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HomeMy WebLinkAbout5. Recommendation from EDAC on Northridge Ct Apartments-Res. No. 5884, EDA Res. No. 03-02 t; f0A ~s c,c IS. f 9 CITY OF SHAKOPEE Memorandum TO: City Council and Economic Development Authority FROM: Economic Development Advisory Committee Paul Snook, Economic Development coordinato~ SUBJECT: Recommendation from the Economic Development Advisory Committee to enter a Preliminary Joint Powers Agreement with the Scott County HRA for the proposed Northridge Court Apartments development. EDA Resolution No. 03-02; and City Council Resolution No. 5884, Approving the Execution and Delivery of a Preliminary Joint Powers Agreement with the Scott County Housing and Redevelopment Authority MEETING DATE: April 15, 2003 Introduction The Economic Development Advisory Committee recommends that the Economic Development Authority and City Council enter a Preliminary Joint Powers Agreement with the Scott County HRA for the proposed Northridge Court Apartments senior housing development project. The resolutions and Preliminary Joint Powers Agreement are attached as Exhibit A. Background At the City Council workshop meeting of March 11 th, at which the HRA project and an update of the Comprehensive Plan / Redevelopment Recommendations from NAC were presented, the City Council gave direction to move forward in negotiations with the HRA to develop the proposed Northridge Court apartments. At the April 8, 2003 Economic Development Advisory Committee meeting, the Scott County HRA presented the project, and the EDAC passed a motion to recommend that the EDA and City Council enter the Preliminary Joint Powers Agreement, see EDAC memo, Exhibit B. Questions raised by the EDAC centered on demand for senior housing, need for parking, and the City's position in the proposed financing structure. EDA I City staff met with HRA Director Bill Jaffa on March 28th. Mr. Jaffa provided a Q & A, Preliminary Joint Powers Agreement, Preliminary Finance Structuring Memo, and a statement of Redevelopment and Economic Benefits of the project. The Q & A and statement on Redevelopment and Economic Benefits are attached as Exhibit C. NorthridgeCtAptsEDAmemo2.doc At its April 3, 2003 meeting, the Planning Commission passed Resolution PC03-017, attached as Exhibit D, granting a conditional use permit for the Northridge Court development. At the City Council workshop meeting of March 11 th, HRA staff provided Aerial Views, Site Plans & Overview, Elevation Renderings, and Floor / Unit Plans; these documents, along with a parking plan produced by City staffthat includes the Huber Park / Riverfront area, are enclosed as Exhibit E. Council raised questions at the March 11 th workshop regarding how parking could be coordinated to accommodate demand related to the Northridge Court project, the Huber Park / Riverfront area and downtown. According to the layout produced by staff, approximately 39 parking spaces would be available west of Huber Park after demolition and removal of the former Community Services, and approximately 88 parking spaces in a new lot east of Huber Park. On the Northridge Court plan, approximately 50 parking spaces would be created in a new public parking lot to the west of Fuller St. (at the northwest corner of Fuller and First Ave.). Under this scenario there would be 177 public parking spaces. Currently there are approximately 85 - 90 spaces in the Levee Drive lot. On the Northridge property, there would be 24 surface and 53 underground parking spaces for residents and visitors. On Levee Drive there would be 10 - 13 on-street spaces. Even with the additional parking as outlined on the plans, on the occasion of a large crowd for an event at Huber Park, parking will be tight in the immediate area. This would be similar to what is experienced during Derby Days' Taste of Shakopee. However, experience shows that people are willing to walk to such special events, and this pedestrian movement is beneficial to downtown's businesses. The lineal distance from the various public parking lots throughout the downtown / riverfront district to the center of Huber Park ranges from 600 - 1,725 ft. Discussion Staff and legal counsel have reviewed the draft Preliminary Joint Powers Agreement and it appears to be acceptable. The HRA would issue the bonds for the project, with housing lease revenues to pay debt service. Security for the bonds will include, in the following order; 1.) a lien on net revenues, 2.) An operating reserve fund, 3.) A debt service reserve fund of six months maximum annual debt service, 4.) a pledge by the HRA of up to $70,000 of its special benefits tax levy annually, and 5.) the full faith and credit of the City In answer to a question raised by Council at the March 11 th workshop, if the City pledges its full faith and credit, the bonds become general obligations of the City. If lease revenues, reserve fund, debt service reserve fund, and pledge of the HRA special benefits tax levy are insufficient to pay debt service, the City would be required to make