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08-24-15 PC Agenda AGENDA Planning Commission Regular Meeting Golden Valley City Hall, 7800 Golden Valley Road Council Chambers Monday, August 24, 2015 7 pm 1. Approval of Minutes July 27, 2015, Regular Planning Commission Meeting 2. Consideration of Resolution No. 15-01 Finding that the Redevelopment Plan for the Winnetka and Medicine Lake Road Redevelopment Area and Tax Increment Financing (Redevelopment) District (Liberty Crossing Project) Conform to the City's General Plan of Development 3. Consideration of Resolution No. 15-02 Finding that the Tax Increment Financing (Housing) District (Cornerstone Creek Project) Conforms to the City's General Plan of Development --Short Recess-- 4. Discuss proposed amendments to the PUD Section of the Zoning Code. 5. Reports on Meetings of the Housing and Redevelopment Authority, City Council, Board of Zoning Appeals and other Meetings 6. Other Business • Council Liaison Report 7. Adjournment This dacument is available in alternate formats upon a 72-hour request. Please call � " 763-593-8Q06(TTY: 763-593-3968)to make a request. Examples of alternate formats '` may include large print,electronic, Braille,autliocassette,etc. m,� Regular Meeting of the Golden Valley Planning Commission July 27, 2015 A regular meeting of the Planning Commission was held at the Golden Valley City Hall, Council Chambers, 7800 Golden Valley Road, Golden Valley, Minnesota, on Monday, July 27, 2015. Vice Chair Segelbaum called the meeting to order at 7 pm. Those present were Planning Commissioners Baker, Blum, Johnson, Kluchka, Segelbaum, and Waldhauser. Also present was Associate Planner/Gr�nt Wr�ter Emily Goellner, and Administrative Assistant Lisa Wittman. Commissioner Cera was absent. 1. Approval of Minutes June 22, 2015, Regular Planning Commission Meeting Waldhauser referred to the sixth paragraph on page 3 and,stated that the first sentence should read "...turning left on fo Medicine Lake Road" instead of"...turning left from Medicine Lake Road." Baker referred to the seventh paragraph on page 9 and stated that the word "site" should be changed to "sight." MOVED by Kluchka, seconded by Waldhau�er and motion carried unanimously to approve the June 22, 2015, minutes wifh the`above noted changes. 2. Informal Public He�r�i�c� - Final Plan Review— Planned Unit Development (PUD #124) — Cornerstone Creek— 9300 and 9310 Golden Valley Road Applicant: CHDC Corrlerstone Creek LLC Addresses: 9300 arrd �314 Golden Valley Road Purpose: To allow for the consolidation and redevelopment of two parcels for a 45 unit facility for adults with developmental disabilities, administrative offices for Jewish Housing and Programming, and a public multi-purpose space. Goellner;referred to a site plan and explained the applicant's request to create a residentiaf!d�velopment at 9300 and 9310 Golden Valley Road consisting of a 45 unit apartment building for adults with developmental disability, offices for Jewish Housing and Programming (JHAP), and a multi-purpose community space. She explained that due to restrictions related to financing, the multi-purpose community space will be located on a separate parcel within the PUD and that cross access and shared parking agreements will be created to ensure both parcels have access to parking and to Golden Valley Road. Goellner explained that the apartment building will consist of 40 one-bedroom units and 5 two-bedroom units, 14 of which will be reserved for households at 30% of AMI, and 4 of which will be reserved for individuals facing long-term homelessness. She added that Minutes of the Golden Valley Planning Commission July 27, 2015 Page 2 there will also be a commercial kitchen and dining area, common space, a fitness center, and outdoor space. She discussed the parking requirements and stated that 68 parking spaces are required and that the applicant is proposing to have 73 parking spaces (44 underground parking spaces and 29 surface parking spaces) along with 4 spaces for bicycle parking near the front door. Goellner referred to the site plan and explained the changes between the Preliminary PUD Plan and the Final PUD Plan including: shifting of the building to the east, a reduced building footprint, the removal of three parking spaces, creating two lots instead of one, and doing the construction in two phases. She pointed out the location of the future sidewalk along Golden Valley Road that will be built by the City and noted that the mature trees to the rear of the property will remain and significant landscaping will be ins��lled as part of the project. Kluchka asked if there were any City Council comments giver��during the Preliminary Plan review. Goellner said there were no significant changes requested, b'ut that the applicant has incorporated the City Council's comments into their final plans. Waldhauser asked if the applicant's sewer and storm water;systems would be considered private service facilities or common areas, and how that would work between two different owners. Goellner said the City will require shared access and maintenance agreements. Johnson asked what happens with the.property if the applicant only builds phase one of their proposal. Goellner stated that the properky would have already built adequate parking at that point which would be the main concern if they didn't end up building the community room space in phase two. Baker noted that the applicant is combining two parcels into one, but would then be splitting it again because of fhe situation with having two separate owners. He asked if it is common in PUDs ta have more than one property owner. Goellner said that is more common than nqt in a-PUD, �� Scott Becl�rn�n, UrbanWorks Architecture, explained the changes since the Preliminary Plan re�iew. He stated that they've reduced the building's footprint and moved the building to#he'east in order to allow more space between their driveway and the neighbor's drivevvay to the west. They've realigned their entry drives to align them with the properties across the street, and they've made a pedestrian connection from the proposed building to the City's future sidewalk on Golden Valley Road. Segelbaum asked if part of reducing the size of the building included changing the overall configuration of the building. David Miller, UrbanWorks Architecture, said they just reduced the size of the link in the residential entry. Waldhauser asked for an overview of the changes made to comply with the Fire Chief's comments. Beckman said they are adding a couple of primary shut-off connections and access at the front of the building, providing water access, adding sprinklers to smaller spaces, adding stand pipes in the stairways, and adding smoke monitoring. Minutes of the Golden Valley Planning Commission July 27, 2015 Page 3 Kluchka asked if the greater community would be able to use the community room space. Anne Hope, Executive Director, Jewish Housing and Programming, stated that on a daily basis it will have a locked entrance, but they hope to make the space available for the community to rent. She said the space will be used as a sanctuary and a multi-purpose space as well. Kluchka asked about snow removal plans. Beckman stated that there are a couple of parking spaces that could be used for snow storage and that the owner will contract to have snow removed. Hope added she will speak to their property managem�nt company about snow removal. Kluchka referred to the number of parking spaces and asked if the residents will h�ve cars. Hope stated that the majority of the residents will not be d�`ivers and that people using the community center could park in the underground parking level as wel'I. Segelbaum asked about the ownership of the different parcels. Heidi Rathmann, Community Housing Development Corporation (CHpC), explained that`due to the nature of the financing there will be two separate owner�. The housing'side will be owned by a limited partnership and the non-housing side will be owned by a newly created LLC. In both cases the managing members will be CHDC. Segelbaum asked if the owners are for profit, or non-profit. Rathmann stated CHDC in ,� non-profit organization that will partner with a tax credit investor. Waldhauser asked if the office space wii� be part of phase one and owned by the same entity. Rathmann said yes. Baker asked why a separate`enti#y would want to own just the sanctuary. Rathmann said the majority of the housing,is publically funded so it is important that they fund only the housing portion. Blum asked what the terms 30% of AMI and long-term homelessness mean. Rathmann stated that AMI is the average median income and that units would be reserved for individuals making 30% of the average median income. Hope stated that four of the units would be reserved for aduits with developmental disabilities that face long-term homelessness. Walc�hauser aSked if services would be provided by other agencies. Hope explained that tenants will own their leases and they will come in with their own service providers. °s �; Segelbaum asked about the need for this type of housing and if CHDC is confident they can fill these units. Hope stated that they have an interest list. She added that it is an innovative building that is different than a group home and they are confident there is a need for this type of housing. Waldhauser asked if most of the new positions would be living wage jobs. Hope stated that the service providers pay their employees directly. She added that they are not high paying jobs, but they pay more than minimum wage jobs. Minutes of the Golden Valley Planning Commission July 27, 2015 Page 4 Blum asked how many personnel there would be on site. Hope stated that there isn't a ratio required of providers to tenants, it is based on what the tenants need. She added that there will be 2 or 3 JHAP staff, some property management and maintenance staff, and probably 8 to 9 care providers on-site at various times. Blum asked for an explanation of the footcandle map submitted as part of the application. Miller explained that the footcandle map shows the distribution and level of lighting and illustrates how the lighting is meeting the Zoning Code requirements. Beckman added that it also shows that light from this property won't bleed onto adjacent properties. Waldhauser asked if any consideration was given to adding a green roof or solar panels to the building. Miller said those are easy to add post-occupancy, but they are not in the initial construction budget. Segelbaum opened the public hearing. Seeing and hearing no one ancishing to comment, Segelbaum closed the public hearing. Kluchka asked if a condition should be added around snow removal in order to be consistent with the condition placed on the property across the street. He added that he doesn't want to see giant piles of snow in this highly visible �rea. Waldhauser noted that the property across the street had no room for snow stora�e'. Blum stated that this property seems to have more open space to stQre snow and suggested that the applicant provide a plan showing they have sufficient space. Beckman referred to a site plan and showed where snow could be stor�:d. H� noted that the PUD criteria requires a plan for snow storage or removal. Blum said the proposed L�I�7 IigF�#ing is.exceptionally environmentally sound and the application packet was well prep�red and detailed. Waldhauser said this sounds like,a great facility that is needed in the community. Segelbaum agreed. MOVED by,Kluchka, seconded by Baker and motion carried unanimously to recommend approval of'tMe F'inal PUD Plan for Cornerstone Creek PUD No. 124, subject to the following fiindings and conditions: Findinqs: 1. The PUI�plan is tailored to the specific characteristics of the site and achieves a higher quality of site planning and design than generally expected under conventional provisions of the ordinance. By utilizing the PUD process, the applicant has been able to accommodate three distinct but complementary uses on the site. 2. The PUD plan preserves and protects substantial desirable portions of the site's characteristics, open space and sensitive environmental features including steep s/opes, trees, scenic views, creeks, wetlands, and open waters. The proposed project protects 65 feet of undeveloped wooded area at the rear of the lot. Minutes of the Golden Valley Planning Commission July 27, 2015 Page 5 3. The PUD p/an includes efficient and effective use (which includes preservation) of the land. As a redevelopment of underutilized properties, the proposal would make better use of existing infrastructure and help the area transition into a more mixed use and pedestrian friendly environment. 4. The PUD Plan results in development compatib/e with adjacent uses and is consistent with the Comprehensive Plan and redevelopment plans and goals. The redevelopment of these two underutilized properties for affordable, life-cycle, multifamily housing is consistent with the goals of the Comprehensive Plan. 5. The PUD plan is consistent with preserving and improving the general;l�ealth, safety and general welfare of the peop/e of the City. By providing a new and innovative housing model, this proposal helps address a community, regional, and statewide need. �'` �'��8� 6. The PUD plan meets the PUD /ntent and Purpose provision°and alA other PUD ordinance provisions. The flexibility provided by the PUD allows fvr a mix of uses within the site and creates the opportunity for the establisMment of a ne�v multi- purpose community space. Conditions: 1. The plans prepared by UrbanWorks Architecture, submitted July 15, 2015, shall become a part of this approvaL 2. The recommendations and requirements outlined' in the memo from the Engineering Division, dated July 17, 2015, shall become a part of this approval. 3. The recommendations and requirernent� outlined in the memo from the Fire Department, dated July 20, 2015, shall become a part of this approval. 4. The property owner shall provide to the City all easements and agreements necessary to ensure cross-access and shared parking between the two lots. 5. All signage must meet the requirements of the City's Sign Code (Section 4.20). 6. The City Attorney will determine if a title review is necessary prior to approval of the Final Plat. 7. The Final Pl�t shall include "R.�1.D. No. 124" in its title. 8. A park dedication fee of$9;�40, or 2% of the land value, shall be paid before release o ,the F�nal �'lat. 9. The appli��ant rnust validate that there is adequate space for snow storage on site, or have a plan in place for snow removal. 10. This approval is subject to all other state, federal, and local ordinances, regulations, c�r laws with authority over this development. 3. Informal Public Hearing — Property Rezoning — 9000 Golden Valley Road Applicant: City of Golden Valley Address: 9000 Golden Valley Road Purpose: To rezone the property from Commercial to High Density Residential (R4). Minutes of the Golden Valley Planning Commission July 27, 2015 Page 6 4. Informal Public Hearing — Property Rezoning — 9050 Golden Valley Road Applicant: City of Golden Valley Address: 9050 Golden Valley Road Purpose: To rezone the property from Commercial to High Density Residential (R-4). Items 3 and 4 were discussed together. Goellner explained that the properties located at 9000 and 9050 Golden Valley Road have been re-guided on the General Land Use Plan Map from Comrnercial Retail/Service to Residential High Density. According to state statute the Zoning Map and the General Land Use Plan Map have to be consistent with each other so these properties need to be rezoned from Commercial to High Density (R-4) Residential. Segelbaum asked if development doesn't happen on th�se proper#ies if the City is stuck with the way the properties are zoned and guided'. Goellner said the development is irrelevant because the City Council wants to see �his area as High Density Residential. �� Segelbaum asked if these properties are part of the TIF pistrict in this area. Goellner said they are in a redevelopment area, but there are no.projects requesting TIF assistance at this time. Segelbaum opened the public hearing. 'Seeing and hearing no one wishing to comment, Segelbaum closed the public hearing. Blum said he is very supportive of rezoning these properties because the City often talks about where to put high density housing. He said this proposal is consistent with the long term flow of development along Highway 55 and is doesn't conflict with traditional neighborhoods. ' MOVED by Kluchka, seconded by Waldhauser and motion carried unanimously to recommend approval of rezoning the property at 9000 Golden Valley Road from Commercial �o H''t�h Density Residential (R-4). MOVE�by Kluchka, seconded by Waldhauser and motion carried unanimously to recommend �pproval of rezoning the property at 9050 Golden Valley Road from Commercial to High Density Residential (R-4). 5. Informal Public Hearing — Conditional Use Permit (CUP #139) — Schuett Companies — 9000 Golden Valley Road Applicant: Schuett Companies Minutes of the Golden Valley Planning Commission July 27, 2015 Page 7 Addresses: 9000 Golden Valley Road Purpose: To allow for a professional office within a principal structure containing 20 or more dwelling units. Goellner stated that the applicant is proposing to move their current offices from Mendelssohn Avenue in Golden Valley to this location at 9000 Golden Valley Road which is currently a vacant Wendy's restaurant. She added that the City Council has targeted this area for fewer auto oriented uses and for more pedestrian friendly uses. Goellner referred to a site plan and explained the proposed senior living building with 4,900 square feet of attached office space which is the use that requires the propc�sed Conditional Use Permit. She stated that the requirements for allt�wing office in the High Density Residential Zoning District state that the office must be on the first floar and must have direct access from the office to the street. She stated that staff is recommending a condition of approval requiring the construction of a"sidewalk along the east side of the access drive in order to connect the two building entrances with the proposed sidewalk along Golden Valley Road. She noted that all other zoning requirements have been met. Kluchka asked about the ability to add conclifrons to the approval of the Conditional Use Permit. Goellner stated that the Zoning Code allows the proposed senior living building so any conditions should be related to the factors u�ed when considering Conditional Use Permits and how they apply to the�office.use and its relationship to the housing component. Waldhauser asked if there are landsc�ping, lot coverage, and impervious surface requirements in this zonir�g;district`. Goellner said there are impervious surface and building coverage requirements, but the Zoning Code does not have minimum landscape requiremen#s. Segelbaum asked if there are tree preservation requirements. Goellner said yes, and stated that staff will be bringing new landscape requirements for the Planning Commission to review within the next few months. Segelbaum stated that landscaping �ould be considered part of the visual impact analysis required in reviewing a Conditional Use Petmit proposal. Segelbaum��sk�ef:if there are any other locations in the City with a similar use. Goellner said no, there are no other R-4 uses that include an office use. Waldhauser asked if the proposed office were vacated if the space would have to remain office space or if it could be re-purposed for a different use. Goellner said the Conditional Use Permit would need to be amended to allow a different use. Baker asked if the office space were vacated if it could become housing space. Goellner said yes, and if that were the case the Conditional Use Permit wouldn't be needed because high density housing is a permitted use. Baker said there is going to be a lot going on along this section of Golden Valley Road and he is concerned about the impact to other businesses on that road. He asked if Minutes of the Golden Valley Planning Commission July 27, 2015 Page 8 there is any way to influence the sequencing of the upcoming projects. Goellner said she thinks that may be considered during the right-of-way permitting process. Blum referred to the various proposed uses and said he is concerned that only the minimum parking requirement is being met. Goellner said staff also has concerns about the number of parking spaces being proposed. She stated that staff can look into it further and ask the applicant to provide examples of other properties they have that are similar to this one. Kluchka asked if proof of parking has been considered. Goellner said there is no room for proof of parking. She stated that the office and apartment uses will have different hours and that the City could ask that signs for guest parking spaces be installed. Waldhauser said she thinks office and residential uses are compatible because the residential use will most likely have visitors on the weekend when the office space isn't being used. Johnson said the proposed building seems really massive for this pr�perty and asked about the setback requirements. Goellner agreed that it is a d�;nse�development and explained that the front yard setback requirement is 25 feet and the side and rear yard setback requi�ement is 20 feet. She reiterated that the proposal meets all of the requirements of the R-4 Zoning District. Blum noted that these proposals along Highway 55 might seem visually like a row of parking lots and questioned if that should be discour��ed. Goellner said staff will be drafting a pedestrian overlay district soon whichl�lwould recf'uce the front yard setback area. Kluchka asked when the City will be installing'the sidewalk along Golden Valley Road. Goellner said the design work will 'begin in 2016 and construction would be in 2016 or 2017. Waldhauser asked if landscaping would be put in along with the sidewalk. Goellner said yes. Matt Goldstein, Vice Pre�ident of„Development, Schuett Companies, stated that they are a family-owned b�siness':headquartered in Golden Valley. He said the purpose of their Conditional5 Use Permit request is to create a corporate office and that they've tried very hard to create a straightforward zoning request without the need for a PUD. Waldhauser asked if Schuett has other properties similar to the one being proposed. Goldstein said they have a portfolio of 16 properties located throughout Minnesota. He said they cater to affordable housing for seniors. He said this proposal is a slight departure from their regular model where they are moving away from income restricted affordable housing to mid-range market rate housing. Blum asked Goldstein to describe the need for this type of housing. Goldstein said they've found there is a large group of people that don't qualify for income restricted housing but don't have the means to afford higher end, luxury apartments. He said they see an opportunity to deliver a very strong, unmet need in Golden Valley. Segelbaum asked about the size and types of units. Goldstein said there will be different configurations of 1- bedroom, 2-bedroom, and studio apartments available. Minutes of the Golden Valley Planning Commission July 27, 2015 Page 9 Segelbaum asked how many people the office space will accommodate. Tom Schuett, President, Schuett Companies, said the space is oversized for them right now, but it fits with their needs and future growth. He said there are six employees currently and they will have 20 parking spaces for the office use so that will help with the parking concern. He added that they may add a small locker room and work out area in the future. Segelbaum asked if they would lease out the office space they won't be using. Schuett said no, they don't intend to have any other tenants and that the office space will be just for their company. Blum asked how many employees will be required on-site to manage the senior housing building. Schuett explained that there will be a site manager, a m�intenar�ce person, a registered nurse and approximately five staff members. He explained that his praposal is essentially assisted living where people won't have to move again, unlike other facilities where people move in when they are independent and then move again when their needs change. He said a lot of their residents won't have cars and that the peak hours for care givers will be from 7 to 9 am, 11 to 1 pm, and 6 to 9 pm. Baker asked if this is a new model. Schuett said �t is the model they've been using in their existing buildings. Baker said there is a turnover with these types of uses and he is surprised there is a market for this type ofj,mociel be�ause it is playing to a short term desire for people who discover it won't fit'their needs. Balcer stated that each unit will probably have a person caring for a tenant sQ fihe sim�le math says there will be a shortage of parking. Schuett said he would take another look at their staffing levels and their parking needs. He reiterated that their ty�ical resident won't be driving. Segelbaum asked about the outdoor space. Schuett stated there will be garden areas in the back and maybe a porch area. Kluchka asked about their snow removal plans. Goldstein referred to a site plan and showed where snow would be stored. Kluchka asked the applicant if guest parking signs have been considered. Schuett said they haven't considered that, but they will. Kluchka referred to the proposed parapet at the top of the building and said he is con��r,ned abaut them not looking real. He suggested that the applicant look for opportur��ties t�'make them look more solid, or like they have a purpose. Schuett said he would ��tlress the design concerns. He said they also want to have a nice looking building. Segelbaum opened the public hearing. Seeing and hearing no one wishing to comment, Segelbaum closed the public hearing. Segelbaum said the concerns he's heard are regarding snow removal, parking, and design. Minutes of the Golden Valley Planning Commission July 27, 2015 Page 10 Waldhauser said she is less concerned about parking since they've learned that almost all of the residents will not be driving. Baker said he is concerned that people will own cars even if they don't drive them and that people will also be coming in everyday to help the residents which will mean more cars. He said he thinks there will need to be a parking space for every unit. Waldhauser said she wouldn't expect that care givers would be helping people one-on-one for hours and hours, they may be helping several different residents while they are there. Kluchka asked if the applicant is asking for a variance from the parking requirements. Goellner said no, they are meeting the parking requirements. She added that the applicant has said they are confident about the proposed number of parking spaces, but she would like the applicant to demonstrate that they will have enough parking. Blum said he thinks this use is a need that should be fulfilled, but the people who go there will have to park somewhere, and it could become a safety issue. Johnson also questioned if there is enough parking for a 100-unit building. Segelbaurn stated that there is also a level of underground parking. He noted that their parking'ratio is .62 spaces per unit so they are within the range of the City's parking requirement. He added that this is a need for the community, but he thinks the City needs assurance or demonstration that the parking will work. Kluchka said he doesn't want to require more parking. Baker said he would like the applicant to review the parking. He sugge�ted'the applicant provide an analysis of their other facilities. Blum said he would like �n a�tual number of the people who will be providing services in order to un��rstar�d��the p�rking issues. Segelbaum asked the Commissic�ners #iow they felt about requiring a snow removal plan. Kluchka said it is val��ble t4 request a plan that is consistent with other apartments in the area. Segelbaum asked the'Commissioners about design concerns. Baker said he thinks iYs great and he wants the applicant to stay in Golden Valley. Kluchka asked how they can make sur�,thi� prope.rty is well landscaped. MOVED by Kluchka, seconded by Waldhauser and motion carried unanimously to recommend approval of a Conditional Use Permit at 9000 Golden Valley to allow for a professional of#ice within a principal structure containing 20 or more dwelling units subject to the fallowing findings and conditions: Findinqs: 1. The applicant has indicated that the market in Golden Valley would be supportive of the type of senior housing being proposed for this location. In addition, the opportunity to collocate the professional offices within the building would generate efficiencies for the management of this project. 2. With the recent redesignation of the property to High Density Residential, the proposed residential use with a secondary office use is consistent with the General Land Use Plan Map. Minutes of the Golden Valley Planning Commission July 27, 2015 Page 11 3. Staff anticipates the new use would improve property values as it would replace a vacant fast food restaurant. 4. The number of trips associated with the proposed use is a reduction compared to the previous use, so staff does not expect any negative traffic impacts to the surrounding areas. 5. Between the residential and office uses, the proposal will increase the population at the location as compared to the previous use. This is not expected to have a negative impact 6. The proposed use is not anticipated to cause an increase in noise levels. 7. The proposed use is not anticipated to cause an increase in dust, odor, or vibrations. 8. The proposed use is not anticipated to attract pests. 9. The construction of a new five-story building would be a visual`improv�ment over the existing vacant fast food restaurant. However, the increase,,ir�`size of the strucfure will be a change in the scale of development on the property. It wi[f`not, however, be out of line with other development taking place along Gold�n �fa[ley Road. 10.Staff does not anticipate any other negative effects of the proposed use. Conditions: 1. The plans prepared by kaas wilson architects, received on June 26 and July 15, 2015, shall become a part of this approvaL 2. The comments in the memo from the Engineering Division dated July 14, 2015, shall become part of this approval. 3. The recommendations and requirements autNned in the memo from the Fire Department dated July 21, 2015, shaf) b��ome part of this approval. 4. A sidewalk shall be constructed along the east side of the access drive in order to connect the two building entrances with the proposed sidewalk along Golden Valley Road. 5. All signage must meet the requirements of the City's Sign Code (Section 4.20). 6. The applicant must validate that there is adequate space for snow storage on site, or a have plan in place for snorn�removal. 7. The applicaC�t shall;provide historical parking information to staff for evaluation and confirmation that the project�its with the appropriate level of parking. 