HomeMy WebLinkAbout9.Establishing a Special Service District and Imposing a Service Charge-Ord. No. 680-Res. No. 5943
CITY OF SHAKOPEE {
Memorandum
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Paul Snook, Economic Development coordinato~
SUBJECT: Public hearing on Ordinance No. 680, establishing a Special
Service District;
Public hearing on Resolution No. 5943, imposing a service
charge for the Special Service District.
MEETING DATE: September 2, 2003
Introduction & Background
To improve and solidify the effort of enhancing downtown's economy, the Vision
Shakopee Downtown Partnership (VSDP) is proposing the creation of a Special
Service District, which is based upon the "benefit assessment district" concept, in
which downtown property owners, through petition support, agree to assess
themselves to generate revenues that benefit the district, providing services and
improvements that the City does not currently provide, and for services that enhance
or add to the level of service currently provided by the City.
At its June 10, 2003 meeting the ED Advisory Committee unanimously passed a
recommendation advising the City Council to undertake the necessary initial steps in
establishing a downtown special service district, including accepting petitions and
calling for public hearings. Petitions were presented to you at the August 6th meeting
to initiate the process of establishing the district. The number of petition signatures
well exceeded the statutory threshold of owners of at least 25 percent of the land area
subject to the proposed service charge, and owners of at least 25 percent of the net
tax capacity needed to sign the petition to request the public hearing.
Property owners representing 61 % of net tax capacity, and representing 47% of
the land area of the proposed district signed the petition in support of the
service district and related charge; see Exhibit A. As a result of the support
petitions, at the August 6th meeting City Council called for public hearings on a
proposed Ordinance establishing the Downtown Shakopee Special Service District,
and on a proposed Resolution imposing a Service Charge in the District.
Sept2PubHearMo8-26-03.doc
The City of Shakopee is authorized to adopt an ordinance establishing a "special
service district" under Minnesota Statutes, Sections 428A.Ol through 428A.I01 (the
"Special Service Act"). The process involves two steps: adoption of an ordinance to
establish the special service district, Exhibit B; and adoption of a resolution setting the
service charges in the amount necessary to produce revenue required to pay for the
special services, Exhibit C.
If after the public hearings the City Council adopts the ordinance and the resolution,
subsequent steps in the process are as follows:
Tuesday September 5,2003
Summary of the Ordinance and Resolution mailed to the owners of each
parcel within the District.
Thursday September 11 , 2003
Ordinance published and becomes effective.
Tuesday September 16, 2003
Service charges submitted to the County Auditor (subject to withdrawal ifveto
petition filed by October 16th).
Thursday October 16, 2003
Effective date of adoption for the Ordinance and Resolution
Special Service District Description
Special Service Districts (SSDs) are a type of assessment district commonly located
within the core commercial district of a city or a historic downtown, in which
property owners choose, through a petition process, to be assessed a fee, which is
collected on their behalf by the City, for use in promoting and improving the
commercial district. Tasks commonly performed by SSDs are beautification, street
improvements, trash removal, maintenance, place marketing, business retention and
recruitment, activity and event promotion, consumer marketing, and security.
Funding for these tasks comes from property owners through a petition process. The
source of the funding is a special assessment. The assessment, proposed at 8% of net
tax capacity, is applied to each commercial property, with a minimum charge of
$150. SSDs are legally established entities that provide services to commercial
districts in addition to services already provided by the City.
Before implementation of the district and service charge, an agreement between the
SSD organization (VSDP) and the City would be reached on the type and level of
services provided by both the City and the district. That agreement, which will be the
implementing document, is currently being drafted.
Why A Special Service District for Downtown Shakopee?
. To establish private-public control and accountability. An advisory board, the
Vision Shakopee Downtown Partnership, consisting of downtown property
and business owners, manages the district. Annual district work plans and
budgets are developed by the board and approved by the City, ensuring that
the district will be accountable to those who pay the assessment. Programs
such as maintenance, marketing, economic restructuring (business retention,
expansion, and attraction efforts in partnership with the City's Economic
Development Authority), and special events and promotions among others are
subject to local performance standards and controls. See Exhibit D. Special
Service District Mission/Areas of Focus; 2004 -2008 Downtown
Revitalization Work Plan; and 2004 Budget.
. To create a unified effort for downtown revitalization. For most downtown
areas, business and property interests are fragmented among a many groups
and individuals. One unified management entity, with reliable resources
funded in part by the Special Service District, increases a downtown's ability
to work effectively at comprehensively improving downtown's physical,
economic, historical, and cultural environment, revitalizing downtown for the
betterment of the entire community. Communities such as Lakeville,
Minnesota; Menomonie and Sheboygan, Wisconsin, and St. Charles, Illinois,
to name a few, have vibrant, attractive and economically sound downtowns
due to the existence of a cohesive management organization and a unified
direction for downtown revitalization funded in part by a special service
district. See Exhibit E for additional information on the effectiveness of
Special Service Districts (also referred to as Business Improvement Districts).
Ordinance Establishing the Special Service District
The special service district ordinance may be adopted at any time within six months
after the public hearing on the ordinance. Before the ordinance is adopted, owners of
property in the proposed district have the right to file written objections regarding
inclusion of their parcel in the district or imposition of a service charge, with a right of
appeal to district court if the City Council determines against the property owner. Also,
the ordinance will not go into effect if owners of at least 35 percent of the land area
subject to the service charge based on net tax capacity or owners of at least 35 percent
of the net tax capacity in the district subject to the service charge based on net tax
capacity file a written objection with the City Clerk within 45 days after the ordinance
is adopted.
Resolution Imposing the Service Charge
The resolution imposing the service charge may be adopted at any time within six
months after the public hearing on the service charge. The resolution will not go into
effect if owners of at least 35 percent of the land area subject to the service charge
based on net tax capacity or owners of at least 35 percent of the net tax capacity subject
to the service charge based on net tax capacity file a written objection with the City
Clerk within 45 days after adoption of the resolution.
Options
1. Offer Ordinance No. 680, AN ORDINANCE ESTABLISHING THE
DOWNTOWN SHAKOPEE SPECIAL SERVICE DISTRICT
PURSUANT TO MINN. STATUTES, CHAPTER 428A, and move its
adoption.
2. Offer Resolution No. 5943, RESOLUTION IMPOSING A SERVICE
CHARGE IN THE DOWNTOWN SHAKOPEE SPECIAL SERVICE
DISTRICT PURSUANT TO MINN. STATUTES, CHAPTER 428A.
3. Do not adopt the ordinance and resolution.
Action Requested
Offer and pass a motion consistent with the Council's preferred option.
~HI5JTA
-
PETITIONS TO HOLD PUBLIC HEARINGS
ON A SPECIAL SERVICE DISTRICT
AND A SERVICE CHARGE FOR THE DOWNTOWN AREA
Background
The City of Shakopee is authorized to adopt an ordinance establishing a "special service
district" under Minnesota Statutes, Sections 428A.Ol through 428A.1 01 (the "Special Service Act").
Within a special service district, the City may furnish special services to individual commercial and
industrial properties, which are financed by service charges imposed on the owners of the
properties.
The process involves two steps: adoption of an ordinance to establish the special service
district; and adoption of a resolution setting the service charges in the amount necessary to produce
revenue required to pay for the special services.
Establishing the Special Service District
Before the City Council adopts an ordinance that establishes the special service district,
owners of at least 25 percent of the land area of property that would be subj ect to the service charge
in the proposed district and owners of at least 25 percent of the net tax capacity of property that
would be subject to service charges in the proposed district must file a petition requesting a public
hearing on the proposed action with the City Clerk. If that petition is filed, the City will publish a
notice of the hearing and mail a copy to the owner of each property in the proposed district. The
ordinance will describe the area within the City to be included in the district and the special services
to be furnished in the district.
The ordinance may be adopted at any time within six months after the public hearing on the
ordinance. Before the ordinance is adopted, owners of property in the proposed district have the
right to file written objections regarding inclusion of their parcel in the district or imposition of a
service charge, with a right of appeal to district court if the City Council determines against the
property owner. Also, the ordinance will not go into effect if owners of at least 35 percent of the
land area subject to the service charge based on net tax capacity or owners of at least 35 percent of
the net tax capacity in the district subject to the service charge based on net tax capacity file a
written objection with the City Clerk within 45 days after the ordinance is adopted.