payments from any available funds, including a tax levy against all property in the City. This is NorthridgeCtAptsEDAmemo2.doc similar to the agreement on the River City Centre. If the City and EDA enter the Preliminary Joint Powers Agreement, Springsted should be consulted regarding the credit implications ofthe pledge and overall financing structure of the project. In addition, this preliminary agreement will be replaced by a more detailed joint powers agreement, which should contain provisions to make certain that the City has input if difficulties occur in payment of debt service. These provisions are standard in this sort of agreement. Also, pending legislation in the 2003 Minnesota Legislature could affect the City's ability to pledge its full faith and credit to the proposed bonds. The Preliminary Joint Powers Agreement acknowledges this in Exhibit A, Section 5. Options EDA 1. Offer Resolution No. 03-02, Approving the Execution and Delivery of a Preliminary Joint Powers Agreement with the Scott County Housing and Redevelopment Authority and move its adoption. 2. Do not offer Resolution No. 03-02. 3. Table and request additional information from staff and HRA City Council 1. Offer Resolution No. 5884, Approving the Execution and Delivery of a Preliminary Joint Powers Agreement with the Scott County Housing and Redevelopment Authority and move its adoption. 2. Do not offer Resolution No. 5884 3. Table and request additional information from staff and HRA Recommendation The Economic Development Advisory Committee recommends that the Economic Development Authority and City Council enter a Preliminary Joint Powers Agreement with the Scott County HRA for the proposed Northridge Court Apartments senior housing development project. NorthridgeCtAptsEDAmemo2.doc Action Required EDA Offer Resolution No. 03-02, Approving the Execution and Delivery of a Preliminary Joint Powers Agreement with the Scott County Housing and Redevelopment Authority and move its adoption. City Council Offer Resolution No. 5884, Approving the Execution and Delivery of a Preliminary Joint Powers Agreement with the Scott County Housing and Redevelopment Authority and move its adoption. NorthridgeCtAptsEDAmemo2.doc E'"XHIB\T A ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF SHAKOPEE Resolution No. O~-O2. Approving the Execution and Delivery of a Preliminary Joint Powers Agreement with the Scott County Housing and Redevelopment Authority WHEREAS, housing and redevelopment authorities (and economic development authorities exercising the powers of housing and redevelopment authorities) are authorized by Minnesota Statutes, Sections 469.001 to 469.047 (the "Act") to undertake housing development projects, and pursuant to Minnesota Statutes, Section 471.59, to undertake common powers jointly with other governmental units; and WHEREAS, the Economic Development Authority of the City of Shakopee (the "EDA") proposes to enter into a Preliminary Joint Powers Agreement (the "Joint Powers Agreement") in substantially the form on file with the EOA on the date hereof with the City of Shakopee and the Scott County Housing and Redevelopment Authority (the "Authority") regarding the development of a housing development project (the "Project") within the City of Shakopee to address the need for affordable housing in the City and County; and NOW, THEREFORE, BE IT RESOLVED, by the Board of Commissioners of the Economic Development Authority of the City of Shako pee: 1. That the Joint Powers Agreement is hereby approved in substantially the form on file with the EDA on the date hereof, with such changes or modifications as are not materially adverse to the EDA and which are approved by the President and the Executive Director ofthe EDA. 2. That the President and Executive Director, or in their absence or unavailability, any other officers of the EDA, are authorized and directed to execute and deliver the Joint Powers Agreement, on behalf of the EDA. Passed and adopted on this _ day of April, 2003. 2336056vl CITY OF SHAKOPEE, MINNESOTA Resolution No. 588tt Approving the Execution and Delivery of a Preliminary Joint Powers Agreement with the Scott County Housing and Redevelopment Authority WHEREAS, housing and redevelopment authorities (and economic development authorities exercising the powers of housing and redevelopment authorities) are authorized by Minnesota Statutes, Sections 469.001 to 469.047 (the "Act") to undertake housing development projects, and pursuant to Minnesota Statutes, Section 471.59, to undertake common powers jointly with other governmental units; and WHEREAS, the City of Shakopee, Minnesota (the "City") proposes to enter into a Preliminary Joint Powers Agreement (the "Joint Powers Agreement") in substantially the form on file with the City on the date hereof with the Economic Development Authority of the City of Shakopee and the Scott County Housing and Redevelopment Authority (the "Authority") regarding the development of a housing development project (the "Project") within the City of Shakopee to address the need for affordable housing in the City and County; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Shakopee: 1. That the Joint Powers Agreement is hereby approved in substantially the form on file with the City on the date hereof, with such changes or modifications as are not materially adverse to the City and which are approved by the Mayor and the City Administrator of the City. 2. That the Mayor and City Administrator, or in their absence or unavailability, any other councilmembers of the City, are authorized and directed to execute and deliver the Joint Powers Agreement, on behalf of the City. Passed and adopted on this _ day of ,2003. 