HomeMy WebLinkAbout14.C. Tax Abatement Request by Ryan Companies
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CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
EDA President and Economic Development Authority
Mark McNeill, City Administrator / EDA Executive Director
FROM: Paul Snook, Economic Development Coordinator ~
SUBJECT: Recommendation from Economic Development Advisory
Committee regarding Tax Abatement Request by Ryan Companies
US, Inc. for the proposed West Dean's Lake Mixed Use
Development
MEETING DATE: February 4, 2003
Introduction
The Economic Development Authority and City Council are asked to give concept
approval to a proposal that would provide economic development financing to a proposed
mixed use development by Ryan Companies US, Inc.
Background
At its January 22, 2003 meeting the Economic Development Advisory Committee
unanimously passed a motion to recommend that the EDA / City Council receive an
Application for Business Subsidies (for tax abatement) from Ryan Companies US, Inc.
(Ryan), and contingent upon Scott County's approval of an abatement request by Ryan,
initiate negotiation of a Master Development Agreement with Ryan and Scott County
which would specify the terms under which tax abatement would be used to finance, in
part, the proposed West Dean's Lake mixed use development. Once the provisions of the
Master Development Agreement are determined, it would be presented to the EDA / City
Council for approval.
Ryan is requesting tax abatement for the development of the proposed West Dean's Lake
mixed-use project located at the southeast quadrant of the CR 83 and U.S. Hwy 169.
Ryan proposes a "Master Development Agreement" (MDA), which would serve as a
framework for partially financing the development of West Dean's Lake through tax
abatement. This mixed-use "conservation" development consists of 78 acres of
residential, 79 acres of commercial, 65 acres of parkland, open! green space, and abundant
setback from Dean's Lake among other conservation features. A task force of City
officials including Councilors Bob Sweeney, Terry Joos and Matt Lehman, City
Administrator Mark McNeill, Economic Development Coordinator Paul Snook,
Economic Development Advisory Committee Chair Jeff Jansen, City economic
development counsel Steve Bubul of Kennedy & Graven and Paul Steinman of
Springsted, Inc., the City's financial advisor, have been meeting with officials from Ryan
Ryan Abate Memo 1-31-03.doc 1
and Valley Green Business Park over the last several months regarding financing this
proposed development. Like the Economic Development Advisory Committee, this task
force recommends that the EDA / City Council receive Ryan's Application for Business
Subsidies for tax abatement, and initiate negotiation of a Master Development
Agreement with Ryan and Scott County outlining the use of tax abatement for partially
financing the proposed project.
According to Ryan's development proforma which has been analyzed by Springsted, the
City's financial advisor, the combined cost of site development, infrastructure and fees
cannot be economically absorbed by the project without assistance based upon the limited
development density required by the conservation development approach versus a more
typical development design with more density and few conservation development
features. The conservation approach reduces the density of development to 60% of a
typical development. The basis for requesting tax abatement/TIP is due to the cost of
infrastructure for internal roads, the County Roads 16 & 83 improvements and the costs
relating to restoration and maintenance of the conservation area/park/trail ways. The
infrastructure improvement necessary to implement the conservation development
approach substantially increases project costs and inflates the asking price ofthe land
beyond the market for comparable real estate. In addition, the improvements to CR 83 /
16, which is considered an improvement that would serve a broad area (of many
benefiting properties) in south Shakopee, would typically be a County capital expense,
but the County did not include these improvements in its plan. In order to allow the
improvements to happen, the City is assessing Valley Green Business Park for the
improvements.
Exhibit A is Brauer & Associates' Community Value Statement for the West Deans Lake
Area. This document is a supplement to the Deans Lake Area Master Plan completed in
July 2001. The objective defined in these documents is to maximize the community
values associated with the development to exceed that which is already provided under
city ordinance. The key values include:
. Maintaining an ecological protection zone and adjoining buffer zone along the
lakeshore;
. Preserving as much natural open space along the west side ofthe lake as feasible;
. Providing a linear trail corridor along the west side of the lake that links to other
trails;
. Expanding natural open spaces and trails into and through the development area
in a meaningful way;
. Using ecologically-based approaches to storm water management;
. Reducing the extent of impervious surface to the extent possible; and
. Establishing an ecological stewardship program for natural areas.
It should be noted that the Brauer & Associates' report was created through much input
from the community.
Ryan Abate Memo 1-31-03.doc 2
Discussion
Exhibit B is Ryan's Application for Business Subsidies and preliminary concept plan of
the proposed development. Estimated project costs total $243,235,500, with total
estimated fee and permit costs of $4,701,510. It is proposed that the City utilize tax
abatement in the amount of $923,606 to fund extraordinary costs of infrastructure
relating to regional transportation improvements (CR 83 / 16 intersection) and internal
infrastructure in support oftheDean's Lake mixed use development.
The benefits of this development include:
. A Conservation Development as guided by the Deans Lake Master Plan and related
Community Value Statement
. 83 / 16 Improvements assessments would be met through the abatement
. Architecturally appealing scattered affordable residential development may be
included
. Increase in tax base
. Per the City's Business Subsidy Policy, the proposed abatement on the residential
portion of the development will leverage/ induce future commercial development,
which will in turn:
- Create a maximum number oflivable wage jobs;
- Provide significant economic impact (multiplier effect) within the community;
- Encourage economic and commercial diversity within the community (build to
suit corporate facilities that Shakopee has yet to realize on a significant scale);
and
- Contribute to the establishment of a critical mass of commercial development
within the community
. Currently in Shakopee there are 1.7 million square feet of vacant commercial space
on the market. Absorption of this space along with space around the metro area will
take some time. With that level of vacancy and without abatement, the West Dean's
Lake conservation development will not be developed; abatement and eventually TIP
(which would be individually applied for by companies locating at West Deans Lake)
will position this unique property to be competitive in the marketplace.
. Retains and expands the City's tax base
Exhibit C is a written response from Ryan Companies to questions raised by recent
articles in the Shakopee Valley News.
Ryan Abate Memo 1-31-03.doc 3
Financing
. 1,171,180 square feet of commercial space at a total value of $79,007,803 anticipated
to be constructed over a 10 year period. Approximately 700 residential units at a total
value of$143,196,730 are anticipated to be constructed over a 3 year period.
. Present value tax abatement ($923,606 from the City, and $3,064,608 from the
County, totaling $3,988,214) would be collected from the residential part of the
project to fund the 83/16 improvements / assessments, commercial improvements and
conservation enhancements.
. Tax abatement is not abatement in the literal sense of the word. The Minnesota
abatement law provides for a tax rebate rather than an exemption from paying taxes.
In order for a jurisdiction to utilize abatement, it must make the following findings:
1) That it expects the benefits of the political subdivision of the proposed abatement
agreement to at least equal the costs to the political subdivision of the proposed
agreement; and
2) That the abatement is in the public interest because it will facilitate at least one of
the following:
- Increase or preserve tax base;
- Provide employment opportunities in th epolitical subdivision;
- Provide or help acquire or construct public facilities;
- Help redevelop blighted areas;
- Help provide access to servIces for residents of the political
subdivision; or
- Finance or provide public infrastructure; or
. Tax increment financing would be considered separately and in the future on
qualified commercial developments. Each company / commercial development owner
would apply for TIF individual/v. Ryan estimates the build-out of the development to
be 10 years
. The City's abatement cap will be maximized by the residential part of the project.
Under state law, a city's abatement capacity is 5% of its annual levy. The maximum
abatement for this project is proposed to be no more than the City's statutory cap
minus the CertainTeed abatement, and then 50% percent ofthat result. The other 50%
of the City's abatement capacity would not be used for Ryan's West Deans Lake area
projects but would be reserved for projects in other areas of town.
. The abatement would be structured as "pay-as-you-go" (eligible expenses are paid for
as they are incurred).
Ryan Abate Memo 1-31-03.doc 4
Enclosed is Exhibit D, a memo and abatement spreadsheets from Springsted Financial
Advisors outlining and analyzing the financial components of the Ryan proposal. From
the analysis Springsted concludes that the project will not be feasible at a base land price
of $4.24 per square foot, without subsidy. Again, based upon the limited development
density required by the conservation development as compared with a typical design with
more density and few conservation attributes, the cost of site development, infrastructure
and fees cannot be absorbed by the project without abatement. If the anticipated build-out
takes 10 years, then a subsidy in the present value amount of just under $4 million will be
necessary to make this project competitive with other commercial developments in the
Twin Cities market.
So, but-for the use of tax abatement, this conservation development (that maximizes
community values as identified in the Brauer report) will not occur since it is more costly
to develop than would develop otherwise. If the conservation development does not
become a reality, Valley Green Business Park will likely have to sell the land, and a less
desirable development would probably occur.
The City's financial consultant Springsted has also provided a report on estimated impact
of abatement on other taxing jurisdictions, and impact of abatement on taxpayer in
payable year 2007 (the year when the final phase of residential housing is projected to be
at full value for tax purposes). The report on estimated impact of abatement on other
taxing jurisdictions shows a decrease in local tax rate of 1.74%, while the report on
estimated impact of abatement on taxpayer (in '07) shows a total (City & County) annual
decrease of $52.19 for a homestead residential property with an estimated market value
at $300,000. The $52.19 decrease will be offset by the costs shown in Exhibit E, a memo
from City Administrator I EDA Executive Director Mark McNeill outlining levels and
costs of City services related to the proposed development and in consideration of the
projected abatement, but overall it will still result in a tax savings.
Master Development Agreement
Following is a tentative summary of business points that would be part of the master
development agreement ("MDA") for the West Dean's Lake Development.