Imposing the Service Charge
Before the City Council adopts a resolution imposing a special charge for the special
services based on net tax capacity, owners of at least 25 percent of the land area subject to the
proposed service charge and owners of at least 25 percent of the net tax capacity subject to a
proposed service charge must file a petition requesting a public hearing on the proposed action with
the City Clerk. If a petition is filed, the City will publish a notice of the hearing and mail a detailed
notice to all individual or business organizations subject to the service charges. Charges for service
must be as nearly as possible proportionate to the cost of furnishing the service, and will be fixed on
the basis ofthe service directly rendered, or by reference to a reasonable classification of the type of
premises to which the service is furnished, or any other equitable basis.
The resolution imposing the service charges may be adopted at any time within six months
after the public hearing on the service charges. The resolution will not go into effect if owners of at
least 35 percent of the land area subject to the service charge based on net tax capacity or owners of
at least 35 percent of the net tax capacity subject to the service charge based on net tax capacity file
a written objection with the City Clerk within 45 days after adoption ofthe resolution.
Petitions
Attached to this background are the following:
1. A map ofthe proposed downtown special service district.
2. A petition requesting a public hearing on an ordinance establishing a special service
district for the area shown on the map.
3. A petition requesting a public hearing on imposition of a service charge for the
district.
The service charge would be allocated to commercial and industrial property within the special
service district, based on the net tax capacity of each property. The hearing regarding the service
charges would be scheduled for a date after adoption of the ordinance establishing the special
service district. Property owners are requested to sign both petitions in order to initiate the process
in a timely fashion. Only one owner per parcel should sign each petition.
Further Information
For more information about the proposed special service district for the downtown area,
please contact: Paul Snook, City Economic Development Coordinator at 952-496-9661.
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PETITION TO HOLD A PUBLIC HEARING FOR AN
ORDINANCE ESTABLISHING A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
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PETITION TO HOLD A PUBLIC HEARING FOR AN
ORDINANCE ESTABLISHING A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Council of the City of
Shakopee hold a public hearing regarding establishment of a special service district for the
downtown area, such hearing to be scheduled at such time as the Council determines with due
notice given in accordance with the Special Service District Act.
FULL NAME (print) SIGNATURE ADDRESS DATE
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PETITION TO HOLD A PUBLIC HEARING FOR AN
ORDINANCE ESTABLISHING A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Council of the City of
Shakopee hold a public hearing regarding establishment of a special service district for the
downtown area, such hearing to be schedulec!at such time as the Council determines '((ith due
notice given in accordance with the Special SerVice District Act.'
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PETITION TO HOLD A PUBLIC HEARING FOR AN
ORDINANCE ESTABLISHING A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Council of the City of
Shakopee hold a public hearing regarding establishment 01 a special service district for the
downtown area, such hearing to be scheduled f:lt such time as the Council determines with due
notice given in accordance with the Special Service District Act.
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PETITION TO HOLD A PUBLIC HEARING FOR AN
ORDINANCE ESTABLISHING A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Council of the City of
Shakopee hold a public hearing regarding establishment of a special service district for the
downtown area, such hearing to be scheduled at such time as the Council determines with due
notice given in accordance with the Special service District Act.
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PETITION TO HOLD A PUBLIC HEARING FOR A
RESOLUTION IMPOSING A SERVICE CHARGE
WITHIN A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
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PETITION TO HOLD A PUBLIC HEARING FOR A
RESOLUTION IMPOSING A SERVICE CHARGE
WITIDN A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Council of the City of
Shakopee hold a public hearing regarding adoption of a resolution imposing a service charge
in connection with a special service district for the downtown area, such hearing to be scheduled at
such time as the Council determines after adoption of an ordinance establishing the special service
district, with due notice given in accordance with the Special Service District Act.
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PETITION TO HOLD A PUBLIC HEARING FOR A
RESOLUTION IMPOSING A SERVICE CHARGE
WITHIN A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Council of the City of
Shakopee hold a public hearing regarding adoption of a resolution imposing a service charge
in connection with a special service district for the downtown area, such hearing to be scheduled at
such time as the Council determines after adoption of an ordinance establishing the special service
district, with due notice given in accordance with the Special Service District Act.
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PETITION TO HOLD A PUBLIC HEARING FOR A
RESOLUTION IMPOSING A SERVICE CHARGE
WITHIN A SPECIAL SERVICE DISTRICT
FOR THE DOWNTOWN AREA
The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Council of the City of
Shakvpee hold a public hearing regarding adoption of a resolution imposing a service charge
in connection with a special service district for the downtown area, such hearing to be scheduled at
such time as the Council determines after adoption of an ordinance establishing the special service
district, with due notice given in accordance with the Special Service District Act.
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The undersigned property owners in the downtown area in the City of Shakopee, Minnesota, have
read the attached background material, and hereby request that the City Caunci! of the City of
Shakopee hold a public hearing regarding adoption of a resolution imposing a service charge
in connection with a special service district for the downtown area, such hearing to be scheduled at
such time as the Council determines after adoption of an ordinance establishing the special service
district, with due notice given in accordance with the Special Service District Act.
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PETITION SUPPORTERS IN BOLD ITALICS
PID Class M.V. Net Tax Cap SSD Assessment Property Address OWner Name Owner Address ~ State Zlpco Acres
(at 8% of NTC; min
of $150)
Block 3
27-001034-0 233 $1,977,900 32,578 2,606 2031stAve E Scott Co HRA 323 S Naumkeag Sf Shakopee MN 55379 0.347
Block 20
27-001130-0 233 158.500 2420 194 3121stAve W 5th St Ventures Joel Buttenhoff 21000 State Hwy 7 Excelsior MN 55331 0.144
27-001128-1 233 34,000 510 150 No Address Jerome and Teresa HaNieux 18660 Pheasant Ridge Rd. Prior Lake MN 55372 0.093
27-001128-0 233 143,500 2153 172 333 2nd Ave W Jerome and Teresa HaNieux 18660 Pheasant Ridge Rd. Prior Lake MN 55372 0.165
27-001129-1 233 24,900 374 150 3121st Ave W Cy's Standard SeNiee 631 McDevitt Cir Shakopee MN 55379 0.055
Block 21