2336053vl I i PRELIMINARY JOINT POWERS AGREEMENT THIS PRELIMINARY JOINT POWERS AGREEMENT (the "Agreement") has been entered into as of the 1st day of April, 2003, by and between the SCOTT COUNTY HOUSING AND REDEVELOPMENT AUTHORITY, a public body corporate and politic and a political subdivision of the state of Minnesota (the "lIRA"), the CITY OF SHAKOPEE, MINNESOTA (the "City"), a municipal corporation and the ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY OF SHAKOPEE (the "EDA"), a public body corporate and politic (the "EDA" and, together with the lIRA, the "Authorities"), pursuant to Minnesota Statutes, Section 471.59 and Chapter 469. 1. Statement of Purpose and Powers to be Exercised. There isa need within the City for a housing development project to provide multifamily rental housing units for seniors (the "Project"). Because of the resources and experience of the HRA, the parties hereto propose to undertake such a Project cooperatively pursuant to Minnesota Statutes, Section 471.59. The powers to be exercised jointly under this Agreement are those common or substantially similar - powers conferred upon the lIRA as a county housing and redevelopment authority and upon the EDA as an economic development authority having the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Chapter 469, including, without limitation, Sections 469.012, Subd. 1(7), and 469.017, to undertake housing development projects and redevelopment. 2. Method of Achieving Purpose; Manner of Exercising Power. The powers to be jointly exercised by the Authorities hereunder generally shall be exercised by the lIRA, in consultation with the EDA. Specific development activities, including, without limitation, the development of the Project, shall be exercised by the lIRA pursuant to this agreement with prior approval of the EDA, and, to the extent deemed necessary by the lIRA, following execution and delivery of additional written agreements from time to time made between the parties hereto relating to specific activities. It is the intent of the parties that any governmentally owned housing development project would be developed, owned and operated by the HRA, subject to a ground lease from the City or the EDA. A preliminary structuring memo which summarizes the proposed terms of financing the Project is attached hereto as Exhibit A. 3. Source and Contribution of Funds. Except as otherwise agreed by the parties hereto, the source of funds for the development and redevelopment of the Project and any other joint exercise of powers undertaken by the Authorities pursuant to this Agreement shall be: (a) as to pre-development costs, including, but not limited to, a survey, environmental study, soil borings, market study, schematic drawings, preliminary financial analysis, preliminary legal work and construction estimates, funds provided by the lIRA; (b) as to the reimbursement of the BRA of the costs initially paid pursuant to (a) above, and as to all other costs incurred in connection with the development of the Project, the proceeds of bonds issued by the lIRA to finance such development and any other sources from time to time identified by the parties hereto; and 2308529vl (c) as to the operation, maintenance, repair and replacement of the Project from time to time, revenues generated by the Project and any other amounts from time to time pledged by any of the parties hereto. Notwithstanding the foregoing, except as provided in (a) above, nothing herein shall obligate either of the Authorities or the City to contribute other moneys with respect to the development or redevelopment of real property or the undertaking of the Project pursuant to this Agreement. 4. Budget and Disbursements. The lIRA shall develop budgets relating to the activities to be undertaken by it pursuant to this Agreement. Notwithstanding any other provision hereof, moneys and funds shall be held, applied, disbursed, and accounted for in such manner as provided in any bond or other financing documents, or otherwise as the lIRA may determine to be appropriate. Any surplus revenues generated by the Project annually shall be applied as provided on Exhibit A attached hereto. 5. Liability for Debts and Obligations. Neither of the Authorities nor the City shall have the power hereunder to do any act or thing the effect of which is to create a charge on or lien against the property or revenues of the other Authority or the City without the express written approval of the parties involved. 