or undertaking to acquire open or
undeveloped land determined to be blighted by virtue of the
following conditions:
(1) unusual and difficult physical characteristics of the
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Minnesota Statutes 2004, 469.028
ground;
(2) the existence of faulty planning characterized by the
subdivision or sale of lots laid out in disregard of the
contours or of irregular form and shape or of inadequate size;
or
(3) a combination of these or other conditions which have
prevented normal development of the land by private enterprise
and have resulted in a stagnant and unproductive condition of
land potentially useful and valuable for contributing to the
public health, safety, and welfare. Acquisition of such land
shall be a redevelopment project only if a redevelopment plan
has been adopted which provides for the elimination of these
conditions, thereby making the land useful and valuable for
contributing to the public health, safety, and welfare and the
acquisition of the land is necessary to carry out the
redevelopment plan.
Subd. 4. Acquisition of unused or inappropriately used
land. A redevelopment project may include any work or
undertaking to acquire land or space that is vacant, unused,
underused or inappropriately used, including infrequently used
rail yards and rail storage facilities, and excessive or vacated
railroad rights-of-way; air rights over streets, expressways,
railroads, waterways, and similar locations; land which is
occupied by functionally obsolete nonresidential buildings, or
is used for low utility purposes, or is covered by shallow
water, or is subject to periodic flooding, or consists of unused
or underused slips or dock areas or other waterfront property.
This subdivision applies only to land or space that the
authority determines may be developed at a cost reasonably
related to the public purpose to be served without major
residential clearance activities, and with full consideration of
the preservation of beneficial aspects of the urban and natural
environment, for uses that are consistent with emphasis on
housing for low and moderate income families. These uses
include the provision of schools, hospitals, parks and other
essential public facilities and, where appropriate, all uses
associated with new community development programs as defined in
the United States Urban Growth and New Community Development Act
of 1970, as amended, or similar large scale undertakings related
to inner city needs, including concentrated sources of
employment.
Subd. 5. Early acquisition. When an authority has
determined the location of a proposed redevelopment project, but
prior to the approval of the redevelopment plan and project as
provided in subdivision 2, the authority may acquire individual
tracts of real property with the approval of the governing body
as to each separate tract. Before approving early acquisition,
the governing body shall hold a public hearing on the proposed
acquisition activities after published notice in a newspaper of
general circulation in the municipality at least once not less
than ten days nor more than 30 days prior to the date of the
hearing.
The authority shall not proceed with the acquisition unless
the governing body finds by resolution that (1) the proposed
acquisition is necessary to carry out public improvements in the
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Minnesota Statutes 2004, 469.028
area, or that the acquisition will contribute to the elimination
of blight or deterioration within the area or that the
acquisition is necessary to relieve hardship; and (2) there is a
feasible method for the relocation of families and individuals
to be displaced by the proposed acquisition.
The governing body may, in approving early acquisition,
agree to assume the responsibility for any loss that may arise
as a result of the acquisition of land and related activities,
including any costs of demolition, removal, and relocation, in
the event that the property so acquired is not used for urban
renewal purposes because the urban renewal plan is not approved,
or is amended to omit the acquired property or is abandoned for
any reason. Nothing in this subdivision shall be construed to
waive the requirement for public hearing upon the redevelopment
plan for the redevelopment project.
HIST: 1987 c 291 s 28
Copyright 2004 by the Office of Revisor of Statutes, State of Minnesota.
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Attachment #3
Beginning in June of 2004, the HRA completed the following activities to develop a
redevelopment plan for downtown north of Hwy 10:
• Defined a study area boundary
• Expressed along-term vision for the study area
• Reviewed past & updated research of building condition, historic significance, and
the market analysis for the area
• Reviewed three redevelopment concept options and discussed barriers to
implementing the concepts
• Selected and refined one of the concepts (concept attached)
• Directed staff to utilize the concept as a guiding document for redevelopment
proposals and inquiries from the private sector
• Drafted & refined narrative description for the concept
• Held a special meeting for a work session with the City Council for input on the
redevelopment concept and narrative.
• The Heritage Preservation Comnussion (HI'C) provided input at their September 9,
2004 HPC meeting to assist in updating past research of the area, which included the
Historical Significance Analysis, completed in Summer 2001.