27-001135-0 233 $177,500 2800 224 135 Alwood St s Richard Stoks 135 Alwood St S Shakopee MN 55379 0.174
27-001140-0 233 $770,300 14.656 1,172 118 Fuller Sf S Gary & Randy Laurent 100 Fuller St Ste 200 Shakopee MN 55379 0.2
27-001143-0 233 $197,700 3,204 256 234 1 Ave W Twin Cities Avanti Stores 2020 Sliver Bell Rd Eagan MN 55122 0.05
Block 22
27-001144-0 233 $479,100 8,832 707 123 2 Ave W STF Fresh LLC 10141 Barnes Trl Inver Grove He MN 55077 0.196
27-001145-0 243 $24,200 484 150 none STF Fresh LLC 10141 Barnes Trl Inver Grove He MN 55077 0.139
27-001146-0 931 $215,700 0 0 none My Brother's Keeper 136 Holmes St S Shakopee MN 55379 0.049
27-001147-0 233 $82,400 936 150 126 Holmes St S Diane Sul/ivan 126 Holmes St S Shakopee MN 55379 0.028
27..Q01148-0 233 $68,400 859 150 124 Holmes St S White Eagle Ine 3437 Otherday Clr Shakopee MN 55379 0.028
27-001149-0 233 $18,000 270 150 140 Holmes St S Jon Slnnen 140 Holmes St S. Shakopee MN 55379 0.041
27-001150-0 233 $95,400 1,431 150 128 Holmes St S Kevin & Stacy Siegle 13303 300th St New Prague MN 56071 0.024
27-001150-1 233 132 Holmes St S Wallace L and Linda L Kopisca 132 Holmes St S Shakopee MN 55379 0.023
27-001151-0 233 $16,300 245 150 112 Holmes StS Ann E Golla 640 McDevitt St Shako pee MN 55379 0.022
27-001152-0 233 $35,900 539 150 118 Holmes Sf S Steven D and Brenda L Olson 7347 Colleen Cir Eden Prairie MN 55346 0.073
27-001153-0 243 $33,100 662 150 none P & E Realty 400 2nd Ave S Minneapolis MN 55401 0.08
27-001154-0 233 $75,700 1,136 150 1021 Ave W David W Jansen 102 1 Ave W Shakopee MN 55379 0.037
27-001155-0 233 $147,100 2,207 177 1241 Ave W P & E Realty 400 2nd Ave S Minneapolis MN 55401 0.198
27-001156-0 233 $203,000 3,310 265 1261 Ave W Mary Johnson 1261 Av W Shakopee MN 55379 0.13
Block 23
27-001159-0 233 $106,000 1,590 150 138 Lewis St S Wl/llam Wermersklrchen 251128StW Shakopee MN 55379 0.158
27-001162-0 233 $77,200 1,158 150 126 Lewis St S Betty Mueller 13022 Yosemite Ave S Savage MN 55378 0.051
27-001163-0 233 $36,800 463 150 124 Lewis St S John & Grace Perry 14540 Lakeview elr Shakopee MN 55379 0.028
Shak Special Serv DT 1-23-03.xls
PETITION SUPPORTERS IN BOLD ITALICS
27-001164-0 243 $82,400 1,236 150 1321 AveE Turtles Bar & Grill 1321 AveE Shakopee MN 55379 0.076
27-001165-0 233 $286,400 4,978 398 112 Lewis Sf S Gary & Sherry Turtle 15697 Cedar Ridge Rd Eden Prairie MN 55347 0.094
27-001166..0 233 $66,300 995 150 140 1 Ave E Gary & Sherry Turtle 15697 Cedar Ridge Rd Eden Prairie MN 55347 0.041
27-001167-0 233 $53,500 803 150 1321AveE Turtles Bar & Grl/l 1321 AveE Shakopee MN 55379 0.073
27-001168-0 233 $56,400 715 150 1261 Ave E Edward Dressen 126 1st Ave E Shakopee MN 55379 0,101
27-001169-0 233 $133,700 2,006 160 1221 AveE Kurt Zarth 4236AveW Shakopee MN 55379 0.087
27-001170-0 233 $94,600 1,419 150 1201AveE Alan Campbell 15123 Dakota Trl N Prior Lake MN 55372 0.144
27-001171-0 233 $41,500 623 150 114 1 Ave E Bruce & Shirley Garness 1197 Van Buren Sf Shakopee MN 55379 0.088
27-001172-0 233 $69,200 1,038 150 110 1 Ave E Duane Wermerskirchen 108 1 Ave E Shakopee MN 55379 0.104
27-001172-0 223 $52,000 780 150 1101 AveE Duane Wermerskirchen 1081 AveE Shakopee MN 55379 0.062
27-001173-0 233 $75,100 1,127 150 102 1 Ave E Wilbur & Patrick Schoers 1021stAveE Shakopee MN 55379 0.129
27-001174..0 233 $46,500 698 150 1081 AveE Duane Wermerskirchen 108 1 Ave E Shakopee MN 55379 0.062
Block 24
27-001180-0 233 $100,100 1,502 150148 Sommerville St::: Darrel & Joyce Yahnke 148 Sommerville St S Shakopee MN 55379 0.108
27-001181-0 233 $66,600 999 150 124 Sommerville St ::: Audrey McGovern 12510 Ave W Shakopee MN 55379 0.089
27-001182-0 233 $143,700 2,156 172 '12 Sommerville SUJames & Crystal Quiring 112 Sommervl/le St S Shakopee MN 55379 0.196
27-001183-0 233 $82,800 1,242 150 232 1 Ave E Rodolfo Hernandez 404 E Lake St Minneapolis MN 55408 0.065
27-001184-0 233 $70,600 1,059 150 230 1 Ave E Motor Parts of Shako pee 230 1st Ave E Shakopee MN 55379 0.105
27-001185-0 233 $259,600 4,442 355 222 1 Ave E Gary & Sherry Turtle 15697 Cedar Ridge Rd Eden Prairie MN 55347 0.208
27-001186-0 233 $75,400 1,131 150 2121 AveE Richard Halver 10271 Great Plains Blvd Chaska MN 55318 0.211
27-001188-0 233 $29,500 443 150 101 Lewis St S Terrence & Marilyn Hennen 1116 Jackson St Shakopee MN 55379 0.034
27-001189-0 233 $22,800 342 150 105 Lewis St S Alejandro Prieto 4817110th 5t W Bloomington MN 55437 0.028
27-001190-0 233 $41,000 615 150 109 Lewis St S Sandys Hairstyling Center 109 Lewis St S Shakopee MN 55379 0.046
27-001191-0 233 $86,800 1,302 150 113 Lewis St S John & Denise Herntier 15736 Old Brick Yard Rd Shakopee MN 55379 0.077
Block 25
27-001192-0 233 $247,000 4,190 335135 Sommerville St ::: Bart Partners 5290 Villa Way Edina MN 55436 0.217
27-001195-0 233 $143,600 2,154 172 338 1 Ave E Kathy Sullivan 3381st Ave E Shakopee MN 55379 0.21
27-001198-0 233 $71,500 1,073 150 3121 Ave E Norman & Karoline Monroe 3121 Ave E Shakopee MN 55379 0.213
27-001199-0 233 $243,000 4,110 329 300 1 Ave E David & Catherine Eckart 300 1 Ave E Shakopee MN 55379 0.192
Block 29
27-001233-0 243 $4,600 69 6 none US West Ine 6300 S Syracuse Way Unit 70 Englewood CO 80110 0.017
27-001234-0 233 $719,500 13,640 1,091218 Sommerville St::: US West Inc 6300 S Syracuse Way Unit 70 Englewood CO 80110 0.176
27-001235-0 243 $46,400 928 150 none US West Inc 6300 S Syracuse Way Unit 70 Englewood CO 80110 0.038
27-001236-0 233 $275,400 4,758 381 205 Lewis 5t 5 Joseph Topic III 6241 Elm Square W Lakeland FL 33813 0.109
Shak Special Sarv DT 1-23-03,xls
PETiTiON SUPPORTERS IN BOLD ITALICS
Block 30
27-001238-1 233 $173,500 2,720 218 223 Holmes St S Dikar LLC PO Box 300 Shako pee MN 55379 0.021
27-001241-0 233 $367,700 6,604 528 230 Lewis St S Paul & Ann Schwaesdall 230 Lewis St S Shakopee MN 55379 0.033
27-001242-0 233 $174,000 2,730 218 238 Lewis St s Technics Construction 1150 Lilac Clr Victoria MN 55379 0.086
Block 31
27-001248-0 243 $30,700 614 150 none Odelia Ortega 669 72 5t SE Montrose MN 55363 0.071
27-001250-0 233 $198,000 3,210 257 214 Holmes St S Odelia Ortega 669 72 St SE Montrose MN 55363 0.195
Block 32
27-001256-0 233 $44,400 666 150 none Jerome Wampach 849 Meadowlawn Cl Sartell MN 56377 0.195
27-001258-0 233 $42,100 632 150 2202 Ave W Thomas & Amy Gestach 16150 Dutoit Rd Carver MN 55315 0.188
27-001259-0 233 $13,600 204 150 none Daniel & Karen Lebens 215 Atwood SI Shakopee MN 55379 0.077
27-001260-0 233 $94,600 1.419 150 205 Atwood St S Daniel Lebens 215 Atwood SI Shakopee MN 55379 0.131
164,189 $16,394 6.93
(3.28, or
47% of
(100,001, or land area
61% ofNTC signed
signed as as of 8-
of 8"()1-03) 01-03)
Shak Special Serv DT 1-23-03.xls
b
CITY OF SHAKOPEE
ORDINANCE NO, 680
AN ORDINANCE ESTABLISHING THE DOWNTOWN SHAKOPEE SPECIAL
SERVICE DISTRICT PURSUANT TO MINN. STATUTES, CHAPTER 428A.
BE IT ORDAlNED by the Council of the CITY OF SHAKOPEE as follows:
Section 1. Recitals.
1.01. The City of Shakopee ("City") is authorized under Minnesota Statutes, Sections
428A.Ol to 428A.IOl (the "Special Services Act" or "the Act") to establish by ordinance a "special
service district" within which special services are rendered, and the costs of the special services are
paid from revenues collected from service charges imposed within that area.
1.02. The City has determined a need to establish the Downtown Shakopee Special Service
District (the "District"), as further defined herein, in order to facilitate the provision within the
District of special services as defined in this ordinance.
1.04. The City has consulted with Vision Shakopeel, a non-profit corporation organized to
carry out downtown improvement activities, and with businesses in the District regarding the
establishment of the District and special services to be provided and financed by service charges
under this ordinance and a related service charge resolution.