6. Term of Agreement; Termination. This Agreement shall remain in effect until the earliest of (a) the date of execution and delivery by the Authorities and the City of a more detailed joint powers agreement relating to the activities to be undertaken pursuant to this Agreement; and (b) the repayment in full of -any financing or refinancing issued by the lIRA for the benefit of activities undertaken pursuant to this Agreement 7. Distribution of Assets Upon Termination. Upon termination of this Agreement, any property acquired as the result of this Agreement and any surplus moneys shall15e used first, to repay the City any amounts due pursuant to the financing documents, and second, shall be distributed to the lIRA for use for its corporate purposes. 8. Amendments. This Agreement, including any attachments, exhibits or prior amendments, may be amended, at any time and from time to time, by the written consent of each of the Authorities. [Remainder of page intentionally left blank] 2308529vl 2 IN WITNESS WHEREOF, the lillA, the City and the EDA have each caused this Agreement to be executed on its behalf by their respective authorized officers have each caused their official seal, if any, to be affixed hereto, all as of the day and year first above written. THE SCOTT COUNTY HOUSING AND REDEVELOPMENT AUTHORITY By Its Chair (Seal) By Its Executive Director 2308529vl S-1 CITY OF SHAKOPEE, MINNESOTA By Its (Seal) By Its 2308529vl $-2 ECONOMIC DEVELOP:MENT AUTHORITY OF THE CITY OF SHAKOPEE By Its (Seal) By Its J 2308529vl S-3 . EXHIBIT A NORTHRlDGE COURT HOUSING FACILITY Preliminary Structuring Memo The Scott County Housing and Redevelopment Authority (the "BRA"), in cooperation with the City of Shakopee (the "City") and the Economic Development Authority of the City of Shakopee (the "EDA") proposes to undertake a housing development project for occupancy by seniors in the City of Shakopee on land currently owned by the City, near the lIRA's existing River City Centre project. The following is a preliminary summary of the fmancing terms. 1. Preliminary Development Costs. The lIRA will fund preliminary development costs to be reimbursed from bond proceeds. 2. Ground Lease. The City will lease the land to the BRA pursuant to a ground lease (the "Ground Lease"). The Ground Lease will have a term of 50 years and a total rent payment of $1. The Ground Lease will be a net lease to the City, with the lIRA obligated to pay all expenses. Subject to any agreement to swap land with the HRA, as provided in paragraph 3 below, at the end of the term of the Ground Lease, the property, including all improvements, reverts to and will be owned by the City. 3! Fuller Street, Additional Parking. ill connection with the development of the Project, the HRA . will fund the opening of the Fuller Street intersection (but not necessary traffic signage or lighting). ill addition, the HRA will acquire property adjacent to the project site, demolish existing structures and construct a 50-stall surface parking lot. The lIRA will lease the parking lot to the City pursuant to a lease with a 50 year term and total rent payment of $1. Such lease will be a net lease to the HRA, with the City obligated to pay all expenses. The City and the HRA may choose to swap the ground upon which the Project will be constructed with the land upon which the HRA will construct the parking lot in lieu of providing for the leases described in paragraph 2 and this paragraph 3. Any such agreement would be set forth in final documents relating to this transaction. 4. Project Construction and Financing. Pursuant to Minnesota Statutes, Section 469.017 and 469.012, Subd; 1(7), the lIRA will build a housing development project (the "Project"), containing approximately 57 units of multifamily rental housing for seniors, and related facilities. The construction of the Project will be financed with proceeds of the housing bonds described below. 5. Bonds. The Project will be fmanced by the issuance by the-BRA of its housing development revenue bonds (the "Bonds"). Security for the Bonds will include: a. a lien on net revenues of the Project; b. an operating reserve fund; c. a debt service reserve fund equal to 6 months maximum annual debt service; d. if necessary, a pledge by the lIRA of up to $70,000 of its special benefits tax levy, annually; and e. subject to feasibility based on the adoption of pending State legislation, the full faith and credit of the City. Any funds generated by the Project in any year in excess of what is necessary to pay expenses and debt service and fund necessary reserves will be the property of the BRA, used for housing or commercial development. 