. Ryan would be the master developer that would seek a residential developer, and seek
end-users for each commercial portion of the development. The City would enter into
separate contracts for private development with commercial users, to specify
individual development requirements and the nature/level of City participation
consistent with the MD A.
. All assistance will be "pay as you go". The MDA will set parameters for maximum
assistance to any user and/or the West Dean's Lake development as a whole.
Tentative parameters would include:
- Percentage of annual City abatement cap: no more than 50% of annual cap to
all end users combined;
Ryan Abate Memo 1-31-03.doc 5
- The City would consider creating TIP Districts for qualified companies where
permitted by law;
- Abatements would be collected from residential property to offset cost of
83/16 improvements and commercial/conservation development costs;
- Maximum term of abatement on residential property is 9 years;
- Maximum present value dollar amount of abatement would be $3,988,214
. The City would cooperate with Ryan in seeking approval of abatement from Scott
County, but obtaining approval is ultimately Ryan's responsibility.
. For the commercial portion, the MDA will specify criteria for selection of end users.
Factors may include:
- Only commerciallindustrial uses.
- Type of business: types preferred and/or prohibited
- Jobs and wages. Minimums set within MDA and separate contracts
- Pro forma showing need
- Amount of qualified costs (site work, conservation improvements, etc.).
. Residential uses receive no public assistance; although residential property is abated
to fund infrastructure improvements and commercial/conservation development.
. The MDA would provide that Ryan will be obligated to ensure construction of an
agreed-upon amount of development according to an agreed upon schedule. If that
doesn't occur, Ryan will be required to repay the abatement assistance it has received.
Ryan will not be allowed to transfer the property or its rights in the agreement (other
than to commercial end-users) without the EDA's consent. Typically, ifthe new
entity is a proven responsible party and will assume all obligations of Ryan, the EDA
would approve the assignment. (These provisions are typical in economic
development contracts.)
Options
1. Receive an Application for Business Subsidies (for tax abatement) from Ryan
Companies US, Inc., and contingent upon Scott County's approval of an abatement
request by Ryan, direct staff to initiate negotiation of a Master Development
Agreement with Ryan and Scott County which would specify the terms under which
tax abatement would be used to finance, in part, the proposed West Dean Lake mixed
use development.
2. Do not accept an Application for Business Subsidies (for tax abatement) from Ryan
Companies and do not initiate negotiation of a Master Development Agreement with
Ryan and Scott County for financing the proposed West Dean's Lake mixed-use
development.
3. Table and request additional information from staff.
Ryan Abate Memo 1-31-03.doc 6
Recommendation
Option 1.
Action Requested
Offer and pass a motion to receive an Application for Business Subsidies (for tax
abatement) from Ryan Companies US, Inc., and contingent upon Scott County's approval
of an abatement request by Ryan, direct staff to initiate negotiation of a Master
Development Agreement with Ryan and Scott County which would specify the terms
under which tax abatement would be used to finance, in part, the proposed West Dean
Lake mixed use development.
Ryan Abate Memo 1-31-03.doc 7
Conservation Development Planning City of Shako pee
., .
EXHIBIT A
Community Value Statement
for
Valley Green Development I West Deans lake Area
Date: November 27, 20001 (Updated January 4, 2002)
From: Jeff Schoen bauer, Vice President
Brauer & Associates, Ltd.
Conservation Development Planning Consultant to the City of Shakopee
Overview -
The initiative to undertake a collaborative planning process between the city and the developer for the Valley Green
development area was an outgrowth of the Deans Lake Area Master Plan completed by the city in July of 2001. From the city's
perspective, the objective defined in the master plan was to maximize the community values associated with the development
of this area to exceed that which is already provided under city ordinance. The key values being sought include:
~ Maintaining an ecological protection zone and adjoining buffer zone along the lakeshore.
~ Preserving as much natural open space along the west side of the lake as feasible.
~ Providing a linear trail corridor along the west side of the lake that links to other trails defined under the master plan.
~ Expanding natural open spaces and trails into and through the development area in a meaningful way.
~ Using ecologically-based approaches to stormwater management
~ Reducing the extent of impervious surface to the extent possible.
.. Establishihgan ecological stewardship program for natural.areas.
City Staff and Consultant Role in the Project
City staff's role in the project was to provide information about city development requirements, standards, procedures, and
input on a variety of development issues affecting the development's final form. Under the conservation development
approach, city staff also took a proactive role in discussing development issues so that the developer had a greater sense of
staff's concerns about specific issues. This proved valuable to the city's consultant and the developer as the development plan
emerged.
The city's consultant, Brauer & Associates, Ltd. (in collaboration with Applied Ecological Services, Inc.), worked with the
developer on behalf of the city to prepare a development plan consistent with the conservation development approach to
planning as defined under the Deans Lake Master Plan. Importantly, Brauer's express role was to maximize the community
values derived from the development in a manner, that was consistent with the Deans Lake Master Plan, as well as the broader
vision for the community as a high quality place to live, work, and recreate. Throughout the planning process, the Brauer team,
in concert with staff, strove to achieve the highest possible outcome within the context of an economically-viable development.
Planning Context
From a historical perspecti~e, much debate has occurred in recent years about the development plans for the Valley Green
development Area. Ultimately, a preliminary plat for the property was accepted by the City Council, which allows the current
land owner to move forward with development of the property in accordance with city requirements. In general, the
development proposed by the current owner would be a commercial/business park development consistent with other past
developments within the city. If the property is not sold to another party, it would be expected that a "piecemeal" approach
would be taken by the current land owner until the site is fully developed.
Brauer & Associates, Ltd. 1
c~nservation Development Plannin~ City of Shc*~pee
Since the time that the preliminary plat was approved, Ryan Companies US, Inc. (Ryan) has expressed an interest in purchasing
and developing the site from the current land owner, under the assumption that a favorable development plan could be .
reached with the city through a collaborative planning process. Recognizing the challenges associated with this property in the
past, Ryan agreed to work collaboratively with the city in preparing a development plan that maximizes community values
while still being an economically-viable development The pretense being that a win-win development solution could be found
if the two parties worked together throughout the planning process. Ryan also agreed to participate in this process because the
company felt that building a strong level of trust with the city and the neighborhood was necessary if a successful plan was to
emerge - especially given the history of the site.
The forthcoming community value statement focuses on the values that the city would realize from the development plan being
prepared by Ryan to the city for consideration. Note that for comparison purposes, the accepted preliminary plat for Valley
Green Corporate Center, often referred to as the Albinson plan, is used to illustrate the key differences between what is already
approved and what might be achieved if the Ryan plan is ultimately approved in lieu of the Albinson plan.
Comparison of Development Plans
For comparison purposes, three development plans have been considered, including:
~ Valley Green Preliminary Plat Development Plan - represents a development plan associated with the preliminary plat
approved by the city. (This is also referred to as the Albinson Plan.)
.. Ryan Residential/Commercial Plan - represents a proposed plan that includes a residential component in addition to the
commercial development proposed under the Valley Green Plan.
.. Ryan Commercial Plan - represents a proposed plan that is all commercial, should the city not accept the residential
component
As a basis for comparison of development plans, Brauer requested that Ryan provide acreage breakdowns for each of the
conceptual proposals. These are accompanied with color graphics that relate to the various land use categories. (Exhibit A
should be referred to for these graphics and additional acreage breakdowns.) The following table summarizes the key acreage
comparisons between development plans.
Acreage Totals Under Variol!s Development PI.ans
Description Valley Green / Ryan Residential/Ryan Comm. plan Comments
Albinson Plan Commercial plan
Gross Parcel Area 272.4 272.4 272.4 Remains the same for each plan.
Park * 15.8 15.8 15.8 Remains consistent with area defined under
(defined as part of Preliminary Plat approved for the site. Indudes about
preliminary plat) 10.2 acres of wetland.
ROW Dedication 17.7 19.87 22.16 For roadway infrastructure.
Wetland Area* 18.0 20.43 10.91 Does not include 10.2 acres of wetland listed under
Park in the second row of the table.
Net Site Area 220.9 206.32 213.56
Gross Floor Area 85.1 61.84 55.05 Under Ryan ResidentiaVCommercial Plan, floor area
for residential is 13.54 acres and 48.3 acres for
commercial. .
General Green Space 20.7 25.55 19.99 This relates to areas around buildings, parking lots, and
Area roadways.
Highway Buffer* 6.6 6.7 6.61 This relates to strip along Hwy. 169.
,
Shoreline 4.4 10.16 8.53 This relates to the 150', 200', and 250, setback areas.
Conservation Area*
8.7 38.90 42.83
Brauer & Associates, Ltd. 2
.
Conservation Develo ment Plannin ee
..
,
The information presented i-n the table establishes baseline information about the development and provides pertinent
information that is used in the forthcoming summary of community values achieved by the project.
Residential Versus Commercial land Use Decision
As defined above, one of the development proposals includes a residential component in lieu of commercial/business land
uses. This opportunity arose out of the design charrette process (i.e., collaborative design meetings) in which the city's team, led
by Brauer, and the developer's team considered various ways to approach land use decisions. From the developer's
perspective, the every changing nature of the economy and the land development environment suggests that a residential
development could De economically feasible, especially given its location relative to parks, open spaces, and trails. The
approved Valley Green, or Albinson, plan, was based on the assumption that the guided land use was the most economically-
viable approach and did not pursue adding a residential component to the development
From the perspective of the city, Ryan's interest in developing this property presents an opportunity to reconsider past land use
decisions if doing so results in favorable outcomes for the city as it strives to maintain a high quality of life in the community,
retain its historic character, and foster a strong sense of place in its residential neighborhoods. To this end, there are some
compelling reasons for the city to consider this approach, as follows: -
~ The Deans Lake area is a unique community asset that offers the exact type of living environment people hold in high regard
_ including nature, trails, open space, parksl convenience to roadway systems, jobs nearby, etc. As defined in Exhibit B, the
Deans Lake area is one of a limited number of areas within the city that have these qualities.