8. This approval is'Subject to all other state, federal, and local ordinances, regulations, or laws with �uthority over this development. --Short Recess-- 6. Report�,on Meetings of the Housing and Redevelopment Authority, City Cour�cil, Board of Zoning Appeals and other Meetings Baker stated that the METRO Blue Line Citizens Advisory Committee has been talking about platform placement. Goellner added that there have also been discussion about using the triangular-shaped, park board property for parking. Minutes of the Golden Valley Planning Commission July 27, 2015 Page 12 7. Other Business • Council Liaison Report No report was given. Goellner said that she has been working on a shared services agreement with St. Louis Park regarding the Central Park West development. She stated that Central Park West will also be amending their PUD soon for the office and hotel uses. �� Segelbaum asked about the Three•Nine•Four development. Goellner said staff is in the process of getting the final paperwork in order so the development can mQve forward. Segelbaum asked about the Xenia development. Goellner said that they have applied for a building permit for the parking ramp. Kluchka asked how many apartment units there are now in Gold�zn Vall�y. Goellner said there are over 1,500 apartment units set to break,grot�nd in 2�15`and 2016. Kluchka asked if there are any special issues or urban planning the City should be thinking about in regard to the additional apartments. Goellner s�id the Cit� can handle the growth, but should be looking at multi-modal options. B�'ker said these are the kinds of things they should be looking at in upcoming Comprehensitie Plan. G4ellner stated that staff is working on the scope of the Comprehen�ive Plan and will start with discussing the areas of growth and doing a housing inventory. 8. Adjournment The meeting was adjourned at 9:�7 pm. John Kluchka, Secretary Lisa Wittman, Administrative Assistant �'t��1 �:)�� „�;�,. � � , �.. _ � ��,,. ��,� Physical Development Department 763-593 8030/763 593 39$$(fax} Date: August 24, 2015 To: Golden Valley Planning Commission From: Marc Nevinski, Physical Development Director Subject: Public Hearing- Consider Planning Commission Resolution 15-01 Finding the Redevelopment Plan for the Winnetka and Medicine Lake Road Redevelopment Area and Tax Increment Financing (Redevelopment) District Liberty Crossing Conform to the City's General Plan of Development. Background On July 14, 2015 the HRA adopted Resolution 15-3 adopting the Redevelopment Plan for the Winnetka and Medicine Lake Road Redevelopment Plan. Also, a proposal to use Tax Increment Financing (TIF) was presented to implement the Redevelopment Plan, which began the process of establishing a TIF District (Redevelopment) in the project area. State Statute requires the Planning Commission review the two plans and determine if they conform to the City's General Plan of Development (Comprehensive Plan) prior to the City Council holding a public hearing on the plans and considering their adoption. On December 2, 2014, the City amended both its Comprehensive Plan and Zoning Map for the area designating the parcels in the proposed TIF district as Residential-High Density. If, following a public hearing, the Planning Commission finds the Redevelopment Project Area plan and TIF plan conform to the Comprehensive Plan as amended, it should adopt Resolution 15-01. Attachments Map of Redevelopment Area and TIF Project Area & District (1 page) Winnetka & Medicine Lake Road Redevelopment Plan (11 pages) TIF Plan (Liberty Crossing Project) (22 pages) Planning Commission Resolution 15-01 (1 page) Recommenflation Staff recommends the Planning Commission adopt Resolution 15-01 finding that the Redevelopment Plan for the Winnetka and Medicine Lake Road Redevelopment Project Area and the Tax Increment Financing (Redevelopment) District Liberty Crossing conform to the General Plan for the Development and Redevelopment of the City, as amended. QProject Area �TIF District —ti-Ot111� � �'t:�l'�'�'C�'=---------- � . 2550 7825 2575 � 2542 2486 2476 2564 2520 2525 9 2500 2458 2480 2500 244 2400 2414 2436 2450 2440 4 4 2400 2445 � 2400 � 2415 � � � 797 2409 �� 2401 4 7980 2337 � 2335 2320 2325 � 2300 2300 ve N 230� 230 2240 2155 2301 7925 7901 ^�`��' �`�^^�`��' ^�^�^ � 2220 2145 2209 � 2202 794 792 2205 � 2200 2200 2135 2140 2291 Q 2142 2140 S ^ � 2140 z�25 � 2120 (r 7900 � � }I 7350 � 2100 792 � 2120 2120 2125 = � 7400 �. 2080 ■� 7840 7810 7800 7450 2095 050 � 7740 ��2� 7700 7640 7620 7600 7540 7520 7500 a 2105 7355 Winnetka Hei hts �t 7405 2°65 2°6° 040 2041 7445 2040 2041 7751 2041 2040 7601 7551 2041 2040 2035 2040 030 2031 2020 2021 2020 2021 2020 2021 pppp 2021 2020 2020 2015 2005 020 2021 2000 2001 2000 2001 2000 2001 2000 2001 2000 2000 a Pnnt Date: 7/28/2015 e t t��t ��, �, Tax Increment Financing sou,�s: -Hennepin Counry Surveyors Office for ��_�i� ��"t�1 � �� (Redevelopment) DiStriCt Propertylines(2015). �,j�a��'ZJ within Winnetka and Medicine Lake Rd -ciryofGoldenValleyforallotherlayers. T 0 150 300 600 d Redevelopment Project Area Feet Redevelopment Plan for Winnetka & Medicine lake Road Redevelopment Project Location: Southeast Quadrant of Winnetka Avenue and Medicine Lake Road Golden Valley, Minnesota � REVIEW AND APPROVAL DATES Golden Valley HRA Approval: July 14, 2015 Planning Commission Review: Approved by the City Council: TABLE OF CONTENTS Pa e s Introduction.................................................................................................................3 Project Area Boundaries.............................................................................................3 Background..................................................................................................................3 Redevelopment Opportunities..................................................................................3 Public Improvements..................................................................................................4 Statement of Need and Public Purpose, Statutory Authorization........................4 Statementof Objectives.............................................................................................4 Itemized Goals and Objectives..................................................................................5 Policies..........................................................................................................................6 LandUse................................................................................................................6 Financing................................................................................................................7 Transportation......................................................................................................8 Definitions.....................................................................................................................8 Administration of Redevelopment Project..............................................................8 Maintenance and Operations..........................................................................8 Payment of Public Costs....................................................................................8 Property Acquisition and Proposed Reuse....................................................8 Relocation............................................................................................................9 Environmental Controls; Land Use Regulations..............:..............................9 Park and open Space to be Created.................................................................9 Amendments.......................................................................................................9 Mapof the Project Area............................................................................................10 2 Introduction In the 1960's the area southeast of the intersection of Medicine Lake Road and Winnetka Avenue North was developed with a variety low density commercial and industrial oriented uses. Overtime, development patterns in the region have become more urban in form, real estate markets have changed and development patterns have resulted in flooding in the area. Recently, encouraged by interest from the private sector, the City of Golden Valley has taken the initiative to re-guide and rezoned many of the parcels to accommodate new, higher density residential land uses and address the flooding issues in the area. This document serves as the Redevelopment Plan for the area, to be known as the Winnetka& Medicine Lake Road Redevelopment Project. It defines the geographic area of proposed improvements, outlines existing conditions, discusses anticipated redevelopment, and sets goals, objectives and policies that will guide projects as they are implemented. Project Area Boundaries The Redevelopment Plan Project Area extends from Medicine Lake Road south to 23`d Ave North and from Winnetka Avenue east to the Canadian Pacific Railroad tracks. Parcels containing DeCola Ponds A, B and C are also included in the Project Area. The map in Exhibit A illustrates the boundaries of Project Area which includes private parcels and public lands and rights of way. The Project Area matches the boundaries of a proposed tax increment financing redevelopment project area where up to twenty five percent of the TIF proceeds could be spent, most likely for infrastructure improvements. Background The Project Area was originally low lands. Aerial photographs from 1945 show wetlands and agricultural land uses. The area began to develop in the 1960's with low density commercial and industrial uses. Wetlands were filled and portions of the area remained low. Overtime, the existing development has trended towards obsolesce, and investment in the buildings has diminished. A recent study by LHB Inc. found a number of buildings to be "substandard" under Minnesota TIF statutes. Currently the area includes a small auto repair shop, two restaurants (a walk-up and a sit down style), a multi-tenant building owned by the local VFW club, a small car wash, a newly developed drug store, a vacant industrial building, and self-storage facility. The east side of the Project Area includes a multi-family housing development and Pennsylvania Park, which includes two flood storage ponds. To the south, is an additional pond and a single family neighborhood. Flooding in the area is common, although it is not in a federally mapped flood plain. A study is currently nearing completion that will document the cause of the flooding and identify specific measures to reduce the flooding in the area by creating more flood storage. A proposed multi- family development project provides an opportunity to construct and fund additional flood storage in the area. 3 Redevelopment Opportunities In early 2015, a developer proposed redeveloping four parcels within the Project Area with townhomes and a large apartment building. If completed, the redevelopment would utilize approximately fifty percent of the land within the Project Area. Other redevelopment opportunities may emerge over time on small individual parcels or a combination of parcels within the Project Area. Public Improvements Public improvements proposed for the Project Area include the development of additional flood storage to reduce flooding in the DeCola Ponds sub-watershed area and ensure that the Medicine Lake Road and Winnetka Avenue intersection remain passable to emergency vehicles during a flood event. Flood storage may include the construction of underground vaults, the creation of new open storage or the expansion of existing open storage, and the construction of conveyance swale or pipe to move water at a controlled rate through the area. Additionally, removal of some portions of Rhode Island Avenue North may occur to reduce storm water runoff and provide flood storage and conveyance. Finally, trail connections in the area, particularly from redeveloped areas to existing parkland. Statement of Need and Public Purpose, Statutory Authorization The Housing and Redevelopment Authority (HRA) finds there is a need for development within the City and the Project Area in order to provide housing opportunities, to improve the local tax base, address public infrastructure needs, and to improve the general economy of the City and the State. The economic security of residents depends upon proper development of property that meets any one of a number of conditions, including properties with values too low to pay for the public services required or rendered and properties where lack of use or improper use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare. The HRA finds that in many cases, such property cannot be developed without public participation and assistance in various forms, including property acquisition and/or write-down; proper planning; the financing of development costs associated with clearance, grading, and soils correction; and various other public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone, the HRA believes it to be in the public interest to consider the exercise of its powers, to advance and spend public money, and to provide the means and impetus for such development. The HRA finds that in certain cases, property within the Project Area would or may not be available for development without the specific financial aid to be sought, that the Redevelopment Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the Project Area by private enterprise, and that the Redevelopment Plan conforms to the general plan for the development of the City as a whole. Statement of Objectives The HRA seeks to achieve one or more of the following objectives with respect to the Project Area, as the Authority may deem appropriate and necessary: 4 • Promote and secure the prompt development of property within the Project Area, such property which is not now in its most productive use, in a manner consistent with the Comprehensive Plan of the City, thus realizing Comprehensive Plan land use, and tax base goals. • Assist development in the Project Area through the acquisition or write-down of certain interest in property which is not now in productive use or in its highest and best use, to make or defray the cost of soil corrections or site improvements on said property, and to construct or reimburse for the construction of public improvements and other facilities on or for the benefit of said property and the public, thereby promoting and securing the development of other land within the Project Area. • Secure the increase and availability of rental housing property for individuals and families of low to moderate income within the Project Area. • Secure the increase of industrial and commercial property subject to taxation within the Project Area. • Promote and secure additional employment opportunities within the City and to prevent the loss of existing employment opportunities, thereby preventing the loss of valuable human resources. • To provide funding for an ongoing development strategy and to prioritize the use of available resources. • Implement and revise from time to time, as may be deemed necessary or desirable, a consolidated and unified Redevelopment Plan and to finance the associated development costs on an area-wide basis. : Employ any of the powers of the Authority for the benefit of the Project Area in such cases and upon such terms as the Authority may deem appropriate. • Construct or acquire facilities deemed desirable for the development of the Project Area. Itemized Goals and Objectives To achieve its mission of structured redevelopment,this Plan has identified the following goals with related objectives for this Project Area to encourage cohesive planning and structured renewal within the area. It then outlines policies that will help to achieve the goals and objectives. Goal 1—Redevelop obsolete properties Objectives: • Redevelop blighted, functionally obsolete and/or economically unsustainable buildings. � Establish new uses compatible with existing uses. • Spur reinvestment in the broader area through new development and an expanded market. 5 Goal 2—Create additional flood storage in the DeCola Ponds sub-watershed Objectives: • Use redevelopment to create and fund the construction of additional flood storage in the Project Area. • Ensure new development, at a minimum, does not reduce existing flood storage. • Minimize the impact of flooding on private properties and structures. Goal 3— Expand housing opportunities Objectives: • Increase housing choices and options within Golden Valley. • Promote quality, sustainable and green construction and development. • Require amenities as part of new development that improve quality of life for residents. Goal 4—Protect the environment Objectives: • Ensure wetlands are protected and enhanced. • Reduce or eliminate soil and wetland contamination. • Preserve quality vegetation and reduce or eliminate invasive or disease-susceptible species. Goal 5— Maintain a regional framework Objectives: • Plan for growth compatible with the Metropolitan Council development framework. • Design public infrastructure in cooperation with other public agencies. • Participate in grant programs available through Hennepin County, the Metropolitan Council and other agencies. • Develop and maintain positive relationships with surrounding communities and governmental agencies. � Continue participation in cooperative traffic management strategies. • Improve transit options. Policies land Use The City will study planned land uses to determine the need or desirability of individual parcels or area-wide comprehensive plan or zoning amendments to accommodate desired land uses. The City and HRA will assure that its review processes, zoning and building regulations will promote desired development projects. The City will assure that new uses in the redevelopment area are compatible with existing development and the City's Land Use Plan. The City and HRA will review existing properties in the area to consider their long term viability and/or options for alternative uses. 6 Land use plans will promote mixed use developments and increased density where appropriate, in keeping with the Metropolitan Council's regional growth strategy. Financing The City and HRA will identify criteria to target redevelopment funds such as tax increment financing, tax abatements, Livable Communities, Community Development Block Grants, Hennepin County and other funding made available by the Legislature, other agencies or governmental units. The City and HRA will consider providing public assistance to redevelopment projects that serve a substantial public purpose, remove blight, or mitigate contamination. The City and HRA will consider using land write-downs to subsidize redevelopment projects. Redevelopment funding will be paired with other funding options such as assessments based on the Golden Valley Special Assessment Policy. The City will consider franchise fees and utility surcharges to underwrite the cost of utility and infrastructure upgrades. Design and Environmental Standards The City will promote best practices to meet the highest environmental standards. The City and HRA will identify approaches and/or incentives to promote a corridor beautification program.This program will include both public and private components. The City will monitor ongoing research on sustainable development initiatives to guide redevelopment and future updates of this plan. Transportation The City will work with Metro Transit to monitor transportation needs of area residents and workers and to identify ways to improve transportation services, including improving transit routes and working with area businesses to develop transportation management plans. Definitions The terms defined in the section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authoritv" means the Housing and Redevelopment Authority of the City of Golden Valley. "C�" means the City of Golden Valley, Minnesota, also referred to as a "Municipality". "Citv Council" means the City Council of the City. "Countv" means Hennepin County, Minnesota. "Governin� Body" means the Board of Commissioners of the Authority. 7 "HRA Act" means the Minnesota Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 469.001 through 469.047, both inclusive. "Land Use Re�ulations" means all federal, state and local laws, rules, regulations, ordinances and plans relating to or governing the use or development of land in the Project Area, including but not limited to environmental, platting, zoning and building code laws, regulations and ordinances. "Proiect Area" means the geographic area of the Highway 55 West Redevelopment Project Area. "Public Costs" means the costs of land acquisition, public and site improvements, repayment of debt service on tax increment bonds, and other eligible costs as set forth in the Redevelopment Plan and Tax Increment Financing Plan(s). "Redevelopment Plan" means the Redevelopment Plan for the Project Area. "State" means the State of Minnesota. "TIF Act" means Minnesota Statures, Section 469.174 through 469.179, both inclusive. "TIF District" means any tax increment financing district presently established or to be established in the future in the Project Area. "TIF Plan" means the respective tax increment financing plan for each TIF district located within the Project Area. Administration of Redevelopment Project Maintenance and Operations Maintenance and operation of the Project Area will be the responsibility of the HRA Director, who shall serve as administrator of the Project Area. Each year the administrator will submit to the Governing Body the maintenance and operation budget for the following year. The administrator will administer the Redevelopment Plan pursuant to the provision of the HRA Act, provided, that such powers may only be exercised at the direction of the Governing Body. No action taken by the administrator pursuant to the above-mentioned powers shall be effective without authorization by the Governing Body. Payment of Public Costs It is anticipated that the Public Costs of the Project Area will be paid primarily from tax increments or proceeds of tax increment bonds. Such costs are identified in the TIF Plan(s) for the corresponding TIF District(s) located within the Project Area. The Authority reserves the right to use other sources of revenue legally applicable to the Project Area to pay for such Public Costs including, but not limited to, special assessments, federal or state funds, and investment income. Property Acquisition and Proposed Reuse The HRA may acquire property or appropriate interest therein within the Project Area as it deems necessary or desirable to assist in the implementation of the Redevelopment Plan. 8 The Redevelopment Plan contemplates that the HRA may acquire property and reconvey the same to another entity. Prior to formal consideration of the acquisition of any property, the Governing Body will require the execution of a binding development agreement with respect thereto and evidence that tax increments or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the HRA to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and redevelopment of property shall be incorporated into any development agreement to which the HRA is a party. Relocation Any person or business that is displaced as a result of the Redevelopment Plan will be relocated in accordance with the provisions of the HRA Act and other applicable law. Environmental Controls; Land Use Regulations All HRA actions, public improvements, and private development shall be carried out in a manner consistent with existing environmental controls and all applicable Land Use Regulations. Park and Open Space to be Created Park and open space created within the Project Area will be done so in accordance with the zoning and platting ordinances of the City. Amendments The HRA reserves the right to alter and amend the Redevelopment Plan subject to the provisions of state law regulating such action. 9 Exhibit A Redevelopment Plan Project Area ,` QPra�ectArea ' � �$�t�� 1 '°� ' '�.p, �'"'�' �� a��a��fi,r�� ..,., _ � 1'� �� .:=�s: . .... . 2a�G ,+a-'�° �. "��,.'�.� ��" � .��."S _.. . . 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Definitions................................................................................................................................................................................... 1 B. Statutory Authorization .............................................................................................................................................1 C. Statement of Need and Public Purpose ...................................................................................................................1 D. Statement of Objectives............................................................................................................................................1 E. Designation of Tax Increment Financing District as a Redevelopment District.........................................................1 F. Duration of the TIF District........................................................................................................................................3 G. Property to be Included in the TIF District................................................................................................................3 H. Property to be Acquired in the TIF District................................................................................................................4 I. Specific Development Expected to Occur Within the TIF District..............................................................................4 J. Findings and Need for Tax Increment Financing......................................................................................................4 K. Estimated Public Costs............................................................................................................................................5 L. Estimated Sources of Revenue................................................................................................................................6 M. Estimated Amount of Bonded Indebtedness............................................................................................................6 N. Original Net Tax Capacity.........................................................................................................................................6 0. Original Local Tax Rate............................................................................................................................................7 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment.......................................................7 Q. Use of Tax Increment..............................................................................................................................................8 R. Excess Tax Increment.............................................................................................................................................9 S. Tax Increment Pooling and the Five Year Rule.......................................................................................................9 T. Limitation on Administrative Expenses....................................................................................................................9 U. Limitation on Property Not Subject to Improvements- Four Year Rule...................................................................9 V. Estimated Impact on Other Taxing Jurisdictions ...................................................................................................10 W. Prior Planned Improvements.................................................................................................................................11 X. Development Agreements.....................................................................................................................................11 Y. Assessment Agreements.......................................................................................................................................11 Z. Modifications of the Tax Increment Financing Plan...............................................................................................11 AA. Administration of the Tax Increment Financing Plan...........................................................................................12 AB. Filing TIF Plan, Financial Reporting and Disclosure Requirements....................................................................13 Map of the Tax Increment Financing District within the Project Area......................................................EXHIBIT I AssumptionsReport........................................................................................................................... ...EXHIBIT II Projected Tax Increment Report............................................................................................................EXHIBIT III Estimated Impact on Other Taxing Jurisdictions Report...................................................................... EXHIBIT IV Market Value Analysis Report............................................................................................................... EXHIBIT V Executive Summary TIF District Qualification Report........................................................................... EXHIBIT VI Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authoritv" means the HousinQ and Redevelopment Authoritv of the City of Golden Vallev. "Ci r"means the City of Golden Valley, Minnesota; also referred to as a"Municipalitv". "City Council" means the City Councii of the Ciry; also referred to as the'Governina Bodv". "Coun " means Hennepin County, Minnesota. "Redevelopment Project Area" means the Winnetka & Medicine Lake Road Project Area in the City, which is described in the corresponding Redevelopment Plan. "Redevelopment Plan" means the Redevelopment Plan for the Winnetka & Medicine Lake Road Project Area. "Project Area" means the geographic area of the Redevelopment Project Area "School DistricY'means Independent School District No. 281, Minnesota. "State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1794, as amended, both inclusive. "TIF DistricY' means Tax Increment Financing (Redevelopment) District the Liberty Crossing Project. "TIF Plan" means the tax increment financing plan for the TIF District(this document). Section B Statutory Authorization See"Statutory Authorization"on page 4 of the Redevelopment Plan for the Project Area. Section C Statement of Need and Public Purpose See"Statement of Need and Public Purpose"on page 4 of the Redevelopment Plan for the Project Area. Section D Statement of Objectives See"Statement of Objectives"on pages 4-5 of the Redevelopment Plan for the Project Area. Section E Designation of Tax Increment Financing District as a Redevelopment District Redevelopment districts are a type of tax increment financing district in which one or more of the following conditions exists and is reasonably distributed throughout the district: (1) parcels comprising at least 70% of the area of the district are occupied by buildings, streets, utilities, paved or gravel parking lots, or other similar structures and more than 50% of the buildings, not including outbuildings, are structurally substandard requiring substantial renovation or clearance. A parcel is deemed SPRINGSTED Page 1 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota "occupied" if at least 15% of the area of the parcel contains buildings, streets, utilities, paved or gravel parking lots; or other similar structures. (2) the property consists of vacant, unused, underused, inappropriately used, or infrequently used railyards, rail storage facilities, or excessive or vacated railroad right-of-ways; or (3) tank facilities, or properry whose immediately previous use was for tank facilities, as defined in section 115C.02, subdivision 15, if the tank facilities: (i) have or had a capacity of more than 1,000,000 gallons; (ii) are