1.05. The City shall restrict imposition of service charges to the types of properties
permitted to be charged by Section 428A.02 of the Act. Only property that is classified under
Minn. Statutes Section 273.13 and used for commercial, industrial, or public utility purposes, or is
vacant land zoned or designated on a land use plan for commercial or industrial use, and located in
the special service district, may be subject to the charges imposed by the City in the District.
Notwithstanding the provisions contained in Minnesota Statutes 428.02 Subdivision 1 which permit
the treatment of certain mixed use parcels of property as though they were entirely commercial or
industrial for the purpose of imposing service charges, the City has detennined that the Special
Services (as hereinafter defined) will primarily benefit commercial, industrial, public utility, and
vacant land with such designation. Those parcels of land which contain both residential and non-
residential uses shall only be subject to a service charge based on the net tax: capacity of the non~
residential portion ofthose parcels.
Section 2. Findings.
2.02 The Council fmds that, in accordance with Section 428A.08 of the Act, owners of at
least 25 percent of the land area of property that would be subj ect to service charges in the District,
and owners of 25 percent or more of the net tax capacity of property that would be subject to
service charges in the District filed "Petitions to hold a Public Hearing for an Ordinance
Establishing a Special Service District for the Downtown Area" with the City Clerk.
2.03. The Council fmds that proper publication was made and notice given, pursuant to
Section 428A.02 Subd. 2 of the Act, of a public hearing held September 2, 2003 regarding adoption
of this ordinance. At this hearing, all persons owning property in the District that would be subject
SJB-220617v2
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to a service charge were given an opportunity to be heard.
Section 3. Downtown Shl'lkopee Spedal Service Di~trict Area Defined.
3.01. The District is hereby defmed as the area of the City legally described as set forth in
Exhibit A hereto.
3.02. As of the date of adoption of this ordinance, the District contains a total of
approximately acres of land area subject to a special service charge, net tax capacity
subject to a special service charge, and individuals or business organizations subject to a special
service charge.
Section 4. Special Serv1ce~ Defined
4,01. For the purposes ofthis ordinance and the District, the term "Special Services" shall
mean the following services and improvements that are rendered and made within the District:
(a) Promotion of Downtown: marketing a unified, quRlity image of the downtown as the
center of activities, goods and services to shoppers, investors and tourists through:
. retail/ service promotions that advertise the goods and services offered by
downtown businesses and are designed to generate immediate retail and service
sales,
. special events in the downtown that involve consumers in festive activities and
generate eventual sales,
. image-building through a campaign to reverse negative perceptions of
downtown and build a positive image of the downtown, and
. establishment of a downtown market identity, which can be used to set the stage
for retail and special events.
(b) Technical Assistance to Downtown Businesses: facilitating economic restructuring
of the downtown by developing a market strategy aimed at improving the retail and
service/ commercial mix, strengthening the tax base, increasing investor confidence,
and stabilizing the role for downtown as a major contributor to the community's
economy and by providing related technical assistance to assist existing business
expansion! diversification through:
. marketing the downtown to attract new businesses,
. monitoring and assessing the downtown's market share and opportunities,
. guiding downtown commercial and real estate development and redevelopment
and infill development,
. encouraging property design improvements,
SJB-220617v2
SH155-102
. assisting businesses in maintaining their business and property inventories,
. coordinating with other economic development organizations, and
. promoting downtown for commercial and real estate development.
(c) Design: Creating an attractive, coordinated and quality physical image of downtown
by capitalizing on its unique assets and heritage by
. directing design improvement activity relating to maintenance and rehabilitation
of traditional commercial buildings,
. furthering historic preservation goals,
. assisting in architecturally appropriate new construction,
. developing, purchasing, and setting up public and private signs and graphic
materials to assist in visual merchandising,
. making streetscape and other public improvements including lighting, plantings,
and street furniture,
. coordinating traffic and parking, and
. helping the community to utilize the Minnesota Riyer, riverfront, and Huber
Park through leadership in creation and implementation of riverfront or park
improvement and development plans.
(d) Downtown Organization Support: Providing the services and improvements
described in 4.01 (a) through (c), by recruiting and hiring new board members, staff,
and volunteers for Vision Shakopee! or a comparable downtown organization approved
by the City, including:
. paying the salary or salaries, fringe benefits, and insurance for personnel,
. paying for office expenses including rent, utilities, equipment, supplies, and
insurance,
. paying for professional development and travel expenses,
. collecting membership dues, and
. printing, design, architectural services, subscriptions, and postage.
4.02. Special Services shall also be deemed to include all administration, legal, consultant,
and financing costs in connection with the Special Services.
Section 5. Service (;nar~.c;.
5.01. The City may impose service charges within the District at a rate or amount sufficient
SJB-220617v2
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to produce the revenues required to provide special services in the District (the "Service Charges").
The appropriate rate for the Service Charges based on net tax capacity shall be determined
according to the provisions of Section 428A.03 of the Act.
5.02. Service Charges may not be imposed to finance Special Services if the service is
ordinarily provided by the city from its general fund revenues unless the service is provided in the
District at an increased level. In that case, the Service Charges may be imposed only in the amount
needed to pay for the increased level of service. Service Charges may not be imposed on the
receipts from the sale of intoxicating liquor, food, or lodging.
5.03. Before imposing Service Charges each year, the City will hold a hearing, and give
proper notice of the hearing that includes information required by Section 428A.03 of the Act to
any individual or business organization subject to Service Charges.
5.04. Service Charges will be collected at the same time and in the same manner as
provided for payment and collection of ad valorem taxes, in accordance with Section 428A.05 of
the Act.
5.05. Service Charges are not included in the calculation of levies or limits on levies
imposed under law or charter.
Section 6. Notice of Right to File Ohjection~.
6.01 Before this ordinance is adopted, or at the hearing at which it is to be adopted, any
affected landowner may file a written objection with the City Clerk asserting that the landowner's
property should not be included in the District, or should not be subjected to Service Charges for
the reasons set forth in Section 428A.02 Subd. 4 ofthe Act.
6.02. Within five days after the adoption of this ordinance, the City Clerk is authorized and
directed to mail to the owner of each parcel included in the District, and any individual or business
organization subject to Service Charges: a summary of this ordinance; notice that owners subject to
the proposed Service Charges have a right to veto this ordinance if owners of at least 35 percent of
the land area in the District subject to Service Charges based on net tax capacity, or owners of at
least 35 percent of the net tax capacity subject to Service Charges in the District, or at least 35
percent of the individuals and business organizations subject to Service Charges imposed on a basis
other than net tax capacity, file an objection with the City Clerk before the effective date of this
ordinance; and notice that a copy of this ordinance is on file with the City Clerk for public
inspection. In the event of a veto, no district shall be established during the current calendar year
and until a petition meeting the qualifications set forth in Section 428A.09 of the Act has been filed.
6.03. Pursuant to Section 428A.1O of the Act, the right to file objections and veto this
ordinance does not apply to the second and subsequent years' applications of Service Charges
authorized to be in effect for more than one year under a resolution that has met the petition
requirements of section 428.08 of the Act.
Section 7. Rnl;;!rgement of the ni",trict
7.01. The District may be enlarged only after hearing and notice as provided in Sections
428A.02 and 428A.03 of the Act, including both the original District and the area proposed to be
SJB.220617v2
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added, with the petition requirement and veto power of the Act applying only to owners,
individuals, and business organizations in the area proposed to be added to the District.
Section 8. Effective Date.
8.01. This ordinance shall become effective 45 days after adoption hereof,
Approved, adopted, and ordered published at a regular meeting of the Council of the City of
Shakopee on September 2, 2003.
City Clerk Mayor
SJB-220617v2
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CITY OF SHAKOPEE
RESOLUTION NO. 5943
RESOLUTION IMPOSING A SERVICE CHARGE IN THE DOWNTOWN
SHAKOPEE SPECIAL SERVICE DISTRICT PURSUANT TO MINN.
STATUTES, CHAPTER 428A.
BE IT RESOLVED by the City Council of the CITY OF SHAKOPEE as follows:
Section 1. Recital~.
1.01. The City Of Shakopee ("City") is authorized under Minnesota Statutes, Sections
428A.Ol to 428A.101 (the "Special Services Act" or "the Act") to establish by ordinance a "special
service district" within which special services are rendered and the costs of the special services are
paid from revenues collected from service charges imposed within that area.
1,02. By Ordinance No. _ adopted September 2, 2003 (the "Enabling Ordinance"), the
Council established the Downtown Shakopee Special Service District (the "District") in order to
facilitate the provision within the District of certain Special Services as that term is defined in the
Enabling Ordinance.