~ Higher amenity settings, such as the Deans lake area, tend to hold-up/enhance property values initially and over time.
~ Greater design flexibility of residential (versus commercial) development provides more opportunity to preserve critical open
space and natural resource areas along the lakeshore.
~ A "softer" transition between natural open space/park setting and commercial development can be achieved, which is
important in that the relationship of this development to the lake affects the character of the entire Deans Lake area.
~ Encroachment of trucks, cars, and larger structures along the lakefront is precluded, which in turn provides a more pleasant
aesthetic setting for park and trail users.
The vtsion as.definedOfr.r the Deans Lake Master Plan adds strength to this perspective, whereby the master plan seeks to
maximize the value of the natural amenities surrounding Deans Lake by creating a high quality living environment. (See Exhibit
D.) Under a commercial development scenario adjacent to the lake, the natural amenities of the area are simply used as a
buffer between the lake and larger commercial buildings and parking lots. Recognizing that private land development will likely
continue to occur over time around the entire lake, the challenge for the city lies in dire~ng that development to the highest
and best use of the land in the context of the larger vision for the community. The challenge for the developer rests in
presenting a development plan to the city that is compelling enough ~o warrant a revision to past land use decisions. The
residential/commercial development plan presented by Ryan attempts to achieve this end.
Summary of Community Values Achieved
Throughout the planning process, the city' team, lead by Brauer, has focused on maximizing community values in a meaningful
way. The following summarizes the extent to which the development proposal was able to achieve these ends. To aid in this
evaluation, a comparison between Valley Green's approved preliminary plat and the proposed residential/commercial
development by Ryan is also provided.
Preserve Natural Features, Habitat. Open Space
As indicated in the previous table, there is considerable variability betvveen proposals in the number of acres that are defined as
conservation areas - which are defined as lands that will remain as natural open space once the development is completed.
Even though the overal! acreage of green space between developments is less pronounced, the Ryan plan offers more acres
under conservation area designation. This is of considerable importance in that these lands would be included under a
conservation easement that would offer perpetual protection from encroachment or other land uses. (Note that the
conservation easement would allow for public trails.) As part of the development package, these easements would be legally
recorded with the city to ensure their indefinite protection as natural open space. The developer, however, wou[d still be
responsible to manage and maintain these lands, as defined under the forthcoming Stewardship Program. The following table
provides a comparison of development proposals.
Brauer & Associates, ltd. 3
Conservation Development Plannin~ City of Sha~o,pee
Valley Green Preliminary Plat Ryan Residential/Commercial Plan Public Values Achieved/Flexibility Required
Green space is absorbed into the Emphasis is placed on consolidating green Considerably more natural resource/open
development plan, with much of it space lands into meaningful natural open space lands would be restored and preselVed
consumed in areas of limited direct space areas that have greater community under the Ryan development plan.
community value - e.g., around buildings, value. These natural areas would also be Meaningful linkage to the other natural areas
in right-oF-ways, between parking lots, and used to buffer adjoining land uses, around Deans Lake would also be created,
in unconnected green space. especially near the lakeshore. which has ecological and wildlife values. The
Conservation Area Acreage Totals _ conservation areas also provide the
Conservation Area Acreage Totals _ opportunity for using ecologically-based
Park rand under prelim. plat: 15.80 ac. Park land under prelim. plat: 15.80 ac. stormwater management techniques, as well
Wetland area: 18.0 ac. Wetland area: 20.43 ac. as providing more public trails.
Highway buffer: 6.6 ac. Highway buffer: 6.7ac.
Shoreline conservation area: 4.40 ac. Shoreline conselVation area: 10.16 ac. Note that some flexibility On certain city
Natural open space area: 8.70 ac. Natural open space area: 38.90 ac. standards would be required, as defined by
Total: 53.5 ac. Total: 91.99 ac. the developer's package.
Agreement Parameters: Under the agreement framework, th~ city and developer would continue to collaborat-e on the actual
landscape design for the natural/conservation areas. This would include preparing the specifications to be used for native plant
materials selection. Note that under the agreement parameters, the developer would be responsible for all costs associated with
restoring the natural areas. The level of commitment by the developer to restoring natural areas would be defined as part of the
formal development package submitted to the city to ensure consensus on this issue as part of the formal approvals process.
Exhibit D provides an overview of the vegetative plan concept
Maintain Ecological, Protection Zone Along lakeshore
As defined under the Deans Lake Area Master Plan, protecting the ecological and natural aesthetic qualities of the west
shoreline of Deans Lake was of considerable, and justifiable, importance to the community and neighborhood. Under the
existing city ordinance, if the proposed development is of a comm~rcial/business nature, the minimal requirements associated
with the shoreline include:
.. 150' structure setback from the ordinary high water mark. (200' under a residential land use.)
.. Visual screening from the lake to a level of 75% opacity during leaf-on conditions.
.. Lacking ability to provide visual screening, an additional 150' setback is required, totaling up to 300' from the ordinary high
water mark. ,
Whereas the Valley Green development plan is obligated to achieve these minimal requirements, applying the opacity
ordinance does offer some challenges in terms of how that is functionally determined. Under the Ryan development plan, the
proposed residential development setback from the shoreline is a minimum of 250'. This is of considerable importance in that
not only is the ordinance exceeded, the additional land adjacent to the lake also provides more area to restore working
ecological systems that have both an aesthetic and functional value. As part of the development package, the shoreline would
be included under a conservation easement that would be legally recorded with the city. The developer, however, would still
be responsible to manage and maintain these lands, as defined under the forthcoming Stewardship Program. The following
table provides a comparison of development proposals as it relates to the shoreline.
. ,
Brauer & Associates, Ltd. 4
Conservation Development Plannin~ City of Shako pee
..
"
Valley Green Preliminary Plat Ryan Residential/Commercial plan Public Values Achieved/Flexibility Required
Minimal standard would be met, with Developer responded to the city's desire to Under the Ryan plan, the shoreline area
some opportunity to go beyond the increase the shoreline setback to the would be covered under a conservation
ordinance if it fit the development maximum depth possible. The residential easement, thus providing additional
footprint Challenge would be the opacity development footprint provided more assurance that it will never be encroached
issue, with the developer potentially using flexibility in achieving this than did the upon. The major benefit to the city is greater
approaches to achieve opacity that are not commercial development, which tends to protection of the shoreline, greater
consistent with ecological objectives set for be more rigid and of a larger scale. opportunity for buffering the trail from the
along the shoreline. development, and more opportunity to
Conservation Area Acreage Totals _ restore functioning ecological systems
Conservation Area Acreage Totals _ 1 SO' setback line: 4.40 ac. adjacent to the lake.
Within 150' setback line: 4.40 ac. Additional setback to 200': 2.87 ac.
Total: 4.40 ac. Additional setback to 250': 2.89 ac. Note that some flexibility on certain city
Total: 10.16ac. standards may be required, as defined by the
developer's package.
Agreement Parameters: Under the agreement framework, the city and developer would continue to collaborate on the actual
design for the restoration plan for the shoreline area. Of particular importance would be defining how this area would be
restored to achieve ecological objectives as well as creating a visual buffer between the lake and the development Note that
under the agreement parameters, the developer would be responsible for all costs associated with restoring the shoreline area.
The level of commitment by the developer to restoring natural areas would be defined as part of the formal development
package submitted to the city to ensure consensus on this issue as part of the formal approvals process. Exhibit 0 provides a
cross-section of the intent of the shoreline restoration.
Ecologically-Based Approach to Stormwater Management
Using ecologically-based approaches to stormwater management to increase levels of infiltration on the site, slow the release
rate of stormwater to downstream systems, and improve overall water quality in the process was a major objective for the city's
team. Whereas the Valley Green development plan followed standard practices and city standards in this regard, the city's team
saw numerous opportunities to take a more ecologically-based approach to stormwater management on the site. Specific
opportunities include:
~ Using natural systems in lieu of mechanically engineered systems to control stormwater runoff. This includes natural drainage
swales, infiltration "rain gardens", and ecologically-based ponding/wetland systems.
I> Managing stormwater on-site to avoid the need for off-site stormwater ponding.
I> Using natural systems to infiltrate stormwater along the shoreline to reduce flow rates into the lake and maintain very high
water qualities that exceeds that which is typically achievable using traditional NURP pond systems.
.- Reducing the extent of impervious surface to the extent possible to minimize the need for built stormwater management and
conveyance systems.
Note that the stormwater management system would be an integral and seamless part of the natural areas, whereby the desired
public open space values are achieved at the same time. Exhibit E highlights some of these opportunities in graphic form. The
following table provides a comparison of development proposals as it relates to the stormwater management.
Valley Green Preliminary Plat Ryan Residential/Commercial plan Public Values Achieved/Flexibility Required
Follows typical stormwater management The goal with the stormwater system as Under the Ryan plan, the developer would
approach, with significant use of NURP proposed is to manage stormwater in an be managing stormwater onsite as part of a
ponds. lacking an interconnected natural ecologically-sound manner that is beneficial larger natural open space system. The public
system (as shown on the Ryan plan), ' to the site and downstream systems. would benefit through an increase in open
greater reliance on built storm sewers space and also be assured that stormwater Is
would be expected - which reduces the managed in an ecologically-favorable
capacity to infiltrate stormwater onsite. manner. The project would also be an
example of how the city can work with the
development community to better manage
stormwater onsite to reduce the dependance
and cost of developing offsite stormwater
management systems.