located adjacent to rail facilities; and (iii) have been removed or are unused, underused, inappropriately used, or infrequently used. (iv) A qualifying disaster area, as defined in subdivision 10b. For districts consisting of two more noncontiguous areas, each area must individually qualify under the provisions listed above, as well as the entire area must also qualify as a whole. The TIF District qualifies as a redevelopment district in that it meets all of the criteria listed in(1)above. An executive summary of a report prepared by LHB, Inc.that details the qualifications is included in Exhibit VI. A copy of the entire report with supporting facts and documentation for this determination is on file with the City and is available to the public upon request. The full report will be retained by the City for the life of the TIF District. "Structurally substandard" is defined as buildings containing defects in structural elements or a combination of deficiencies in essential utilities and facilities, light and ventilation, fire protection including adequate egress, layout and condition of interior partitions, or similar factors which defects or deficiencies are of sufficient total significance to justify substantial renovation or clearance. Generally, a building is not structurally substandard if it is in compliance with the building�code applicable to a new building, or could be modified to satisfy the existing code at a cost of less than 15%of the cost of constructing a new structure of the same size and type. A city may not find that a building is structurally substandard without an interior inspection, unless it can not gain access to the property and there exists evidence which supports the structurally substandard finding. Such evidence includes recent fire or police inspections, on-site property tax appraisals or housing inspections, exterior evidence of deterioration, or other similar reliable evidence. Written documentation of the findings and reasons why an interior inspection was not conducted must be made and retained. A parcel is deemed to be occupied by a structurally substandard building if the following conditions are met: (1) the parcel was occupied by a substandard building within three years of the filing of the request for certification of the parcel as part of the district; (2) the demolition or removal of the substandard building was performed or financed by the City, or was performed by a developer under a development agreement with the City, (3) the City found by resolution before such demolition or removal occurred that the building was structurally substandard and that the City intended to include the parcel in the TIF district, and (4) the City notifies the county auditor that the original tax capacity of the parcel must be adjusted upon filing the request for certification of the tax capacity of the parcel as part of a district. In the case of(4) above, the County Auditor shall certify the original net tax capacity of the parcel to be the greater of (a)the current tax capacity of the parcel, or (b)a computed tax capacity of the parcel using the estimated market value of the parcel for the year in which the demolition or removal occurred, and the appropriate classification rate(s) for the current year. At least 90 percent of the tax increment from a redevelopment district must be used to finance the cost of correcting conditions that allow designation as a redevelopment district. These costs include, but are not limited to, acquiring properties containing structurally substandard buildings or improvements or hazardous substances, pollution, or SPRINGSTED Page 2 Housing and Redevelopment Aufhority of the City of Golden Valley, Minnesota contaminants, acquiring adjacent parcels necessary to provide a site of sufficient size to permit development, demolition and rehabilitation of structures, clearing of land, removal of hazardous substances or remediation necessary to develop the land, and installation of utilities, roads, sidewalks, and parking facilities for the site. The allocated administrative expenses of the City may be included in the qualifying costs. Section F Duration of the TIF District Redevelopment districts may remain in existence 25 years from the date of receipt of the first tax increment. The City anticipates that the TIF District will remain in existence the maximum duration allowed by law (projected to be though the year 2043). Modification of this plan (see Section AA) shall not extend these limitations. All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the City. Pursuant to MN Statutes, Section 469.175, Subdivision 1(b),the City elects to delay receipt of first increment until 2017. Section G Property to be Included in the TIF District The TIF District is an approximately 10.86acre area of land located within the Development District. A map showing the location of the TIF District within the Project Area is shown in Exhibit I. The boundaries and area encompassed by the TIF District are described below: Parcel Number* Le al Descri tion 2911821220018 Lot 1, Block 1, Golden Valley VFW Post Number 7051, according to the recorded plat thereof, Hennepin County, Minnesota. Being Registered land as is evidenced by Certificate of Title No. 1325613. 2911821220012 The West 374 feet of the North 205 feet of the South 860 feet of the Northwest Quarter of the Northwest Quarter of Section 29, Township 118, Range 21, except the West 33 feet thereof, according to the United States Government Survey thereof, Hennepin County, Minnesota. Together with an easement for ingress and egress over the following described property: The North 30 feet of the North 655 feet of the South 860 feet of that part of the northwest Quarter of the Northwest Quarter of Section 29, Township 118, Range 21, lying West of the East 704 feet thereof, except the West 374 feet of the North 205 feet of the South 860 feet of the Northwest Quarter of the Northwest Quarter of Section 29, Township 118, Range 21, as shown in deed Document No. 2476007; And together with an easement for private roadway as evidenced by Document No. 1287516. Bein Re istered land as is evidenced b Certificate of Title No. 1305335. 2911821220015 Lot 2, Block 1, McTac Addition according to the recorded plat thereof, Hennepin County, Minnesota. 2911821220014 Lot 1, Block 1, McTac Addition, according to the recorded plat thereof, Hennepin County, Minnesota. Being Registered land as is evidenced by Certificate of Title No. 689295. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. SPRINGSTED Page 3 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section H Property to be Acquired in the TIF District The City may acquire and setl any or all of the property located within the TIF District; however, the City may undertake the acquisition of prope�ty for the installation of public utilities within the TIF District. Section I Specific Development Expected to Occur Within the TIF District The proposed project includes the redevelopment of the existing Liberty Crossing site, into a 247-unit apartment and townhome development. The redevelopment will also include corresponding public improvements for stormwater mitigation purposes, and other extraordinary costs associated with the redevelopment of the site. The City anticipates using tax increment to reimburse the Developer for a portion of the TIF eligible project costs occurred in the development of the Facility. Included in the projected eligible costs to be reimbursed are costs associated with demolition of existing buildings, site work, public and private utility improvements including stormwater management infrastructure, and other eligible improvements associated with the project. Additionalfy,the City anticipates using tax increment to finance public improvements and site work on property located within the Redevelopment Project Area, along with related administrative expenses. Construction of the project is expected to begin in 2016, and be completed by 2017. The development is projected to be 100%assessed and on the tax rolls as of January 2, 2018 for taxes payable in 2019. At the time this document was prepared there were no signed construction contacts with regards to the above described development. Section J Findings and Need for Tax Increment Financing In establishing the TIF District,the City makes the following findings: (1) The TIF District qualifies as a redevelopment district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the City, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and the increased market value of the site that could reasonably be expected to occur without the use of tax increment financing would be less than the increase in the market value estimated to result from the proposed development after subtracting the present value of the projected tax increments for the maximum duration of the district permitted by the TIF Plan. Factual basis: Proposed development nof expected to occur.• The development includes the construction of a 247-unit apartment and townhome development along with public improvements for stormwater mitigation. A key component to the redevelopment is the reimbursement of eligible expenses through tax increments. The Developer has indicated they would not undertake the proposed development without the financial assistance. Without the assistance the City has no reason to expect that significant reinvestment in the site would occur without assistance similar to that provided in this plan. Therefore the City has no reason to believe the development would occur but-for the use of tax increment assistance. SPRINGSTED Page 4 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota To summarize the basis for the City's findings regarding alternative market value, in accordance with Minnesota Statutes, Section 469.175, Subd. 3(d),the City makes the following determinations: a. The City's estimate of the amount by which the market value of the site will increase without the use of tax increment financing is anywhere from $0 (except for a small amount for annual appreciation of land value) b. If the proposed development to be assisted with tax increment occurs in the District, the total increase in market value would be approximately$52,898,562, including the value of the building (See Exhibit V). c. The present value of tax increments from the District for the maximum duration of the district permitted by the TIF Plan is estimated to be$8,954,046(See Exhibit V) d. Even if some development other than the proposed development were to occur, the Council finds that no alternative would occur that would produce a market value increase greater than $43,944,516(the amount in clause b less the amount in clause c)without tax increment assistance. (3) The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole,for development of the TIF District by private enterprise. Factual basis: The proposed development is the construction of 247-unit apartment and townhome redevelopment, in the Development District that is expected to create substantial new tax base for the City and the state. The development clearly meets the City's housing and redevelopment goals of creating additional housing; additionally,the development meets the agency's goal of the removal of blight. (4) The TIF Plan conforms to general plans for development of the City as a whole. Factual basis: The City Planning Commission has determined that the development proposed in the TIF Plan conforms to the City comprehensive plan. (5) The City does not elect the method of tax increment computation set forth in Minnesota Statutes, Section 469.177, Subdivision 3(b); therefore subdivision 3(a) shall apply which indicates the original net tax capacity and the current net tax capacity shall be determined before the application of the fiscal disparity provisions(see method (a) in Section P). Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. TIF Bud et $7,913,693 I nterest 9,193,746 Administrative Ex enses 1,900,824 Coun Administrative Ex enses 44 321 Total $19,052,584 The City reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost is not increased. The City reserves the right to spend available tax increment outside of the TIF District boundaries but within the Project Area. SPRINGSTED Page 5 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section L Estimated Sources of Revenue Tax Increment revenue Net of OSA Reduction $19,052,584 Interest on invested funds 0 Bond roceeds 0 Loan roceeds 0 Grants 0 Other 0 Total $19,052,584 The City anticipates using future tax increments for reimbursement of public costs incurred from Section K. As increments are collected from the TIF District in future years, a portion of these tax increments will be reserved by the City as reimbursement for public costs incurred (primarily for public infrastructure improvements), either through internal funding or general obligation or revenue debt. The City also reserves the ability to provide financial assistance to the proposed development through the use of pay-as-you-go financing. With pay-as-you-go financing, as tax increments are collected from the TIF District in future years, a portion of these tax increments, if utilized, will be distributed to the developer as reimbursement for eligible costs incurred related to the redevelopment of the site. The City reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The City also reserves the right to use other sources of revenue legally applicable to the TIF District to pay for such costs including, but not limited to,special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The City may consider issuing tax increment bonds to finance all or a portion of the estimated public costs, and reserves the right to issue such bonds in an amount not to exceed $19,052,584(total estimated public costs). Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified befinreen July 1 and December 31, inclusive, this value is based on the current assessment year. The Authority intends to file the request for certification after to July 1, 2015. Therefore, the original net tax capacity will be the net tax capacity as of January 2, 2015. The Estimated Market Value of all property within the TIF District as of January 2, 2015, for taxes payable in 2016, is $4,103,000, and is classified as commercial property. Upon redevelopment the site will be classified as rental property. Therefore, the estimated tax capacity is $51,288, following the reclassification of the property to rental, which is estimated to be the original net tax capacity of the TIF District. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or SPRINGSTED Page 6 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (4) changes in property classification rates. Section 0 Original Local Tax Rate The County Auditor shall aiso certify the original local tax rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original local tax rate of the TIF District. At the time this document was prepared, the sum of all local tax rates that apply to the property in the TIF District,for taxes levied in 2015 and payable in 2016, was not yet available. When this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating tax increment generated by the TIF District, the final local tax rates for taxes levied in 2014 and payable in 2015, is 144.811% as shown below. 2014/2015 Taxing Jurisdiction Local Tax Rate City of Golden Valley 54.626% Hennepin County 46.398% ISD#281 33.226% Other 10.561% Total 144.811% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment The City anticipates that development will be initiated in 2016, and completed in 2017 creating a total tax capacity for the TIF District of $348,810 as of January 2, 2016. The captured tax capacity as of that date is estimated to be $297,523 and the first-year of tax increment is estimated to be $430,845 payable in 2017. A complete schedule of estimated tax increment from the TIF District is shown in Exhibit III. The estimates shown in this TIF Plan assume that rental class rates will remain constant at 1.25%. The projections also assume a 2% annual increase in market values. Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. For communities affected by the fiscal disparity provisions of Minnesota Statutes, Chapter 473F and Chapter 276A, the original net tax capacity of the TIF District shall be determined before the application of fiscal disparity. In subsequent years, the current net tax capacity shall either(a) be determined before the application of fiscal disparity or (b)exclude the product of any fiscal disparity increase in the TIF District (since the original net tax capacity was certified) times the appropriate fiscal disparity ratio. The method the City elects shall remain the same for the life of the TIF District, except that a single change may be made at any time from method (a) to method(b) above. »The City elects method(a), or M.S. Section 469.177, Subdivision 3(a). SPRINGSTED Page 7 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota The County Auditor shall certify to the City the amount of captured net tax capacity each year. The City may choose to retain any or all of this amount. It is the City's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The City has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) pay for the estimated public costs of the TIF District (see Section K) and Counry administrative costs associated with the TIF District(see Section T); (2) pay principal and interest on tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless both county boards invotved waive this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality, county, school district, or any other local unit of government or the State or federal government, or for a commons area used as a public park, or a facility used for social, recreational, or conference purposes. This prohibition does not apply to the construction or renovation of a parking structure or of a privately owned facility for conference purposes. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility seroice connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. SPRINGSTED Page 8 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section R Excess Tax Increment In any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan,the City shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds; or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five-Year Rule At least 75%of the tax increments from the TIF District must be expended on activities within the district or to pay for bonds used to finance the estimated public costs of the TIF District (see Section E for additional restrictions). No more than 25% of the tax increments may be spent on costs outside of the TIF District but within the boundaries of the Project Area, except to pay debt service on credit enhanced bonds. All administrative expenses are considered to have been spent outside of the TIF District. Tax increments are considered to have been spent within the TIF District if such amounts are: (1) actually paid to a third party for activities performed within the TIF District within five years after certification of the district; (2) used to pay bonds that were issued and sold to a third party, the proceeds of which are reasonably expected on the date of issuance to be spent within the later of the five-year period or a reasonable temporary period or are deposited in a reasonably required reserve or replacement fund. (3) used to make payments or reimbursements to a third party under binding contracts for activities performed within the TIF District, which were entered into within five years after certification of the district; or (4) used to reimburse a party for payment of eligible costs (including interest) incurred within five years from certification of the district. Beginning with the sixth year following certification of the TIF District, at least 75% of the tax increments must be used to pay outstanding bonds or make contractual payments obligated within the first five years. When outstanding bonds have been defeased and sufficient money has been set aside to pay for such contractual obligations, the TIF District must be decertified. The City anticipates that tax increments will be spent outside of the TIF District (including a portion for allowable administrative expenses)for eligible redevelopment pooling expenditures. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the City other than: (1) amounts paid for the purchase of land; SPRINGSTED Page 9 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (2) amounts paid for materials and services, including architectural and engineering services directly connected with the physical development of the real property in the project; (3) relocation benefits paid to, or services provided for, persons residing or businesses located in the project; • (4) amounts used to pay principal or interest on, fund a reserve for, or seil at a discount bonds issued pursuant to section 469.178;or (5) amounts used to pay other financial obligations to the extent those obligations were used to finance costs described in clause(1)to(3). Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of(a) 10%of the total tax increment expenditures authorized by the TIF Plan or(b) 10%of the total tax increments received by the TIF District. Section U Limitation on Property Not Subject to Improvements• Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The City must submit to the County Auditor, by February 1 of the fifth year, evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the City or owner of the parcel subsequently commences any of the above activities, the City shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The City believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the TIF District is estimated to be $19,052,584 2. To the extent the project in the TIF District generates any public cost impacts on City-provided services such as police and fire protection, public infrastructure, and the impact of any general obligation tax increment bonds attributable to the TIF District upon the ability to issue other debt for general fund purposes, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the TIF District. SPRINGSTED Page 10 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota 3. The amount of tax increments over the life of the TIF District that would be attributable to School District levies, assuming the School DistricYs share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be$4,387,293. 4. The amount of tax increments over the life of the TIF District that would be attributable to County levies, assuming the County's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be$6,126,576 5. No additional information has been requested by the County or School District that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The City shall accompany its request for certification to the County Auditor(or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing a redevelopment district, more than 25% of the acreage of the property to be acquired by the City is purchased with tax increment bonds proceeds (to which tax increment from the property is pledged), then prior to such acquisition, the City must enter into an agreement for the development of the property. Such agreement must provide recourse for the City should the development not be completed. The City anticipates entering into an agreement for development, and may acquire property for the purposes of undertaking public infrastructure and utility improvements within the TIF District. Section Y Assessment Agreements The City may, upon entering into a development agreement, also enter into an assessment agreement with the developer, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the City, County and School District. The Ciry does anticipate entering into an assessment agreements. SPRINGSTED Page 11 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Development District or the TIF District; a determination to capitalize interest on the debt if that determination was not part of the original TIF Plan, increase in the portion of the captured net tax capacity to be retained by the City; increase in the total estimated public costs; or designation of property to be acquired by the City shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the City agrees that the TIF District's original net tax capacity wili be reduced by no more than the current net tax capacity of the parcels eliminated. The City must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the City shall submit a copy of such plan to the Minnesota Department of Revenue and the O�ce of the State Auditor. The City shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the City shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The City shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the City the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan,the following actions should occur on an annual basis: (1) prior to July 1, the City shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to insure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; SPRINGSTED Page 12 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota ' (c) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the City of all changes made to the original net tax capacity of the TIF District. Section AB Filing TIF Plan, Financial Reporting and Disclosure Requirements The City will file the TIF Plan, and any subsequent amendments thereto,with the Commissioner of Revenue and the Office of the State Auditor pursuant to Minnesota Statutes, Section 469.175, subdivision 4A. The City will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. SPRINGSTED Page 13 Exhibit 1 MAP OF TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT Within Winnetka&Medicine Lake Road Redevelopment Project Area � _. __ �.__ _---__ _ _ -___ __ __ _ ..._ _ _ _ _ .._ I # �Pro�cz Ar+�a 't I f i"YF C?iSYaiCf i ( } i � _� �,� „�rw` ,�' ''�.� .°s,,.� � � ��. � � J#t6 �o°��n.�`'"f'"',r'� :us� � � ,..�,e r'',,�/�.r'��. �.a�� r�...,,. . 't,. . _. ',. :��+r .s�: � F�� a P� f .�: �._.. .r�`'r`� ��,�r'r=' �° :�s�y �r.5� t - rsa.: „/� "'�,.„r�` d`` r"� r""'".✓""� .. . �. ^ .'' i3 �;.r��,e� o"'�L:r;�� ,.�"'�,,.'�.r"�.r"� r o.r:.k". a:sr.r �.w;Sr �a. ��. .::tl��.o� % �''}�✓'`�1't,,r"�,.�a+''` . ... ��✓ �J"�, ,y^�� '. . ..... ... .... . : v� �� Y'" �,�"'✓',�.°''"/=°,'�i6,r' .,. , x'1� f' �. / .?'"�-'"`. �,.'',^"'..�'° �� .r� :.+.� ,, .r`"yc`r. ��, � w:*° � _a,s �'r ..+'":;:,✓' .-+' xr f .�+�""�Y.+�„r' . � �J i ' f ' j � _ . �%w�r�J w.� ,., ,,,� r . ,�„ ,r i � �� . . �,� ..„.k: _m�"a ,xa- � .� s"' •" <".� � .- � � a � � '�,�;7C '`" .. � °�v��"'-� �N;� ,a+�„�, �;«�*T ;.3'�:�' r .�°'� '��i fi f�. . . �.. � � $�" _.�.xa ,. r r � � � �� f, .n'' „..- y; �„ �„ , �,., .�' �, y. .�, ""�," ',�t� �r �3:1.: ..:.�.� ,r' ,� � d� '""� "� t�. f 0. . .. . . . � `x�� s �� . � �� .., - .._ . ::'D:h:h, i 3�1i: .. � ."� � _ r. 0.y`q, �� f.N"�y, €e.s " �{�* �:ry�' V�' � �' r ��_ =�,. . � � � � ,y�� v 7 q E �.�` ,„�a �� .,. ��. _ � � :�:- M � � � ' ��'"�U��ar �� _ 6�� i�' �' i �� " � ''�S� � ��`e � Y �� I v� ti� H �.:� '. �.� . ��j �+. .. 1 � .� �� - : E � `�'�� u� �r �W°� '1 —�'y'� A'O � 's\: ' �..: � e �� .�� -� � �°Y : ,3 � � - . - � �"'.�,a' � m�=y-. :° ^ ' _r�6+ w�,_ .. ..... 1� �q :b�- �`�' �f' Sa,r ' ... �� . aaM� :a� �``^`�"r��s,--,��' � _��'�e' .�r�n r , ��#k ad.. �., � .. � � � v � � '.yk.. � h�ot.^� d ��` ,��'4 .Va.�.� ��f.x :ys"��:�*' s p � „,.q, ( � _r.�F ��, �� ,�. i.� ` � �. _ � N:� '�� v.. 3� 'JSa: � ':y.w'k:- �:..��. I - � t' ... �� a..'� �� '�. °� .'."'u° � � '��t ':cy �� 4 �i.; a w4"un ,�. :x.� ,� � �axa �^a::�&,.^ ` ... ,,,��. �^c�, >�:.s �-aa: __t _':1 __�s: ^a+cc.:��. �s.;>; �-�,:Yr •a:m.0 >s.:�u� � ^oa�a ('�,- "a.t.. � �.�� ' :x�as ,� . � ��. � "�s&' ��'. � '�/'�l��!@��€+c� �"��'�!C�� 'G ' .,,�„� �aer� � �..-�,»^ _-��+� ' -.�� s ��.s• __s� _ax� :r.v�» -aar -��. ��rr , �,:�s- �. 4v7� _�,�.:,, u .. . « , . , , .a , .. . : . .... . ..... . . _. ...... . . ... , . . ...,�_ ,,,. . . �l;�3�.:^� :�u3* :.n�:N .. _C^<�s �� .�.� ��. =9T• . �.::.^ .`��;:�, _C:.<<:: W�'. :�w.;^� ..... 6 �'` _. , .� . ; . . . , . . x,��,� �ti,�ae :In�'�L- ..�`"""k"' ::..:�'NM: �� Y�v�i ��..'k".1� �'}'.}�� .w.k:�R.`= �`.k4�• ��. �L"l."i:'. ::h:". .":t`1' ..:"5 :��MY'�:.,"4", � �;. � Tax lncre�rstent Fireancie�r+�g ��` ,�`�•` ��,�-�-.��-x��.- � , (R�sd+�v+eicspnn�nt) �ti�trict �-,� �•�s , -�.,.x .�w�»��.�.�,� � wit3sin WirtrsvtKa and Merdiciasc l.aica Rd �� . ��d�vra�lopm�nt Prvje��c.t Ar�� SPRINGSTED Page 14 Exhibit ll Assum tions Re art City of Goiden Valley,Minnesata Tan Incremen#Financing(Redevelopment)District TfF Projections at 534.881 M -Full Term �iberty Crossing Project Type of Tax Incr+ement Financing District Redevel4�xnent Ma�cimum Duratian of TfF D�strict 25 years from 1st increme�t Prr�:cted Certificatior�Request Date � 09l01/15 Decertifica#+on Date � 12/311Q3 (26 Years of Increment) 2015/2016 Base Estanated Market Value r $4,103,000 Oris,�`nal Net Tax Capacity $51,288 Assessment/Gollection Year 2016/2017 2017/ZQ'{8 2018/2019 2019/2020 Base Estimated Market Value $4,103,000 $4,103,000 $4,10.�,flUf) $4,103,000 Esfimated In�rease�Value-I�w Construction 0 23,801,800 31,336,096 32,444,878 Total Estima#ed Market Vah�e 4,1Q3,000 27,9Q4,80Q 35,439,096 36,'t47,878 Total Net Tax Capacity $51,288 $348,810 $442,989 $451,848 City of Golden Vailey 54.626% Hennepir�County 46,398% ISD#281 33.226% Otti�� 1 a.56'!°lo LOC81 T8x C��City RBte 144.811% 2414/2U15 Fscal Dispa�Contribution From TIF Dis�ict 0.(300C}°lo Administrafive Retainage Percent(majcimum = 10°�j 10.00°�, Pooling PerCertt 0.00°/`0 Prese�rt Vaiue date�Rate �J/01/15 6.00°h� PV Amourrt $7,913,693 Note� Projections assume no fut�uure char�ges to cla�sificatiorr rates and current tax rates remain constarrt. Prr�ections are based on 247 Units with total va�e of$34.881 M and a 2%market v�ue irrflator. Value assumption is reflective of buikiing arKf k�nd value cambir�ed. Projections assume comrrrencment of canstruction in 2016, with project comp�etian in 2{317, with the first receipt of pa�tial TIF in 2018. Cour�ty Aximin expenses assume 2°lo annual inflatrc�n in cost es�mate. 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; y� � � � �t O ~ C � � .Y � Gt � t'$ p � C � II .� � A N � �„ � �+ �,� � � � . � �v'. � �'.'i, o '� '^� �, � � .� � c � g � � `Q .�,� �� ffi � � � s �� o � ; °� r� acv v � dL � :�' � � �� ,c + � '� � � � ,� �a� c°, r: °i c e'�O a � x � � � `'= � �.g' � �'' Ct � ,'� �.� '� � v u� � �V � . 'r� '� 'n t� � � eT F I� �t� � � � � �`'+ af `� �N N p U Y � � � � � N ~ � M � � � ; � a � � U �' �i O .�.� � U � ~ � a � �' � � `� `� �, � a , � � � �� .� � � � � � � � � � � � a � � � � vF `n ;, '- : E� �U � � � ,� �S� � � � b � � � � � r� � � �� I� ,J� c �'�' � c� � 'W � Rj �"' �' a� � � � �5. {�' �i W � � . . . . . ty ;� `� �� ,� ° c g "'� � � � N s�n' c'�, � � �. � " •g� g �.fQ � �j- �S' � • � � � r� � � � .�','�'� � V �� 49 ;� O' � r- � � � � � � � �v V ^ � � �' � .� � � � cg� � •� � � 3 3 � th i� � ' n g' r � �'� � � � � �� A � W .� . � ' _Q � � � r�n r' � c V � ,� � � �� v � � z o � . . . . .� .