1.03. In accordance with Section 428A.08 of the Act, owners of at least 25 percent of the
land area of property that would be subject to service charges in the District, owners of25 percent
or more of the net tax capacity of property that would be subject to service charges in the District,
and at least 25 percent of the individuals and business organizations subject to a service charge
imposed on a basis other than tax capacity filed "Petitions to hold a Public Hearing for an
Ordinance Establishing a Special Service District for the Downtown Area" with the City Clerk.
1.04. The Council has on September 2, 2003 conducted a public hearing, duly noticed in
accordance with the Act, regarding adoption of this resolution at which all interested persons were
given an opportunity to be heard.
1.05. For the purposes of this Resolution, the terms "Downtown Shakopee Special Service
District" (or the "District") and "Special Services" have the meanings provided in the Enabling
Ordinance.
Section 2. Service r.h:jree~ Tmpo~e(L
2.01. The City hereby imposes service charges on all parcels within the District, subject to
the restrictions indicated in 2.05 (the "Service Charges"). The Service Charges for taxes payable in
2004 are 8% of net tax capacity, with a minimum charge of$150 per tax parcel.
2.02 The Service Charges will be imposed for a maximum of 6 years (2004 through
2009). Each year, the rate and minimum charge will be determined based on the estimated
budget of Special Services, as described in Section 2.04 hereof. The rate imposed in any
SJB-220618v2
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calendar year will not exceed the rates described above for 2004. The City Council may
determine in any year to discontinue the Service Charges and terminate the District.
2.03. Service Charges are based on net tax capacity in all cases where the amount
payable by applying the rate specified above exceeds the minimum charge. Service charges are
based on the specified minimum charge in all cases where the minimum charge exceeds the
amount payable by applying the rate specified above. All Service Charges are payable in the
same manner as ad valorem taxes in accordance with Section 428A.05 ofthe Act, whether based
on net tax capacity or the minimum charge.
2.04. The Council hereby approves the budget for the District for 2004 in the form on
file in City Hall. Proceeds of the Service Charges will be applied to pay the cost of the Special
Services described in the approved budget. In each subsequent year during the term of this
Resolution, the Council will review and approve a budget of Special Services for the District in
the following year. After a public hearing in accordance with Section 428A.03 of the Act, the
City Council will approve the Service Charges payable in the following year, consistent with the
terms of Sections 2.01 and 2.02 hereof.
2.05. The City restricts imposition of Service Charges to the types of properties pennitted
to be charged by Section 428A.02 of the Act. Only property that is classified under Minn. Statutes
Section 273.13 and used for commercial, industrial, or public utility purposes, or is vacant land .
zoned or designated on a land use plan for commercial or industrial use and located. in the special
service district, will be subject to the charges imposed by the city on the special service district.
Notwithstanding the provisions contained in Minnesota Statutes 428.02 Subdivision 1 which permit
the treatment of certain mixed use parcels of property as though they were entirely commercial or
industrial for the purpose of imposing service charges, the City has determined that the Special
Services (as defmed in the Enabling Ordinance) will primarily benefit commercial, industrial,
public utility, and vacant land with such designation. Those parcels of land which contain both
residential and non-residential uses shall only be subject to a Service Charge based on the net tax
capacity of the non-residential portion of those parcels. Such parcels shall in all cases be charged at
least the minimum of $150 per parcel.
Section 3. Notice ofRieht to File Ohjectlon~.
3.01. Within five days after the adoption of this ordinance, the City Clerk is authorized and
directed to mail to the owner of each parcel included in the District and any individual or business
organization subject to Service Charges: a summary of this resolution; notice that owners subject to
the proposed Service Charges have a right to veto this resolution if owners of at least 35 percent of
the land area in the District subject to Service Charges, owners of at least 35 percent of the net tax
capacity in the District subject to service charges based on net tax capacity, or 35 percent of the
individuals and business organizations subject to a Service Charge imposed on a basis other than
net tax capacity, file an objection with the City Clerk before the effective date ofthis resolution; and
notice that a copy of this resolution is on file with the City Clerk for public inspection. In the event
of a veto, this resolution shall not become effective.
3.02. Pursuant to Section 428A.I0 of the Act, the requirement to file petitions and the right
to file objections and veto this resolution do not apply to the second and subsequent years'
SJB-220618v2
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applications of the Service Charges, as this resolution authorizes Service Charges to be in effect for
more than one year and the City complied with all notice requirements for multi-year charges.
Section 4. Revenne Snrplm:
4.01 In the event that the Service Charges collected in any year exceed the cost of Special
Services budgeted for that year, such excess amount shall be held by the City in a dedicated reserve
fund to pay the cost of Special Services to be rendered in future years. If any balance of such
revenues remains after the sixth year of collection, the Council may by resolution direct the
expenditure of such funds for any Special Services permitted under the Enabling Ordinance.
Section 5. Effective Date.
5.01. This resolution shall become effective 45 days after adoption hereof or upon
execution of a Special Services Agreement between the City and Vision Shakopee!, whichever is
later.
Approved by the City Council ofthe City of Shakopee this 2nd day of September, 2003.
Mayor
ATTEST:
City Clerk
SJB-220618v2
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e-X"ISl. ~
DOWNTOWN SHAKOPEE SPECIAL SERVICE DISTRICT
Mission
The mission of the Downtown Shakopee Special Service District is to engage in a comprehensive
approach to the revitalization of downtown through concentrated efforts in organization, promotion,
economic restructuring, and physical design. The district is proposed to be administered through the
Vision Shakopee Downtown Partnership, a not for profit 501(c)(3) organization comprised of
volunteers dedicated to the preservation and revitalization of downtown Shakopee, honoring the
district as the historic, commercial and cultural center of the community. The overall goal of the
Special Service District revitalizing Downtown Shakopee, making it a better place to do business, own
property, and live.
Areas of Focus
. Promotion
Market a unified, quality image ofthe downtown district as the center of activities, goods
and services to shoppers, investors and tourists.
Retail /Service Promotions - Promote / advertise the goods and services offered by
downtown businesses; designed to generate immediate retail/service sales
Special Events -Create traffic-building events that involve consumers in festive
activities and generate eventual sales.
Image-Building Promotion - An ongoing campaign designed to reverse negative
perceptions and build a positive image ofthe downtown. Establish a marketing
identity, which can be used to set the stage for retail and special events.
. Economic Restructuring
Develop a market strategy that will result in an improved retail and service / commercial
mix, a stronger tax base, increased investor confidence, and a stable role for the downtown
as a major contributor to the community's economy. Provide technical assistance to assist
existing business expansion / diversification; market the downtown to attract new
businesses; monitor & assess downtown's market share and opportunities; guide downtown
commercial and real estate development / redevelopment and infill development; encourage
property design improvements; maintain business & property inventories; coordinate with
other economic development organizations; and promote downtown for commercial and
real estate development.
. Design
Create an attractive, coordinated and quality physical image of downtown by capitalizing on
its unique assets and heritage. Direct design improvement activity relating to maintenance
and rehabilitation of traditional commercial buildings; historic preservation; architecturally
appropriate new construction; public and private signs; graphic material; streetscape and
other public improvements (lighting, plantings, street furniture, etc.); visual merchandising;
traffic and parking. Help the community to achieve the tremendous potential of the
Minnesota River / riverfront and Huber Park; lead the community through the creation and
implementation of riverfront / park improvement and development plans.
. Organization
Recruit and develop new leadership; recruit new members to the board of directors and
committees; help volunteers find committee assignments I activities they will enjoy; and
raise funds for the program's ongoing operation
Vision Shakopee Downtown Partnership - Board of Directors
Scott Lucas- President (Resident, and attorney with Olson & Associates, PAin Edina)
Bill Wilkening - Vice President / Acting Treasurer (Paragon Bank)
Bryan Turtle (Turtle's Bar & Grill)
Bill Wermerskirchen (Bill's Toggery)
Galen Case (Resident)
Duane Wermerskirchen (Real Gem Jewelers)
Dave Jansen (Valley Sports)
(currently 2 seats open)
Executive Director
Lauri Glenn
Liaisons
Matt Lehman, Councilor, City of Shakopee
Paul Snook, Economic Development Coordinator, City of Shakopee
Carol Schultz, Executive Director, Chamber of Commerce
DOWNTOWN REVITALIZATION
WORK PLAN
2004 - 2008
2004
Design
1. Monument signs & landscaping at each end of River City Centre in grassy areas
2. Hanging flower baskets from street lights
3. Replacing and adding trash receptacles; placement of new receptacles
4. Work with City and volunteer playground committee in forwarding Huber Park Master
Plan; pavilion
5. Work with City and banks to enhance / improve fayade loan program
6. Promote DT Design Guidelines; expand to include more buildings
7. Coordinate with City re landscaping/planting/maintenance in public spaces (around
parking lots; boulevard areas, etc)
8. Enhance existing Christmas light program - on trees, buildings, streetlights, etc.
9. Work with City on establishing Heritage preservation effort (plan, ordinance,
commission, etc.)