Brauer & Associates, Ltd. 5
.
Conservation Development Plannin~ City of Sha~opee
Agreement Parameters: Under the agreement framework, the city and developer would continue to collaborate on designing
the ecologically-based stormwater management system. Note that city engineering staff would be particularly iiwolved in tbis
aspect of the project to ensure that the final plan would meet or exceed all city standards and requirements. Although the
design for the system would be collaborative, the developer would ultimately be responsible for the system's final function and
performance once built Note that under the agreement parameters, the developer would be responsible for all costs associated
with creating the stormwater management system. The level of commitment by the developer to doing so would be defined as
part of the formal development package submitted to the city to ensure consensus on this issue as part of the formal approvals
process. Exhibit E provides an ovelView of the stormwater management plan concept.
Maximize Park and Trail Opportunities
Consistent with the vision of the Deans Lake Area Master Plan, maximizing park and open space opportunities in this
development area was a major objective of the city's team. Whereas the Valley Green development plan is obligated to provide
a linear trail along the shoreline, there are few assurances that additional trails would be provided within the development area
itself. Although sidewalks and other types of trails would have likely been included in the Valley Green development plan, the
true public values ,?f those amenities is uncertain since they would not be located in a defined park area or natural open space
- that connects to the larger system.
Under the Ryan Plan, a looped core trail system would be integrated into the natural open space conservation area that runs
through the development This loop would connect directly to the linear trail along the shoreline, which then links directly to
the larger trail system proposed under the Deans Lake Area Master Plan.
With respect to parks, both development scenarios in dude the 15.80 acres of park land and park dedication fund commitments
defined under the Valley Green preliminary plat. Each also includes the 1 SO' shoreline setback area and other adjoining open
spaces. From that point, however, the differences are substantial in that all of the land area previously defined as conselVation
areas under the Ryan plan would be open space that could be enjoyed by the public via trails and visually as one drives through
the development. (See Exhibit D.}The following table provides a comparison of development proposals as it relates to the parks
and trails.
Valley Green Preliminary Plat Ryan Residential/Commercial Plan Public Values Achieved/Flexibility Required
Parks and open space land totals 28.90 Parks and open space land totals 64.86 Considerably more miles of trails are
acres (as defined on page 4). acres (as defined on page 4). provided under the Ryan plan. Of equal
importance, the location of those trail are in
Length of trail along shoreline is Length of trail along shoreline and through high value settings that appeal to people,
approximately 0.96 miles. the conservation area within the versus along a busy roadway with little visual
development is 2.72 miles. Small and physical separation between the trail
neighborhood park(s) would also be users and vehicular traffic.
provided for residential area, as would
public access to trails.
-
Agreement Parameters: Under the agreement framework with the developer, the city would be involved in determining where
the trails would be located in the various conselVation areas as defined on the Ryan plan. Exhibit D provides an overview of the
trail system within the development. The developer would be responsible to connect these core trails to individual
development sites as they are developed. Note that under the agreement parameters, the developer would be responsible for
all development costs associated with the park and trail system considered above. The developer would also remain the owner
of the land and be responsible for long-term maintenance of the trails. (The city would be assured public access to the trails
through a legal agreement)
, ,
Ecological and Ornamental landscape Stewardship Program
To ensure the long-term vitality and health of the natural ecological systems within the conservation easements, parks, and
natural areas, the developer has agreed to create and implement a stewardship program. Although the City of Shakopee does
not currently have such a program, there are numerous models that can be used as a basis for developing a program for this
specific site. Since this is new to the city and developer, development of the program would be undertaken jointly as part of a
continued collaboration on the project.
Brauer & Associates, ltd. 6
Conservation Development Planning City of Shako pee
'"
Spe~ific agreement parameters most often associated with this type of program include:
~ Initial restoration of the natural systems contained within the conservation easements and defined natural areas. The
developer would agree to complete this work as part of the site development and in accordance with the Stewardship
Program's specifications. The city would work with the developer to ensure that methods used are consistent with the city's
expectations. Note that a word of caution is required with respect to wetland systems associated with Deans Lake. The
practicality of restoring these areas requires additional evaluation since it is uncertain as to how effective restoration of these
areas can be given the changes that have occurred over time in lake levels and the ecological systems affected by those
changes.
~ Year~tlT~year management of natural areas located within the conservation easements and natural areas. This includes
maintenance of the ecologically-based stormwater management system to ensure it functions properly.
In addition to the stewardship of natural systems, the developer has also agreed to manage and maintain all ornamental
landscapes throughout the site. This would include landscaping that is either on a specific piece of property as well as that is
found within the public rights-of-ways. The following table provides a comparison of development proposals as it relates to the
ecological stewardship.
-
Valley Green Preliminary Plat Ryan Residential/Commercial plan Public Values Achieved/Flexibility Required
Developer would be responsible for all Developer would be responsible for Long-term assurance that the natural areas
ornamental landscape outside of the city stewardship of both ornamental landscapes and ornamental landscapes wiU be managed
rights-of-ways and defined natural areas. and natural areas throughout the properly in the future would be assured
Would likely not propose significant development The stewardship program under the Ryan plan. Whereas the
landscaping in public rights-of-way since would be a legally-defined perpetual ornamental landscape under the Valley
city would not want to provide long-term obligation of the developer. This would Green plan would be maintained, there is
maintenance. likely be achieved through a little assurance of a long-term commitment to
homeowners/business association that the natural areas.
Likely to be little ongoing commitment to would be set up by the developer.
ecological stewC).rdship, other than the
initial restoration of the site during
development
Agreement Parameters: Inasmuch as maintaining the ornamental landscape is common place, establishing a stewardship
program for the natural areas within the development is of equal importance. Under the agreement framework with Ryan, a
stewardship program would be prepared and implemented as part of the development package. This would include a legal
agreement with the city that would obligate the developer to long-term financial s~pport of the program. The city's role under
the agreement would be limited to periodic oversight to ensure that the plan is being appropriately implemented. Exhibit F
provides an example of a legal agreement between the city and the developer for natural areas. This agreement would be
expanded to cover ornamental landscapes as well. An overview of the potential costs that would be incurred by the developer
for implementing a natural area stewardship program is also provided. Note, however, that this will require refinement as the
project moves into final d~sign,
list of Exhibits
The following is the list of exhibits previously referred to:
~ Exhibit A - Development concepts with acreage breakdowns.
~ Exhibit B - Aerial of city illustrating the setting of the development
.. Exhibit C - Deans lake Area Master Plan.
~ Exhibit 0 - Conservation easement delineation (parks, open space, and trails).
Exhibit E - Stormwater management plan concept for Ryan development plan. ,
~
~ Exhibit F - Stewardship program example, with cost projections and funding approaches.
Brauer & Associates, Ltd. 7
,
~onservation Development Plannin~ City of Shakpl?ee
Developer's Package
.
The Community Values Statement and accompanying exhibits define the community values that would be derived from the
Ryan development plan should it be accepted by the city. The accompanying Developer's Package provided by the developer
defines the development package being proposed in more detaiL
Specific information requested of the developer by the city's consultant to be included in the development package includes
the following:
.. Development plan, illustrating the various aspects of each of the three development plans.
.. Acreage and area breakdowns for each plan.
.. Residential component:
- Type of housing units proposed, induding elevations showing character and square footage.
- Anticipated market value.
- Total number of units proposed, including units per acre breakdown.
- Variations from city standards, if any.
- Strategy for development and expected timeframe for completion.
.. Commercial/business component: -
- Type of development envisioned and expectation of marketplace during development cycle.
- Variations from city standards, if any.
- Strategy for development and expected timeframe for completion.
.. Rights-of-way and roadway related:
_ Rights-of-way widths for all streets being proposed, with cross-sections.
- Roadway widths, with cross-sections.
- Provisions for utility easements.
Intent of Concept Review / Next Step in the Planning Process
The intent of the concept review phase of the project is to set forth, in good faith, as complete of a development package for
the Valley Green development area as possible for consideration by the Planning Commission and City Council. Through
collaboration and cand id discussions prior to formal submittal, the prospects for arriving at a development plan that will offer
high community values while being economically-viable is considerably enhanced. The concept review phase includes:
1) Meeting with local neighborhood group to review development plan and receive feedback.
2) Meeting with Planning Commission to review development plan and address pertinent issues and concerns. Although a
formal vote will not be taken, candid feedback from members is desired.
3) Meeting with City Council to review development plan and address pertinent issues and concerns. Again, no formal vote will
be taken, but candid feedback from members is desired.
At the end of the concept review, the city's and developer's teams will address all pertinent issues and concerns and determine
how the project should move forward. Assuming that the project has merit after the concept review phase, the developer will
- prepare a formal submittal to the city for the project As previously defined, this would include continued collaboration
-
between the city and the developer to ensure that the agreements made in principle are actually realized as part of the formal
development package. (Note that city staff has prepared a possible timeline for the formal approvals process that is included in
the concept review package.)
City Team Role in Refining the Development Package
As defined ab9ve under the agreement parameters, the city's team would have a continuing role in planning and designing the
development through subsequent phases. This continued involvement provides the city with greater assurance that the
development agreement proposed under this concept review and in formal development submittals yet to come are adhered to
and that the city's interests as set forth under the agreements are protected.
