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HomeMy WebLinkAboutJuly 31, 1979 y 1 S TENTATIVE AGENDA ADJ.REG. SESSION SHAKOPEE, MINNESOTA JULY 31 , 1979 Mayor Harbeck presiding 11 Roll Call at 7 : 30 P.M. 21 Approval of Minutes of June 12 , 1979 31 K-Mart Tax Increment Project : a] Res . No. 1465, A Resolution Receiving A Report and Calling A Hearing on an Improvement 79-9 b] 41 7 : 35 P.M. Applications from the Jabborwocky Tavern, 109 E 1st Ave , for an On Sale and Off Sale 3. 2 Beer Licenses 51 Application from the Jabborwocky Tavern for a permit to only allow consumption & display of intoxicating liquor (Set-Up License) 61 District Court Summons - Vickers Minn. Oil Co . , and Halo Develop- ment , Inc . 71 Other Business : " FRc gin. &,^c- "Oh le,kr a f 81 Adjourn. Douglas S. Reeder City Administrator TENTATIVE AGENDA SHAKOPEE HOUSING AND REDEVELOPMENT AUTHORITY SPECIAL SESSION JULY 31, 1979 Chrm. Hullander presiding: 11 Roll Call at 7 :45 P.M. 21 Approval of Minutes of July 3, 1979 31 Resolution No . 79-13, A Res . Amending Res . No. 79-3 Accepting the Review Appraisers Report and Establishing Just Ccmpensation for Each Project to be Acquired Through the 1978 Community Development Program 41 1980 Community Development Program 51 Feasibility of Tax Increment Financing for Downtown Redevelopment 61 Relocation Benefits to Mr and Mrs Alois Menden 71 Milwaukee Road Spur Line Easement 81 Other Business : a] Designating the City of Shakopee as the Contracting Agency for the site rough grading and drainage for K-Mart 9] Adjourn James A. Dittrich Deputy Director Shakopee H.R.A. PROCEEDINGS OF THE SHAKOPEE HOUSING AND REDEVELOPMENT AUTHORITY Special Session Shakopee , Minnesota July 3 , 1979 Chariman Hullander called the meeting to order at 7 : 34 P. M. with Commissioners Lebens and Leroux present . Commissioner Reinke was absent . Chairman Hullander explained that the purpose of the meeting was to discuss the proposed boundary modification of the K-Mart tax increment project . The City Adm. explained that the boundary changbyhas Thomasbeen Hayrecommended by Mr. Jim Holmes of Holmes , Kircher & Graven, the Dorsey Firm and by City staff (contained in Modification # 1 , dated June 29) to enlarge the project to include the location of well , tank since the tax incre- and roadway in the projment project will be used Cncl . Ward entered and took his seat at 7 : 38 P. M. Ward/Leroux moved to submit the modification to the Planning Commission for review and recommendation as to whether it conforms with the Comprehen- sive Plan. Motion carried with Cncl . Lebens voting "No" . Cncl . Ward inquired as to whether tax incrementation could be used for the improvement of downtown Shakopee . Discussion continued on this subject . Ward/Lebens moved to direct the City staff to prepare a feasibility study on the possibility of using tax increment for downtown renewal . Motion carried unanimously. Lebens/Ward moved to adjourn at 7 : 57 P. M. Motion carried unanimously. James Dittrich Deputy Director MEMO TO: HRA Commissioners FROM: James A. Dittrich Deputy HRA Director RE: Resolution 79-13 , A Resolution Amending Resolution No. , 79-3 Accepting the Review Appraisers Report and Establishing Just Compensation for Each Project to be Acquired Through the 1978 Community Development Program DATE: July 26, 1979 In order to increase the number of buildable lots and thereby increasing the benefits to low and moderate income groups, City Staff has decided to purchase an additional 10.5 foot strip along the John and Iona Theis property in the Fourth and Minnesota Project area. It is estimated that two to three more lots can be realized if the additional strip is purchased. Patchin Appraisals , Inc . , the original appraiser of the property, has stated in a letter that the same unit value of $.50 per square foot would apply to the additional taking as it had to the original taking. In addition, Larry Martin, City Assessor, reviewed the land and the unit value and has concluded that the appraisal is in conformance with accepted standards and the value reflects fair market value . Mr. Theis has agreed to sell the additional 10.5 strip of property to the City. Mr. Coller is presently drawing up the necessary papers to include the property acquisition. JAD/jiw MEMO TO: HRA Commissioners FROM: James A. Dittrich HRA Deputy Director RE: 1980 Community Development Program DATE: July 26 , 1979 The City has received notification from HUD that pre-application for the 1980 Community Development Block Grant Program is due October 1 , 1979 . Undertaking a project would require holding two public hearings in August . Regulations governing the program are the same as those which apply to the current Fourth and Minnesota Project . As in past years , the application categories are either for comprehensive or single purpose programs . The 1978 , program was one-year comprehensive in nature and the City indicated , within that program, that comprehensive activities would continue to be focused in that neighborhood strategy area over the next three years . Programs outlined included acquisition and clearance of the Chicago Milwaukee tracks, extension of water and sewer lines south of the railroad tracks and street construction from the current CD project thereby opening this area to housing construction and installation of public utilities on Market Street . I feel these activities should be delayed for several reasons . Injunctions imposed on the abandonment of the Milwaukee Road has postponed those proceedings . In addition, reluctance of several property owners in the Fourth and Minnesota Project area to accept the City' s offers thereby inducing condemnation proceedings to be brought against them has delayed the current CD program' s completion to next spring. Given this situation, I feel three alternatives exist regarding the City ' s application for Community Development Funds : a) Completion of a single purpose project for 1980 -- I have discussed this possibility with the Engineering Department and they suggested an area for study (to install water and sewer lines along Third Avenue from Harrison to Adams) . Extension of these public facilities would require bringing the line from Webster. The number of low and moderate income persons benefiting from the installation would be assessed by HUD and the program impart would be measured against applications submitted by other free-standing communities in the Metropolitan area. HRA Commissioners -2- July 26, 1979 Several related options exist which would improve funding possibilities for this project (or part of the project related) . One option involves the City' s installation of the water and sewer mains and assessing the cost back to the abutting landowners . Community Development funds could finance all or a portion of the assessment to qualifying low and moderate income families . Again, the number of low and moderate income persons benefited from this action will be minimal and the City would bear the brunt of the installation costs . In addition, the amount of the grant likewise will be minimal . Another related option involves the provision of assisted housing along Third Avenue between Harrison and Adams . No understanding between the City and a developer exists for the provision of assisted housing exists and a firm commitment is necessary to receive high HUD priority. b) Submission of a comprehensive project -- This application would include the water and sewer installation as well as addressing a housing need, either rehabilitation or new construction for 'low and moderate income groups . In addition, HUD requires that a comprehensive program"address a substantial portion of the identifiable community development needs within a defined concentrated area" . In this instance, the funding possibilities of this application will be slim. c) Allow the Scott County HRA to submit an application on behalf of the City for housing rehabilitation funds . If this alternative were funded, Shakopee would be eligible for approxi- mately 40 percent of the County' s funding . In the evert Scott County does apply on behalf of the City, Shakopee would be precluded from applying for a grant themselves . The discussion Tuesday night should center on whether the public hearings should be scheduled for a program and which project alternatives should be investigated further . JAD/jiw MEMO TO : HRA Commissioners FROM: James A. Dittrich Deputy Director RE : Feasibility of Tax Increment Financing for Downtown Redevelopment DATE : July 26 , 1979 In response to a request from the HRA regarding the use of tax increment financing for downtown redevelopment , I have contacted the Minnesota League of Cities and several facts were brought to light . Where blight can be identified , as is the case of downtown Shakopee , tax increment projects can be utilized; limited, however , to a 25 year bond period . More than one developer can work within a tax increment district ; and, additionally tax increment projects can be combined with other revenue services such as Community Development Block Grant Funds to cover costs incurred in a redevelopment project . Tax increment likewise can be utilized in rehabilitation projects , but the Minnesota League of Cities cautioned that rehabilita- tion projects normally do not yield a large enough increment to justify its economic feasibility . In any case , a determination must be made regarding the tax increment to be realized in relation to the costs included in the redevelopment district . A feasibility tax increment project , therefore , is one that yields an increment that covers the costs incurred in the project . Some important questions which I feel should be addressed concerning the application of tax increment financing to downtown redevelop- ment are as follows : A) Where are the boundaries to