Economic Restructuring
1. Retention of Post Office in DT
2. Inventory of commercial space
3. Trade Area / Market analysis
4. Develop business assistance team
5. Conduct business survey
6. Sponsor seminars for service and retail businesses (marketing, visual merchandising,
accounting, promotion, personnel, etc.)
Promotion
1. Establish quarterly newsletter
2. Create downtown directory / map
3. Create bike trail brochure
4. Promotion of Derby Days, Taste of Shako pee, Bike Trail.
5. Create website
6. Christmas Lights (coordinate with Design Committee)
7. Motorcycle Rally / Cruise
8. Art fair at Huber Park
Organization
1. Establish special service district
2. Hire a part time Downtown Manager
3. Establish office space for part time DT manager
4. Recruit new volunteers into committees (Promotions, Design, Economic Restructuring,
Organization) and into Board of Directors
5. Annual Spring banquet
6. Identify Members I Maintain list
7. Fundraising (corporate, etc.)
8. Set up e-mail addresses.
WorkPlan2004-2008.doc
2005
Design
1. Promote fa<;ade loan program
2. Work with City and Rotary on Huber Park Pavilion.
3. Work with volunteers on Community Playground in Huber park
4. Work with City on identifying benches that need refinishing; placement of new benches
5. Work with Chamber on banners and flags (existing program and others: seasonal,
themed, etc.)
6. Encourage building rehab through offering free design assistance in accordance with
design guidelines
7. Establish sign and awning design! grant - loan program
8. Parking Signs - review and make recommendations
Economic Restructuring
1. Sponsor business seminars (visual merchandising, accounting, retail promotion,
personnel, etc.)
2. Consumer Surveys
3. Create marketing materials for business recruitment
4. Targeted business recruitment
5. Retention of Post Office! City Hall in downtown
6. Business Inventory
7. Conduct sales gap analysis
8. Create retailer's resource library
9. Conduct business cluster analysis
Promotion
1. Art Fair in Huber Park (Summer); Indoor art fair (winter)
2. Farmers Market - Huber Park.
3. Print promotions (News paper, Direct mail, etc.).
4. Band Concert! Summer in the Park (Wednesday nights).
5. Historic walking tour of Downtown
6. Quarterly Newsletter
7. Assist with Derby Days! Taste of Shako pee
8. Joint retail advertising/promotions
9. Special retail sales (offering merchandise at a reduced price)
10. Scarecrow Contest or Fall contest! Chili Cook-off
11. Retail Events (not markdown related; "Invited Hours" promotions, etc.)
12. Newsletter! Quarterly
13. Downtown directory! map
14. Car Show: classic and new models - Shakopee Chev; Apple Ford
15. Motorcycle Rally! Cruise
Organization
1. Spring Banquet.
2. Tour other cities for ideas.
3. Recruit new yolunteers into committees and Board
4. Fundraising
WorkPlan2004-2008.doc
2006
Design
1. Continue Huber Park expansion project.
2. Work with Rotary on rest stop on Bike Trail in Huber Park.
3. Promote fayade loan program and design guidelines
4. Work with Chamber on Banners/Flags
5. Design assistance in accordance with design guidelines
6. Promote sign and awning design / grant - loan program
Economic Restructuring
1. Update Inventory of commercial space
2. Update marketing materials
3. Targeted business recruitment
4. Update Business Inventory
5. Business Assistance team
6. Sponsor business seminars
7. Conduct sales gap analysis
8. Maintain retailer's resource library
Promotion
1. Bike Trail Promotions (Attract outside visitors).
2. Web site expansion
3. Expand Newsletter.
4. Derby Days / Taste
5. Retail Sales (offering merchandise at a reduced price)
6. Retail Events (not markdown related; "Invited Hours" promotions, etc.)
7. Golf Tournament (Fall Classic)
8. Art Fair
9. Print Promotions in Valley News
10. PR to Star Trib, Midwest Living, Business Journal, Mpls-StPaul, MN Monthly, etc.
Organization
1. Spring Banquet.
2. Recruit new volunteers into committees and Board
3. Fundraising
2007
Design
1. Parking lot expansions.
2. Work on transportation need for downtown (Cabs, Buses, etc.).
3. Promote fayade loan program and DT design guidelines
4. Banners/Flags
5. Design assistance in accordance with design guidelines
6. Promote sign and awning design / grant - loan program
WorkPlan2004-2008.doc
Economic Restructuring
1. Update Inventory of commercial space
2. Update marketing materials
3. Targeted business recruitment
4. Update Business Inventory
5. Business Assistance team
6. Sponsor business seminars
7. Maintain retailer's resource library
Promotion
1. Expand marketing activities.
2. Expand Art Fair.
3. Expand Farmer's Market.
4. Derby Days / Taste
5. Retail Events (not markdown related; "Invited Hours" promotions, etc.)
6. Retail Sales (offering merchandise at a reduced price)
Organization
1. Spring Banquet
2. Recruit new volunteers into committees and Board
3. Fundraising
2008
Design
1. Promote aesthetics of downtown.
2. Promote fayade loan program and design guidelines
3. Work with Chamber on Banners/Flags (Old Glory)
4. Free design assistance in accordance with design guidelines
5. Promote sign and awning design / grant - loan program
Economic Restructuring
1. Update Inventory of commercial space
2. Update marketing materials
3. Targeted business recruitment
4. Update Business Inventory
5. Business Assistance team
6. Sponsor business seminars
7. Maintain retailer's resource library
Promotion
1. Work on new promotions for winter months (Chili Feed, Ice Sculpture Contest,
2. Snowmobile Demo / Expo
3. Expand marketing activities.
4. Expand Art Fair.
5. Expand Farmer's Market.
6. Derby Days / Taste
7. Retail Events (not markdown related; "Invited Hours" promotions, etc.)
8. Retail Sales (offering merchandise at a reduced price)
WorkPlan2004-2008.doc
DOWNTOWN SHAKOPEE
SPECIAL SERVICE DISTRICT
- PROPOSED 2004 BUDGET.
Estimated Revenues:
Donations/Fundraising (corporate, etc.) 3,000
Program Revenues (Events,etc) 5,900
Savings I Interest I Misc. 100
Special Service District Assessment 16,000
TOTAL REVENUES: ~ 25,0001
Estimated Expenses:
Personnel:
Salaries (Part Time DT Mgr I Staff) 4,500
Insurance 200
Office Expenses:
Rent 0
Utilities 0
Office Equipment & Supplies 1,000
Telephone I Internet 400
Miscellaneous I Contingency 300
Training Materials I Conferences 600
Promotions / Advertising:
Derby Days 2,000
Other 2,500
Other Operating Expenses:
Membership Dues (NMSC; IDA) 300
Design Services I Architect 1,000
Subscriptions I Publications 200
Newsletter I Printing I Postage 1,200
Capital Improvements:
Streetscape:
Flowers, Planters 5,000
Banners I Flags 300
Landscaping I Planting 1,000
Christmas Lights 1,500
Entry Signs I Misc. 2,000
Sign I Awning Grants: 1,000
TOTAL EXPENSES: , 25,0001
8/26/03
Economic Development Division, "News & Views" Newsletter Page 1 of 12
tal\4ISrr ~
,- News & Views
January 2000
"NEWS & VIEWS" BIDs: Making Business Districts
More Competitive
ONLINE
January 2000 - M. Bradley Segal
!;l,:U:~_~;J\'.t!!Kj!'l9_!;l,!J.$Jng~~
Pj;!:!:riJ;::!:~MQnU::;Qmpgliliv~ To remain competitive in a dynamic
Downtown New York's marketplace, business districts are redefining
BID Rebound themselves. Downtowns, main streets and
outdated commercial corridors are
J,nh discovering that unique multi-dimensional
"NEWS & VIEWS" business environments can successfully
capture a lucrative market niche separate
ONLINE from conventional and new competitors such
ARCHIVES as power centers, on-line shopping services
July 2000 and "retail resort" shopping malls.