With respect to professional fees, the developer has agreed in principle to set aside funding in an escrow account to cover
future costs incurred by the city for consultants working on its behalf on the items listed under the agreement parameters
previously defined. The extent and terms of this agreement would be defined as part of the formal approvals process to protect
the interests of the city and the developer.
Brauer & Associates, Ltd. 8
Conservation Development Planning 1 City of Shakopee
- 'i:}
Summary Statement
Through the collaborative effort between the city and developer, the development plan presented here offers the city the
opportunity to achieve higher community values than the previously approved Albinson plan. The collaborative process also
gives the city an opportunity to revisit previous land use decisions and determine the land use option that best serves its
interests in maintaining a high quality of life in the community.
Through each teams' recognition and respect for each others objectives, concerns, and perspectives, a plan emerged that is
believed to capture the essence of the conservation approach to development. This was done in spite of the fact that the site
itself was challenging and that both restraint and flexibility were needed to reach an agreeable and successful conclusion.
From the perspective of the consultant working on behalf of the city, a very reasonable and responsible balance between
ecology, culture, and economy has been reached for this site. It is our opinion that each party worked together in good faith
and that a superior development proposal resulted for consideration by the Planning Commission and City Council.
-
,
H:\JEFF\2000\OO-38 Dean Shakopee\Valley Green related\value statement file nov 29\community value statement.wpd
Brauer & Associates, Ltd. 9
EXHIBIT B
January 24, 2003
Mr. Paul Snook
Economic Development Director
City of Shakopee
129 Holmes Street South
Shakopee, MN 55379
Dear Paul:
Enclosed for your review is an application requesting tax abatement assistance in support of
the Dean's Lake Master Plan Mixed Use Development. As you are aware Ryan Companies
has been working in conjunction with the City staff and members of the EDA/City
Council/Planning Commission for almost two years in order to accurately and thoroughly
identify project costs and design characteristics that will allow implementation of the
"Conservation Development Approach" for the designated property.
As part of this process the City has enlisted Springs ted, Inc. to undertake a fiscal analysis
regarding the use of tax abatement to fund extraordinary infrastructure costs that are
essential to the development of this project. Based upon the recommendations that have
emanated from this analysis, Ryan Companies is respectfully submitting an application for
formal consideration of assistance to the EDA/City Council. Ryan believes that with City
support the proposed $243 million project will yield substantial long-term benefits to the
community and its' residents.
Ryan understands that approval of this request by the City is an essential milestone to realize
the vision of this quality development opportunity. If the City Council and EDA approve
the request, Ryan will proceed to solicit approval from the Scott County Board to participate
in a like manner.
I believe that to this point the process has resulted in the formulation of an excellent
development concept and look forward to receiving a favorable response from the City and
County so that the project may become a reality. Please contact me with any questions
regarding the application or other submittals enclosed herein.
Thank you for all of your assistance in this regard.
Sincerely,
Kent M. Carlson
Vice President of Development
CITY OF SHAKOPEE
Application for Business Subsidies
S
COMMUNITY PRIDE SINCE 1857
129 Holmes Street South Shakopee, MN 55379
Phone (952) 445-3650 Fax (952) 445-6718
Section I: General Information
** With this application, please submit a formal letter requesting the assistance.
1. Business Name: Ryan Companies US, Inc.
2. Address: 50 South Tenth Street, Suite 300
Minneapolis, MN 55403
3. Contact Person: Kent Carlson
4. Telephone: (612) 492-4229
5. Fax: (612) 492-3229
6. E-Mail: kent.carlson@ryancompanies.com
7. Brief Description of the Business / Company: Ryan Companies has 50+ years experience in
designing, constructing, developing and managing commercial, industrial, institutional and
residential proiects.
8. Parent Corporation, if any: N/ A
9. Consultant information, if applicable:
Name: Roger Guenette - Advance Resources for Development, Inc.
Address: P.O. Box 3027, Mankato, MN 56002
Telephone: (507) 387-7117 Fax: (507) 387-6115
E-Mail: guenette@hickorytech.net
Name: David Sellergren - Fredrikson & Byron
Address: 4000 Pillsbury Center: 200 South Sixth Street: Minneapolis, MN 55402
Telephone: (612) 492-7136 Fax: (612) 492-7077
E-Mail: dsellergren@fredlaw.com
10. Type of Subsidy Requested: o Tax Increment Financing ~ Tax Abatement
11. Amount of Subsidy Requested: $923.606 present value
12. Public Purposes of the Subsidy: To fund extraordinary costs of infrastructure relating to
regional transportation improvements (County Road 83/16 intersection) and internal
infrastructure in support of Dean's Lake Master Plan Mixed Use Development.
13. Location of Proposed Project: NE quadrant County Road 83 and US Highway 169
14. Legal Description of Project Location: See attached Exhibit A
15. Property Identification Number(s): 27-042001-0~ 27-909010-0~ 27-9090ll-0~ 27-909008-0~
27 -909009-0~ 27-910008-0
16. Present Ownership ofthe Site: Valley Green Business Park L.P.
17. Name / Description of the proposed project (Attach site plan, if available):
Dean's Lake Master Plan Mixed Use Development (site plan attached)
18. Size of the Property 272 acres
19. Estimated Total Building Square Footage Commercial Industrial Space approx. 1,200.000 sq. ft.
700 units of residential
20. Estimated size ofthe Proposed Facility:
Manufacturing / Assembly / Processing sq. ft.
Office sq. ft.
Research Laboratory sq. ft.
Warehousing sq. ft.
Other (Please Specify ) sq. ft.
TOTAL Approx. 1.200.000 sq. ft.
The breakdown of square feet to be developed per the categories identified above is
unknown at the present time.
21. Estimated Project Costs:
Land Acquisition $ 11 500,000
Site Development (grading, landscaping, etc.) $ 16,830,356
Building Cost $ 200,460,790
Street/Road Improvements (include your costs only) $ 3,800,000
Utility Improvements (include your costs only) $ 3,352,734
Capital (machinery and equipment) $ Unknown
Professional Services (archit., engin.,legal, fiscal) $ 955,000
Fees and Permits (same as total from below) $ 4,701,510
Other (Marketing, Signage, Conservation restoration and $ 1,635,1 10
Pedestrian Trail)
TOTAL $ 243.235.500
22. Estimated Fee and Permit Costs:
City Permits and Fees $ 4,701,510
(Grading and Building Permits, Park Dedication Fees, etc.)
Metropolitan Council Fees $
(SAC and WAC Charges)
Other fee or permit costs $
(Please Specify )
TOTAL $ 4.701.510
23. Indicate the proposed start date for construction and estimated date of completion: The
infrastructure construction of County Roads 16&83 has begun. The internal infrastructure
construction will begin in Spring, 2003. The residential development will begin in Spring
2003 and be completed in 3 years. The C/I construction will begin in summer/fall 2003 and
be completed in 7-10 years.
24. Proposed Financing Source(s):
Equity $ 28,000,000
Bank Loan/Taxable Revenue Bonds $ 204.466,127
(Check one): o Tax Increment Financing, OR
~ Tax Abatement (City) $ 923,606
fudustrial Development Revenue Bonds $
Other Local Government Assistance $ 3,064,608
(please specify County Tax Abatement )
429 Improvement Bonds $ 2,981,159
County Road 16/83 Assessment Bonds $ 3,800,000
TOTAL $ 243.235.500
25. If tax increment financing is requested, please submit a list of eligible project costs (Refer to Section
V of the Business Subsidy Policy):
N/A
26. The City reserves the right to request tax returns and/or other financial statements from the applicant
for the years of operation.
27. The City reserves the right to request three bank references from the applicant.
Section II:
Employment, Wage and Benefit Information
A. EMPLOYMENT
1. Does this project involve the relocation of jobs within the State of Minnesota?
DYes [gJ No
a. If so, provide a statement of why the project cannot be completed at its current location /
facility:
N/A
b. Number of full time equivalent (FTE) permanent employee positions at current
Minnesota location / facility to be relocated to Shakopee: N/A
2. If the project is an expansion of an existing Shakopee facility, what is the current number ofFTE
permanent employee positions? N/A
3. Estimated Number of FTE permanent employee positions to be created (within 2 years of
issuance of Certificate of Occupancy) as a result of the project 886 iobs \Jroi ected within
two years and 4.430 iobs projected within 10 years.
4. TOTAL number of current and estimated new FTE permanent employee positions (No.2 + No.3
from above) 886
B. WAGES
1. What will be the minimum hourly wage (exclusive of benefits) of the FTE permanent employee
positions created by the project? $ 35,OOO/year estimated average wages/salaries
2. The hourly wage of each new permanent FTE employee position, with separate bands of wages, is as
follows: Because this project request for assistance is to fund infrastructure in support of a master
plan mixed use development it is not possible at the present time to identify and detail specific
employment positions and related wages/benefits.