the tax increment district to be drawn? B) Is redevelopment to consist of razing existing structures and constructing new buildings or is rehabilitation of some buildings to be combined in downtown redevelopment? . C) What impact will the construction, or more correctly, the lack of construction of the 169 By-pass impose on downtown development? J HRA Commissioners -2- July 26 , 1979 Perhaps it may be advisable for additional planning considerations to occur before moving too quickly to implement a downtown redevelopment project . Redevelopment plans for downtown Shakopee have been designed in the past . The most recent is"Phase I : Feasibility Study/Action Plan" which was completed in 1974, by the Hodne/Stageberg Partners , Inc . , firm. For those of you who are unfamilar with this feasibility study , I have enclosed a copy for your convenience and perhaps we will be able to discuss this study and/or future downtown redevelopment plans at the Tuesday evening meeting. JAD/jiw Attachment MEMO TO: HRA Commissioners FROM: James A. Dittrich HRA Deputy Director RE: Relocation Benefits to Mr. & Mrs . Alois Menden DATE : July 26 , 1979 The attached letter from Jackie Wentworth of VonKlug and Associates , the firm hired to conduct the relocation activities , explains the processing of the relocation benefits to the Mendens . Mr. & Mrs . Menden, you will recall , will be displaced by the construction of the proposed Senior Citizen site. Careful reading of the letter will exemplify that the option whereby the HRA would make payment based on the initial costs of the replacement housing extended for four years (which will include the maximum $4,000 payment as well as a $500 moving expense payment) is the most equitable to all parties involved. This option fulfills HUD regulations as well as minimizing administrative costs . Also, the Mendens have indicated a willingness to accept this payment arrangement since they have first priority in moving into the completed Senior Citizen high rise . I recommend that the HRA approve the $4,000 replacement housing payment plus the $500 moving expense to Mr. & Mrs . Alois Menden. JAD/jiw Attachment FAAG 4316 UPTON AVENUE SOUTH. MINNEAPOLIS. MN 55410 (61 2) 929-5597 July 25, 1979 James Dittrich Deputy Director Housing and Redevelopment Authority of Shakopee 129 East lst Avenue Shakopee, i•tl`? 55379 Subject: Relocation of Alois J. and Bertha M. Menden 215 West 1st Avenue, Shakopee Dear Mr. Dittrich: Per your request, this letter is to discuss Shakopee HRA's displacement of the above referenced couple. The Mendens' property is being acquired for the redevelopment of subsidized housing and the famil°,, plans to rent an apartment until they can move into the housing being developed. There are two ways the relocation can be processed. The first is to simply say that their initial move is "permanent" for relocation purposes. The couple would receive payment for their moving expenses, now estimated to be "500.00, and also a rental assistance payment which cannot exceed 4,000.00. This subsidy is comprised of the difference between the Mendens' housing costs before displacement (k)703.45) and that paid after the move, within certain limitations. At this time, the cost for replacement housing is projected to be $230.00 for the first year and nothing for the remaining three years ,-)f subsidy. This results in an approximate rental assistance payment of i?29415.60. However, two conditions must be stressed. First, there is nothing forcing the couple to move to the assisted housing the second year. If their plans do change, the decrease now projected would not be applicable. Secondly, to process the decrease, the amount of subsidy would need to be recomputed annually at a minimum. Not only does this , increase the HRA's administrative costs, but it also opens the possibility of an increased payment as rental costs are raised, if the Mendens do not move a second time. Therefore, rather than agreeing to a periodic recom- putation, the HR9 could opt to just make payment based on the initial costs Von Klug 6 Associates, Inc. Specialists in Redevelopment Relocation 4 • James nittrich Tiny 25, 1979 ' Page 2 of occupancy of the replacement extended for four -rears. '.'hile the pa�, _ ,Men4 would then be 14,,000-00, the pr-)ces!T i G then n)t )nl_-;T in full accordance with aop7.ica: le regulations, :.ut al_7o not onen to rec),nnvutetiWin, with the accom,nany:in- administrative costr,. The second alternative is t-) simply refer to the first m-)ve a�- a temp:)rar;:)r one. Then the cost of the move (""500.00) is paid plus a maximum one- ,year housing suisi.dy, for a t-)tal -)f 2,41". A. These pa-nments are not reflected under relocation, l:ut rather property management and prior HrJ approval would .,e necessary. Then the move to the new development would ,be considered as the permanent relocation. The :?endens would again receive a payment for moving expenses, probably