2308529vl A-I CITY OF SHAKOPEE Memorandum EXI..U &IT a. TO: Economic Development Advisory Committee Mark McNeill, EDA Executive Director FROM: Paul Snook, Economic Development Coordinator SUBJECT: Scott County HRA Proposal: Northridge Court Apartments MEETING DATE: April 8,2003 Introduction The Economic Development Advisory Committee is asked to provide further recommendation to the Economic Development Authority regarding the Northridge Court Apartment redevelopment proposed by the Scott County HRA. Background At the May 2002 meeting the Economic Development Advisory Committee recommended to the EDA and City Council that the Comprehensive Plan update being conducted by Northwest Associated Consultants be complete before making commitments on the proposed HRA project or any other redevelopment project. At the City Council workshop meeting of March 11 t\ in which the HRA project and an update on the NAC Comprehensive Plan / Redevelopment Study were presented, the City Council gave direction to move forward in negotiations with the HRA to develop the proposed Northridge Court apartments. At this workshop, HRA staff provided Aerial Views, Site Plans & Overview, Elevation Renderings, and Floor / Unit Plans; these documents are enclosed as Exhibit A. EDA / City staff met with HRA Director Bill Jaffa on March 28th. Mr. Jaffa provided a Q & A, Preliminary Joint Powers Agreement, Preliminary Finance Structuring Memo, and a statement of Redevelopment and Economic Benefits of the project; these documents are attached as Exhibit B. At its April 3, 2003 meeting, the Planning Commission passed Resolution PC03-017 (Exhibit C), granting a conditional use permit for the Northridge Court development. Discussion The EDAC's recommendation (from the May meeting) was to complete the update of Comprehensive Plan being conducted by Northwest Associated Consultants before making commitments on the proposed HRA project or any other redevelopment project. The NAC Draft Comprehensive Plan Update recommends that the parking lot remain because of its importance in providing parking availability to an improved Huber Park, with the Fuller Street intersection opened up to provide access and connectivity to the NorthridgeCtAptsEDACmo2.doc downtown core. The Draft Camp Plan also suggests that the parking lot be evaluated for potential redevelopment of a higher land use as a multiple family residential development. The HRA's plan obviously meets the higher land use recommendation, and meets the parking recommendation with the development of a new parking lot to the west of the proposed development (in the northwest quadrant of the Fuller St. / 1 st Ave intersection, where currently there is a house and vacant land). The CUP has a condition that the Fuller Street intersection be opened. As to the Preliminary Joint Powers Agreement, review by legal staff suggests that the agreement is acceptable. The preliminary agreement will eventually be replaced by a more detailed joint powers agreement. Regarding the financing, the HRA is proposing that the City lease the land to the HRA pursuant to a ground lease, which would have a term of 50 years and a rent payment of $1 (this is similar to the ground lease between the HRA and City for the River City Centre building). In addition, the HRA proposes that the City be the guarantor with no direct funding. The primary financing instrument for this project is (City) general obligation backed housing revenue bonds. The bonds will be paid from revenues of the project and other funds to be pledged to debt service (i.e. operating reserve fund; debt service reserve fund). The bonds will be structured in a manner that calls for the full faith and credit of the City to be in last position (see Exhibit B for details). An analysis by the City's financial advisor, Springsted, would be in order when this project moves forward. Options 1. Recommend that the Economic Development Authority and City Council enter a Preliminary Joint Powers Agreement with the Scott County Housing & Redevelopment Authority 2. Recommend that the Economic Development Authority and City Council not enter a Preliminary Joint Powers Agreement with the Scott County Housing & Redevelopment Authority, and provide the reason for the recommendation 3. Table the matter and request additional information from HRA and EDA / City staff. Recommendation Option 1. Action Required Offer and pass a motion recommending that the Economic Development Authority enter a Preliminary Joint Powers Agreement with the Scott County Housing & Redevelopment Authority NorthridgeCtAptsEDACmo2.doc Pcu.il- ~ ~,~vt /U-~ i~ SCOTT COUNTY HOUSING AND REDEVELOPMENT AUTHORITY 1itiit 323 South Naumkeag Street, Shakopee Minnesota 55379 (952) 402-9022 Fax (952) 496-2852 :. ... -4 ~ 1111 "Dedicated to Housing & Redevelopment... Committed to Quality" William I. Jaffa Executive Director TO: Mark McNeill, City Administrator EX,"" 'BIT C Paul Snook, Economic Development Director FROM: t William I. Jaffa, Executive Director DA TE: March 28, 2003 SUBJECT: Questions Regarding Northridge Apartments Facility: 1. What is the risk to the city if G.O.