Total Number of
Wage Levels Per Hour FTE Permanent Employee Positions
Less Than $12.00
$12.00 - 16.99
$17.00-21.99
$22.00 - 26.99
$27.00 - 31.99
$32.00 and Over
C. HEALTH INSURANCE BENEFITS
The value of health insurance benefits provided by the employer for the above referenced jobs, separated
by bands of wages, is as follows:
Wage Levels Per Hour Value of Health Insurance Benefits
Less Than $12.00
$12.00 - 16.99
$17.00 - 21.99
$22.00 - 26.99
$27.00 - 31.99
$32.00 and Over
EXHIBIT A
LEGAL DESCRIPTION
Parcell: The Southeast Quarter of the Southeast Quarter of Section 9, Township 115, Range
22, Scott County, Minnesota
Parcel 2: Lot A, Registered Land Survey No.6, Scott County, Minnesota, EXCEPT Parcel 74,
Minnesota Department of Transportation Right of Way Plat No.70-11 as the same are
on file and of record in the Office of the Registrar of Titles in and for Scott County,
Minnesota
Parcel 3: The Northeast Quarter of the Southeast Quarter of Section 9, Township 115, Range
22, Scott County, Minnesota; EXCEPT that part shown as Parcel 74 on Minnesota
Department of Transportation Right of way Plat No. 70-12 on file and of record in
the Office ofthe Registrar of Titles in and for Scott County, Minnesota
Parcel 4: The Southwest Quarter of the Southeast Quarter of Section 9, Township 115, Range
22, Scott County, Minnesota;
EXCEPT THE FOLLOWING: Commencing at a point 32 rods north of the
Southwest corner of the Southeast Quarter, thence running East 13 rods, thence North
10 rods, thence in a Northwesterly direction about 13.700 rods to a point 46 rods
north of said Southwest corner of the Southeast Quarter, thence South 14 rods to the
place of beginning;
EXCEPT that part shown as Parcel 74 on Minnesota Department of Transportation
Right of Way Plat No. 70-11 on file and of record in the Office of the Registrar of
Titles in and for Scott County, Minnesota
Parcel 5: . Government Lots 1 and 2, and the West 601.13 feet of Government Lot 3, Section 10,
Township 115, Range 22, Scott County, Minnesota, including the accretions and
relictions thereto;
EXCEPT that part of Government Lots 1 and 2 shown as Parcel 74 on Minnesota
Department of Transportation Right of Way Plat No. 70-12 and that part of
Government Lot 3 shown as Parcel 74 on Minnesota Department of Transportation
Right of Way Plat No. 70-13, all in Section 10, Township I 15, Range 22, on file and
of record in the Office of the Registrar of Titles in and for Scott County, Minnesota
Parcel 6: That part of the Southwest Quarter of the Southeast Quarter of Section 9, Township
115, Range 22, Scott County, Minnesota described as follows:
Commencing at a point 32 Rods north of the Southwest corner of the Southeast
Quarter, thence running east 13 Rods, thence North 10 Rods, thence in a
Northwesterly direction about 13.7 Rods to a point 46 Rods North of said Southwest
comer ofthe Southeast Quarter, thence South 14 Rods to the place of beginning.
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SCALE IN FEET
( ",llrSIS"'t) 1;1'11) Communities
~ Shakopee, Minnesota Date: December, 2002
RYAN COMPANIES US, INC. IYAN
50 South Tenth Street, Suite 300
Minneapolis, MN 55403-2012
WWW.RYANCOMPANIES.COM
612-492-4000 tel BUILDING LASTING RELATIONSHIPS
612-492-3000 fax
January 31,2003
EXHIBIT C
Mr. Mayor and Members of the City Council
City of Shakopee
129 South Holmes Street
Shakopee,~ 55379
Dear Mr. Mayor and Members of the City Council,
I want to provide you with some additional information regarding our tax abatement request
in light of the questions that have been raised by recent articles in the Shakopee Valley
News. The City of Shakopee, along with Valley Green and Ryan, has been working
diligently over the past two years on the Valley Green Corporate Center. This master
planned, mixed-use development is a unique project that is designed to help meet the needs
of Shakopee as it continues to grow. The Concept Development Plan Process was led by the
City's planning consultants, Brauer Associates. The collaborative process included
neighborhood open houses along with design review meetings with neighbors and interested
stakeholders. The results of this effort produced a high quality development plan that
incorporated the Conservation Development Approach. The project now includes a number
of community values that were very important to the residents and stakeholders:
1. 65 acres of parkland, green space, and conservation area including greater setbacks
from Dean Lake
2. Extensive trail system linked to other areas within the community
3. Private associations will maintain parks and trails within the development
4. Park dedication fees will still be paid along with the 65 acres of parkland/green space
5. Reduced traffic volumes because of the mixed use nature - reducing volume during
rush hour by 25-30%
6. Ecologically-based stormwater management
7. Affordable housing - Ryan and the County are exploring a program to provide first-
time home buyer assistance
8. Funding for County Road 83/16 improvements including the elimination of a
dangerous intersection
The Conservation Development Approach also resulted in a reduction of commercial
development and an increase in costs. In June 2002 after the pricing process had been
completed we approached the City Staff to discuss our development budget and the
potential of financial assistance. Ryan's approach has always been to develop a
public/private partnership to successfully market the Valley Green Corporate Center and
the community to the high quality businesses that can provide head-of-household
employment opportunities.
lanuary 31, 2003 Page 2 of3
The City Council appointed a task force consisting of Council Member Sweeney, Council Member
Lehman, City Administrator Mark McNeill, Economic Development Coordinator Paul Snook, the EDA,
attorneys, Steve Bubul and their fiscal consultant, Paul Steinman from Springsted, Inc. We initially met
a number of times to review our project, our project costs and current market information. Council
Member Sweeney and Council Member Lehman diligently pursued our cost and market information in
an effort to validate our request. During the process Council Member Sweeney's health deteriorated and
unfortunately he passed away. Council Member 100s was then appointed and he quickly studied the
background information to gain understanding of our discussions.
Council Member Lehman, Council Member 100s and Council Member Sweeney, from the very
beginning, have made it abundantly clear that the City will take no risk with regard to our project. The
assistance will be performance-based only and will also be linked exclusively to the public infrastructure
necessary for the commercial development.
The basis of our request is for assistance to pay for the extraordinary infrastructure costs associated with
the commercial development. County Road 83 & 16 improvements are part of a regional transportation
system upgrade that eliminated a dangerous intersection and provide capacity for the continued growth
throughout this region. The cost of these regional transportation systems are typically bourn through the
County. Unfortunately the County did not have available resources. Our proposal pays all of the
assessments levied against the residential portion of the development at the time of closing with the
residential builder.
The development will also have a positive financial impact on the community. Based on the
information that Springsted, along with City Staff, has provided the development will make a positive
contribution to the City's general fund. The City's portion of the real estate taxes provided by the
residential development is estimated at $525,000. The cost of servicing the development is
approximately $280,000 and utilizing the tax abatement limitation of$152,000 a net contribution of
$93,000 will be available to the general fund for the community at large.
We believe that this unique approach for a master plan mixed-use development utilizing the
Conservation Development Approach can provide a high quality residential development along with a
unique business environment to provide head-of-household employment opportunities. We have all
invested a tremendous amount of time, energy and effort into the development of these plans to meet the
needs of all of the stakeholders.
We sincerely hope that you will endorse our project by voting YES on Tuesday night so that we can
move to the next step of meeting with the County to discuss their contribution to this project.
1/31/03
January 31, 2003 Page 3 of3
Sincerely,
Kent M. Carlson
Vice President of Development
1/31/03
85 E. SEVENTH PL:\CE, SUITE JOO
SAfNTPAUL,MN 55101-2887
65 I -223-3000 FAX, 651-223-3002 SPRINGSTED
ff .1driso!5 to {he Pu/,jj( '\,;'uur
~!
Z EXHIBIT D
. ..," Y...~.J
MEMORANDUM - For EDAlCouncil Meeting February 4, 2003
TO: Mark McNeill, City Administrator
Paul Snook, Economic Development Coordinator
FROM: Paul T. Steinman, VP Housing & Economic Development
DATE: January 31, 2003
SUBJECT: Ryan Proposal - Valley Green Corporate Center
The purpose of this memo is to outline the financial components of the Ryan proposal to
construct a mixed use development near Deans Lake containing 79 acres of commercial, 78
acres of residential, and 65 acres of parkland. Ryan is requesting abatement assistance in the
present value (PV) amount of approximately $4 million.
But/For Analvsis
The but-for test is used to determine whether or not a project will proceed as proposed without
the use of public dollars. To complete this analysis we examined two 10-year commercial
project pro-formas, one showing a result if the developer receives the subsidy and one showing
a result if the developer does not receive a subsidy. The resulting lease rates for each
comparison are then tested against lease rates in the current market. The results are as
follows:
Current Market Lease Rates PSF Ryan Development Proposal Without
Subsidy
Warehouse Space $3.50 to 5.25 $5.80
Office Space $6.50 to 9.75 $11.00
From the table above we conclude that without a subsidy, constructed space will not be able to
compete effectively within the current market.
Another method of analysis which was used is to simply compare the price of fully improved
land both with and without a subsidy, to the current market. The results are as follows:
CORPORA TE OFFICE: SAINT PAUL, MN . Visit our website at www.springsted.com
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City of Shakopee
Memo for EDA/Council February 4,2003
January 31, 2003
Page 2
Ryan Development Proposal for Fully
Current Market Rate for Fully Imoroved Land
Improved Land Without Subsidy With Subsidy
$2.25 to 2.75 $4.24 $3.08
From the table above we conclude that the subsidy only reduces the developers land cost to
slightly above market value. The developer has indicated that depending on need, companies
locating at the West Deans Lake area might request additional assistance in the form of TIF.
Each company requesting TIF assistance will have to apply individually according to the City's
Business Subsidy Policy, and each proposed TIF application / project must stand on its own
merits and meet all the statutory tests required (but-for test, etc.) to receive assistance.