� � o � �� a � Exhibit V Nlaricet Value Ana is R ort � City►of Go1c�n 1/a1�y,Minnesata r Tax ir�werement Financing(Redevelopment)Distric# r TIF Projections at 534.881 M -Fuii Terrn � Liberty Crossing Project AssumptiQns Present Va�e�ate � 09/01/15 P_V_ Rate-Gfoss TJ. r 5_�°� �crease in ENN With TIF District � $52,898,562 Less: P.V of G�ass Tax Increment 8,954,045 Subtokal $43,944,516 Less: �crease in EMV Witha�t TIF 0 Difference $43,944,516 Annual Present C�oss Tax Valu�� Year �crement S.Ot}%o 1 � �i�18 � 43Q,845 37Q,670 2 2019 � 567,226 464,?65 3 2020 � 58d,056 452,645 4 2021 r 593,143 44Q,816 5 2022 ' 606,491 429,273 6 2Q23 � 620,106 418,(309 7 2024 � 633,994 407,02C1 8 2025 � 648.159 396,29M9 9 2026 662,608 385,849 10 2t#27 677,345 375,641 11 2028 692,378 365,693 12 2029 707,711 355,992 13 203a 723,35t? 346,532 14 2031 739,3Q3 337,3Q9 15 2032 755,574 328,317 16 2033 772,171 319,551 17 2034 789,100 311,007 18 2035 8t76,367 302,678 39 2036 823,980 294,581 20 2037 841,945 286,651 21 2038 8�i1,269 278,942 22 2Q39 878,�0 271,431 23 2040 898,025 264,113 24 2041 917,470 256,983 25 2042 937,305 250,037 26 2043 957,537 243,270 $19,121,418 $8,954,046 SPRINGSTED Page 18 Exhibit VI PART 1 - EXECUTIVE SUMMARY PURPOSE OF EVALUATION LHB was hired by the City of Golden Valley to inspect and evaluate the propeYties within a '1'ax Incxement Financing Redevelopment District ("TIF District") pxoposed to be established by the City. The proposed'I'IF District is bounded by I�ledicine Lake Road, Rhode Island Avenue North, and Winnetka �venue North (Diagram 1). The purpose of LHB's work is to determine whether the pxoposed�l'IF District meets the statutory requirements for coverage, and whether four (4) buildings on four (4) parcels, located within the proposed TIF District, meet the qualificauons requited for a Redevelopment District. � «, ` ` `�'� �n�� - -., � � rt� �__�� j! f � �� ;� �� ~�w re � x` � !';' �..m � �,� � � � � � � � �µ �,.t � k'n t� ,� . `� ,; ` �, w�.w' �. # `...n. �� .',� �� , �;� � � ,°.�`a � �� ,, �� :��e�� w T �. ( ..�� .� A?Y 1 �. � �$ Y �n':s, a �y." a ,^i ..p . \ ' b � � k � � . ....y,�f .�` �� b�.u'3S �� 4 r..�� g�� at P+� �.'.�".� � � � � q ��..° a�� ek°.� 'C� �*� k � ��r,^ �a � . ��a � e' i a��, : � �� < , � L �� " _ �� . ai 9(� s� � �:.� � � e��u =' t�� . �"+ *�, : 1� � �� e�'�, � '° ��a*� ;�Q;� ..�i �'� �,;.. �r�: �.. � �°� � �'wx:� i �r� �,.. � + ' s ��' Diagram 1— Proposed TIF District SCOPE OF WORK The proposed"1'IF District consists of four (4) parcels with four (4) structures. Four (4) buildings were inspected on March 11, 2015. Building Code, Condition Deficiency and Context Analysis SPRINGSTED Page 19 Exhibit VI Reports for the buildings that were inspected are located in AppendiY B. CONCLUSION After inspecting and evaluaung the properties within the proposed TIF District and applying current statutory criteria for a Redevelopment District under Minnesota Statutes, Section 469.174, Subdivision 10, it is our professional opinion that the proposed TIF District qualifies as a Redevelopment District because: • The proposed TIF District has a coverage calculation of 100 percent which is above the 70 percent xequiYement. � • 100 percent of the builclings are structurally substandard which is above the 50 percent requirement. • The substandard builciings are reasonably distributed. SPRINGSTED Page 20 Resolution 15-01 August 24, 2015 RESOLUTION OF GOLDEN VALLEY PLANNING COMMISSION FINDING THAT THE REDEVELOPMENT PLAN FOR THE WINNETKA & MEDICINE LAKE ROAD REDEVELOPMENT PROJECT AND THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (REDEVELOPMENT) DISTRICT LIBERTY CROSSING CONFORM TO THE GENERAL PLAN FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY, AS AMENDED (AMENDED 2008 COMPREHENSIVE PLAN UPDATE) WHEREAS, it has been proposed that the City of Golden Valley, Minnesota, and the City's Housing and Redevelopment Authority (the "Authority") establish the Winnetka & Medicine Lake Road Redevelopment Project Area (the "Project Area") and the Tax Increment Financing (Redevelopment) District Liberty Crossing (the "TIF District"), and adopt a Redevelopment Plan for the Project Area (collectively the "Plans"), all pursuant to and in accordance with Minnesota Statutes, Sections 469.001 through 469.047, inclusive, and Sections 469.174 through 469.1799; and WHEREAS, the City and the Authority has caused to be prepared and submitted the Plans to the City Planning Commission (the "Commission") for review prior to the holding of a public hearing upon published notice as requested by law; and WHEREAS, the Commission has reviewed the Plans to determine conformity with the general plan for the development and redevelopment of the City as described in the 2008 Comprehensive Plan Update for the City, as approved by the City Council on March 17, 2009 and amended thereafter. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission that the Plans conform to the general plan for the development of the City as a whole and furthermore, the redevelopment activities are compatible with the City's zoning ordinance and other related regulations and encourage efficient use of existing infrastructure as set forth in the City's Land Use Plan. Approved by the Planning Commission of the City of Golden Valley, this 24th day of August, 2015. Chair Attest: Secretary The motion for the adoption of the foregoing resolution was seconded by Commissioner and upon a vote being taken thereon, the following voted in favor thereof: ; and the following voted against the same: , whereupon said resolution was declared duly passed and adopted; signed by the Chair and their signature attested by the Secretary. C+l,i�� - ...w�:�e� � .� � � � �.'' Physical Developme�t Department � 763-593-80301763-593-3988(fax} Date: August 24, 2015 To: Golden Valley Planning Commission From: Marc Nevinski, Physical Development Director Subject: Consider Resolution 15-02 Finding Tax Increment Financing (Housing) District Cornerstone Creek Conforms to the City's General Plan of Development. Background On July 14, 2015, a proposal was presented to the HRA to use Tax Increment Financing (TIF) to assist in the construction of 45 affordable housing units in the Highway 55 West Redevelopment Area, which began the process of establishing a housing TIF district. The Highway 55 West Redevelopment Area plan was previously approved in 2012. State Statute requires the Planning Commission review the TIF plan and determine if it conforms to the City's General Plan of Development (Comprehensive Plan) prior to the City Council holding a public hearing on the plan and considering its adoption. On April 3, 2012, the City amended both its Comprehensive Plan and Zoning Map for the area designating the parcels in the proposed TIF District as Residential — High Density. On November 20, 2012, the Planning Commission adopted a resolution approving the Highway 55 Redevelopment Area plan, in which the Cornerstone Creek TIF District is now proposed. If, following a public hearing, the Planning Commission finds the TIF plan conforms to the Comprehensive Plan as amended, it should adopt Resolution 15-02. Attachments Tax Increment Financing (Housing) District Map (1 page) TIF Plan (Cornerstone Creek Project) (34 pages) Planning Commission Resolution 15-02 (1 page) Action Requested Staff recommends the Planning Commission adopt Resolution 15-01 finding that the TIF plan (Cornerstone Creek Project) conforms to the General Plan for the Development and Redevelopment of the City, as amended. 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N � � 0 ^ a �, �, = o N N N N 0 S�; . � � R M M M h " 4I N � �/�/ M � � � t�1 O p � ., —" � O �' � O O d) N N O � � w/ Yw �i a � � � � � � Oi rn � O , rn oi � �� b � � � � � b� � �� > � ^ � �` �D fD � �� ^ O O � � ��{� O � � �� . � � � � Y � � O � s �w L. _ N o t•' �/�� _ � V O � �c� N N N Y/ � ri �� q � . .. . _ � �� 3 � o G � o � �� , � H � � �� , N g � � O c��y � `� O O O � R � � O� t aL� M N �S p� t'7 ! � � tfl� � ; t a'N .. � � .; rt�� ! O � fi' W O� 1� �� Q . =..e� r---� � � � r�� , �'�� t eM» o � "^`' �J � � �o � _--.�'r^v" --------^--b!-u y--S S�--p u--�--- ---------------------.._..---------- - ------------------- J ��: �;��. . . - �; . r .�u. . . .b. -��.� - .� . , � � � :�� , � � � Springsted Incorporated 5 p r i n g s t e d 380 Jackson Street, Suite 300 Saint Paul,MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com July 31, 2015 ***SENT BY COURIER*** Ms. Irma Mclntosh Coleman,Clerk Independent School District#270(Hopkins) 1001 Highway 7 Hopkins, MN 55305 Re: City of Golden Valley, Minnesota Public Hearing on Tax Increment Financing(Housing)District (Cornerstone Creek Project) Estimated Fiscal and Economic Impact Dear Ms. Coleman, The City of Golden Valley is in the process of establishing a new tax increment financing district. Pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, please find enclosed a draft copy of the Tax Increment Financing Plan for the proposed TIF district and the°fiscal and economic implications of the plan"as listed below: The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2,are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $1,541,254. 2. To the extent the proposed project in the Comerstone Creek TIF District generates any public cost impacts on City provided services such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. The City does not anticipate issuing general obligation tax increment bonds attributable to the District, but reserves the right to finance certain project costs with this method. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school districYs share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be$329,480. 4. The amount of tax increments over the life of the distnct that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be$503,863. City of Golden Valley, MN Proposed Tax Increment Financing(Housing) District Estimated Fiscal&Economic Impact July 31,2015 The City Council has scheduled a public hearing on this proposal Tuesday, September 1, 2015 at approximately 7 PM at City Hail, 7800 Goiden Valley Road located in the City of Golden Valley. Your attendance at this meeting and comments conceming the proposed TIF district are welcomed. If you have any questions or if you would like to meet with a �epresentative(s) of the City prior to the pubiic hearing, please contact Marc Nevinski, Physical Development Director,at 763-593-8008 __ _.__ , � Sincer y; .._�._�� i Jan a ilkinson � � lyst Enclosure cc: Marc Nevinski, City of Golden Valley Lynnette Slater Crandall, Dorsey&Whitney Springsted Incorporated ` J p(�I t3 i�S t E'C� 380 Jackson Street, Suite 300 Saint Paul,MN 55101-2887 Tel: 651-223-3000 Fax: 651-223-3002 www.springsted.com July 31, 2015 '*'SENT BY COURIER"** Mr. Mark Chapin, County Auditor Hennepin County A-2303 Govemment Center 300 South 6th Street Minneapolis, MN 55487 Re: City of Golden Vailey,Minnesota Public Hearing on Tax Increment Financing(Housing)District (Cornerstone Creek Project) Estimated Fiscal and Economic Impact Dear Mr. Chapin, The City of Golden Vailey is in the process of establishing a new tax increment financing district. Pursuant to Minnesota Statutes, Section 469,175, Subdivision 2, please find enclosed a draft copy of the Tax Increment Financing Plan for the proposed TIF district and the"fiscal and economic implications of the plan"as listed below: The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175,Subdivision 2,are listed below. 1. The total amount of tax increment that will be generated over the I'rfe of the distnct is estimated to be $1,541,254. 2. To the extent the proposed project in the Comerstone Creek TIF District generates any public cost impacts on City provided services such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. The City does not anticipate issuing general obligation tax increment bonds attributable to the Distnct, but reserves the right to finance certain project costs with this method. 3. The amount of tax increments over the life of the distnct that would be attributable to school district levies, assuming the school districYs share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be$329,480. 4. The amount of tax increments over the life of the district that would be attributable to county levies, assuming the county's share of the total local tax rate for all taxing jurisdictions remained the same is estimated to be$503,863, City of Golden Valley, MN Proposed Tax Increment Financing(Housing)District Estimated Fiscal&Economic Impact July 31,2015 The City Council has scheduled a public hearing on this proposal Tuesday, September 1, 2015 at approximately 7 PM at City Hall, 7800 Golden Valley Road located in the City of Golden Valley. Your attendance at this meeting and comments concerning the proposed TIF distnct are welcomed. If you have any questions or if you would like to meet with a representative(s) of the City prior to the public hearing, please contact Marc Nevinski, Physical Development Director,at 763-593-8008 ��_ Si ;_ mm_��o � w��. � _____��____��._.. � J -�_. ( Je a Wilkinson alyst Enclosure cc; Marc Nevinski, City of Golden Valley Lynnette Slater Crandall, Dorsey&Whitney City of Golden Valley, Minnesota Golden Valley Housing and Redevelopment Authority Tax Increment Financing Plan for Tax Increment Financing (Housing) District Within Highway 55 West Redevelopment Project Area (Cornerstone Creek Project) Draft: July 31, 2015 Public Hearing: September 1, 2015 Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101-2887 (651)223-3000 www.springsted.com TABLE OF CONTENTS Section Pa e s A. Definitior�s.................................................................................................................... 1 6. Statutory Authorization................................................................................................. 1 C. Statement of Need and Public Purpose....................................................................... 1 D. Statement of Objectives............................................................................................... 1 E. Designation of Tax Increment Financing District as a Housing District........................ 1 F. Duration of the TIF District and the Three Year Rule................................................... 2 G. Property to be Included in the TIF District.................................................................... 2 H. Property to be Acquired in the TIF District................................................................... 3 I. Specific Development Expected to Occur Within the TIF District................................. 3 J. Findings and Need for Tax Increment Financing ......................................................... 4 K. Estimated Public Costs................................................................................................ 4 L. Estimated Sources of Revenue.................................................................................... 5 M. Estimated Amount of Bonded Indebtedness................................................................ 5 N. Original Net Tax Capacity............................................................................................ 5 0. Original Tax Capacity Rate.......................................................................................... 6 P. Projected Retained Captured Net Tax Capacity and Projected Tax Increment........... 6 Q. Use of Tax Increment................................................................................................... 6 R. Excess Tax Increment.................................................................................................. 7 S. Tax Increment Pooling and the Five Year Rule............................................................ 7 T. Limitation on Administrative Expenses......................................................................... 8 U. Limitation on Property Not Subject to Improvements-Four Year Rule........................ 8 V. Estimated Impact on Other Taxing Jurisdictions.......................................................... 8 W. Prior Planned Improvements........................................................................................ 9 X. Development Agreements............................................................................................ 9 Y. Assessment Agreements............................................................................................. 9 Z. Modifications of the Tax Increment Financing Plan...................................................... 10 AA. Administration of the Tax Increment Financing Plan.................................................... 10 AB. Financial Reporting and Disclosure Requirements...................................................... 11 Map of the Tax Increment Financing District....................................................................................... EXHIBIT I AssumptionsReport ........................................................................................................................... EXHIBIT II Projected Tax Increment Report......................................................................................................... EXHIB►T III Estimated Impact on Other Taxing Jurisdictions Report..................................................................... EXHIBIT IV Market Value Analysis Report............................................................................................................. EXHIBIT V Projected Pay-As-You Go Report....................................................................................................... EXHIBIT VI Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section A Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authoritv" means the Housing and Redevelopment Authority of the City of Golden Valley. "C�t " means the City of Golden Valley, Minnesota; also referred to as a"Municipalit�. "City Council"means the City Council of the Golden Valley; also referred to as the 'Governina Body". "Coun " means Hennepin County, Minnesota. "Redevelopment Project Area" means the Highway 55 West Redevelopment Project Area in the City, which is described in the corresponding Redevelopment Plan. "Redevelopment Plan" means the Redevelopment Plan for the Highway 55 West Project Area. "Project Area" means the geographic area of the Redevelopment Project Area. "School DistricY' means Independent School District No. 270, Minnesota. "State" means the State of Minnesota. "TIF Act"means Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive. "TIF DistricY' means the Tax Increment Fin�ancing (Housing) District the Cornerstone Creek Project. "T�F Plan" means the tax increment financing plan for the TIF District(this document). Section B Statutory Authorization See"Statutory Authorization"on page 4 of the Redevelopment Plan for the Project Area. Section C Statement of Need and Public Purpose See"Statement of Need and Public Purpose"on page 4 of the Redevelopment Plan for the Project Area. Section D Statement of Objectives See "Statement of Objectives"on pages 4-5 of the of the Redevelopment Plan for the Project Area. Section E Designation of Tax Increment Financing District as a Housing District Pursuant to the TIF Act, the Authority seeks to create the Cornerstone Creek TIF District and adopt a TIF Plan for the TIF District. The Authority will review the TIF Plan prior to City adoption. The proposed TIF District is a housing district under Minnesota Statutes, Section 469.174, Subd. 11 of the TIF Act. Housing districts are a type of tax increment financing district that consist of a project intended for occupancy, in part, by persons or families of low and moderate income. Low and moderate income is defined in federal, state, and municipal legislation. A project does not qualify if more than 20% of the square footage of buildings that receive assistance from tax increments consist of commercial, retail or other nonresidential use. SPRINGSTED Page 1 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota In addition, housing districts are subject to various income limitations and requirements for residential property. For owner occupied residential property, 95%of the housing units must be initially purchased and occupied by individuals whose family income is less than or equal to the income requirements for qualified mortgage bond projects under section 143(fl of the Internal Revenue Code. For residential rental property, the property must satisfy the income requirements for a qualified residential rental project as defined in section 142(d)of the Internal Revenue Code. The TIF District meets the above qualifications for these reasons: 1. The planned improvements consist of the following: a. Approximately 45 total units,for which the following wiil apply: 0 45-unit service enriched affordable housing rental units for adults with developmental disabilities will be occupied by persons with incomes no greater than 50%of county median income 2. At least 80%of the proposed development will be used for residential purposes. 3. The Authority will require in the development agreement that the income limitations for the rental units in the apartment building will apply for the duration of the TIF District. Tax increments derived from a housing district must be used solely to finance the cost of housing projects as defined in section 469.174, subd. II and 469.176 of the TIF Act. The cost of public improvements directly related to the housing projects and the allocated administrative expenses of the Authoriry may be included in the cost of a housing project. The Authority anticipates using tax increment revenues to finance a portion of the extraordinary costs associated with providing the affordable housing units. Section F Duration of the TIF District and the Three Year Rule Housing districts may remain in existence 25 years from the date of receipt of the first tax increment. Modifications of this plan(see Section Z)shall not extend these limitations. The Authority reserves the right to allow the TIF District to remain in existence for the maximum duration allowed by law (projected to be through the year 2043), and anticipates the TIF District may be active for the maximum duration allowed (see Section P). All tax increments from taxes payable in the year the TIF District is decertified shall be paid to the Authority. Pursuant to Minnesota Statutes, Section 469.175, subd. 1(b), the Authority specifies 2018 as the first year in which it elects to receive tax increment from the TIF District, which is no later than four years following the year of approval of the TIF District. Thus, the Authority may collect increment from the district through December 31, 2043 (see Section P). Section G Property to be Included in the TIF District The TIF District will consist of approximately 2.24 acres of land located within the Project Area. A map showing the approximate location of the TIF District is shown in Exhibit I. The TIF District will encompass an area that is a portion of two existing parcels for which the PID numbers are provided below, additionally a legal description describing the new parcel that will comprise the TIF District is described below: SPRINGSTED Page 2 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Parcel Number Legal Description* 31.118.21.32.0004 That part of the Northwest Quarter of the Southwest Quarter, Section 31, Township 118, Range 21 described as follows: Beginning at a point of the North line of the Southwest Quarter of said Section 31 distant 484 feet East from the Northwest corner of said Southwest Quarter;thence East along said North line a distance of 101 feet;thence South parallel with the West line of said Southwest Quarter to the center line of 6th Avenue North (old County Road No. 6) as described in County Commissioners Proceedings dated April 27, 1925; thence Westerly along said center line to a line drawn South, parallel with the West line of said Southwest Quarter,from the point of beginning; thence North along the 31.118.21.32.0005 last described parallel line to the point of beginning. The West line of the above described tract of land is marked by Judicial Landmarks set pursuant to Torrens Case No. 12495. That part of the Southwest Quarter of the Northwest Quarter, Section 31, Township 118, Range 21 described as follows: Beginning at a point of the South line of said Southwest Quarter of the Northwest Quarter distant 585 feet East from the Southwest corner of said Southwest Quarter of the Northwest Quarter;thence North, parallel with the West line of said Southwest Quarter of the Northwest Quarter to the North line of the South 16.50 feet of said Southwest Quarter of the Northwest Quarter; thence West along said North line to a point 836 feet West, measured along said North line, from the East line of said Southwest Quarter of the Northwest Quarter;thence South, parallel with said East line to said South line; thence East along said South line 110.75 feet, more or less, to a point of beginning. *These properties are in the process of being replatted. The legal description identified reflects the boundaries of the portions of 31.118.21.32.0004 and 31.118.21.32.0005 thaf will be included in the TIF Districf following the replatting of the property. A new parcel number for the yet to be created parcel is not yet available. The area encompassed by the TIF District shall also include all street or utility right-of-ways located upon or adjacent to the property described above. Section H Property to be Acquired in the TIF District The Authority may acquire and sell any or all of the property located within the TIF District; however, the Authority does not anticipate acquiring any such property at this time. Section I Specific Development Expected to Occur Within the TIF District The proposed development within the TIF District is expected to consist of approximately 45-unit service enriched affordable housing rental units for adults with developmental disabilities. The Authority anticipates using tax increment to finance eligible costs associated with development of the project as well as related administrative expenses.At least 20% (28 units)of the units will be occupied by residents with incomes at or below 50%of the area median income in order to comply with the statutory requirements of a Housing TIF District. The Authority anticipates using a portion of the increment to finance other eligible affordable housing projects within the City, as well as any related administrative costs of the district and projects. The Authority anticipates that construction will commence on the project in 2015 and be fully constructed by the end of 2016 and be 100% assessed and on the tax rolls as of January 2, 2017 for taxes payable in 2018. SPRINGSTED Page 3 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota At the time this document was prepared there were no signed construction contracts with regards to the above described development. The Authority intends to enter into a development agreement with a developer for the housing development described in this section. In addition,the Authority may use Tax Increment from the TIF District in the future to provide financial assistance for the development of affordable housing within the Project which meets the income requirements set forth in Section 469.1761 of the Tax Increment Act. Section J Findings and Need for Tax Increment Financing In establishing the TIF District,the Authority makes the following findings: (1) The TIF District qualifies as a housing district; See Section E of this document for the reasons and facts supporting this finding. (2) The proposed development, in the opinion of the Authority, would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future. The proposed development is expected to consist of approximately 45-units of service enriched affordable housing project for adults with developmental disabilities. The Authority's finding that the proposed development would be unlikely to occur solely through private investment within the reasonably foreseeable future is based on an analysis of the project pro forma and other materiai submitted to the Authority by the developer. These documents have indicated that the reduction in annual revenues due to the lower rents associated with providing affordable housing units will result in returns that are below market, thereby making this housing development infeasib�e without public assistance. Therefore, the developer has indicated in the TIF application and in communications with the Authority that the development as proposed would not move forward without tax increment assistance. (3) The TIF Plan conforms to the general plan for development or redevelopment of the Ciry as a whole; and The reasons and facts supporting this finding are that the Planning Commission of the City has found the TIF plan consistent with the general plan for development of the city as a whole and will generally complement and serve to implement policies adopted in the City's comprehensive plan. (4) The TIF Plan will afford maximum oppo�tunity, consistent with the sound needs of the City as a whole,for the development of the Project Area by private enterprise. The reasons and facts supporting this finding are that the development activities are necessary so that development and redevelopment by private enterprise can occur within the Project Area. Section K Estimated Public Costs The estimated public costs of the TIF District are listed below. Such costs are eligible for reimbursement from tax increments of the TIF District. LandlBuildin ac uisition $687,975 Bond/Note Interest 676,170 Administrative ex enses 151,571 Count Administrative ex enses 20,000 Total $1,535,716 The Authority reserves the right to administratively adjust the amount of any of the items listed above or to incorporate additional eligible items, so long as the total estimated public cost ($1,535,716) is not increased. The SPRINGSTED Page 4 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Authority also reserves the right to fund any of the identified costs with any other legally available revenues, but anticipates that such costs will be primarily financed with tax increments. Section L Estimated Sources of Revenue Tax Increment revenue Net of OSA Reduction $1,535,716 Interest on invested funds 0 Other 0 Total $1,535,716 The Authority anticipates providing financial assistance to the proposed development through the use of a pay-as- you-go note. As tax increments are collected from the TIF District in future years, a portion of these taxes will be distributed to the developer/owner as reimbursement for public costs incurred (see Section K). The Authority reserves the right to finance any or all public costs of the TIF District using pay-as-you-go assistance, internal funding, general obligation or revenue debt, or any other financing mechanism authorized by law. The Authority also reseNes the right to use other sources of revenue legally applicable to the Project Area to pay for such costs including, but not limited to, special assessments, utility revenues, federal or state funds, and investment income. Section M Estimated Amount of Bonded Indebtedness The maximum principal amount of bonds (as defined in the TIF Act)secured in whole or part with tax increment from the TIF District is $1,535,716. The Authority currently plans to finance the improvements and affordable housing costs in the form of one or more pay-as-you go revenue notes, but reserves the right to issue bonds in any form, including without limitation any interfund loan with interest not to exceed the maximum permitted under Section 469.178, subd. 7 of the TIF Act. Section N Original Net Tax Capacity The County Auditor shall certify the original net tax capacity of the TIF District. This value will be equal to the total net tax capacity of all property in the TIF District as certified by the State Commissioner of Revenue. For districts certified between January 1 and June 30, inclusive, this value is based on the previous assessment year. For districts certified between July 1 and December 31, inclusive,this value is based on the current assessment year. The Estimated Market Value of all property within the TIF District as of January 2015, for taxes payable in 2016, is estimated to be$410,980. Upon establishment of the TIF District, and subsequent classification of property as rental properry, it is estimated that the original net tax capacity of the TIF District will be approximately$3,082. Each year the County Auditor shall certify the amount that the original net tax capacity has increased or decreased as a result of: (1) changes in the tax-exempt status of property; (2) reductions or enlargements of the geographic area of the TIF District; (3) changes due to stipulation agreements or abatements; or (4) changes in property classification rates. SPRINGSTED Page 5 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section 0 Original Tax Capacity Rate The County Auditor shall also certify the original tax capacity rate of the TIF District. This rate shall be the sum of all local tax rates that apply to property in the TIF District. This rate shall be for the same taxes payable year as the original net tax capacity. In future years, the amount of tax increment generated by the TIF District will be calculated using the lesser of(a)the sum of the current local tax rates at that time or(b)the original tax capacity rate of the TIF District. At the time this document was prepared, the sum of all local tax rates that apply to the property in the TIF District, for taxes levied in 2015 and payable in 2016, was not yet available. Then this total becomes available, the County Auditor shall certify this amount as the original tax capacity rate of the TIF District. For purposes of estimating tax increment generated by the TIF District, the final local tax rates for taxes levied in 2014 and payable in 2015, is 141.925% as shown below. 