- backed Housing Revenue bonds are sold, but the HRA defaults on them? The Bonds would be general obligation bonds of the City, and if other revenues were not sufficient to pay them, the City would have to pay them from any source, including a tax levy, if necessary. This is similar to the situation the City has with respect to general obligation tax increment bonds. While general obligation tax-increment bonds are typically expected to be paid from tax increment, if for any reason the increment isn't sufficient, the bonds must be paid from other funds of the City, including a levy, if necessary. While the Housing and Redevelopment Authority is proposing that the bonds be general obligations of the City, it is the Authority's expectation that they will be paid from revenues of ~he project and other funds to be pledged to debt service. To this end, the bonds will be structured with the following security, which would be applied in the following order: a. a lien on net revenues of the Project; b. an operating reserve fund; c. a debt service reserve fund equal to 6 months maximum annual debt service; d. if necessary, a pledge by the lIRA of a portion of its special benefits tax levy, annually; e. if necessary, an annual appropriation pledge by the City made pursuant to Minnesota Statutes, Section 469.041; and f. the full faith and credit of the City. The Authority will pledge in the Indenture providing for the issuance of the Bonds that it will use its best efforts to charge rents sufficient, together with other moneys pledged (obviously not including the general obligation) to pay debt service on the Bonds. The Authority will do an annual projection of cash flows based 01) then-current conditions. If such cash flows don't show at least 1.05% debt service coverage, the Authority will retain an outside consultant to make recommendations with respect to operations and rents to enable the Authority to improve the debt service coverage ratio to at least 1.05 to 1. The bond documents will require that an annual review is done that looks at historical data and also looks forward for two (2) years. The review DeAnn Croatt, District I James Siekmann, District II Marjorie Henderson, District III Patti Sotis, District IV Nicole Bennett, District V An Equal Opportunity I Affirmative Action Employer March 28, 2003 Page 2 will offer the HRA and the City the opportunity to assess the project's financial perfonnance and make adjustments as necessary. In addition, the typical casualty insurance, the Authority will obtain one year's business interruption insurance to pay debt service during any period when the project has been damaged and is being reconstructed. 2. What reserve account provisions would be made for this scenario? Pursuant to the Indenture, the following reserve funds would be established: 0 A debt service reserve fund would be funded from bond proceeds. The amount is expected to cover six (6) months of debt service on the bonds. 0 An operating reserve fund in an amount equal to 1I4th of annual operating costs. I:l An extraordinary maintenance and replacement fund, funded on a monthly basis in amounts intended to cover major maintenance and replacement costs. In addition, any surplus revenues generated by the project would be released annually only after annual cash flows ~e prepared showing that pledged revenues would be sufficient going forward. 3. What will it cost the City annually. In similar projects, both the Authority and the applicable city have made annual contributions to increase affordability and to ensure 110% debt service coverage. However, at this time no annual cash contribution will be required of the City. 4. Will the City have the building as an asset if the bonds default? The transaction can be structured with a mortgage in favor of the City that would give the City a lien in the event it were called upon to pay debt service. As a practical matter, we would expect the City and the Authority to be working closely to solve any revenue shortfalls without the requirement that the City pursue remedies under a mortgage. 5. How much will the payment in lieu of taxes amount to annually? Payment in lieu of taxes is based on a statutory formula that takes annual gross rent minus utilities times 5 %. The Northridge Court taxes are estimated at $27,000 annually based on rents proposed by Maxfield Research. 6. How much of what the HRA pays is available for such general things as police, fire etc. costs? The BRA property tax dollar is distributed in the same manner prescribed by law to cover police and fire services as any other property owner. NORTHRIDGE COURT REDEVELOPMENT AND ECONOMIC BENEFITS . Consistency with NAC land use recommendation and the Comprehensive Plan; . Eliminates a blighted downtown area; . Strengthens downtown identity; . Provides increased buying power for the downtown market through attracting residents with disposable income and their families; . Opens Fuller Street intersection; . Provides assessable replacement downtown parking; . Expands the market draw for residents living downtown; . Increases the tax base; . Allows the City to retain investment in land; . Results in an investment of over $2,000,000 to downtown Shakopee through the HRA annual cash contribution~ " ~6 ~ E:X\-l \ !