Deal Structure
The mixed used project will consist of approximately 79 acres of commercial development, 78
acres of residential development, and 65 acres of parkland. Values for the commercial and
residential components are as follows:
. 1,171,180 square feet of commercial at a total value of $79,007,803 anticipated to be
constructed over a 10 year period from 2003 through 2012
. 709 residential units at a total value of $143,196,730 anticipated to be constructed
over a 3 year period from 2003 through 2005
The project is proposed to be structured as follows:
. The 78 acres of housing development will be granted a 9 year abatement beginning
in taxes payable year 2005 and ending at year end 2013. This equates to
approximately a $900,000 PV City subsidy and a $3 million PV County subsidy. This
will be used only to reduce the commercial land cost from $4.24 per square foot to
$3.08 per square foot.
0 The abatements granted on the housing components will only be used to
reduce the public infrastructure costs on the commercial land - they will have
no impact on residential land/home prices.
To address concerns about potentially using all of the City's abatement capacity on a single
project (City's capacity = 5% of the City's net levy), the following parameters have been defined:
. Annual abatements to Ryan will not exceed 50% of the City's annual abatement
capacity, after subtracting the amount granted in previous abatements (Certainteed).
. The analysis assumes the City's levy will grow 3% per year, thereby increasing the
City's annual abatement capacity slightly.
City of Shakopee
Memo for EDA/Council February 4, 2003
January 31, 2003
Page 3
The following table illustrates the estimated development schedule and tax abatement
proposed:
Year CII Value Residential City % of County %of Total PV
Taxes Value Abatement Cap Abatement Cap Abatement
Payable Residential Residential
2005 7,900,780 47,664,920 142,457 50% 192,366 15%
2006 7,900,780 47,664,920 147,169 50% 390,503 30%
2007 7,900,780 47,866,890 152,022 50% 595,399 44%
2008 7,900,780 157,021 50% 613,261 44%
2009 7,900,780 162,170 50% 631,659 44%
2010 7,900,780 167,474 50% 650,609 44%
2011 7,900,780 187,549 50% 670,127 44%
2012 7,900,780 193,175 50% 690,231 44%
2013 7,900,780 198,971 50% 710,938 44%
2014 7,900,780
2015
2016
Totals 79,007,800 143,196,730 1,508,008 5,145,093
Present $923,606 $3,064,608 $3,988,214
Value
at8%
Conclusion
It is our assessment of the financial components of the project that the proposal is valid in terms
of its costs. It is our conclusion that the abatement subsidy needs to be provided to make the
commercial land, at $3.08 per square foot, partially competitive. We concur that the abatement
on residential is necessary to jump start the commercial components - because the residential
value is scheduled to be completed on a fairly aggressive schedule, thereby creating substantial
abatements in 2005.
We are not able to reach a conclusion about any future potential subsidy on the commercial
projects until the time they are brought forward for review.
I Assumptions Report I
City of Shakopee - For EDAlCouncil February 4, 2003
Tax Abatement Projection
Dean's lake Mixed Use Project
Scenario BC - 3% MV inflator, 9 yr term - Residential Abatement Only to 50% of City Capacity
Type of Project Tax Abatement
Maximum Duration of Tax Abatement 15 Years
Current Year 06/01/02
First Abatement Year 06/01/05
Final Abatement Year 12/01/13 (9 Years of Abatement)
2001/2002
Base Estimated Market Value (Land) $0 (1)
Times: First $150.000 1.50% 0
Excess 2.00% 0
Base Net Tax Capacity (NTC) $0
Non-Abated NTC $0
Assessment/Collection Year
2002/2003 2003/2004 2004/2005 2005/2006
Base Estimated Market Value $0 $0 $0 $0
Increase in Estimated Market Value 0 0 47,664,920 96,759,788
Total Estimated Market Value $0 $0 $47,664,920 $96,759,788
Total Net Tax Capacity $0 $0 $476,649 $967,598
Local Tax Capacity Rate 106.978% 2001/02
Fiscal Disparities Deduction 29.8026%
Abate City Tax Rate? Yes 35.608%
Abate County Tax Rate? Yes 40.358%
Abate School District Tax Rate? No 26.027%
Other Tax Rate No 4.985%
Abate Rate Applicable to Market Value No 0.008%
Current City Levy 6,282,773 @5% 314,139 City Max. 314,139
Less: C'Teed 29,225
X 50% = 142,457
Current County Levy 25,289,963 @5% 1,264,498 County Max. 1,264,498
Bonds Note (Pav-As-You-Go)
Bonds Dated 06/01/03 Note Dated 06/01/03
First Interest Date 02/01/04 Note Rate 8.00%
Underwriters Discount 1.50%
(1) Assume abatement of new value only.
Prepared by Springsted, Inc. 1/31/2003 1 Ryan Abatement For EDA-Council on 2-4-03.xls
I Projected Tax Abatement Report I
City of Shako pee - For EDAlCouncil February 4, 2003
Tax Abatement Projection
Dean's Lake Mixed Use Project
Scenario BC - 3% MV inflator, 9 yr term - Residential Abatement Only to 50% of City Capacity
P.V. P.V.
Max Abate Annual Annual
Less; Retained Times; Total Statutory City, Minus Max Allowed %of % of City County
Annual Total Fiscal Captured Tax Annual Taxes Tax C'Teed, Tax City Tax County Abate To Abate To
Period Net Tax Disp.@ Net Tax Capacity Total Paid to Abatement multiplied Abatement Abatement Abatement Abatement 06/01/03 06/01/03
Ending Capacity 29.8026% Capacity Rate Tax City City by 50% City Capacity County Capacity 8.00% 8.00%
1 2 4 5 6 7 8 9 10 11 12 13 (14 15 (16
12/31/02 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/03 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/04 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/05 476,649 0 476,649 106.978% 509,910 169,725 169,725 142.457 142.457 50% 192,366 15% 119,040 160,746
12/31/06 967.598 0 967.598 106.978% 1.035.117 344.542 323.563 147.169 147.169 50% 390,503 30% 113.868 302.143
12/31/07 1.475.295 0 1.475,295 106,978% 1,578,241 525,323 333,270 152,022 152,022 50% 595,399 44% 108,911 426,552
12/31/08 1,519,554 0 1,519,554 106.978% 1,625,588 541,083 343,268 157,021 157,021 50% 613,261 44% 104,159 406,804
12/31/09 1,565,140 0 1,565,140 106.978% 1,674,356 557,315 353,566 162,170 162.170 50% 631,659 44% 99,607 387,971
12/31/10 1,612.094 0 1,612,094 106.978% 1,724,586 574,035 364,173 167,474 167.474 50% 650,609 44% 95,244 370,009
12/31/11 1.660.457 0 1,660,457 106.978% 1,776,324 591,256 375,098 187,549 187,549 50% 670,127 44% 98,761 352,879
12/31/12 1,710,271 0 1,710,271 106.978% 1,829,614 608,993 386,351 193,175 193,175 50% 690,231 44% 94,188 336,542
12/31/13 1,761,579 0 1,761,579 106.978% 1,884,502 627,263 397,941 198,971 198,971 50% 710,938 44% 89,828 320,962
12/31/14 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/15 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/16 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/17 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/18 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/19 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/20 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/21 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
12/31/22 0 0 0 106.978% 0 0 0 0 0 0 0 0 0 0
$13,638,238 $4,539,535 $3,046,954 $1,508,009 $1,508,009 $5.145,095 $923.606 $3,064,608
Total PV; $3,988,214
Prepared by Springsted, Inc. 1/31/2003 2 Ryan Abatement For EDA-Council on 2-4-03.xls
I Estimated Impact on Other Taxing Jurisdictions Report I
City of Shakopee - For EDA/Council February 4, 2003
Tax Abatement Projection
Dean's lake Mixed Use Project
Scenario BC - 3% MV inflator, 9 yr term - Residential Abatement Only to 50% of City Capacity
Without
Project or Abatement With Project and Abatement
Payable Yr. 07
Projected Hypothetical
2001/2002 2001/2002 Retained New Hypothetical Hypothetical Tax Generated
Taxable 2001/2002 Taxable Captured Taxable Adjusted Decrease In by Retained
Taxing Net Tax Local Net Tax Net Tax Net Tax Local Local Captured
Jurisdiction Capacity (1) Tax Rate Capacity (1) + Capacity :::: Capacity Tax Rate (*) Tax Rate (*) N.T.C. (*)
City of Shakopee 17,880,211 35.608% 17,880,211 $426,933 (3) 18,307,144 34.778% 0.830% 148,477
Scott County 63,998,079 40.358% 63,998,079 1,475,295 (4) 65,473,374 39.449% 0.909% 581,983
ISO 270 (2) --- 26.027% --- 1,475,295 --- 26.027% --- ---
Other (2) --- 4.985% --- 1,475,295 --- 4.985% --- ---
Totals 106.978% 105.238% 1.740%
· Statement 1: If the projected Retained Captured Net Tax Capacity of the abatement project was hypothetically available to each of
the taxing jurisdictions above, the result would be a lower local tax rate (see Hypothetical Adjusted Tax Rate above)
which would produce the same amount of taxes for each taxing jurisdiction. In such a case, the total local tax rate
would decrease by 1.740% (see Hypothetical Decrease in Local Tax Rate above). The hypothetical tax that the
Retained Captured Net Tax Capacity of the TIF District would generate is also shown above.
Statement 2: Since the projected Retained Captured Net Tax Capacity of the abatement project is not available to the taxing jurisdictions,
then there is no impact on taxes levied or local tax rates.
(1 ) Taxable net tax capacity"" total net tax capacity - captured TIF - fiscal disparity contribution, if applicable.