2014/2015 TaxinQ Jurisdiction Local Tax Rate City of Golden Valley 54.626% Hennepin County 46.398% ISD#270 30.340% Other 10.561% Total 141.925% Section P Projected Retained Captured Net Tax Capacity and Projected Tax Increment Each year the County Auditor shall determine the current net tax capacity of all property in the TIF District. To the extent that this total exceeds the original net tax capacity, the difference shall be known as the captured net tax capacity of the TIF District. The County Auditor shall certify to the Authority the amount of captured net tax capacity each year. The Authority may choose to retain any or all of this amount. It is the Authority's intention to retain 100% of the captured net tax capacity of the TIF District. Such amount shall be known as the retained captured net tax capacity of the TIF District. Exhibit II gives a listing of the various information and assumptions used in preparing a number of the exhibits contained in this TIF Plan, including Exhibit III which shows the projected tax increment generated over the anticipated life of the TIF District. Section Q Use of Tax Increment Each year the County Treasurer shall deduct 0.36% of the annual tax increment generated by the TIF District and pay such amount to the State's General Fund. Such amounts will be appropriated to the State Auditor for the cost of financial reporting and auditing of tax increment financing information throughout the state. Exhibit III shows the projected deduction for this purpose over the anticipated life of the TIF District. The Authority has determined that it will use 100% of the remaining tax increment generated by the TIF District for any of the following purposes: (1) Pay for the estimated public costs of the TIF District (see Section K) and County administrative costs associated with the TIF District(see Section T); (2) pay principal and interest on one or more pay-as-you-go notes, tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; SPRINGSTED Page 6 Housing and Redeve/opment Authority of the City of Golden Valley, Minnesota (3) accumulate a reserve securing the payment of tax increment bonds or other bonds issued to finance the estimated public costs of the TIF District; (4) pay all or a portion of the county road costs as may be required by the County Board under M.S. Section 469.175, Subdivision 1 a; or (5) return excess tax increments to the County Auditor for redistribution to the City, County and School District. Tax increments from property located in one county must be expended for the direct and primary benefit of a project located within that county, unless the county board involved waives this requirement. Tax increments shall not be used to circumvent levy limitations applicable to the City. Tax increment derived from the TIF District must be used solely to finance the cost of housing projects (including administrative expenses and public improvement costs) as defined in Section 469.174, Subdivision 11 of the Tax Increment Act and subject to the requirements set forth in Section 469.1761 of the Tax Increment Act. Tax increment shall not be used to finance the acquisition, construction, renovation, operation, or maintenance of a building to be used primarily and regularly for conducting the business of a municipality,county, school district,or any other local unit of government or the State or federal government. Further, tax increments may not be used to finance: a commons area used as a public park; facilities used for social or recreational purposes (whether public or private); or publicly-owned facilities used for conference purposes; provided that tax increment may be used for a privately owned conference facility, and for parking structures whether public or privately owned and whether or not they are ancillary to one of the otherwise prohibited uses described above. If there exists any type of agreement or arrangement providing for the developer, or other beneficiary of assistance, to repay all or a portion of the assistance that was paid or financed with tax increments, such payments shall be subject to all of the restrictions imposed on the use of tax increments. Assistance includes sale of property at less than the cost of acquisition or fair market value, grants, ground or other leases at less then fair market rent, interest rate subsidies, utility service connections, roads, or other similar assistance that would otherwise be paid for by the developer or beneficiary. Section R Excess Tax Increment Beginning with the sixth year after certification of the TIF District, any year in which the tax increments from the TIF District exceed the amount necessary to pay the estimated public costs authorized by the TIF Plan, the Authority shall use the excess tax increments to: (1) prepay any outstanding tax increment bonds; (2) discharge the pledge of tax increments thereof; (3) pay amounts into an escrow account dedicated to the payment of the tax increment bonds;or (4) return excess tax increments to the County Auditor for redistribution to the City, County and School District. The County Auditor must report to the Commissioner of Education the amount of any excess tax increment redistributed to the School District within 30 days of such redistribution. Section S Tax Increment Pooling and the Five Year Rule As permitted under Minnesota Statutes, Section 469.1763, subdivision 2(b)and subdivision 3(a)(5), any expenditures of increment from the TIF District to pay the cost of a "housing projecY' as defined in Minnesota Statutes, Section 469.174, subd. 11 will be treated as an expenditure within the district for the purposes of the "pooling rules" and the SPRINGSTED Page 7 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota "five year rule". The Authority does not currently anticipate that tax increments will be spent outside the TIF District (except allowable administrative expenses), but such expenditures are expressly authorized in this TIF Plan. Section T Limitation on Administrative Expenses Administrative expenses are defined as all costs of the Authority other than: (1) amounts paid forthe purchase of land; (2) amounts paid for materials and services, including architectural and engineering services directly connected with the proposed development within the TIF District; (3) relocation benefits paid to, or services provided for, persons or businesses residing or located within the TIF District; or (4) amounts used to pay interest on,fund a reserve for, or sell at a discount, tax increment bonds. Administrative expenses include amounts paid for services provided by bond counsel, fiscal consultants, planning or economic development consultants, and actual costs incurred by the County in administering the TIF District. Tax increments may be used to pay administrative expenses of the TIF District up to the lesser of(a) 10% of the total tax increment expenditures authorized by the TIF Plan or(b) 10%of the total tax increments received by the District. Section U Limitation on Property Not Subject to Improvements- Four Year Rule If after four years from certification of the TIF District no demolition, rehabilitation, renovation, or qualified improvement of an adjacent street has commenced on a parcel located within the TIF District, then that parcel shall be excluded from the TIF District and the original net tax capacity shall be adjusted accordingly. Qualified improvements of a street are limited to construction or opening of a new street, relocation of a street, or substantial reconstruction or rebuilding of an existing street. The Authority must submit to the County Auditor, by February 1 of the fifth year,evidence that the required activity has taken place for each parcel in the TIF District. If a parcel is excluded from the TIF District and the Authority or owner of the parcel subsequently commences any of the above activities, the Authority shall certify to the County Auditor that such activity has commenced and the parcel shall once again be included in the TIF District. The County Auditor shall certify the net tax capacity of the parcel, as most recently certified by the Commissioner of Revenue, and add such amount to the original net tax capacity of the TIF District. Section V Estimated Impact on Other Taxing Jurisdictions Exhibit IV shows the estimated impact on other taxing jurisdictions if the maximum projected retained captured net tax capacity of the TIF District was hypothetically available to the other taxing jurisdictions. The Authority believes that there will be no adverse impact on other taxing jurisdictions during the life of the TIF District, since the proposed development would not have occurred without the establishment of the TIF District and the provision of public assistance. A positive impact on other taxing jurisdictions will occur when the TIF District is decertified and the development therein becomes part of the general tax base. The fiscal and economic implications of the proposed tax increment financing district, as pursuant to Minnesota Statutes, Section 469.175, Subdivision 2, are listed below. 1. The total amount of tax increment that will be generated over the life of the district is estimated to be $1,541,254. SPRINGSTED Page 8 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota 2. To the extent the proposed project in the Cornerstone Creek TIF District generates any public cost impacts on City provided services such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, such costs will be levied upon the taxable net tax capacity of the City, excluding that portion captured by the District. The City does not anticipate issuing general obligation tax increment bonds attributable to the District, but reserves the right to finance certain project costs with this method. 3. The amount of tax increments over the life of the district that would be attributable to school district levies, assuming the school district's share of the total local tax rate for all taxing jurisdictions remained the same, is estimated to be$329,480. 4. The amount of tax increments over the life of the district that would be attributable to county levies, assuming the county's share of the total locai tax rate for all taxing jurisdictions remained the same is estimated to be$503,863. 5. No additional information has been requested by the county or school district that would enable it to determine additional costs that will accrue to it due to the development proposed for the district. Section W Prior Planned Improvements The Authority shall accompany its request for certification to the County Auditor (or notice of district enlargement), with a listing of all properties within the TIF District for which building permits have been issued during the 18 months immediately preceding approval of the TIF Plan. The County Auditor shall increase the original net tax capacity of the TIF District by the net tax capacity of each improvement for which a building permit was issued. There have been no building permits issued in the last 18 months in conjunction with any of the properties within the TIF District. Section X Development Agreements If within a project containing a housing district, more than 10% of the acreage of the property to be acquired by the Authority is purchased with tax increment bonds proceeds(to which tax increment from the property is pledged),then prior to such acquisition, the Authority must enter into an agreement for the development of the property. Such agreement must provide recourse for the Authority should the development not be completed. The Authority anticipates entering into an agreement for development, but does not anticipate acquiring any property located within the TIF District. Section Y Assessment Agreements The Authority may, upon entering into a development agreement, also enter into an assessment agreement with any person, which establishes a minimum market value of the land and improvements for each year during the life of the TIF District. The assessment agreement shall be presented to the County or City Assessor who shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land, and so long as the minimum market value contained in the assessment agreement appears to be an accurate estimate, shall certify the assessment agreement as reasonable. The assessment agreement shall be filed for record in the office of the County Recorder of each county where the property is located. Any modification or premature termination of this agreement must first be approved by the Authority, County and School District. The Authority anticipates entering into an assessment agreement. SPRINGSTED Page 9 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota Section Z Modifications of the Tax Increment Financing Plan Any reduction or enlargement in the geographic area of the Project Area or the TIF District; increase in the amount of bonded indebtedness to be incurred; increase in the amount of capitalized interest; increase in that portion of the captured net tax capacity to be retained by the Authority; increase in the total estimated capital and administrative costs; or designation of additional property to be acquired by the Authority shall be approved only after satisfying all the necessary requirements for approval of the original TIF Plan. This paragraph does not apply if: (1) the only modification is elimination of parcels from the TIF District; and (2) the current net tax capacity of the parcels eliminated equals or exceeds the net tax capacity of those parcels in the TIF District's original net tax capacity, or the Authority agrees that the TIF District's original net tax capacity will be reduced by no more than the current net tax capacity of the parcels eliminated. The Authority must notify the County Auditor of any modification that reduces or enlarges the geographic area of the TIF District. The geographic area of the TIF District may be reduced but not enlarged after five years following the date of certification. Section AA Filing and Administration of the Tax Increment Financing Plan Upon adoption of the TIF Plan, the Authority shall submit a copy of such plan to the Minnesota Department of Revenue and the Office of the State Auditor. The Authority shall also request that the County Auditor certify the original net tax capacity and net tax capacity rate of the TIF District. To assist the County Auditor in this process, the Authority shall submit copies of the TIF Plan, the resolution establishing the TIF District and adopting the TIF Plan, and a listing of any prior planned improvements. The Authority shall also send the County Assessor any assessment agreement establishing the minimum market value of land and improvements in the TIF District, and shall request that the County Assessor review and certify this assessment agreement as reasonable. The County shall distribute to the Authority the amount of tax increment as it becomes available. The amount of tax increment in any year represents the applicable property taxes generated by the retained captured net tax capacity of the TIF District. The amount of tax increment may change due to development anticipated by the TIF Plan, other development, inflation of property values, or changes in property classification rates or formulas. In administering and implementing the TIF Plan,the following actions should occur on an annual basis: (1) prior to July 1, the Authority shall notify the County Assessor of any new development that has occurred in the TIF District during the past year to ensure that the new value will be recorded in a timely manner. (2) if the County Auditor receives the request for certification of a new TIF District, or for modification of an existing TIF District, before July 1, the request shall be recognized in determining local tax rates for the current and subsequent levy years. Requests received on or after July 1 shall be used to determine local tax rates in subsequent years. (3) each year the County Auditor shall certify the amount of the original net tax capacity of the TIF District. The amount certified shall reflect any changes that occur as a result of the following: (a) the value of property that changes from tax-exempt to taxable shall be added to the original net tax capacity of the TIF District. The reverse shall also apply; (b) the original net tax capacity may be modified by any approved enlargement or reduction of the TIF District; SPRINGSTED Page 10 Housing and Redevelopment Authority of the City of Golden Valley, Minnesota (c) if the TIF District is classified as an economic development district, then the original net tax capacity shall be increased by the amount of the annual adjustment factor; and (d) if laws governing the classification of real property cause changes to the percentage of estimated market value to be applied for property tax purposes, then the resulting increase or decrease in net tax capacity shall be applied proportionately to the original net tax capacity and the retained captured net tax capacity of the TIF District. The County Auditor shall notify the Authority of all changes made to the original net tax capacity of the TIF District. Section AB Financial Reporting and Disclosure Requirements The Authority will comply with all reporting requirements for the TIF District under Minnesota Statutes, Section 469.175, subdivisions 5 and 6. SPRINGSTED Page 11 Exhibit 1 MAP OF TAX INCREMENT FINANCING (Housing) DISTRICT Within Highway 55 West Redevelopment Project Area �. � : &G4� �� . . . �&Zt? : � . .,` SiC+ 5�6: � _ `,i.,� 37C Q Project Area �� _.._ � 7� .�` TIF Distnct � � , , i� 't� � a^35 �".. ,J_ , I � , � �<,&sse ssr� sez asa �'b' �' C? '" 'g` I�� E:G..... ....... .. .�644 B7A � .d�� z3�? -;. 7-15� ,�. �"4 ... ��; 668 � � ' 4�.; g6q _� � ..:.. , ..... ._; :. �. ��; ._.. ._. .. ...... � �, �� 5',B? ,w t 23r 'f' (... 1c��,�'°,st�;i',;�'�,5�;ua�� :oz �u a ,' rastos (,�' �^pau��w�Yi,��'.�a��z�q•a.�,��, � � ° •,�fi oyU i��.�b�y�� p� ti 1ti 1� ,� }� � � d' � ?C4 I zr�sZaB ,✓5 < ......._�.._ '��. r r�/',• ��i �•� ��. � a'y �?�ffL' 9�14Q � . , - � ! i I � �, �� ea.r� C '`s° ; '� �scc� �;s �� s'.�' � �� s.�-s �,t'�r"t�� 52ip 9P.?a �'E y�e �� . � . . 9atr6 . � . � � -�.... I �.. �,J �` 9r+n, . I . . . ... e.�n7 . , � _._ �a_O�C�@(1 �c"11�E.'�/ Rt� . ec.3s�"�V�1� �. , i _ __ i �� f —' sc�eu a�sc� � ,.. 59P5 � � 9tC�J� . , � ,.,-- .__ � I 33IX"i .. 3��7 ` . � � szzn � � r � I �/ ,�� Z &B`� j �(��`��7 , ��'(�'�'�� . aas tM1�,1,. .��o � � .. �'�i 5:t5i, n'9�3 .. .++' � �m _ ' ��C�1�°n ��, 1 ;�� ; '� '"�t� <3_ �„ � . 9�f3a � � {_� �, . .... a:3 � .._. � .� -' ' 3 ,w,,. a:a ' 9�k9� i -029 . I IR � . ��. � � � e . . '.,� '�' , —•- _ ' � -f1& �. . ' i � � ST47 a1T ',.� 4 r0'89:9'�..b'3Pt7 8912'.135 ��(� _ � � :" �. .... ' . -��, 403 _.. � r' .: 3f5 :... �� . . . � �a��j/ �� ( ��3 . 8t4J 3J'9 l 4+7fl ;� �9�5.��1yi5 ��1'�ua�9,Y�l�..94�r�� . Y5�� 3:5 a-ry �' ' i �� '_.. -.--,-.. ....... �.. . . . . I ' . .... ...... _._. :"xa��res� Pr.w:.i�e-?:7C%?C!5 � F1t�11tFR1�64 I'J�u/MpYYN3 f)1iFi'P k`/ � Tax Increment Financing {Hous�ng) District �ApRY�� 1v� . �Gr:yaFGdopn,laMeyf allotfievJay�s withirt Highway 55 West Redevetopment Project Area SPRINGSTED Page 12 Exhibit ll Assum tions I�e ort City of Golden Valley,Ninnesota Tax Increment Financing(Housing)District Corrrerstone Creek Tax CreditHousing ProJect-4d Classification TIF Projectbns-=5.98M EMV Type of Tax hcremerrt Financing District Housing Ma�dmum Duratian of T1F District 25 y�ears irom 1st increment Prajected Certifica�ion Request Daa�e � 09101/15 DecertiFication Da�e � 12I31143 (26 Y�rs of hcremerrt) 2015i12016 Base Estimaded lu�rke�Value � $410,960 Original Net Tax CaP��Y 53,08� ass�sssmerrtlCallectian Yeer 2016/2017 2017I2018 2018/2019 2019Y1020 Base Estimated Mark�Value $410,980 $410,990 $410,980 $410,960 Estima�ed hcrease in Value-New Constructian � 0 � 5,5q,020 � 5,5�,020 � 5,569,020 Total Estimated AA�rket Value � 410,96U � 5.960,000 � 5,960,000 � 5,9�0,000 Total Net Tax Capacity $3,082 $44,850 544,850 $44,850 City of Golden Valey 54.626% Hennepin Courrty 46_396% ISD#270 30_340% Other � 10.561% Lacal Tax Capac�y Ra�e 141.925% 201 M2015 Fsc�Disparities Cantribution From TF District 0_000096 Administrative Retaina0e Percent(ma�dmum= 1096) 10_00% Pading Per�errt 0_00% Bonds Note(Pay/Ls-You-Go) Bonds Da�ed NA Note Da�ed 09130/15 Bond Rate NA Nate Ra�e 5.0096 Bond Amourrt NA Note Amourrt $687,975 Present Value Dade&Rate � O�I01/15 5_00% PV Amount $769,785 Wakes Projections assume no future changes to classifica�ion ra�es and curnerrt tax r�de.s remain constarrt Prajections are based on a mark�.#value of$5.98M Prdiminary value assumptions provided by Hennepin Caurriy Asse.ssa's office. Value assumption used is rellectiv�e of combined buid'mg and land value. Base va�e assumptions is based on cu►rent value,and a 0%MV infla�or is assumed. Prajections�sume commencmerrt of construction in 2015,with project completion in 2016, but a delay of first receipt to 2018 to coinc ide w ith full value_ Prajections are based on unrts at 4D rental class rate_ Courtly Admin eacpenses assume 2%annual infla�ion in cost est�nade. 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Tax Increment Financing(Housing) District Cornerstone Creek Tax Credit Housing Project-4d Cl�sification � TIF Projections-s5.98M EMV Assum[�tions Present Value Date � 09/01/15 P_V_ Rate-Grass T_I_ ` 5_00% Incnease a� EMV With TIF District � $5,569,020 Less= P_V of Gross Tax Increment 769,785 Subtotal $4,799,235 Less Increase in EMV Without TIF 0 Difference $4,799,235 Mnual Present Gross Tax Value� Year Increment 5_QO°6 1 � 2018 � 59,279 51,000 2 2019 r 59,279 48,571 3 2020 � 59,279 46,258 4 2021 � 59,279 44,Q55 5 2022 � 59,279 41,958 6 2023 � 59,279 39,960 7 2024 � 59,279 38,057 8 2025 � 59,279 36,244 9 2U26 � 59,279 34,519 10 2027 � 59,279 32,875 11 2028 � 59,279 31,309 12 2029 � 59,279 29,818 13 2030 � 59,279 28,399 14 2031 r 59,279 27,045 15 2032 � 59,279 25,758 16 2033 � 59,279 24,532 17 2034 � 59,279 23,364 18 2035 � 59,279 22,251 19 2036 � 59,279 21,191 20 2037 r 59,279 20,182 21 2038 � 59,279 19,221 22 2039 � 59,279 18,306 23 2040 � 59,279 17,434 24 2041 � 59,279 16,604 25 2042 59,279 15,813 26 2043 59,279 15,060 $1,541,254 5769,785 SPRINGSTED Exhibit VI L_ ----Pro ecbed Pay-As-You-Go Nobe Report _ _� Cily of Golden Va�e.y,lii�nesota T�[Incrernent FSnancing(Ilaus�g}District Comerstone Creek Tax Creedtt H ousing Project-�d qassific�on i1F Projecfions-:s98M EIIIIV Noie Daie: 09r�0l15 Plale Ra1e: 5.00% Amo�nt_ y687,975 Unf�Hu�e l�paid SernFAn�al l�oai irie�eat Atcnied Nel Balaice D�e PmcQal ��ere�i P&I Due t�esi Revaiue Ou�sfai�g � {1) r 2) {3) � {41 � {5) � (67 {7) ' {n 687,975.00 07J01/17 0.00 0.00 0.00 45,960.55 45.980.55 O.OD 68'7.975.00 OBI01/17 0.00 0.00 0.00 63.199.9Ci 63.158.93 O.OD 687.975.OD Q7JU1/18 0.00 0.00 0.00 80,358.31 80.369,31 0.00 687.975.OD 06i01/18 0.00 �,31250 �,312.50 97,568.69 71,246.19 �,31250 687.975.OD �J01l19 0.00 �,31250 �,312.50 88.445.57 62.133.07 �,31250 687.975.OD OBI01/19 0.00 �,3W.00 �.307.00 79.332.45 53.Q25.45 26,307.00 687.975.OD Q2/U1r10 0.00 Z6.3W.00 3'i.3Q7.00 70.224.83 43.917.83 �,3W.00 687.975.OD OB/01/20 0.00 75,301.50 �,301.50 61.11721 34.815.71 �,301.50 687.975.OD Q�iR1 0.00 Z6,301.50 26,301.50 52.015.09 25.713.59 �,301.50 687.975.00 OBRD1/Ll 0.00 26,296.00 26296.00 42,912.97 16.616.97 Z6,296.00 687.975.00 0?J0122 0.00 Zfi296.00 26296.00 33,876.3b 7�520.35 �296.00 687.975.00 08l'01/22 1.570.77 2A.719.73 Z6,290.50 24.719.73 0.00 26290.50 G86,404.23 Q�01P23 9,130.39 17,16D.11 Z6290.50 17,160.11 0.00 Z629D.50 677,273.84 OBl01lZi 9,362.65 16,931.8b Z6,284.50 16,931.8b 0.00 Z6284.50 667,921.19 Q2rt01f?A 9.586.47 16,698.03 25284.50 16,698-03 0.00 26284.50 658,334.72 OBl0124 9.820.13 16.458.37 Z6278.50 16,458,37 0.00 �'iz78.50 64&514.5XJ 0¢/a1P15 10.066.64 16,21286 Z6278.50 t6212J86 0.00 �,278.50 63$,448.95 08�0125 10.31178 15,961.22 �Z73.00 15,96122 0.00 �273.00 5ffi,137.17 07J01P16 10,568.57 15,703.43 �zT3.00 15.703.43 0.00 �'i2T3.00 617,567.60 08�U1f16 10.8Z7.31 15.438.19 �266.50 15,4�.19 0.00 ��86.50 606,740.29 �1PL7 11.097.99 15,168.51 �,266.50 15.168.51 0.00 Z6�6&50 596.64230 OBI�ilZ7 11.368.94 74,891.06 Z6�.00 14,891.06 0.00 �,260.OD 584.2Td.36 Q2/�1/28 11.6Gi.17 14,606.83 �260.00 14,606.83 0.00 �28D.OD 5T2.6Z0.19 OBIOUffi 11.938.50 14,315.50 Z6,254.00 14,315.50 0_00 �Z54.00 560,681.� 0�129 12.236.96 14.017.04 2fi254.00 14.017.04 0.00 �254.00 548,444.73 OBI01/29 1 Z536.88 13,711.12 26247.00 13,711.12 0.00 �247.00 536,908.85 �01/30 1Z84928 13,397.72 78247_00 73.397.72 0.00 �'i247.OD 523.098.57 OBl01�D 13,164.51 13.076.49 Z6241.00 13,076.49 0.00 �z41.OD 509,896.06 Q�1l31 13,49Ci.62 12,747.38 �z41.00 12,747.38 0.00 �,241.OD 496,401.44 08�1l31 13,SZi.96 12,410.04 �z34.00 12.410.04 0.00 �,234-00 482,577.48 OP1�1l32 14,1�56 12,064.44 �234-00 72,064.44 0.00 �,234.00 4b'8,4W.� 08�01fa2 14,516.80 11,710.20 �,7LT.00 11,71020 0.00 �z27.OD 45:i4891.12 Q7J01f33 14,87'9.72 11,347.28 16227.00 11,34728 0.00 �,227.OD 4�,011.40 08�01133 15.244.71 10,975.29 Z6220.00 10,97529 0.00 �,27A.00 423,76&� Q�U1l34 15.625.83 10,594.17 �'iZ20.00 10,594.17 0.00 26�.00 408�140.86 08101�4 16,OOB.48 1020Ci.52 �213.00 10�i.52 0.00 �213.00 39�131.38 02�01l36 16,408.72 9rBOCi28 26213.00 9,8�Ci28 0.00 �'i.213.00 375.721.66 OBI01l35 16,812.46 9,39Q04 26,z(16.50 9,35i-04 0.00 �206.50 358,90B.2D QZ�1ld6 17,732.77 8,9TL73 16206.50 8.9T2.73 0.00 Z620b.50 341.676_43 OBI01�6 17.666.09 8,541.91 Z6.198.00 8,541.91 0.00 �.198.00 324.Om.34 Q2x01/37 1&�7.49 8.100.51 Z6,198.00 8,10D.51 0.00 �'i,198.00 305.92285 OBIOU37 18,542.43 7,648.07 26.190.50 7,648.07 0.00 �,19D.50 287.380.42 02�01f�8 19,006.99 7.184.51 75.190.50 7,18451 0.00 1b.190.50 268,374.43 OBI01/38 19.4T3.14 6.708.36 Z6,182.50 6,708.36 0.00 �.18250 248,901.29 m101l3B 19.999.97 6?2253 Z6.182.50 6222.53 0.00 �.18250 228,941.32 OBI0IP�B 20>450.97 5,773.53 75.174.50 5,72353 0_00 �.174.50 208,490.35 �1140 20.96224 521226 26,174.50 521226 0.00 H'i,174_50 187,528.11 08�O11A0 21,478.30 4,688.20 26.166.50 4,68820 0.00 �.166.50 166,049.81 Q7J01l41 7�01525 4.15125 26.166.50 4.15125 0.00 26.166.50 144.034.56 OBlU1/41 22,567.14 3,BOD.86 �.158.00 3,600J86 0.00 �,158.OD 121,477.4� 47J01l4�2 23.121.06 3.036.94 �.158.00 3.036.94 0.00 ffi.158.OD 98,366.36 08�O1J�L 23.681.09 2.458.91 �.150.00 2,458.91 0.00 �,150.00 74.666.27 mJ01/43 24.?Si.37 1r8B&63 �,150.00 1.8�i.63 0.00 �'i.150.00 50.381.9D OBl�il43 24.881.45 1�a9.55 �.141.00 1299.5b 0.00 Z6.141.UD 25.50D.45 Q7J01l44 25.500.45 637.51 �.137.96 637b1 0.00 �.137.96 0.00 3687.975 5676.iB6.96 51.364,141.96 51,180,636.91 S50M1.468.95 $1,364.141.96 S1upi�s Taz bcreme�R 3.04 Tafal Net Faevaiue 51.364.145.OD SPRINGSTED Redevelopment Plan for Highway 55 West Redevelopment Area Golden Valley, Minnesota Golden Valley Housing and Redevelopment Authority Approval: October 9,2012 Planning Commission Review: Approved by the City Council: f TABLE OF CONTENTS Pa e s Introdudion.........................................................................................................................3 Background..........................................................................................................................3 PublicImprovements...........................................................................................................3 Statement of Need and Public Purpose,Statutory Authorization......................................4 Statementof Objectives......................................................................................................4 Itemized Goais and Objectives............................................................................................5 Policies ................................................................................................................................6 Boundaries of the Project Area and Redevelopment Opportunities..................................7 Definitions............................................................................................................................8 Administration of Redevelopment Project..........................................................................9 Maintenanceand Operations..............................................................................................9 Paymentof Public Costs..................................................................................................9 Property Acquisftian and Proposed Reuse.....................................................................9 RelocatiQn .....................................................................................................................10 Environmental Controls; land Use Regulations............................................................10 Parkand Open Space to be Created.............................................................................10 Amendments.................................................................................................................10 Mapof the Project Area....................................................................................................11 - ii - Introduction In the 1970s the�ty took the initiative to create a mixed-use,walkable downtown centered at the historic village crossroads at Golden Vailey Road and Winnetka Avenue.This area has many community resources, including retail destinations, restaurants,the library,the post oftice,and City Hall. Recently interest has grown in connecting the area west of Boone Avenue to tfiis urban core. The goal is to make better and safer connections for both pedestrians and vehicles and provide better access to transit stops, It is anticipated that public improvements that improve vehicle and pecfestrfan safety wlll promote private redevelopment in the area. Recent rezoning of two parcels at 922Q and 9130 Olson Memo�ial Highway to high-density hausing is the immediate impetus to estabiish a new Hlghway 5S West Renewa!and Renovation Area (Project Area�. A developer has�roposed the