April 2000
January :'WOO
QC;::!:o~~rl~~~ Business improvement districts (BIDs) can be
':'l.Ily~9$1~
A.priLl~~$1 a critical component of an overall
revitalization strategy for a business district.
"NEWS & VIEWS" is the BIDs make a business district competitive by
newsletter of the Economic providing a managed environment. BIDs
Development Division of the have been proven to create both the revenue
American Planning Association.
It is published quarterly and and political will to keep commercial streets
selected articles from the I f d . II 'b t
newsletter are published on this C ean, sa e an economlca y VI ran .
Web site as they become
available. A business improvement district is typically a
non-profit organization funded primarily
through a special tax assessment on
properties within a central business district.
The revenue is used to provide a variety of
improvements and services that enhance, not
replace existing municipal services. Typically,
BIDs are formed by an ordinance or
resolution of local government and decisions
affecting BID revenues are usually made by a
board consisting of private property and
business owners. To deliver day-to-day
services, a BID will contract with a business
district management organization.
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Economic Development Division, "News & Views" Newsletter Page 2 of 12
Management organizations are generally
independent private non-profit business
organizations, or, in some cases, a
department of local government.
Common BID service options include:
. Maintenance: BIDs provide maintenance
services over and above those provided by
local government, including frequent
sidewalk sweeping, trash and debris removal,
periodic power washing of sidewalks and
immediate removal of graffiti from buildings
and public amenities.
· Security: BIDs provide extra security to
augment services from local police
departments. Types of security services
range from conventional security patrols to
"ambassadors" that have extensive customer
service training to help customers navigate
through a business district.
· Marketing and Promotions: Marketing
programs aim to improve the overall image
of business districts and position them as
regional destinations through forming
collaborative promotional strategies,
undertaking market research and working
with the media.
· Special Events: Special events reinforce the
business district's drawing power as a
destination, often targeting consumer
markets that typically underutilize it. Many
BIDs manage a yearly events calendar that
maintains an active schedule of lively
attractions.
· Parking and Transportation: BIDs help
manage and/or expand the parking supply
within a business district, including validation
programs, management of municipal
garages, sponsorship of local shuttles and
advocacy to implement regional transit.
· Business Recruitment and Retention: Many
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Economic Development Division, "News & Views" Newsletter Page 3 of 12
BIDs provide services to attract jobs and
investment to business districts, including
undertaking market analysis, developing
databases and structuring public/private
financing for redevelopment projects.
. Human Services: BIDs are becoming active
partners with human service agencies to help
address the issues of the homeless and other
street populations. Examples of 8ID-
sponsored initiatives include maintenance
programs that employ homeless persons and
community service coordinators that direct
street populations to services.
. Capital Improvements: BID improvement
options include visible amenities such as
street lights, benches, kiosks and public art.
Many BIDs have the capability to issue bonds
that allow for ambitious public/private capital
improvement programs.
Advantages of BIDs
A BID establishes a self-imposed and self-
governed property tax or assessment that
must be supported by private sector business
and property owners. Since the first BID was
established in New Orleans in the early
1970s, the International Downtown
Association estimates that more than 1,200
have been formed in business districts in the
U.S. and Canada. The BID phenomenon has
not been limited to large central cities -
BIDs are now found in suburban business
districts, rural Main Streets and along
automobile-oriented commercial corridors.
A BID works much in the same way as a
common area maintenance (CAM) provision
found in most tenant leases within suburban
shopping malls and office parks. When a
shopping center tenants pay CAM charges,
they are paying an extra fee for an enhanced
level of services within the common areas of
the mall. These services often include extra
maintenance crews, mall security patrols and
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Economic Development Division, "News & Views" Newsletter Page 4 of 12
cooperative advertising in local newspapers.
Similar to uniform operating hours and
merchandising standards, CAMs are standard
practice for shopping malls, made possible by
single owners that generally hold and
manage these properties.
A BID is a CAM for downtown. Unlike a
shopping mall, downtowns, main streets and
older commercial corridors have multiple
ownerships, making the lease covenants
found in a shopping mall problematic. A BID
provides a mechanism by which all property
and/or business owners must pay an
assessment to support services in the
common areas of a business district.
Once formed, all property and/or business
owners are required to pay to support a BID;
however, unlike a mall, BIDs allow property
and/or business owners to retain their own
individual standards of operation. This is an
important distinction since many property
owners and merchants remain in downtown
or on main street in order to be
entrepreneurial and not be constrained by
the rules and regulations of the mall.
Ultimately, it is the collective energy of
diverse entrepreneurs that give downtown,
main street or a commercial corridor its
vitality and competitive advantages.
The services and activities of BIDs are
tailored to meet the specific needs identified
by the local business community that funds
them. BIDs can bring about a number of local
benefits, many of which extend far beyond
their actual service boundaries. These
benefits include:
. Create a cleaner, safer and more attractive
business district. BID ambassador programs
have been documented to reduce rates of
crime and aggressive street behavior from
250/0 to 75010 in a variety of markets. BID
maintenance programs provide a consistent
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Economic Development Division, "News & Views" Newsletter Page 5 of 12
standard of cleanliness throughout a business
district. Perception surveys find that property
owners, employees and visitors all perceive
business districts are significantly safer and
cleaner after a BID has been established.
. Establish a stable and predictable resource
base. One of the most attractive attributes of
a BID to a business or property owner is
consolidating annual downtown improvement
fees into one payment, as opposed to
supporting multiple organizations,
promotions, events and services.
. Provide non-bureaucratic, innovative and
accountable management. Most BIDs are
governed by boards of property and business
owners, and services are delivered by private
non-profit organizations, offering private
sector management and accountability.
. Respond quickly to market changes and
community needs. BIDs are flexible tools. As
markets change, the nature of BID financed
services can change. For instance, many
communities initially stabilize a downtown
environment with clean and safe services,
and then increase BID-financed marketing
and promotions as the market improves.
. Help to increase sales, occupancy rates and
property values. Denver and Milwaukee have
found that BIDs enhance property values and
sales; however, they are among a handful of
cities that have undertaken formal economic
impact studies. There is strong qualitative
evidence that BIDs improve local markets.
The renewal rate for BIDs is nearly 1000/0 -
a compelling vote of confidence for the value
of BIDs to affected property and business
owners.
. Create a unified private sector voice. The
mandatory tax or assessment instituted by a
BID is extremely effective at engaging
property and business owners in the future of
their business districts. BIDs are inherently
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Economic Development Division, "News & Views" Newsletter Page 6 of 12
fair since everyone pays, even absentee or
disinterested property owners. BIDs create a
unified voice for a business district, providing
more effective advocacy to advance local
issues.
The bottom line on BIDs is that they can
effectively complement a business district
revitalization program, but they are not a
panacea in and of themselves. A BID
provides funds to mange the environment of
a business district. It can help stabilize a
deteriorating market or guide a strong
market. A BID will not, however, change the
underlying dynamics of the marketplace. It
should be viewed as a market stabilizer or
sweetener and enables the private sector to
take a stronger role in the development of
business districts.
Can A BID Work In Our Community?
Despite their demonstrated advantages, BIDs
are not a solution for every community. Many
communities have tried to establish BIDs
only to somehow fail in the process,
sometimes resulting in a political stigma that
prohibits another attempt at creating a BID
for a decade or more. Before embarking on
the process to form a BID, generally the
following elements must be in place within
the business district:
. Private Sector Leadership: BIDs are most
successful and effective when the process is
driven by private sector leaders within a
business district. A BID involves the
imposition of an assessment, or tax, upon
property and/or business owners. Peer to
peer encouragement is the most effective
way to "sell" the BID concept. Private sector
leadership must be evidenced within a
business district, either through an existing
business organization or through an informal
network of key stakeholders.
. Supportive Local Government: Local
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Economic Development Division, "News & Views" Newsletter Page 7 of 12
government is best cast as a low key, yet
dependable supporter in the drive to form a
BID. Local government can provide resources
including information, money and staff
expertise. Many BIDs have been killed by an
overzealous government that is skeptically
viewed by property and business owners as
too quick to increase taxes. On the other end
of the spectrum, a disinterested local
government can also kill a BID formation
effort by fueling concerns that existing
government services will be withdrawn.