>\, t:> RESOLUTION NO, PC03-017 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, GRANTING A CONDITIONAL USE PERMIT TO ALLOW ING MULTIPLE DWELLINGS NOT ATTACHED TO A PERMITTED USE WHEREAS, Scott County Housing and Redevelopment Authority (BRA) applicant, and City of Shako pee, property owner, have filed an application dated January 16, 2003 for a Conditional Use Permit to allow multiple dwellings not attached to a permitted use under the provisions of Chapter 11 (Zoning) of the Shakopee City Code, Section 11.40 (Central B.usiness Zone), Subd. 3. (Conditional Uses); and ~ WHEREAS, this parcel is presently zoned Central Business Zone (B3) Zone; and WHEREAS, the property upon which the request is being made is legally described as attached on Exhibit 1; and WHEREAS, notice was provided and on March 6, 2003, the Board of Adjustment and Appeals conducted a public hearing regarding this application, at which it heard from the I Community Development Director and invited members of the public to comment. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF ADJUSTMENT AND APPEALS OF THE CITY OF SHAKOPEE, MINNESOTA, AS FOLLOWS: That the application for Conditional Use Permit No. PC03-017 is hereby GRANTED, subject to the following conditions: 1. Approval of the Conditional Use Permit shall be contingent upon City Council approval ofthe sale of the property to Scott County Housing and Redevelopment Authority. 2. Landscaping shan be reviewed for compliance at the time of building permit. 3. Shall meet the design and performance standards required by the City Code. 4. Trash receptacles shall be completely enclosed including a top. 5. Approval of the Conditional Use Permit is contingent upon the opening of Fuller Street and the purchase of additional land for parking on the west side of Fuller Street, as illustrated on the applicant's drawings. - 6. This structure shall be an independent senior housing facility: If the use changes, the applicant shall submit a CUP amendment. Adopted by the Board of Adjustment and Appeals of the City of Shakopee, Minnesota, this 3rd day of April, 2003. ::.,. Chair of the Board of Adjustment and Appeals ATTEST: Community Development Director --------- ----------------- -- - - - -- - --- ---- ------------------- ~ I - _~hakopee Aerial_Yiew ~ + - YJ Northridge ~. - -; Court ~ . t J '" - ~ MILLER HANSON PARTNERS -- -- - -- - - -- - - - -- - .-- ~ - -- - -- -- -- ! Site Aerial View . - - 1 1 ! Northridge ~. Court ,.a. 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I · Pantry r:-- I DO · Self-cleaning range -- -- I · Frost-free refrigerator I · Dishwasher \ /" ,/ · Garbage disposal · Microwave oven /- /' \ · Washer and dryer ---...... '... ~---- .\, · Mini blinds D I · Walk in closets I I Northridge ~. I Court 1 ~ - I MILLER HANSON PARTNERS ,________ __________ ____~_________ ___ _____ ___n____ ___ _______ I Unit Plans - - Guest Suite Unit A2 r~; 340 S.P One bedroom, 787 S.P. - - DI \;; I /. -......~- /--- 1 /\~, '\;' "'" r " I / r. t- "----"J --.-/ : i I II "- II II ]e, ' /\ --... f I " \\ Northridge ~ Court ~ I , I -- .--- MILLER HANSON PARTNERS I Unit Plans - - Unit B ~-- I DO One bedroom + Den, 901 S.F. r //----- ----\ Northridge ~ Court ~ . , ~ ~ --- MILLER HANSON PARTNERS - ~ -- - - --- - - - ---~- - - - - - - - ~- -- --- - -- ~ ~ _____ ~ _ _ _ ___ _ _ L- _ __ __ __ _ _________ __ ~__ ~ --- Unit Plans L- - ~~ -----:"I Unit C DO J Two bedroom, 945 S.P. =- ----.--""-----..., ------f""-----""t------- r--J L ---1 I ,I ;' J--/ ..---i -.. /.- '"'\ ,/") / \ ,", I .(.-----~).J' ./'? \ .. /ft "--1;; \. I "..-'--1 I j:l ~[ I I ,.---- ""'--" .-.- I .----1 I ( ~ /. ~= l ....\:..). - I .-,-- - -:~, I "\.. I 0) 0> ""h 0 01 (J '<< .~.--- ! 0, (;. / "x/ - ~ I ~, ~" "I _/ c.:> 0 c.:> 0 'r- ',~17~-:: / ......... ! I I Northridge ~ I - I Court I . I I - l - I MILLER HANSON PARTNERS ! I I I ! I --- Unit Plans J - --:1 Unit C2 I DO I Two bedroom, 984 S.P. I - ----- I ) I ---- / I i /-- -----....\ I \ I I., I \,'-~-- I I I I /' 1/---- I I ,.....-- ( ~, I Q) I .., /r~- .... " "''0/ '00 I // ........, Northridge ~ I Court ,... I , ~ UI __ MILLER HANSON I PARTNERS I l - Unit Plans I - r:-- --::1 Unit D I DO 00 I ~ ~- Two bedroom, 1018 S.F .:__ r. I I ~~:-.. ""-y il r---' I I I,.., I I \............._- I ) -~ --~?: / /':,;' ,.J.,.-:-o I ",/ '-.- I I I I Northridge ~, Court ... 11 I - I - MILLER HANSON PARTNERS I - Unit Plans . - -- ~-- --:1 Unit E I DD DD I Two bedroom + Den, 1467 S.F. r,--------- I I D I \./ y.- -.~~ ('--- .\/ \r j ~\ ~ /,.~.~ :-'.... ~ ~) ~- .... 10 ............. lo ,.."......... --. ......... '\ Northridge ~ Court ,.. I ~ 11 - MILLER HANSON PARTNERS HUBER PARKlNORTHRIDGE PARKING SUMMARY Huber Park East Lot 88 spaces Huber Park West Lot 39 spaces Northridge West Lot 50 spaces Northridge On-Site Lot 24 spaces Underground On-Site 53 spaces On Street (Levee Drive) Approx. 10-13 (2 hour spaces) Distance from center of Parkin!! Lot sta!!e/park to center of parkin!! lot East Side Huber Park (proposed): ~600' West Side Huber Park between bridges (proposed): ~880' Second and Lewis Street (existing): ~860' Pablo's (existing): ~1275' North of Valley Sports (existing): ~ 1310' West ofNorthridge Court (proposed): ~1675' Second and Fuller (existing): ~ 1725' dt parking distance. doc " uar4 ~, ~aurent 100 50. fuller 5t'J 5te, 200 5haKopee J MN fJ fJ'?19 9fJ2.44fJ,614fJ .