construction of a 142-unit apartment building,adding many new residents to the area and spurring the need to create improved transportation linkages. This P1an will define the geog�aphic area of proposed improvements, outline existing conditions, identify possible improvements, and s�t goals and objectives and policies that will guide projects as they are implemented.The proposed Renewaf and Renovation Area includes parcels on the north and south side of Golden Valley Road west of Decatur Avenue North to 9400 Golden Valiey Road and parcels on the south side of 7"'Avenue North between Boone Avenue Narth and Decatur Avenue North (See Map, page 11). Background The Projed Area has a wide range of land uses and building types, including 24 parcels and 21 buildings,from 12 to 86 years old. When parcels in the Project Area were originally devetoped, Golden Valley Road served as the primary east-west arterial roadway in the area,which originally contained farmsteads. In fact,a farmhouse built in 1926 still exists on the north side of Golden Valley Road. Commercial Uses,whlch included a bowling alley, restaurants and office uses developed over time.Sfngle and multEfamily housing now coexist with the commercial uses. When Olson Memorial Highway(Highway 55}was const�ucted in the 1960s, some of the existing uses ended up with f�ontage on both Highway 55 and Golden Valley Road and the local street system was truncated.The unusual shaped lots,hlghway orientation and truncated Iocal street system c�eate a challenge for developmeM. The Valley Square Redevelopment Area east of the Project Area has been redeveloped with a mix af uses, but has a more urban pedestrian orientation that helps integrate the uses.The goal of the Project Area is to develop public improvements that will support the current range of land uses and encourage new development, including new high-density residential housing now proposed for the area. Public lmprovements Public improvements proposed in the area include improvements to the Highway 55 access/exit to Decatur Avenue North, sidewalks and lighting to improve pedestrian safety, bu�ial of overhead electrica! lines,addition of regiona)storm water facilities, and sanitary sewer lining.These improvements are aimed to assist residents from the proposed 142-unit apartment move safely in 3 the area and to foster fu�ther develapment in the a�ea by creating a safe neighbo�hood environment. PedestNan safety will also support walking programs promoted by existing lacal businesses and connect residents a�d employees of businesses west of Boone Avenue to transit stops on Wisconsin Avenue or Winnetka Avenue. Statement of Need and Public Purpose, Statutory Authorization The Housing and Redevelopment Authority(HRA)flnds there is a need for development within the City and the Project Area in order to provide employment and housing opportunities,to fmprove the Iocal tax base,and to imprave the gene�al economy of the City and the State.The economic security of the people in the City depends upon proper development of property that meets any one of a number of conditions, including properties with values too law to pay for the public services required or rendered and properties where lack of use or improper use has resufted in stagnant or unproductive land that couid otherwise contribute to ifie public health, safety,and welfare. The HRA finds that in many cases,suth property pnnot be developed without public participation and assistance in various fo�ms, including property acquisition and/or write-down; proper planning; the financing of development costs assaciated with clea�ance,grading, and soils correction;and the making of various otfier public and private improvements necessary for development. In cases where the development of property cannot be done by private enterprise alone,the HRA believes it to be in the public interest to consider the exercise of its powers,to advance and spend pubiic money, and to provide the means and impetus for such development. The HRA finds that in certain cases, property within the Project Area would or may not be available far development without the specific flnanciat aid to be sought,that the Redevelopment Plan will afford maximum opportunity,consistent with the needs of the City as a whole,for the development of the Project Area by private enterprise, and that the Redevelopment Plan conforms to the general plan for the development of the City as a whole. Overall Objectives The HRA seeks to achieve one or more of the following objectives with respect to the Project Area, as the Authority may deem appropriate and necessary: • promote and secure the prompt development of property withfn the Project Area, such property which is not now in its most productive use, in a manner consistent with the Comprehensive Plan of the City,thus�ealizing Comprehensive Plan, land use, and tax base goals • assist development in the Project Area through the acquisitian or w�ite-down of certain interests in property which is not now in productive use or in its highest and best use,to make or defray the cost of soil corrections or site improvements on said property, and to construct or reimburse for the const�uction of public improvements and other facilities on or for the benefit of said property,thereby promoting and secu�ing the development of other iand within the Project Area 4 • secure the increase and availability of rerrtal housing property fo�individuals and families of low to moderate income within the Project Area � secure the increase of industrial and comme�cial propeRy subject to taxation within the Project A�ea � promote and secure additional empioyment opportunities within the City and to p�event the loss of existing emplayment opportunities,thereby preventing tfie loss of valuable human resou�ces � Ta provide funding for an ongoing developmen#strategy and to prioritize the use of avaflable resources • implement and revise from time to time,as may be deemed necessary or desirable,a consolidated and unified Redevelopment Plan and to finance the associated development costs on an area-wide basis • employ any of the powers of the Authority for the benetit of the Project A�ea in such cases and upon such terms as the Authority may deem approprlate • constnact or acquire facilities deemed desirable for the development of the P�oject Area Itemized Goals and Objectives To achieve its mission of structured redevelopment,this Plan has identified six goals with related objectives to encourage cahesive planning and strvctured renewal within the area. It then outlines policies that will help ta achieve the goals and objectives. Goal 1—Improve vehicle and pedestrian aa�ss Objectives • Improved access/exit from Highway 55 to Decatur Avenue North • Added pedestrian and non-motorized transportation facilities • Improved connections to the Luce Line Regional Trail Goal 2—Redevelop obsolete properties ObJectives � Blighted,functionaily obsolete, and/ot economically unsustainable buildings removed • New uses compatible with existing uses • Maximized development density alang Highway 55 Goa13—Create jobs and Ilfe-cycle housing Objectives • Increased high-paying jobs • Housing stock that is maintained or improved • Higher density housing 5 • Affordable, zero crime, housing • Commercial uses that serve the community Goal 4—Require design that is sustainable and aesthetically pleasing Objectives • Enhanced community identity through features that reflect Golden Valley • Visually attrartive development that complements its su�roundings • Buildings constructed with enviranmentally sustafnable 'green building' practices (development that meets environmental criteria set forth by Leadership in Energy and Environmenta)Design (LEED)and the United States Departrrtent of Energy) • Artive living criterfa inciuded in design • Undergrounded utilities • Signage and wa�nding features to connert the area to downtown Golden Valley and the luce Line Trail Goal 5—Protect the envi�onment Objectives • Wetlands that are protected and enha�ced • Land free of soil and wetland contaminatian • Arborous environments • Natural features retained and native vegetation (re)established � Goal 6—Maintain a regional framework objecttves • Growth compatible with the Metropolitan Council development framework • Public infrastructure designed in cooperation with Hennepin County and the Minnesota Department of Transportation • Participation in grant programs available through Hennepin County,the Metropolitan Council and othe�agencies • A positive relationship with surrounding communities and governmental agencies • Continued participation in cooperative traffic management strategies • Improved transit options Policies Land Use The City will study pianned land uses to determine the need or desirability�f individual parcel or area-wide comprehensive plan or zoning amendments to accommodate desired land uses. The Clty and NRA will assure that its review processes,zoning, and building regufations wiil promote desired development projects. The City will assure that new uses in the redevelopment area are compatible with existing development and the Cit�s l.and Use Plan. 6 The City and HRA will review existing properties in the area to consider their long term viability and/or option5 fo�alternative uses. Land use plans wiil promote mixed use developments and increased density where appropriate, in keeping with the Metropolitan Council's regional growth strategy. Finandng The City and HRA will identify criteria to targe#redevelopment funds such as tax increment flnancing,tax abatements, Livable Communities,Cemmunity Development Block Grants and other funding made avallable by the Legislature or other agencies or governmental units. The City and HRA wi11 consider providing public assistance to redevelopment prajects that serve a substantlal public purpose, remove blight,or mitigate contamination. The City and HRA will consider using land write-downs to subsidize redevelopment projects. Redevelopment funding will be paired with other funding aptians such as assessments, based on the Golden Valley Special Assessment Policy. The City will consider franchise fees and utility surcharges to underwrite the cost of utility and infrastructure upgrades. Design and En�ironmer�tal Standards The City will promote best practices to meet the highest environmental standards. The C'rty and HRA wil) identify approaches and/or incentives to promote a corridor beaut�cation program.This program will include both public and private components. The City will monitor ongoing research on sustainable development initiatives to guide redevelopment and future updates af this plan. Transportation The City wilt work with Metropolitan Transit to monitor transportation needs of area residents and worke�s and identify ways to improve transportation services, including improving transit routes and working with area businesses to devebp transportation management plans. Boundaries of the Project Area and Redevelopment Opportunitles The praperty within the City which constitutes the P�oject Area includes#he property contained within the boundaries described below and is iliustrated on the attached map. Area lA South of Golden Vailey Road, north of Highway 55,and west of Decatu�Avenue North This area currently contains several small offlce buildings,the former bowfing alley, and Valvoline Rapid Oil Change.Thfs area is very visible from Highway 55. The Tiburon,a six-story, 142-unit apartment building is proposed to be constructed on the site of the former bowling aUey and the 7 adjacent ofFice buitding,which were recently rezoned to High-Density Residential.The remainder af the Area 1A could remain commercial or mave to �eside�tiai uses. Area 16 South of Golden Valley Road and north of Highway 55,where it exlts to Highway 169. This area is located direc#ly north of the Highway 169/Highway 55 interchange and is zoned Commerciai. National Carnera Exchange is currently located at this site. It has relocated from another site In the Area and may wish to further expand in the future. Area 2 North of Golden Vailey Raad from Htghway 169,east halfway to Decatur Avenue North Two office buildings,two single family homes,and a frve-building apartment complex(Trentwood, 54 units)are located in this area.Trentwood is zoned medium-density residential and the rest of the parcels are zoned Business and Professional OfFces.The easterly of�ce building and single family homes are currently listed for sale. If the parcels are joined and redeveloped, residential o� institutionat uses on those properties would complement the existing and proposed residential development in the area. Alternately,if redeveloped as Business and Professional Offices,the site would relate ta the ofFice use to the west and nvrth. Area 3 Nerth of Golde�Valiey Road from Decatur Avenue North,west to the mid-block This area includes Red Lobster Restaurant and two fast food restaurants and is zoned Commerciat. While this area is appropriate for continued long-term commercial and �etail use, it may develop more densely in the€uture if the cuRent uses end. Golden Valley Road serves as the frontage road for Highway 55 in this area.The road currently ends at Decatur Avenue North, with frontage road signage directing drivers north on Decatur Avenue and east on 7�'Avenue. It may be beneficial to realign the frontage road in this area to provide a cantinuous roadway and eliminate wnfusing turning movements.The current access to Highway 55 at Decatu�does not provide standard,save vehicufar mavement. Area 4 North of Highway 55 west of Boone Avenue Nvrth,south of 7�'Avenue,and east of Decatur Avenue North This a�ea contains two restaurants, an automotive service shop,and a vacant parcel, ail of which are zoned Commercial. With its highway visibility and proximity to the Boone Avenue/Highway 55 intersection,this area could redevelop into more intense uses, particularly if a number of the parcels are consolidated. DeflnRions The terms defined in this section have the meanings given herein, unless the conte�ct in which they are used indicates a different meaning: "Authoritv" means the Housing and Redevelopment Authority of the City of Golden Valley. " it " means the City of Golden Valley, Minnesota, also referred to as a "Municiealitv". 8 "Citv Council" means the City Council of the City. "Coun " means Hennepi� County, Minnesota. "Governina Bodv" means the Board of Commissioners of the Authority. "HRA Act" means the Minnesota Municipal Housing and Redevelopment Act, Minnesota Sfiatutes, Sections 469.001 th�ough 469.047,both inclusive. "Land Use Re�ulations"means all federal, state and local laws, ruies, regulations,o�dinances and plans relating to or gaverning the use or development of land in the Project Area, including but not limited to envlronmental, platting, zoning and buiiding code laws, regulations and ordinances. "Proiect Area" means the geographic area of the Nighway 55 West Redevelopment Project Area. "Public Costs" means the costs of land acquisition, public and site improvements, repayment of debt service on tax increment bonds, and other eNgible casts as set forth in the Redevelopment Plan and Tax Increment Financing Plan{s). "Redevelopment Plan" means the Redevelopment Plan fo�the Project Area. "State" means the State of Minnesota. "T1F Act" means Minnesota Statutes,Sectians 469.174 through 469.179, both inclusive. "Tlf District" means any tax increment financing district presentiy established or to be established in the futurs in the Project Area, "TIF Plan" means the respective tax increment financing plan for each TIF district located within the Project Area. Administration of Redevelopment Project Maintenance and Operations Maintenance and operation of the Project Area will be the responsibility of the HRA Director, who shall serve as administrator of the ProJect Area. Each year the administrator will submit to the Governing Body the maintenance and operation budget for the following year. The administrator will administer the Redevelopment Plan pursuant to the provisions of the HRA Act, provided, however,that such powers may only be exercised at the direction of the Governing Body: No action taken by the administrator pursuant to the above-mentioned powers shall be effective without authorization by the Governing Body. Payme�nt of Public Costs It is anticipated that the Public Costs of the Project A�ea will be paid p�imarily from tax increments or proceeds of tax increment bonds. Such costs are identifled in the TIF Plan(s)for the corresponding TIF Dist�ict{s) located within the Project Area. The Authority reserves the rigfit to 9 use other sources of revenue legally applicable to the Project Area to pay for such Public Costs including, but not limited to,special assessments,federal or state funds, and investment income. Property Acquisition and Proposed Reuse The HRA may acquire property,o�appropriate interest the�ein, within the Project Area as it deems necessary or desirable to assist in the implementati�n of the Redevelopment Plan. The Redevelapment Ptan contemplates that the HRA may acquire property and reconvey the same to another entifiy. Prior to formal consideration of the acquisition of any p�operty,the Governing Body will require the executlon of a binding development agreement with respect thereta and evidence that tax inc�ements or other funds will be available to repay the Public Costs associated with the proposed acquisition. It is the intent ofthe HRA to negotiate the acquisition of property whenever possible. App�opriate restrictions regarding the reuse and redevelopment of properly shall be incorporated into any development agreement to which the HRA is a party. Relocation Any person or business that is displaced as a resuit of the Redevelopment Plan will be relocated in accordance with the p�ovisions of the HRA Act and other applicable state law. Environmental Controls;Land Use Regulations Ail HRA actions, public improvements,and private develapment shall be ca�ried out in a manner consistent with exlsting environmental controls and all applicable Land Use Regulatians. Park and Open Space to be C�eated Park and open space created within the Project Area will be done so in accordance with the zoning and platting ordinances of the City. Amendments The HRA reserves the right to alter and amend the Redevelopment Plan subject to the provisions of state law regulating such actfan. 10 � " � -�,:� � � � ; �� . � n� auoo� � � �� _�. _ �� ^ � �� . � �' � � � � m � �. � �.. � $ � � a � ;N 3 �A J tZ��B � }. i�� F � an� �n�,e�� ' �� " � � P � e �N.. "�'� � � � � � p �- N p „' � N «�o' A � � � �� a� =. � � � � � ~ � � ° � � ah i� E v � w � � � �.� N ,�� .� � V M � h q .A � /+� r.w1 � � 'y� p � � '� " �1 9i4 �� r � � � � O � g � � ; � 4 � „�, � ; .0 O. � 4 � � � � � � m � � _ > � � � ��.� 'm0 ra«r. � � �' ' � O x �w .�:.��;. q � O � � p � �. � � � v q $ � � en� � � � � � � F � �1 a''` Y: . ��.N'ti I��. � �'.; � � � � � � � k�Iryd E � � � � � � ��p�,�.�. .. , � .. . .. . . .. m.Rk T3A%��A'x3�,".�'yt.vravwae,N kdaat _ —. .� .. 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Jl .la � . .DNAIXI"1dm A. �u r�.d�a'u5y�n . ,�ta.lo'.we",«.. ... .. 11 � �� Resolution 15-02 August 24, 2015 Commissioner introduced the following resolution and moved its adoption: RESOLUTION OF GOLDEN VALLEY PLANNING COMMISSION FINDING THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING (HOUSING) DISTRICT CORNERSTONE CREEK CONFORMS TO THE GENERAL PLAN FOR THE DEVELOPMENT AND REDEVELOPMENT OF THE CITY, AS AMENDED (AMENDED 2008 COMPREHENSIVE PLAN UPDATE) WHEREAS, it has been proposed that the City of Golden Valley, Minnesota, and the City's Housing and Redevelopment Authority (the "Authority") establish the Tax Increment Financing (Housing) District Cornerstone Creek (the "TIF District") within the Highway 55 West Redevelopment Project Area (the "Project Area") pursuant to and in accordance with Minnesota Statutes, Sections 469.001 through 469.047, inclusive, and Sections 469.174 through 469.1799; and WHEREAS, the City and the Authority have caused to be prepared and submitted the Tax Increment Financing Plan for the proposed Tax Increment Financing (Housing) District Cornerstone Creek plan to the City Planning Commission (the "Commission") for review prior to the holding of a public hearing upon published notice as requested by law; and WHEREAS, the Commission has reviewed the Tax Increment Financing Plan to determine conformity with the general plan for the development and redevelopment of the City as described in the 2008 Comprehensive Plan Update for the City, as approved by the City Council on March 17, 2009 and amended thereafter. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission that the proposed TIF Plan conforms to the general plan for the development of the City as a whole and furthermore, the redevelopment activities are compatible with the City's zoning ordinance and other related regulations and encourage efficient use of existing infrastructure as set forth in the City's Land Use Plan. Approved by the Planning Commission of the City of Golden Valley, this 24th day of August, 2015. Chair Attest: Secretary The motion for the adoption of the foregoing resolution was seconded by Commissioner _ and upon a vote being taken thereon, the following voted in favor thereof: ; and the following voted against the same: , whereupon said resolution was declared duly passed and adopted; signed by the Chair and their signature attested by the Secretary. . �� . �� Ph sical Develo rnent De artment �� Y P P 763-593-8095/763 593 81 Q9(fax) Date: August 24, 2015 To: Golden Valley Planning Commission From: Emily Goellner, Associate Planner/Grant Writer Subject: Discussion - Zoning Code Text Amendment— Planned Unit Developments Summary Staff is seeking feedback from the Planning Commission regarding the direction and content of proposed amendments to the Planned Unit Development (PUD) section of the Zoning Code. The proposed changes address a strategic priority identified by City Council, which is to review and simplify the entitlement process in order to promote targeted development and redevelopment. The following changes received positive feedback from all members of City Council on August 10, 2015. Background There are 75 active PUDs in the City. While staff finds PUDs to be a helpful tool, there are some positive changes that can be made to the process to address the City Council's strategic priority. In researching the topic, staff referred to a helpful publication from the Environmental Protection Agency (see attached, "Rein In and Reform the Use of Planned Unit Development"). In reflecting on the PUD process, staff identified three key challenges: 1. Cumbersome timeframe required for approval of PUD amendments 2. Developers making multiple final plan submissions 3. The focus on the public purpose of the PUD plan has decreased over time Staff has identified two key goals for the proposed changes: 1. Simplification of the process 2. Clarification of the requirements PUD Amendments Particularly with recent PUD amendment applications, staff has acknowledged that there is a cumbersome timeframe required for approval. By modifying the current requirements, the City can simplify and streamline the process without losing the ability to review and approve changes. The creation of a new PUD typically takes six months. Most amendment applications are considered "major" under the current regulations and require a six month entitlement process as well. The application is reviewed by Planning Commission and City Council in both a preliminary phase and a final phase. Staff would like to modify the requirements so that major PUD amendments no longer require a preliminary and final phase; rather, a major amendment would be reviewed by Planning Commission and City Council once. It is estimated that this process would take three months rather than six months. Please see attached materials comparing the current process to the proposed process for PUD amendments. Minor amendments require a two month process in which the application is reviewed by City Council. The City Council has the discretion to decide whether minor amendments are reviewed by Planning Commission as well. Staff finds this process to be appropriate, but would like the City Code to be more specific and more generous with the projects that qualify as minor amendments. Current Code Language regarding Amendments An application to amend a PUD shall be administered in the same manner as that required for an initial PUD; however, a minor amendment may be made through review and approval by a simple majority vote of the City Council with or without referral to the Planning Commission. To qualify for this review, the minor amendment shall not: A. Eliminate, diminish or be disruptive to the preservation and protection of sensitive site features. B. Eliminate, diminish or compromise the high quality of site planning, design, landscaping or building materials. C. Alter significantly the location of buildings, parking areas or roads. D. Increase or decrease the number of residential dwelling units by more than five percent (5%). E. Increase the gross floor area of non-residential buildings by more than three percent (3%) or increase the gross floor area of any individual building by more than five percent (5%). F. Increase the number of stories of any building. G. Decrease the amount of open space by more than three percent (3%) or alter it in such a way as to change its original design or intended function or use. H. Create non-compliance with any special condition attached to the approval of the Final PUD Plan. Amendments to a PUD cannot currently be reviewed administratively, but staff is interested in allowing changes to outdoor lighting, utility, and grading/erosion control plans to be approved by City staff. Also, changes to landscaping and architectural elevation plans that do not alter the original design intent of the development could be reviewed administratively. These kinds of changes are currently reviewed administratively on properties that are not within a PUD. Proposed Major Amendments include: • Decrease in the amount of open space by more than 3% • Change in gross floor area in any one structure by more than 10% • Change to front yard, side yard, or rear yard setbacks that does not meet minimum requirements set forth in the underlying Zoning District • Change in the building area coverage by more than 10% • Change in the number of parking spaces that does not meet the minimum off-street parking requirements set forth in this Chapter • Introduction of new uses • Demolition of a principle structure • Eliminate, diminish, or disrupt the preservation and protection of sensitive site features • Alter significantly the location of buildings, parking areas, roads, site access, or open space • Increase or decrease in the number of residential dwelling units by more than 10% • Increase the number of stories of any building or a significant alteration in the overall height of the building • Alter the original design or intended function of the development • Any other change determined by Physical Development staff to have a significant impact Proposed Minor Amendments include: • Increase in impervious surfaces up to the maximum amount allowable in the underlying Zoning District • Change in parking lot configuration or design (not the number of parking spaces) • Change in number of parking spaces that meets the minimum off-street parking requirements set forth in this Chapter • Change in gross floor area in any one structure by less than 10% • Change in the land use to a use that is permitted in the underlying Zoning District • Change in building coverage by the project up to the maximum amount allowable in the underlying Zoning District • Change in the number of residential units by less than 10% • Demolition of an accessory structure • Change to architectural elevation plans or landscape plans that alters the original design intent of the development Proposed Administrative Amendments include the following changes if approved by the City Manager or his/her designee: • Change in utility plan • Change in landscaping plan • Change to interior building plans • Change to outdoor lighting plan • Change to grading/erosion control plan • Change to architectural elevation plans Application Requirements Due to the length of time required, developers commonly submit final PUD plans only days after receiving preliminary approval. Developers feel rushed to submit an application without every item addressed so that the sixty-day clock can begin and final approval can be received as soon as possible. This is problematic for staff for several reasons. First, it causes staff to request extra plan submittals prior to Planning Commission. Multiple site plans can become confused with one another. Also, this demands additional staff time to communicate and coordinate with the applicant. Staff suggests that a meeting with the applicant be required prior to submission of the final PUD application in order to verify that all outstanding issues raised during the preliminary approval process have been addressed. In addition, the final PUD application should require a narrative specifically addressing these issues. If these items are not addressed, staff may deem the application incomplete. Public Purpose Requirement Staff recognizes that some developers have applied for a PUD in order to circumvent zoning regulations. PUDs require more time intensive review by staff, Planning Commission, City Council, and the landowner and/or applicant. PUDs are a good planning tool for the City. While the developer receives the benefit of flexibility in uses, density, and setbacks, the community receives unique benefits from the PUD in return. In order to insure that the community receives unique benefits, staff recommends that the Zoning Code explicitly require that all PUDs provide a unique public amenity within the proposal. The following examples are typically more costly to the developer, so they are not often provided in development plans when they are merely suggested and encouraged rather than explicitly required. PUD Points System At the Council/Manager meeting on August 10, 2015, City Council Members questioned how staff will determine which amenity meets the requirement. It is possible that developers will choose the most affordable option, which could result in an uneven amount of certain amenities. In response to that question, staff would like to discuss the option of a points system for public amenities, which is used by the City of Minneapolis (see City of Minneapolis PUD Amenity Summary attached). Public Amenity Options Affordable Housing (10%of units at 60% or Shared Bicycle and Vehicle Facilities below Area Median Income) Library Open to Public Public Open Space Fitness Studio Open to Public Public Recreation Space Electric Car Charging Ports for Public Community Room Bike Repair Tools or Shop Open to Public Community Garden Preservation of Unique/Historical Architecture Public Restrooms Bike and Pedestrian Trail Connections Public Art Innovative Stormwater Storage or Infiltration Public Plaza Sports Field Open to Public Game Room Open to Public Outdoor or Indoor Theater Open to Public Computer Lab Open to Public On-Site Renewable Energy Informational/Interpretive Displays LEED Silver Certification or Equivalent Discussion Staff is interested in gaining feedback from the Planning Commission regarding the proposed amendments to Section 11.55 of the Zoning Code regarding Planned Unit Developments. Attachments City Code Section 11.55: Planned Unit Development (16 pages) "Rein In and Reform the Use of Planned Unit Development" Essential Smart Growth Fixes for Urban and Suburban Zoning Codes, published by Environmental Protection Agency, November 2009 (4 pages) PUD Amendment Process Comparison (4 pages) Public Amenity Requirements for City of Minneapolis Planned Unit Developments (6 pages) § 11.55 Section 11.55: Planned Unit Development Subdivision 1. Intent and Purpose It is the intent of this Section to provide an optional method of regulating land use which permits flexibility from the other provisions of Chapters 11 and 12 of the City Code, including flexibility in uses allowed, setbacks, height, parking requirements, number of buildings on a lot and similar regulations. A. The purpose of this section is to: 1. Encourage, preserve and improve the health, safety and general welfare of the people of the City by encouraging the use of contemporary land planning principles. 