· Staff and Financial Resources: Formation of
a BID is a people intensive process that,
depending upon the business district, can
take from 9 to 18 months. Stages of forming
a BID include initial feasibility, service plan
development and a political campaign to
carry the BID through a petition process
and/or City Council approval. Financial
resources are needed for computer hardware
and software, marketing materials, BID
consultants, legal counsel and unforeseen
expenses. Staff support is required to
compile property and/or business owner
databases, create marketing materials,
manage consultants and coordinate
volunteers.
. Public/Private Partnership: The success of a
BID formation effort is founded upon a viable
public/private partnership. Formal, or
informal, the partnership should initially aim
to be inclusive of all interests in the business
district. Private sector leaders should be out
in front of the BID formation effort with a
supportive local government that is visibly at
the table.
With the preceding elements in place, a
community can begin the process of
investigating the formation of a BID.
BID Applications:
Beyond Big City "Clean and Safe"
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Economic Development Division, "News & Views" Newsletter Page 8 of 12
Most of the publicity surrounding the BID
movement has been generated by the highly
successful "clean and safe" programs in
America's largest cities. For instance, more
than 40 BIDs in New York City have been
partially responsible for a dramatic reduction
in crime. Downtown turnarounds in
Baltimore, Philadelphia and Houston have all
benefitted from sophisticated downtown
management organizations fueled by well
capitalized BIDs. Emerging "24-hour"
downtowns, such as Seattle, Portland and
Denver have supported BIDs for 10 to 20
years. The BID phenomenon has also taken
root in large sun belt cities including Los
Angeles, Phoenix and Atlanta.
Beyond the big cities, BIDs are also playing a
strong role in the revitalization of
downtowns, main streets, commercial
corridors and suburban "edge cities". The
following case studies illustrate the recent
use of BIDs to advance revitalization in more
"unconventional" business districts.
Boulder, Colorado:
A Pre-Emptive Strike to Remain
Competitive
Boulder, Colorado, is a quaint college town of
about 100,000 persons nestled in the Rocky
Mountain foothills about 25 miles northwest
of Denver. Boulder's Pearl Street Mall, a
downtown pedestrian mall constructed in
1976, is one of the nation's top urban
success stories. Pearl Street is a well-
designed congenial public gathering space
lined with vibrant retail stores that pay in
excess of $50 per square foot in annual rent
for the privilege of being on the pedestrian
mall.
Despite Boulder's prosperity, downtown
property owners decided in 1999 to begin
taxing themselves more than $620,000 per
year through a new BID. The BID tax is in
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Economic Development Division, "News & Views" Newsletter Page 90f 12
addition to an existing parking district tax
that has been in place since creation of the
pedestrian mall.
The new Boulder BID is a pre-emptive strike
to strengthen downtown's competitiveness in
a rapidly changing marketplace. Less than a
15 minute drive from the Pearl Street Mall, a
new 1.5 million square foot regional shopping
center is currently under construction
opening in November of 2000. Five minutes
from downtown, an existing mall is being
remodeled to a town center shopping format.
The Boulder BID will provide new resources
to more aggressively market the downtown.
Half of the new BID funds will be directed to
consumer marketing activities, effectively
increasing marketing resources for Boulder's
downtown association by a factor of 15.
Remaining funds will be allocated to
enhanced maintenance to lift the entire
downtown to the standards of Pearl Street.
For more information, contact Marilyn Haas,
Downtown Boulder Inc., (303) 449-3774.
EI Cajon, California:
Creating an Image for a Suburban
Downtown
EI Cajon, California, a suburban community
of about 100,000 persons located 20 miles
east of San Diego. EI Cajon's downtown has
struggled over the past 30 years, a victim of
an aggressive redevelopment strategy that
removed much of the area's historic core,
lower income demographics resulting from
the highest concentration of apartments in
the San Diego region and a county social
services center that has attracted a
surprisingly high concentration of street
populations.
In 1996, EI Cajon became one of the first
cities in California to establish a property-
based BID. The BID was seen by civic
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Economic Development Division, "News & Views" Newsletter Page 10 of 12
leaders, property and business owners as the
foundation for a new downtown revitalization
strategy that included stabilizing the
downtown environment, attracting new
businesses and investment and creating a
new image for one of the last historic
downtowns in the vast East County area of
San Diego, a growing market area with a
population exceeding 350,000.
Today, led by the non-profit Downtown EI
Cajon, Inc, and financed by it's $366,000
BID, EI Cajon is rapidly making strides
toward renewal. Key program elements of
the Downtown EI Cajon BID include:
. Clean & Safe: About one-third of the BID
budget is allocated to clean and safe services
to stabilize the downtown environment.
Enhanced security is provided by a contract
patrol that offers 14 to 16 hours of coverage
each day. A downtown Clean Team has been
created by an innovative partnership
between the BID and a local school for
developmentally disabled adults.
. Marketing: To combat EI Cajon's image of
the past and promote new business and
investment opportunities, one-third of the
BID budget is allocated to marketing
activities. A new image is being crafted
through an aggressive schedule of special
events, new identity package for downtown,
banners, downtown directory, market
research and advertising. Downtown EI Cajon
has also retained the services of a public
relations consultant, resulting in increased
visibility and coverage in the local media.
. Facade Incentive Program: Beginning in
1999, the Downtown EI Cajon BID is
allocating $80,000 per year for a matching
fund for building improvements. Eligible
improvements include facades, signs,
landscaping and alley enhancements.
To leverage BID assessments, Downtown EI
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Economic Development Division, "News & Views" Newsletter Page 11 of 12
Cajon Inc. is currently forming a 501(c)(3)
subsidiary to help attract project grants and
philanthropic contributions.
For more information, contact Claire
Carpenter, Downtown EI Cajon Inc., (619)
401-8858.
Buckhead, Georgia:
Bringing Order to Edge City Chaos
Marketed as the "Beverly Hills of the East",
Buckhead is the most affluent community
within Atlanta and serves as the city's second
downtown. With most of its development
occurring in the past 30 years, Buckhead's
assets include more than 15 million square
feet of office space, two upscale shopping
malls, strong residential demographics and
Atlanta's most vital entertainment district.
Like most of the Atlanta metropolitan area,
Buckhead is literally choking on its own
success. Traffic jams and congestion are of
monumental proportions. While a regional
transportation authority was recently
established, solutions to the area's traffic
management challenges will take years, if
not decades, to implement.
In 1998, Buckhead property owners decided
to take an active role in advancing
transportation improvements and created the
Buckhead Community Improvement District
(CID). The CID will raise nearly $1.9 million
each year to finance a variety of
transportation improvements aimed to
reduce traffic congestion and improve
mobility. Program options include:
. Roadway improvements through design and
engineering work to accelerate the
installation of left turn signals, complete
ramps and access roads and widen selected
roads.
· Pedestrian improvements to improve
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Economic Development Division, "News & Views" Newsletter Page 12 of 12
pedestrian mobility throughout the business
district, including the design and installation
of pedestrian pathways, bridges and lighting.
. Transportation management activities such
as ongoing support for the Buckhead
Transportation Management Authority,
support for a business district shuttle service
and undertaking traffic studies and analyis to
improve mobility throughout the business
district.
Buckhead CIO supporters were inspired by
success in the Cumberland CIO, a nearby and
newer office and retail community in
suburban Atlanta. Formed in 1987,
Cumberland CIO assessments have financed
the design and engineering of new roads,
effectively lifting their priority ranking for
state and federal highway funds. Over ten
years, Cumberland CIO assessments have
been leveraged by a ratio of 10: 1, resulting
in $200 million in new roadways including a
major freeway interchange and loop road.
For more information contact Sam Massell,
Buckhead Coalition, (404) 233-2228.
0
Brad Segal is president of Progressive Urban
Management Associates; Inc., a Denver-based
consulting firm specializing in the creation of business
improvement districts, downtown management
organizations and market-based downtown plans. Mr.
Segal has consulted to BIDs, local governments and
downtown management organizations in 17 states,
Canada and Jamaica. Prior to establishing P.U.M.A., he
served as the senior director of the Downtown Denver
Partnership. He can be reached directly via email at
pumaman@ix.netcom.com, or visit the company's
webpage at www./Jumaworldhq.com.
If you have comments or suggestions, please contact the web'ster at ecdevapa@mindsprinq.cor
Copyright @ 2000 Economic Development Division, American Planning Associatio
posted March 200
http://www.edd-apa.org/archives/OlOOAl.htm 8/26/03
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