for ° 500.00, plus a four-year rental. assistance payrraent. If the rental is one-fourth of their income, there is no difference but the developer has not yet determined ?)is rental rate. ':'bile this is also in full accordance with applicaile regulations, I do wish to caution you that i.f our company handles the entire process, including the temporary and permanent moves, the fee quoted earlier would pro' auly l:e exceeded and could -o to ;`1,000.00. In either case, the couple is to have priority for an ascis_ted-unit ?eing constructed f-)r the project. Please advise us at your earliest convenience of the alternative you wish to follow. Sincerely, Jacquelyne ?:�entworth Relocation Consultant JVK:l.ee MEMO TO: HRA Commissioners FROM: James A. Dittrich HRA Deputy Director RE: Milwaukee Railroad Spur Line Easement DATE : July 26 , 1979 At the July 17 , 1979 , HRA meeting, discussion was held regarding the Milwaukee Railroad spur line easement located on the proposed Senior Citizen high-rise site. It was moved by the HRA to authorize the payment not to exceed $1500 to the Milwaukee Road to initiate proceedings to relinquish the easement to the City. As was emphasized at the July 17 , 1979, meeting, the $1500 would not include any settlement costs the Milwaukee Road may be eligible for as decided by the bankruptcy court . A letter from Mr. J. A. Coller, City Attorney, attesting to this effect is attached. I feel further discussion is necessary at the Tuesday night meeting to arrive at a satisfactory solution to this potentially time-delaying matter. JAD/jiw Attachment JULIUS A.LOLLER, II JULIUS A.GOLLER ATTORNEY AT LAW 612-445-1244 1559-1940 2 1 1 W E S T FIRST A V E N U E SHAKOPEE, MINNESOTA 55328 July 25, 1979 Mr. Jim Dietrich H.R.A. Deputy Director Shakopee City Hall Shakopee, Minnesota 55379 Dear Mr. Dietrich: This is to further clarify the request of the Milwaukee Railroad for $1500. All that this will do is to pay the cost of the railroad initiating the necessary steps to petition the referee in bankruptcy for authority to release the railroad easements on the North Half of Block 6 in the City of Shakopee. If the referee in bankruptcy says no, there will be no refund. If the referee approves, a price will then be set and this will have to be paid in addition to the $1500 to secure the release. I want to make this perfectly clear so that there will be no misunderstanding. Ver ruly ours, Jul s Coller, II JAC/bpm ""�— ,UL261" �q 1 OF f NOTICE OF APPLICATION FOR "ON AND OFF SALE" 3. 2 BEER LICENSES Notice is hereby given that an application has been made in writing to the City Council of the City of Shakopee , Minnesota and filed in my office praying for license to sell at retail "ON AND OFF SALE" non-intoxicating liquors by the following named persons at the place stated in said applications , to-wit : Jabborwocky Tavern - 109 East First Avenue For a period starting August 1 , 1979, and terminating June 30th, 1980. Said application will be heard and determined by the City Council of the City of Shakopee , Minnesota at the Council Chambers in the City of Shakopee on the 31st day of July, 1979 at 7 : 35 P.M. , or thereafter. Witness my hand and official seal this 13th day of July, 1979. Douglas S. Reeder City Administrator 3 PETITION FOR ASSESSABLE PUBLIC IMPROVEMENT CITY OF SHAKOPEE Dace 7 ':J\ ! We, the undersigned, believe that the residential property on the East 400 block of Fifth Avenue in Shakopee is being mis- used by its owner Edward Siebenaler. We request that the numerous commercial trucks which are parked there daily be removed, including the partially disassembled trues elevated on cement and wooden blocks. We also request that the dilapidated garage and all debris and building equipment be removed as they are an eyesore and a hazard to young children who are naturally attracted to the abandoned trucks. We further request that the growth of the weeds be controlled. PETITIONER LOT BLOCK Mo t---K --�. -�-- I , hereby, verify that I circulated the above petition and +c �a rhe above sigaatures of the property o�inera,, sad petitioners -,kwre ti��4cxa�F� CITY OF SHAKOPEE 129 East First Avenue, Shakopee, Minnesota 55379 t' MEMO TO: City Council FROM: James A. Dittrich SUBJECT: Audit of 1977 Community Development Block Grant Program DATE: July 26 , 1979 Attached is a copy of the letter outlining estimated costs and a letter of understanding of engagement for the above mentioned audit as prepared by the Jerome Jaspers CPA firm. This audit is required by HUD regulations and it must be completed by September 9 , 1979 . Furthermore, the costs of the audit are covered under- the 177 CDBG program. Approximately $19 ,000 of the $140,000 programed in the 1977 grant remains ; however, several final costs are yet to be paid. I recommend that the City Council approve the estimated costs and engage the Jerome Jaspers firm to conduct the audit . JAD:nae Attachments