2. Achieve a high quality of site planning, design, landscaping, and building materials which are compatible with the existing and planned land uses. 3. Encourage preservation and protection of desirable site characteristics and open space and protection of sensitive environmental features including steep slopes, trees, scenic views, waterways, wetlands and lakes. 4. Encourage construction of affordable housing and a variety of housing types. 5. Encourage creativity and flexibility in land development. 6. Encourage efFicient and effective use of land, open space, streets, utilities and other public facilities. 7. Allow mixing land uses and assembly and development of land to form larger parcels. 8. Encourage development in transitional areas which achieve compatibility with all adjacent and nearby land uses. 9. Achieve development consistent with the Comprehensive Plan. 10. Achieve development consistent with the City's redevelopment plans and goals. 11. Encourage development that is sustainable and has a high degree of energy efficiency. Golden Valley City Code Page 1 of 16 § 11.55 B. This Section applies to all Planned Unit Developments existing in the City on the date of its enactment and all subsequently enacted Planned Unit Developments. Subdivision 2. Applicability A. Optional Land Use Control. Planned Unit Development provisions provide an optional method of regulating land use which permits flexibility in the uses allowed and other regulating provisions including setbacks, height, parking requirements number of buildings on a lot and similar regulations provided the following requirements are met and the PUD plan complies with the other provisions of this and other Planned Unit Development sections. Approval of a Planned Unit Development and granting of a PUD agreement does not alter the existing zoning district classification of a parcel in any manner; however, once a PUD has been granted and is in effect for a parcel, no building permit shall be issued for that parcel which is not in conformance with the approved PUD Plan, the Building Code, and with all other applicable City Code provisions. B. Uses. Once a Final PUD Plan is approved, the use or uses are limited to those approved by the specific approved PUD ordinance for the site and by the conditions, if any, imposed by the City in the approval process. C. Maintenance Preservation. All features and aspects of the Final PUD Plan and related documents including but not limited to buildings, setbacks, open space, preserved areas, landscaping, wetlands, buffers, grading, drainage, streets and parking, hard cover, signs and similar features shall be used, preserved and maintained as required in said PUD plans and documents. Source: Ordinance No, 318, 2nd Series Effective Date: 12-31-04 Subdivision 3. Standards and Guidelines A. Size. Each residential PUD must have a minimum area of two (2) acres, excluding areas within a public right-of-way, designated wetland, or floodplain overlay district, unless the applicant can demonstrate to the satisfaction of the City Manager or his/her designee the existence of one (1) or more of the following: 1. Unusual physical features of the property itself or of the surrounding neighborhood such that development as a PUD will conserve a physical or topographic feature of importance to the neighborhood or community. 2. The property is directly adjacent to or across a right-of-way from property which has been developed previously as a PUD and will be perceived as and will function as an extension of that previously approved development. Golden Valley City Code Page 2 of 16 § 11.55 3. The property is located in a transitional area between different land use categories. Source: Ordinance No. 547, 2nd Series Effective Date: 3-26-15 B. Frontage. Frontage on a public street shall be at least one hundred (100) feet or adequate to serve the development. C. Setbacks. 1. Principal Building. No principal building shall be closer than its height to the rear or side property line when such line abuts on a single-family zoning district. 2. All Buildings. No building shall be located less than fifteen (15) feet from the back of the curb line along those roadways which are a part of the internal road system. Some minor deviations may be allowed provided adequate separation is provided through additional landscaping, berming or similar means. D. Private Service Facilities or Common Areas. In the event certain land areas or structures are proposed within the planned unit development for shared recreational use or as service facilities, the owner of such land and buildings shall enter into an agreement with the City to assure the continued operation and maintenance to a pre-determined reasonable standard. These common areas may be placed under the ownership of one of the following as determined by the Council: 1. Dedicated to public where community-wide use is anticipated. 2. Landlord 3. Landowners or Homeowners Association, provided appropriate conditions and protections satisfactory to the City are met such as formation of the association, mandatory membership, permanent use restrictions, liability insurance, local taxes, maintenance, and assessment provisions. E. Intent and Purposes. A PUD shall meet and be consistent with the intent and purpose provisions and all other provisions of this section. Subdivision 4. Pre-Application A. Qualifications. Application for a PUD may be made only by: 1) the owner of the land involved in the PUD application, or by a duly authorized representative, or 2) an option or contract holder, provided the application is accompanied by fully executed agreements or documents from the owner stating that such owner has no objections to the proposed application and is in fact joining in the same as such owner's interest may appear. The City Golden Valley City Code Page 3 of 16 § 11.55 may act as a petitioner on its own behalf or on the behalf of an affiliated governmental body. B. Pre-Application Conference. Prior to filing a PUD application and prior to conducting a neighborhood meeting, the applicant shall meet with the city staff for a pre-application conference. The primary purpose of the conference is to allow the applicant and staff to discuss land use controls, appropriate use of the site, design standards, how the plan will achieve higher quality and meet the PUD purpose and design requirements, the application process, and the general merits of the applicant's proposal. C. Neighborhood Meeting. At an appropriate point during development of a preliminary PUD plan, the applicant shall hold a neighborhood meeting. All property owners within five hundred (500) feet of the PUD, or a larger area as determined by the City, shall be given notice of the meeting. The purpose of the meeting is to inform the neighborhood of the proposed PUD, discuss the concepts and basis for the plan being developed and to obtain information and suggestions from the neighborhood. Subdivision 5. Application Procedure - Preliminary PUD Plan A. Application. The applicant shall complete and sign the application and submit a Preliminary PUD Plan. All application requirements must be completed and submitted for the application to be processed. If it is proposed to develop a project during a period which will exceed two (2) years, the applicant may request approval of a Preliminary PUD Plan for the entire project and permission to submit a Final PUD Plan only for the first stage of the project. Separate public hearings and a Final PUD Plan shall nevertheless be required respecting such successive stage of the project as the same is reached. Except to the extent the City Manager or his/her designee requires more or less information, the application shall include, but not be limited to, the following information: Source: Ordinance No. 31 S, 2nd Series Effective Date: 12-31-04 1. Preliminary PUD Plan. A Preliminary PUD Plan of the proposed development illustrating the nature and type of proposed development, shall identify all land uses and proposed square footage, the location of buildings, existing and proposed roadways and accesses, pedestrian ways and sidewalks, proposed parking areas, preliminary traffic volume projections, areas to be preserved, public and common areas, preliminary building elevations including height and materials, preliminary utilities plan, the location of the parcel's boundaries, the net and gross density of the development, the total area occupied by the development, lot coverage, a lighting plan (subject to the requirements in Section 11.73, Outdoor Lighting) and the amenities to be provided and a development schedule. Source: Ordinance No. 365, 2nd Series Effective Date: 3-23-07 Golden Valley City Code Page 4 of 16 § 11.55 a. Preliminary Grading Drainage and Erosion Control Plan b. Preliminary Tree Preservation Plan c. Preliminary Building Code Analysis 2. Preliminary Plat. All data required for a preliminary plat by the requirements of the Subdivision Regulations Chapter of the City Code. This requirement may be waived if the PUD is an amendment to an approved PUD. 3. Narrative. A narrative statement explaining how the proposed PUD will meet the purpose and other provisions of the PUD Ordinance including how it will: a. Encourage, preserve and improve the health, safety and general welfare of the people of the City by encouraging the use of contemporary land planning principles. b. Achieve a high quality of site planning, design, landscaping, and building materials which are compatible with the existing and planned land uses. c. Encourage preservation and protection of desirable site characteristics and open space and protection of sensitive environmental features including steep slopes, trees, scenic views, water ways, wetlands and lakes. d. Encourage construction of affordable housing and a variety of housing types. e. Encourage creativity and flexibility in land development. f. Encourage efficient and effective use of land, open space, streets, utilities and other public facilities. g. Allow mixing land uses and assembly and development of land to form larger parcels. h. Encourage development in transitional areas which achieve compatibility with all adjacent and nearby land uses. i. Achieve development consistent with the Comprehensive Plan. j. Achieve development consistent with the City's redevelopment plans and goals. Golden Valley City Code Page 5 of 16 § 11.55 k. Encourage development that is sustainable and has a high degree of energy efficiency. 4. Future Requirements. The applicant is advised to consider the requirement for a Final PUD Plan when preparing the Preliminary PUD Plan. 5. Other. An applicant may submit any additional information which may explain the proposed PUD. B. Planning Department. Upon submission of a completed application, the Planning Department shall: 1. Refer. Refer the application to the Physical Development Department for their written evaluations regarding those aspects of the proposal which affect the particular department's area of interest. 2. Notify. Notify by mail property owners within five hundred (500) feet of the PUD, or a larger area to be determined by the City, of the public information meeting. However, failure of any property owner to receive notification shall not invalidate the proceedings. 3. Report. Prepare a report and refer it to the Planning Commission for review at the informal public hearing. C. Planning Commission. 1. Informational Public Hearing. The Planning Commission shall hold an informal public hearing and consider the application for consistency with the Intent and Purpose provisions and other PUD requirements and principles and standards adhered to in the City. The Planning Commission's report to the Council shall include recommended changes, conditions, or modifications. 2. Petitioner. The petitioner, or the petitioner's representative, shall appear at the public information meeting in order to answer questions concerning the proposed PUD. 3. Findings. The findings and action of the Planning Commission shall be forwarded to the Council. D. City Council. 1. The Council shall hold a public hearing, and take action on the application. All property owners within five hundred (500) feet of the PUD, or a larger area as determined by the City, shall be given notice of the meeting. The public hearing shall be called and notice thereof given in the manner required by statute. Golden Valley City Code Page 6 of 16 § 11.55 2. Findings. The findings and action of the Council may include a request for plan amendments, approval, denial, or other action deemed appropriate by the Council such as referral back to the Planning Commission. E. Findings. Approval of a Preliminary PUD Plan requires the following findings be made by the City. 1. Quality Site Planning. The PUD plan is tailored to the specific characteristics of the site and achieves a higher quality of site planning and design than generally expected under conventional provisions of the ordinance. 2. Preservation. The PUD plan preserves and protects substantial desirable portions of the site's characteristics, open space and sensitive environmental features including steep slopes, trees, scenic views, creeks, wetlands and open waters. 3. EfFicient - Effective. The PUD plan includes efficient and effective use (which includes preservation) of the land. 4. Compatibility. The PUD Plan results in development compatible with adjacent uses and is consistent with the Comprehensive Plan and redevelopment plans and goals. 5. General Health. The PUD plan is consistent with preserving and improving the general health, safety and general welfare of the people of the City. 6. Meets Requirements. The PUD plan meets the PUD Intent and Purpose provision and all other PUD ordinance provisions. Source: Ordinance No. 318, 2nd Series Effective Date: 12-31-04 Subdivision 6. Application Procedure - Final PUD Plan A. Application and Final PUD Plan Requirements. Unless the applicant has obtained City Council permission under Subd. 5(A) hereof to develop a project over more than two (2) years, the applicant shall submit a complete Final PUD Plan within one hundred eighty (180) days of Preliminary PUD Plan approval. Such one hundred eighty (180) day period may be extended for additional one hundred eighty (180) day periods by the City Council in the exercise of its sole discretion subject to such additional conditions as it deems appropriate. The Final PUD Plan shall be consistent with the Preliminary PUD Plan approved by the City Council, as well as the PUD Intent and Purpose provisions hereof. The standards and other provisions of this section shall include, but not be limited to, the following: Source: Ordinance No. 419, 2nd Series Effective Date: OS-29-09 Golden Valley City Code Page 7 of 16 § 11.55 1. Site Plan/Development Plan. Plans of the proposed PUD development which identify all land uses and proposed square footage, the location of buildings, existing and proposed roadways and accesses, pedestrian ways and sidewalks, proposed parking areas, traffic volume projections, areas to be preserved, public and common areas, building elevations including height and materials, preliminary utilities plan, the location of the parcel's boundaries, the net and gross density of the development, the total area occupied by the development, the amenities to be provided and the development schedule. 2. Setbacks. Setback measurements from buildings, roads, parking and high use outdoor activity areas to the nearest lot lines shall be shown on the Site Plan. A narrative shall describe these setbacks and provide the rationale and justification. The City may allow some flexibility in setbacks if it benefits all parties and the environment. Requiring greater or allowing lesser setbacks may be based on uses on and off the site, natural amenities and preservation, topography, density, building heights, building materials, landscaping, lighting and other plan features. 3. Preservation Plan. A Preservation and Open Space Plan showing the areas to be preserved and spaces to be left open shall be provided. Preference shall be given to protecting sensitive environmental features including steep slopes, trees, scenic views, waterways, wetlands and lakes. The plan shall include new plantings, fixtures, equipment and methods of preservation. Said plan and information may be included on the Landscape Plan. a. Wetlands and Ponds Guidelines. Wetlands and ponds shall have a riparian buffer strip at least twenty-five (25) feet wide composed of natural vegetation but not an improved and/or fertilized lawn. b. Buffers. Provisions for buffering the PUD site from adjacent uses shall be included. Natural amenities shall be used to the extent possible and be supplemented by additional landscaping, berms or other features as may be appropriate. Buffers shall be based on the type of uses on and adjacent to the site, views, elevations and activities. Buffers may be included on the Landscape Plan. c. Tree Preservation Plan. A complete tree preservation plan consistent with the PUD requirements and the Preliminary PUD Plan as approved by the City. d. Landscape Plans. Comptete landscaping plans showing vegetation to be removed, vegetation to be retained and proposed vegetation. Plans shall include species, quantities, planting methods and sizes. Within any specific PUD, the landscaping may be required to exceed the City's policy on minimum landscape standards. Golden Valley City Code Page 8 of 16 § 11.55 4. Public Space. Properties within PUDs are subject to the dedication of parks, playgrounds, trails, open spaces, storm water holding areas and ponds as outlined in Section 12.30, subdivision 1 of the Subdivision Code, the Comprehensive Plan, redevelopment plans or other City plans. 5. Transportation and Parking Plan. A complete plan shall be submitted which includes: a. Proposed sidewalks and trails to provide access to the building, parking, recreation and service areas within the proposed development and connection to the City's system of walks and trails b. Internal roads, if any c. Driveways d. Parking, including layout dimensions of spaces and aisles, total parking by use, and a notation about striping/painting the spaces e. Off-street loading for business uses f. A plan for snow storage and removal g. A plan for maintenance of the facilities h. A calculation of traffic projections by use with assignments to the roads, drives and accesses serving the PUD, including existing traffic volumes for adjacent streets using the most recent counts and/or based on the uses and trip generation estimates i. A description of the alternatives and locations considered for access to the site and the rationale used in selecting the proposed location, width and design of streets, driveways and accesses. 6. Private Streets. Private streets shall not be approved, nor shall public improvements be approved for any private right-of-way, unless a waiver is granted by the City based on the following and other relevant factors: a. Extension of a public street is not physically feasible as determined by the city; b. Severe grades make it infeasible according to the city to construct a public street to minimum city standards; c. The city determines that a public road extension would adversely impact natural amenities; or Golden Valley City Code Page 9 of 16 § 11.55 d. There is no feasible present or future means of extending right-of-way from other directions. e. If the City determines that there is need for a public street extension, this provision shall not apply, and the right-of-way for a public street shall be provided by dedication in the plat. 7. Private Street Design Standards. a. The street must have adequate width consistent with the Transportation Plan and must be located and approximately centered within an easement at least four (4) feet wider than the street. b. The private street shall be designed to minimize impacts upon adjoining parcels. c. The design and construction standards must result in a functionally sound street in balance with its intended use and setting. d. The number of lots to share a common private access drive must be reasonable. e. Covenants which assign driveway installation and future maintenance responsibility in a manner acceptable to the City must be submitted and recorded with the titles or the parcels which are benefited. f. Common sections of the private street serving three (3) or more dwellings must be built to a seven-ton design, paved to a width of twenty (20) feet, utilize a minimum grade, and have a maximum grade which does not exceed ten percent (10%). g. The private street must be provided with suitable drainage. h. Covenants concerning maintenance and use shall be filed against all benefiting properties. i. Street addresses or City-approved street name signs, if required, must be posted at the point where the private street intersects the public right-of-way. B. Grading, Drainage and Erosion Control Plans. Complete plans for grading, drainage and erosion control which meet the City's standards shall be submitted. The plan shall show hard surface calculations by areas - buildings, private streets, driveways, parking lots, plazas, walks, trails, and all other impervious surfaces. Hard surface coverage is expected not to exceed the following standards. Golden Valley City Code Page 10 of 16 § 11.55 Uses Maximum Hard Cover Percent Single Family 38% Townhouses 40% Apartments-Condominiums 42% Institutional Uses 45% Industrial Uses 70% Business Uses 80% Commercial-Retail 90% Mixed Uses of Housing with Retail, Office or Business 90% C. Utilities and Service Facilities. The applicant shall provide a plan showing how the site will be served by utilities. D. The applicant shall submit a Final Building Code Analysis. E. Refuse and Garbage. The applicant shall provide a refuse disposal Plan including provisions for storage and removal on a regular basis. (In residential developments, all waste/refuse shall be stored inside a principal structure or a garage until the day of pick-up. In commercial, business and institutional developments refuse may be stored in a principal building or in an enclosed screened in area designed of materials to match the principal building.) F. Architectural plans. The applicant shall submit architectural plans showing the floor plan and elevations of all sides of the proposed buildings including exterior wall finishes proposed for all principal and accessory buildings. Cross sections may be required. G. Sign Plan. The applicant shall submit a Sign Plan including the location of proposed signs, size, materials, color, and lighting. In those instances where not all signs are known, a sign policy shall be presented to the City for the City's review consistent with PUD requirements. Sign design, policies, style, colors, locations, size, height, materials and accompanying landscaping must be consistent with achieving a high quality development meeting the PUD intent and purpose provisions. H. Dwelling Information. The applicant shall submit complete data as to dwelling unit number, density net and gross, sizes, types, etc. I. Life-Cycle and Affordable Housing. If the PUD includes "life-cycle" or affordable housing, the applicant shall provide a narrative describing the housing, and the guarantees such as covenants to be used to secure such housing and maintain long term affordability. J. Population. The applicant shall submit a population component which shall contain a descriptive statement of the estimated population and population characteristics. Golden Valley City Code Page 11 of 16 § 11.55 K. Employees. If office, commercial, business, service firms or institutional uses are included in the PUD, the estimated number of employees shall be included. L. Final Plat. Unless waived by the City, the applicant shall submit a final plat, as required by Chapter 12 (Subdivision Regulations) of the City Code. The title of the plat must include the following "P.U.D. No. " (The number to insert will be provided by the City.) M. Schedule. The applicant shall submit a schedule and proposed staging, if any, of the development. N. Narrative. The applicant shall submit a description of the development especially as it relates to use of PUD provisions and explaining how it meets the purpose and other PUD provisions including how it will: 1. Encourage, preserve and improve the health, safety and general welfare of the people of the City by encouraging the use of contemporary land planning principles. 2. Achieve a high quality of site planning, design, landscaping, and building materials which are compatible with the existing and planned land uses. 3. Encourage preservation and protection of desirable site characteristics and open space and protection of sensitive environmental features including steep slopes, trees, scenic views, water ways, wetlands and lakes. 4. Encourage construction of affordable housing and a variety of housing types. 5. Encourage creativity and flexibility in land development. 6. Encourage efficient and effective use of land, open space, streets, utilities and other public facilities. 7. Allow mixing land uses and assembly and development of land to form larger parcels. 8. Encourage development in transitional areas which achieve compatibility with all adjacent and nearby land uses. 9. Achieve development consistent with the Comprehensive Plan. 10. Achieve development consistent with the City's redevelopment plans and goals. Golden Valley City Code Page 12 of 16 § 11.55 11. Other. The applicant may submit any additional information which may explain the proposed PUD. 12. City Manager or his/her designee. The City Manager or his/her designee may require more or less information than that listed above. O. Planning Commission. 1. Public Hearing. The Planning Commission shall hold an informal public hearing. All property owners within five hundred (500) feet of the PUD or a larger area as determined by the City, shall be given notice of the meeting. 2. Consistency. The Commission shall review the Final PUD plan for consistency with the Preliminary PUD Plan as approved by the Council, and the conditions, if any imposed by the Council, the Intent and Purpose provisions, all other provisions of the PUD ordinance, and principles and standards adhered to in the City. 3. Findings. The findings, actions and report of the commission to the Council may include recommended conditions and modifications to the Final PUD Plan. P. City Council. 1. Public Hearing. The City Council shall hold a public hearing. All property owners within five hundred (500) feet of the PUD or a larger area as determined by the City, shall be given notice of the meeting. 2. Action. The action of the Council may include plan amendments, approval, denial, or other action based on findings and deemed appropriate by the City Council. Q. Findings. Approval of a Final PUD Plan requires the following findings be made by the City: 1. Quality Site Planning. The PUD plan is tailored to the specific characteristics of the site and achieves a higher quality of site planning and design than generally expected under conventional provisions of the ordinance. 2. Preservation. The PUD plan preserves and protects substantial desirable portions of the site's characteristics, open space and sensitive environmental features including steep slopes, trees, scenic views, creeks, wetlands and open waters. 3. Efficient. Effective. The PUD plan includes efficient and effective use (which includes preservation) of the land. Golden Valley City Code Page 13 of 16 § 11.55 4. Consistency. The PUD Plan results in development compatible with adjacent uses and is consistent with the Comprehensive Plan and redevelopment plans and goals. 