(2) The impact on these taxing jurisdictions is non-existent (SO is not participating in the abatement) or negligible (Other) in that it only represents 4.66% of the total tax rate.
(3) This net tax capacity"" the amount needed to generate $152,022, Wflich is the abatement amount generated in 2007 under tfle City's arbitrary abatement cap for the Ryan project.
(4) This net tax capacity"" the amount needed to generate $595,399, which is the projected abatement amount generated in 2007 by the County.
Prepared by Springsted, Inc. 1/31/2003 3 Ryan Abatement For EDA-Council on 2-4-03.xls
I Estimated Annual Impact on Taxpayer Report I
City of Shakopee - For EDAlCouncil February 4, 2003
Tax Abatement Projection
Dean's Lake Mixed Use Project
Scenario BC - 3% MV inflator, 9 yr term - Residential Abatement Only to 50% of City Capacity
City County Total Annual
Hypothetical Impact Hypothetical Impact Hypothetical Impact
Estimated Market Value 2001/2002 (DECREASE) in Taxes (DECREASE) in Taxes (DECREASE) in Taxes
Homestead Residential Net Tax Capacity in Payable Year 2007* in Payable Year 2007* in Payable Year 2007*
250,000 2,500 20.76 22.73 43.49
275,000 2,750 22.84 25.01 47.84
300,000 3,000 24.91 27.28 52.19
500,000 5,000 41.52 45.47 8699
Com mercial/lnd ustrial
250,000 4,250 35.29 38.65 73.94
500,000 9,250 76.81 84.12 160.93
1,000,000 19,250 159.85 175.05 334.91
2,500,000 49,250 408.97 447.87 856.84
5,000,000 99,250 824.17 902.56 1,726.73
* Payable year 2007 is the year when the final phase of residential housing is projected to be at full value for tax purposes.
* Assumes without abatement that the abatement dollars would be used entirely to reduce the City/County tax rate resulting in a tax reduction.
* Assumes no change in City/County rates or tax classification rates.
Prepared by Springsted, Inc. 1/31/2003 4 Ryan Abatement For EDA-Council on 2-4-03.xls
EXHIBIT E
CITY OF SHAKOPEE
Memorandum
TO: Mayor and City Council
FROM: Mark McNeill, City Administrator
SUBJECT: Cost of Services - Ryan Development
DATE: January 31, 2003
At full development, in 2007, the amount of unabated taxes that will be received by the
City will be $373,000.
Determining the cost of services is not easily measured; we do not typically figure how
many additional City employees will be needed to service a particular subdivision as it
comes in. Acknowledging, however, that the City is being asked to abate a portion of the
Ryan Development taxes to be received, an estimate is appropriate.
The City's operating budget normally looks at cost per household - these figure all costs,
including those fixed costs of the City. When determining what a specific additional
subdivision or development will cost, one must concentrate on the "incremental" costs -
what are the costs that would be added specifically because of this development coming
onboard? For example, most fixed costs will remain the same - the City will not be
building a larger library, or hiring a second Fire Chief as a result of this development.
However, we can identify the following additional services, based on 770 housing units,
with 2,000 new residents:
Police:
(Typically one officer per 1500 residents)
1.33 officers x $55,000* = $73,150
I squad car = $25,000
$95,150
Public Works:
(1 Maintenance Worker per 1400 residents)
1.43 x $39,000* = $55,700 $55,700
There is no additional equipment anticipated for this subdivision - parks will be
maintained by a resident association.
Fire/Miscellaneous:
(Additional Firefighters, general administrative)
Estimated = $30,000 $30,000
Total $283,850
Note that the above is based on an estimate, and assumes full development. These
positions will not be added until the demand for service justifies added employees.
School Funding:
As a result of changes in the Legislature recently, funding for operating budgets for
schools in Minnesota comes from the State. The only variable on this would be locally
approved excess operating levies.
There would need to be consideration of capital costs, as with more students comes a
need for classrooms. When the growth of the district exceeds the available classrooms,
voters are asked to approve capital referenda to build schools.
We did research what demands on the school system might be generated from
development such as this type. The prospective developer of this residential component
said that developments with similar product mixes in other communities have less than
15% of the homes with children. Of that number, half have two children or less. The
developer also indicated that half of those children are pre-school (although they do grow
up).
Therefore, we might anticipate 116 homes having two children or less. Using a
maximum of two while in school, it would generate 230 children. If one-half of those are
pre-school, 115 might be added to the Shakopee school system.
I will be reviewing these numbers with LS.D. 720 prior to the February 4th meeting.
tM JLlf\1~C/ u>>.u
Mark McNeill
City Administrator
MM:th
* Fringes and benefits
ILi-C
E ykib;+ I,t: V
CITY OF SHAKOPEE ON f PI '61. 'l
Memorandum
TO: Mayor and City Council
FROM: i Mark McNeill, City Administrator
SUBJECT: Cost of Services - Ryan Development
DATE: February 4, 2003 (Corrected)
At full development, in 2007, the amount of unabated taxes that will be received by the
City will be $373,000.
Determining the cost of services is not easily measured; we do not typically figure how
many additional City employees will be needed to service a particular subdivision as it
comes in. Acknowledging, however, that the City is being asked to abate a portion of the
Ryan Development taxes to be received, an estimate is appropriate.
The City's operating budget normally looks at cost per household - these figure all costs,
including those fixed costs of the City. When determining what a specific additional
subdivision or development will cost, one must concentrate on the "incremental" costs -
what are the costs that would be added specifically because of this development coming
onboard? For example, most fixed costs will remain the same - the City will not be
building a larger library, or hiring a second Fire Chief as a result of this development.
However, we can identify the following additional services, based on 700 housing units,
with 2,000 new residents:
Police:
(Typically 1.5 officers per 1000 residents)
3.0 officers x $55,000* = $165,000
1 squad car = $25,000
$190,000
Public Works:
(1 Maintenance Worker per 1400 residents)
1.43 x $39,000* = $55,700 $55,700
There is no additional equipment anticipated for this subdivision - parks will be
maintained by a resident association.
Fire/Miscellaneous:
(Additional Firefighters, general administrative)
Estimated = $30,000 $30.000
Total $275,000
* Fringes and benefits
Note that the above is based on an estimate, and assumes full development. These
positions will not be added until the demand for service justifies added employees.
School Funding:
As a result of changes in the Legislature recently, funding for operating budgets for
schools in Minnesota comes from the State. The only variable on this would be locally
approved excess operating levies.
There would need to be consideration of capital costs, as with more students comes a
need for classrooms. When the growth of the district exceeds the available classrooms,
voters are asked to approve capital referenda to build schools.
We did research what demands on the school system might be generated from
development such as this type. The prospective developer of this residential component
said that developments with similar product mixes in other communities have less than
15% ofthe homes with children. Ofthat number, half have two children or less. The
developer also indicated that half of those children are pre-school (although they do grow
up).
Therefore, we might anticipate 105 homes having two children or less. Using a
maximum of two while in school, it would generate 210 children. If one-half of those are
pre-school, 105 might be added to the Shakopee school system.
1M~~u~
Mark McNeill
City Administrator
MM:th
Changes from 1/31/03 memo noted in "BOLD"
Dear City COlmcil Members:
I am writing in regards to the agenda item of the city abatement being asked for by Valley Green
Corporation.
I won't pretend to know all the details. I don't know all the workings of city govermnent, but what I do
know is my money. And quite frankly, I've had it with being asked to pay for everyone else and their
mistakes or misfortunes.
My guess is that whomever owns the land currently bought it when the market was higher, but now
when it comes time to develop and sell it, the market is lower and they stand to lose a great deal of
money. Well, that was their misfortune, whether bad plalming or bad luck. They al'e developers and
that is the risk they take in the business they have decided to be in. They didn't bother asking my
opinion about the land when they first bought it, but they have no problem asking for my money to pay
for it.
What would my incentive be to give them tlus money? Development of Shakopee? Tax income
generated from new residents? My answer to those would be 1) there is plenty of unused office space
for lease all along Highway 169 (including a building that was recently built alId still stands empty) plus
others throughout Shakopee so we aren't short there. Retail spaces are currently being built up with a
large available space where the "Town Square" mal'ket is, as well as the soon to be available Kmari
location. 2) As for tax paying residents I don't believe we are falling short there either. I myself am in
fairly new construction with houses being built all around me every day. Scott County is one of the
fastest growing counties in America; I believe Shakopee is one of the fastest growing suburbs in
Minnesota. City Council members might argue that our growing community is exactly why we need to
help the developers. I disagree. Responsible growth will help us in the long run. Just getting buildings
and houses up is not responsible. City Council has already done their pmi in zoning the land for
responsible growth; they do not need to tal(e further action by paying to have it developed as welL
. - If this abatement is allowed, with whom do we stop? Certainly future developers will not expect to pay
for their developing. I know I wouldn't if! was one of them.
On of the reasons my husband and I moved to Shakopee was because we were excited to be in the early
stages of a growing community. Of course, with growth come challenges, but there are also many
positives. I'm happy to pay a reasonable amount of taxes when they are responsibly spent. This would
not be one of those times and I will be sorely disappointed by the City Council if they are bullied into
believing this is something the citizens of Shakopee must do.
Thank you to Judy Cox for forwarding this letter to the City Council meeting and to the council for
taking the time to read it. I had a prior meeting scheduled and could not attend.
I'm certain my City Council members will do the responsible thing and NOT allow the abatement to be
provided to Valley Green.
~~----
p
Sincerely, ,
1------1
Kerry Murphy I F E B 4 2003 \
1847 Alden A venue
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