-_. . ---'--"'0-"'" n_.._..___._.. ----".-.__.------ . -- . --- - ._._,_,'_ __."'~"_'. __ ___...."___.___ ,u.__.___ ,~ -..~._.. '_'"'___~'.' .._..._" _'''_''''U'_'' April 8, 2003 City of 5hakopee Mayor and Council Members C/o Mark McNeil 129 S. Holmes St. 5tl.akopee, iv1N 55379 Dear Mayor and Council. Members: I have some sertousconcerns regarding the proposed HRA project to be located on the city-owned parking lot Just west of the old river brtdge In downtown Shakopee. My concerns lie In two general areas. First, I seriously doubt that the proposed use IS In the best Inter.est of the downtown and the Vitality thereof. 5econd, the HRA proposal IS not In the best Interest of the City of Shakopeeand ItS reSidents, from a finanCial perspective. ,.1-;.." The site of the proposed HRA project IS uniquely pOSitioned along th~ riverfront, IS Within the downtown core, and IS bUildable. There 15 no other site With these qualities. ThiS uniqueness encumbers us to use thiS site to ItS highest and best use, which would be In a fashion that takes advantage of these qualities. There are many Sites, even WithIn the downtown, that will accqmrnod3te a subsidized re~bI5e.r\\or ho.l!:;'.lnS proJect. Many would even allow seniors to walk to shoppIng, restaurants, c.ommerclal services and publiC entities such as the library Without crossIng a busy 4-lane highway. On the other hand, thiS IS the last location where a commercial facility could be built In the downtown that would use the river as a baSIS of ItS economic feasibility. Such a structure could mclude a restaurant, bar, coffee shop, Ice cream shop or other ventures where views or outside riverfront seating would be an attraction, or which would benefit from the river trail traffiC. Upper floor offices could take advantage of river views. ThiS type of privately owned commercial use would add Significantly more economiC Vitality to the downtown than subsidized rental senior apartments; In terms of addmg synergy and bringing purchaSing energy to the downtown. While a privately-owned commercial facility would pay high property taxes to the benefIt of everyone, a government-owned subsidized sentor rental butldln~ does relatively nothing. A commercial facIlity could possibly generate a tax Increment that could be captured for further redevelopment of the downtown. Why would the city give away the last site with such unique characteristics for a use that could go most anywhere and doesn't _.......,-~....... .. Cje nerate-a-ptrbtrc-fma nCla I ret1::trn?-lt-the-crty-r5-wrltrm~rto-carve-th-e-5rte--c3way, -.-.- why wouldn't It do so for a development that would not only generate high tax revenues, but also add signifIcantly to the downtown? (By the way, leasing property for fifty years for a dollar 15 essentially the same as deeding It away for free.) The argument will be made that the private sector hasn't come forth to develop the site. But what has the city done to attract a developer? Has It offered the site for free as the HRA proposal 15 requesting? Has It. advertised the opportunity? Has It put a sign on the property? Has It sent out RFP's? Other CIties, neighbOring Chaska Included, have envIsIoned their futures and gotten numerous projects done by private developers by engaging the private sector. I continue to hold the belief that'Shakopee has stili failed to enVISion ItS future and proactlvely pursue It WIth actions, Investment and patience. If we had really thought about the whole downtown, I really doubt that we would have pOinted to the parking lot by the river, just west of the old brIdge, and said, "You know what would be perfect here? SubSidized senior apartments." Too often we have been reactive, shortsIghted, small- pIcture oriented, and penny-wise and dollar-foolIsh. We settle for less than what could be, In the name of getting something done. Even the downtown's largest project (blocks 3 4- 4) fell far short of what could have been In terms of the sites highest and best use. And while not failmg finanCially, the project 15 a finanCIal disaster to the City, compared to what could have been achieved. Nothing said here IS meant to be Critical of the HRA or senior hOUSing. The HRA IS Simply working to carry out ItS very worthwhile miSSIon and 15 thus acting as It should, In ItS own best Interest. The City of Shakopee needs to do the same. Sincerely, c: Mark McNeil Paul Snook VISion Shakopee ; "'..'" , :4i< '''.' , '.fl!' it.. III ., " ~..,. ..'\.'" "'" t 'I< " "~~,.. ;'~' ..~ ' " ~'. .!l ".: -. L'" ~,' ! .it , Huber Park West Parking Lot j; , i I ~39 Spaces i ! i I I ! I I I I - i ti: i ! I P ,1 '.~ ~~i , , , t ,~ ~ ",It! 'l:~' I:> ~.. I. 'f ~ .. ~ III . I. "'< j , . ~~" ~ Ii ~. 'l ,- J ,!!". -" '" =-.f:'- 'iI ~~' c'1 · ~t,. ,0 ' \'...-~ · i: C' J'- oi-"-,;,.' 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