5. General Health. The PUD plan is consistent with preserving and improving the general health, safety and general welfare of the people of the City. 6. Meets Requirements. The PUD plan meets the PUD Intent and Purpose provision and all other PUD ordinance provisions. R. Approval. Approval of a Planned Unit Development shall be by ordinance requiring an affirmative vote of a majority of the City Council. Subdivision 7. PUD Agreement Following Council approval of a Final PUD Plan, City staff shall prepare a PUD agreement which references all the approved plans, specifies permitted uses, allowable densities, development phasing, required improvements, completion dates for improvements, the required Letter of Credit and additional requirements for each PUD, in accordance with the conditions established in the City Council approval of the Final PUD Plan and PUD ordinance. The PUD agreement shall be signed by the petitioner within thirty (30) days of the City Council's approval of the agreement. Subdivision 8. Building Permit Following approval of a Final PUD Plan and execution of the PUD agreement, the City may grant building permits for proposed structures within the approved PUD area provided the requested permit conforms to the Final PUD Plan, all provisions of the PUD ordinance, the PUD agreement and all other applicable City Codes. Subdivision 9. Multiple Parcels A PUD may be regulated by a single agreement which may include attachments. One (1) or more of the attachments may cover an individual lot. An applicant amending an approved PUD must show that the proposed change does not adversely affect any other property owner, if any, in the PUD, the terms of the PUD Plan and PUD Agreement, and the Intent and Purpose and other provisions of the PUD Ordinance. A proposed amendment which does not meet this requirement may be rejected by the City without review as would otherwise be required by the ordinance. Subdivision 10. Amendments An application to amend a PUD shall be administered in the same manner as that required for an initial PUD; however, a minor amendment may be made through review and approval by a simple majority vote of the City Council with or without referral to the Planning Commission. To qualify for this review, the minor amendment shall not: A. Eliminate, diminish or be disruptive to the preservation and protection of sensitive site features. Golden Valley City Code Page 14 of 16 § 11.55 B. Eliminate, diminish or compromise the high quality of site planning, design, landscaping or building materials. C. Alter significantly the location of buildings, parking areas or roads. D. Increase or decrease the number of residential dwelling units by more than five percent (5%). E. Increase the gross floor area of non-residential buildings by more than three percent (3%) or increase the gross floor area of any individual building by more than five percent (5%). F. Increase the number of stories of any building. G. Decrease the amount of open space by more than three percent (3%) or alter it in such a way as to change its original design or intended function or use. H. Create non-compliance with any special condition attached to the approval of the Final PUD Plan. Subdivision 11. Cancellation A PUD shall only be cancelled and revoked upon the City Council adopting an ordinance rescinding the ordinance approving the PUD. Subdivision 12. Administration A. Records. The Planning Department shall maintain a record of all Planned Unit Developments approved by the City Council including information on the use, location, conditions imposed, time limits, review dates, and such other information as may be appropriate. Each approved PUD shall be clearly noted on the Zoning Map. B. Certification of Plans. The City may require that PUD plans be certified at the time of submittal and/or upon completion of construction. C. Time Limits. No application which was denied shall be re-submitted for a period of six (6) months from the date of said denial. D. Letter of Credit. To Assure Conformance to the Final PUD Plan and Agreement the City may require the applicant to post a Letter of Credit in a form approved by the City, guaranteeing the faithful performance of certain work or matters covered in the agreement and in a sum equal to one hundred fifty percent (150%) the total cost of all such items as determined by the Physical Development Department. The Letter of Credit or other surety may be reduced when specific parts or items are completed and upon recommendation of the Physical Development Department. Golden Valley City Code Page 15 of 16 § 11.55 E. EfFect on Conveyed Property. In the event any real property in the approved PUD Agreement is conveyed in total, or in part, the buyers thereof shall be bound by the provisions of the approved Final PUD Plan constituting a part thereof; provided, however, that nothing herein shall be construed to create non-conforming lots, building sites, buildings or uses by virtue of any such conveyance of a lot, building site, building or part of the development created pursuant to and in conformance with the approved PUD. Source: Ordinance No. 318, 2nd Series Effective Date: 12-31-04 Golden Valley City Code Page 16 of 16 REIN IN AND REFORM THE USE OF PLANNED UNIT DEVELOPMENTS g, REIN IN AND REFORM THE USE OF 1 PLANNED UNIT DEVELOPMENTS INTRODUCTION The inflexibility of Euclidean single-use zone districts,in- contributions to infrastructure. PUDs,which spread rapidly appropriate development and dimensional standards, and after the concept was introduced in the i�6os, are attractive Byzantine approval processes have given rise to the use of because they are often simpler and quicker than seeking mul- negotiated developments in many communities.These negoti- tiple amendments and variances to an outdated zoning code. ated developments usually take the form of planned unit devel- opments (PUDs),planned developments,or master-planned Originally, PUDs were conceived of and used to allow flexibil- communities.This discussion will use PUD as the collective ity in design standards to take advantage of site characteristics term. PUDs allowed communities to overcome some of the or to address community goals (e.g.,clustering development strictures of Euclidean zoning and provided a vehicle for local to provide open space or protect sensitive natural areas). 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Sea Ranch in Northern Cali- ■ Major planning decisions are made with less public input fornia was a model of PUD,using attractive design to better into defining the community objectives prior to a develop- integrate with the natural environment. Many of the initial ment proposal. Traditional Neighborhood Developments (TNDs)were ap- . Environmental and design standards are often minimized proved through a PUD process. in the process. Today,however,relatively standard suUdivisions are being ' Often this process creates an administrative nightmare approved using PUDs as an alternative to rewriting zoning for staff that have to deal with multiple mini-zoning codes and subdivision regulations for time and cost considerations. created for each PUD,each of which differs on develop- PUDs allow communities to impose conditions as part of the ment standards and other requirements. approval,which cities use to ensure they receive the appropri- ■ The planning process becomes a project-by-projectpro- ate infrastructure,off-site improvements,and fees to offset cess rather than a comprehensive development review, development impacts.The initial objective of distinctive or and more of a political process than an evaluation of plan- attractive design,however, often is lost as part ofthe PUD ning regulations and community goals. process. RESPONSE TO THE PROBLEM The PUD approach has now proliferated to the point that To respond to these problems,communities are reducing the most projects of any size or significance are approved that way. use of PUDs by updating their zoning districts and standards Some observers estimate that upwards of 4o percent2 of all to accommodate preferred development patterns and types. residential units in the United States each year are approved They are also limiting the use of PUDs to larger projects that through a PUD process, not conventional zoning.The result is can provide compensating community benefits without waiv- that many growing cities are not the products of their land use ing key design and environmental standards. plans and zoning codes,but rather the result of individually negotiated agreements. Indeed,in a growing number of com- Communities are attempting to get out in front of PUD pro- munities,all major developments are being reviewed through posals by creating PUD zoning regulations or design guide- the PUD process.3 lines.These are generally developed as part of a community design process so that the city can define its goals for a site or As this trend proliferates,communities have increasingly area prior to specific development proposals. Principles,regu- recognized the downside of relying too heavily on PUDs and lations,and design guidelines are then used in conjunction negotiated developments,including: with PUD zoning to provide clearer direction while allowing ■ There is significant uncertainty for developers,who have the desired design flexibility. no standards to guide the development approval process, and for neighbors of proposed PUDs,who find that they cannot rely on existing zoning or land use plans and that the city planning staff controls much of the planning process. ■ Project reviews can become longer,less efficient,and politically charged and can drag out for years. z Duerksen,C."Rural Smart Growth Zoning Code Tools."American Planning Association Narional Conference,April a8,200�. 3 IUid. ��:��»� November 2009 - Essential Smart Growth Fixes for Urban and Suburban Zoning Codes � 11 __._�..._REIAI.IIaLANn RFFnRM THF I ISF nF P.LAnI�alEf]_W�Il�.f1EYFLf�Pl�ILIS.___._ �.____.___._._.._.....__...._...,w._�,...._...._,_.___,._._..__.._..____.______� �`� �= Arterial Blvd. �� . �, � ___. �� """—�`-'—""" This drawing of the >< pry ��1 f'( D�C Belmar neighborhood Neighborhood shows how the ��--J�� development fits . ��_ . � � I within the context of . ;. neighboring uses. � r�� ]r.� " �r""' Ad'acent .. 1 • • Neighborhood . . . . � • .` .,,•.:` . .:+`;'' �. , � . •� ��. �t.�. �� • . rT�•� r�`„ • � �•`� • ti��• • ii • `� • Riparian , : � Corridor . Linear Parks ; �' � � � Hillside Van Meter Williams Pollack EXPECTED BENEFITS and additional impacts in the PUD-designated areas, and Increased certainty and predictability in the development reduce the use of PUDs on small sites (under z acres). • review process while still allowing appropriate design flex- ' Remove or substantially reduce the need to use PUDs by iUility. fixing dimensional standards,particularly on small par- Setting the basic goals and fundamental standards for cels. (See Essential Fix No. a.) ■ an area's development prior to a specific development ■ Create standards for PUD (e.g.,apply Traditional Neigh- proposal: Uorhood Design policies,standards,and design guidelines as base PUD regulations prior to receiving development - Creates an efficient design and review process and requires less staff time to administer the development proposals). over time. ■ If PUDs are allowed, rein them in by establishing a mini- - Adheres to community growth visions and goals as es- mum size for PUD projects,identifying specific allowable tablished in comprehensive plans and gives the develop- locations,and prohibiting waivers or other weakening of ment sector clear direction on the quality,character,and important environmental and design standards. fundamental elements the community wishes to see in Z• Major Modifications any proposal. ■ Prohibit PUDs as an alternative to following comprehen- - Prevents important design and environmental standards sive plans and zoning codes.This may require communi- from being waived or weakened in the PUD process. ties to run public input processes to provide the detailed goals,objectives, and design elements for individual STEPS TO IMPLEMENTATION development proposals for larger sites.The community 1. Modest Adjustments may also decide to rewrite its zoning regulations. ■ Reform the PUD process to ensure that the parcel is 3. Wholesale Changes designed appropriately given topography, adjacent uses, ■ Create distinctive area and sector plans that give dear guidance to staff and the development community as to the vision and intended built-out of development. Comple- ment these plans with accompanying zoning. 12 � Essential Smart Growth Fixes for Urban and Suburban Zoning Codes -November 2009 �y[�� ■ Prior to accepting a development proposal for an area, ■ Larimer County,Colorado. "Proceedings of the Board of communities should undergo a public master planning County Commissioners, February 8,��."ht�t �fwww. process to set goals and objectives;map land use and co.larimer.co.us/bcc i�g�/BCc�c ozo8.HTM.Accessed zoning;and set standards,regulations,and development July io, aoo�. quality through guidelines for the entire planning area. ■ Implement an overlay district that allows the develop- ment of a site or area if specific standards are adopted.An example could be an overlay of the SmartCode or another set of development regulations onto an area designated in the comprehensive plan for future development. PRACTICE POINTERS ■ Consider establishing a list of compensating community benefits (such as a park,sidewalks,or trails)that the com- munity expects in return for flexibility in uses,density, and other factors.This will reassure the community that they will get Uenefits from development and provide some certainty for developers regarding negotiated benefits. EXAMPLES AND REFERENCES ■ Newby, B. "Planned Unit Development: Planning Imple- mentation Tools." Center for Land Use Education. Novem- ber aoo5.�•.l�ftp.wi.gov/DOA�public/comprehensive- plans/ImplementationToolkit/Documents/P U D.pdf. ■ New York State Legislative Commission on Rural Resourc- es.A Guide to Planned Unit Development. State of New York. Fall zoo5.pp.q-8.http://www.dos.state.ny.us 1 ss[ pdfs/PUDi.pdf. ■ Benton County,Oregon. "Chapter ioo: Planned Unit Development in Corvallis Urban Fringe." Benton County Development Code.April i��. http_//www.co.benton. or.us/cd/planningJdocuments�dc-ch_ioo.pdf.Accessed August iz, aoo�. ■ City of Westminster, Colorado. Design Guidelines for Tradi- tional Mixed Use Neighborhood Developments.April zoo6. pp.iz-i8.http://www.ci.westminster.co.us/fileJtmund. �df. ■ City of Mountain View,California. "Precise Plans."http:// www.mountainview.gov/city_hall/community_develo� ment/planning�plans_regulations_and_guidelines/pre- cise_plans.asp.Accessed August ia, zoo�. ■ St. Lucie County, Florida. "Chapter�: Recreation and Open Space Element." Land Development Code. May zoo�. httpl/www.municode.comfresources atewa . as��id=iq.64i&sid�--c.Accessed August i2,200�. ��:�� November 2009 - Essential Smart Growth Fixes for Urban and Suburban Zoning Codes � 13 Current Major PUD Amendment Process Estimated Time 6 Months (10 steps) • Applicant meets with City staff to discuss PUD amendment -. • Submit application and preliminary plans -. • Applicant holds a neighborhood meeting _� • All property owners within 500 ft of development are notified • Application is reviewed by Physical Development and Fire Departments _� � • Staff reports are prepared • Planning Commission reviews preliminary plans at an informal public _� hearing • City Council reviews preliminary plans at public hearing • Applicant meets with City staff to review submission of final plans _. _ • Submit application and final plans • Planning Commission reviews final plans at an informal public hearing -. • City Council reviews final plans at a public hearing • City Council approves Final Plat, PUD Permit, and Development Agreement Proposed Major PUD Amendment Process Estimated Timeline 3 Months (7 steps) . � • Applicant meets with City staff to discuss PUD amendment • . � • Submit application and final plans • Applicant holds a neighborhood meeting ' ' • All property owners within 500 ft of development are notified • Application is reviewed by Physical Development and Fire Departments ' ' • Staff reports are prepared _ � • Planning Commission reviews final plan at an informal public hearing • City Council reviews final plans at a public hearing • City Council approves Final Plat, PUD Permit, and Development Agreement if " • applicable Current and Proposed Minor PUD Amendment Process Estimated Timeline 2 Months (5 steps) . � • Applicant meets with City staff to discuss PUD amendment • . � • Submit application and final plans • Applicant holds a neighborhood meeting ' • • All property owners within 500 ft of development are notified • Application is reviewed by Physical Development and Fire Departments ' ' • Staff reports are prepared _ e • City Council reviews final plans Proposed Administrative PUD Amendment Process Estimated Timeline 3 Weeks (3 steps) • Applicant meets with City staff to discuss PUD amendment . • • Submit application and final plans . . • Staff reviews plans and updates PUD Permit Public Amenity Requirements City of Minneapolis Planned Unit Developments Melissa Sonnek & Emily Goellner August 17, 2015 The following information is found in the City of Minneapolis Planned Unit Development Application: http://www.minneapolismn.pov/www/qroups/public/@cped/documents/webcontent/convert 274010.pdf ARTICLE II. AUTHORIZED ALTERNATIVES 527.120. Alternatives to zoning ordinance standards. The city planning commission may approve alternatives to the zoning regulations applicable to the zoning district in which the planned unit development is located, as authorized in this chapter and as listed in Table 527-2, Authorized Alternatives, where the planned unit development includes site amenities. Site amenities are listed in Table 527-1, Amenities, and are subject to the following standards: (1) All planned unit developments shall provide at least one (1) amenity or a combination of amenities that total at least ten (10) points, beyond those required for any alternative(s), and even if no alternative(s) is requested. (2) For each alternative requested, an amenity or a combination of amenities totaling at least five (5) points, in addition to the amenity(ies) required in section 527.120(1), shall be provided. For multiple requests of the same alternative only one (1) amenity shall be required for those alternatives, except for revisions made to an already approved planned unit development as an amendment to the planned unit development. (3) Unless otherwise determined by the city planning commission, each phase of the planned unit development shall include the amenities provided for any alternatives in that phase, as a part of the construction of that phase. (4) In no case shall any item be counted as an amenity for an alternative if it is utilized to qualify for a density bonus in any zoning district, a floor area ratio premium in the Downtown Districts, or any other amenity in Table 527-1, Amenities. (5) Where an amenity is provided that meets the standards required in Table 527-1, Amenities, the full point value assigned to said amenity shall be obtained. Where the amenity does not meet all of the standards required in Table 527-1, Amenities, no points shall be awarded. Partial points for alternatives shall not be awarded, except as otherwise allowed in Table 527-1, Amenities. Nothing in this chapter shall be construed to provide a property owner with any property right or other legal right to compel the city to grant alternatives to this zoning ordinance. � Table 527-1 Amenities Points Amenity Standards Inclusion of housing, office, or other active uses around the perimeter of all Active liner floors of a parking garage that face a public street, sidewalk, or pathway. In 10 uses as part of any district where liner uses are already required on the first floor, points shall a parking only be awarded for liner uses on all other floors above the first where parking garage is located. False or display windows shall not qualify. Installation of an extensive, intensive, semi-intensive, modular or integrated 10 Green roof green roof system that covers a minimum of fifty (50) percent of the total roof area proposed for the development. Historic Preservation, rehabilitation or restoration of designated historic landmarks as 10 a part of the development, subject to the approval of the Minneapolis Heritage preservation Preservation Commission. Leadership in The proposed development shall meet the minimum standards for LEED Silver Energy and certification. The project does not have to achieve actual LEED certification; 10 however, the developer must submit the LEED checklist and documentation to Environmental the City, approved by a LEED Accredited Professional (LEED-AP), that shows Design (LEED) that the project will comply with LEED Silver requirements. The proposed development shall meet the minimum required and recommended MSBG standards that would equal a LEED silver certification. Minnesota Sustainable The developer must submit documentation to the City including the MSBG 10 Building checklist and a letter, signed by the owner or a licensed design professional, Guidelines that shows that the project will comply with MSBG required and (B3-MSBG) recommended standards equivalent to a LEED Silver certification. The recommended standards utilized should be those that most closely align with City sustainability goals. Dedication of land and construction of a public road, alley, pathway, or Public right-of- greenway that is part of an approved City plan or that restores the city's 10 Way traditional grid subject to the approval of the applicable agencies or dedication departments. Right-of-way improvements should be designed in accordance with Chapter 598, Land Subdivision Regulations. Points shall not be awarded for the reconstruction or relocation of an alley to facilitate an alley vacation. All parking shall be located underground. Where the grade of the site slopes Underground significantly, all parking shall be enclosed in a floor level of the building that 10 does not meet the definition of a story. Further, exterior parking garage walls parking adjacent to the public street shall not extend more than three (3) feet above the adjacent grade measured from the finished floor of the first level. Conservation 5 of the built Significant renovation, rehabilitation and adaptive reuse of an existing environment building(s), rather than demolition. Permanent and viable growing space and/or facilities such as a greenhouse or a garden conservatory at a minimum of sixty (60) square feet per dwelling unit Garden�s) or to a maximum required area of five thousand (5,000) square feet, which 5 on-site food provide fencing, watering systems, soil, secured storage space for tools, solar production access, and pedestrian access as applicable. The facility shall be designed to be architecturally compatible with the development and to minimize the visibility of inechanical equipment. Table 527-1 Amenities Points Amenity Standards Use of a photovottaic or wind electrical system, solar thermal system and/or a On-site geothermal heating and cooling system for at least seven (7) percent of the 5 renewable annual energy costs in new and existing buildings. Geothermal systems shall energy not use vapor compression systems. The applicant must demonstrate that the quantity of energy generated by the renewable energy system(s) meets the required percentage through a whole building energy simulation. Contiguous ground level outdoor open space that is related to and proportional with the bulk of the building and landscaped with trees and shrubs. Rain gardens, where appropriate, are encouraged. Walkways and pathways shall be surfaced with pervious pavers, pervious concrete, decorative pavers, stamped concrete, colored concrete, brick or other Outdoor open decorative and durable materials. A minimum of thirty (30) percent of the site 5 not occupied by buildings shall be landscaped outdoor open space. A minimum space of fifty (50) percent of the provided open space shall be contiguous. The open space must be immediately accessible from the principal structure. Areas should be designed for winter use and relate to the built form with consideration given to elements such as providing shelter from wind, utilizing seasonally appropriate materials, maximizing access to sunlight and providing for snow and ice removal. An active, outdoor children's play area with a minimum of fifty (50) square feet for each unit containing three or more bedrooms but not less than five hundred (500) square feet of play area to a maximum required area of five thousand (5,000j square feet. The play area shall be secure, shall be separated from parking and maneuvering areas, and shall be designed to facilitate adult Outdoor supervision. The play area shall include play equipment, installed to the 5 children's play manufacturer's specifications, or natural features suitable for children in both area preschool and elementary school. Play equipment shall not be located in a required yard and not more than twenty-five (25j percent of the required square footage of the play area may be located in a required yard. Play areas should be designed for winter use and relate to the built form with consideration given to elements such as providing shelter from wind, utilizing seasonally appropriate materials, maximizing access to sunlight and providing for snow and ice removal. Plazas shall have a minimum area equivalent to ten (10) percent of the site not occupied by buildings, but not less than two thousand (2,000) square feet and 5 Plaza shall comply with all provisions in Chapter 535, Regulations of General Applicability. Plazas for commercial or mixed-use development shall be open to the public during daylight hours. Provision of art that shall strive to promote quality design, enhance a sense of place, contribute to a sense of vitality, show value for artist and artistic processes, and use resources wisely. The art shall be maintained in good order 3 Art feature for the life of the principal structure. The art shall be located where it is highly visible to the public. If located indoors, such space shall be clearly visible and easily accessible from adjacent sidewalks or streets. The art shall be valued at not less than one-fourth (.25) of one (1) percent of the capital cost of the principal structure. Table 527-1 Amenities Points Amenity Standards Decorative or pervious provide decorative pavers, pervious pavers, stamped concrete, colored surface for on- site parking concrete, pervious concrete, brick or other decorative or durable materials for 3 and loading a minimum of seventy-five (75) percent of surface parking and/or loading areas, drives, areas, drives aisles, driveways and walkways that comply with the Americans driveways and With Disabilities Act accessibility requirements. walkways. Utilization of energy design assistance programs or commissioning to ensure that building systems are designed to operate efficiently and exceed the 3 Energy Minnesota State Energy Code by at least thirty (30) percent of the annual efficiency energy costs. The developer must submit documentation to the City including a letter signed by the owner or a licensed design professional, that shows the project will comply with this standard. Provide a living wall system on at least one (1) building elevation. The living wall shall be composed of panels that total a minimum of sixty (60) percent of 3 Living wall the wall area on the building elevation, or five hundred (500) square feet, system whichever is greater. Window area is included in the calculation of the wall area, but in no case shall the living wall cover windows. A portion of the plantings shall provide greenery year round. 3 Natura7 Site planning that preserves significant natural features or restores ecological features functions of a previously damaged natural environment. A site and building design that allows for exceptional and accessible pedestrian and/or bicycle access through and/or around a site that exceeds the Pedestrian requirements of Chapter 530, Site Plan Review. The improvements shall use a 3 combination of landscaping, decorative materials, access control and lighting improvements to create a safe, clear and aesthetically pleasing access through and/or around the site that complies with the Americans with Disabilities Act accessibility requirements. Utilize roofing materials for seventy-five (75) percent or more of the total roof 3 Reflective surface having a Solar Reflectance Index (SRI) equal to or greater than the Roof values as required by the US Green Building Council (USGBC) for low-sloped and steep-sloped roofs. Public access to shared bicycles available for short-term use as defined in section 541.180. Applies to mixed-use and non-residential uses only. A 3 Shared minimum of ten (10) shared bicycles per one (1) commercial use must be bicycles provided to qualify as an amenity. Bicycle parking spaces and racks shall be located in an area that is convenient and visible from the principal entrance of the building. Shared Access to a shared passenger automobile available for short-term use. For 3 residential uses, a minimum of one (1) car per one hundred (100) dwelling vehicles units is required. Table 527-1 Amenities Points Amenity Standards Install high-quality decorative metal fencing where visible from the public Decorative street, public sidewalk or public pathway. The point for decorative fencing may 1 be obtained when it is included as part of another amenity if it is also provided fencing in other areas on the site. In no case shall chain-link fencing be considered decorative fencing. Enhanced Lighting plan that highlights significant areas of the site or architectural 1 exterior features of the building(s), subject to the standards of Chapter 535, lighting Regulations of General Applicability. A landscaping plan of exceptional design that has a variety of native tree, Enhanced shrub, and plant types that provide seasonal interest and that exceed the 1 landscaping requirements of Chapter 530, Site Plan Review. The landscaped areas shall have a resource efficient irrigation system. The landscaping plan shall be prepared by a licensed landscape architect. Provide capacity for infiltrating stormwater generated onsite with artful rain Enhanced garden design that serves as a visible amenity. Rain garden designs shall be 1 stormwater visually compatible with the form and function of the space and shall include management for long-term maintenance of the design. The design shall conform to requirements of the stormwater management plan approved by public works. 1 Heated drives Heated drives or sidewalks that are designed to provide snow and ice free or sidewalks surfaces. A pet exercise area shall have a minimum dimension of twelve (12) feet by Pet Exercise sixty (60) feet. It shall be enclosed with decorative fencing, include lighting in 1 compliance with Chapter 535, Regulations of General Applicability and provide Area accommodations for proper disposal of animal waste. The pet exercise area shall not be located in a required yard. Provide an easily accessible area that serves the entire building and is Recycling dedicated to the collection and storage of non-hazardous materials for 1 recycling, including but not limited to paper, corrugated cardboard, glass, storage area plastics and metals. The recycling storage area shall be located entirely below grade or entirely enclosed within the building. The inclusion of additional or larger tree islands in the interior of parking lots that exceed the requirements of Chapter 530, Site Plan Review. Larger tree 1 Tree islands islands shall have a minimum width of ten (10) feet in any direction and shall provide shrubs, plant materials, and/or rain garden plantings in addition to the trees. A water feature, including but not limited to a reflecting pond, a children's play 1 Water feature feature or a drinking fountain shall be located where it is highly visible to and useable by the public. As Amenities The city planning commission may consider other amenities not listed in Table determined proposed by 527-1, Amenities, that are proportionally related to the alternative requested. by CUP. the applicant The commission may assign one (1), three (3), five (5), or ten (10) points based or others on the proportionality. As Amenities that The city planning commission may consider up to five (5) additional points to determined significantly the point value listed for any amenity in Table 527-1, Amenities, where the by CUP. exceed commission finds the proposed amenity substantially exceeds the standards standards required in Table 527-1, Amenities, for the amenity. ZONING CODE AUTHORIZED ALTERNATIVE AMENITY STANDARD REQUIRED Section 527.130. 1) To allow more than one (1) principal residential structure to be Number of principal No residential structures. p�aced on one (1) platted or recorded lot. Section 527.140. Bulk 1) To increase the maximum gross floor area ratio by not more than twenty (20) percent. Yes regulations. 2) To increase the maximum height of structures. 1) To allow reductions in the area of individual lots within the planned Section 527.150. Lot unit development from the required lot area of the zoning district. 2) To allow a density bonus to increase the maximum number of Yes area requirements. dwelling units by not more than twenty (20) percent in districts that limit the number of allowed dwelling units. 1) To allow a reduction or elimination of required yards within the planned unit development. 2) To allow a reduction or elimination of required yards along the Section 527.160. periphery of the planned unit development, except along property Yes Yards. lines abutting a side or rear lot line of a residential district or property lines abutting a side or rear lot line of a structure used for permitted or conditional residential purposes. 1) To allow alternatives to the building placement requirements in the Section 527.165. PO Pedestrian Oriented Overlay District, except where to allow Yes Building placement. parking between the principal structure and the front or corner side lot line. Section 527.170. On- To allow alternatives to the sign standards. Yes premises signs. To allow alternatives to the following: 1) Minimum and maximum amount of required off-street parking and Section 527.180. Off- loading. street parking and 2) Minimum amount of required bicycle parking. No loading. 3) Minimum width of parking aisles. 4) Minimum and maximum width of driveways.