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97-09 HRA Resolution . . . Resolution 97-9 May 13, 1997 Commissioner LeSuer introduced the following and moved its adoption: RESOLUTION APPROVING THE REVISED NORTH WIRTH PARKWAY REDEVELOPMENT PLAN UPDATE IN THE FORM APPROVED BY THE CITY COUNCIL, MARCH 18, 1997 WHEREAS, the Housing and Redevelopment Authority (HRA) approved and adopted Resolution 97-5 on February 18, 1997, which revised the North Wirth Redevelopment Plan (the Plan); and, WHEREAS, the Plan, as approved and adopted, was forwarded to the City Council (Council) with the request that the Council hold a public hearing relating to the adoption of the Plan, and that said Plan shall be placed on file in the office of the City Clerk; and, WHEREAS, on March 18, 1997, the Council, by Resolution 97-34, adopted said Plan with the following amendments: A new objective is added under the second goal, which reads as follows: "That development in this area will occur with an emphasis on protection of wetlands and other natural resources." Under Current Action Plan Components for the Central Area, the fourth bullet should be revised to read as follows: "Establishment of lighted ball fields, trail, tot lot and other park facilities on City- owned open space, and upgrading of area to be retained for storm water management." WHEREAS, the HRA now wishes to adopt the Plan in the same form as approved by the Council. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Golden Valley that the "North Wirth Parkway Redevelopment Plan Update" attached hereto as "Exhibit A" is hereby approved, adopted and directed to be placed on file in the office of the City Clerk. BE IT FURTHER RESOLVED that the attached North Wirth Parkway Redevelopment Plan Update shall be filed with the Minnesota Department of Revenue. . Resolution 97-9 (Continued) May 13,1997 ATTEST: Motion r the adoption of the foregoing resolution was seconded by Commissioner Russell; and upon a vote taken thereon, the following voted in favor thereof: Anderson, Johnson, LeSuer, Micks and Russell; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Chair and her signature attested by the Director. . . . . . Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 NORTH WIRTH PARKWAY REDEVELOPMENT PLAN Part I: OVERVIEW Area Location and Boundaries The North Wirth Parkway redevelopment area (Exhibit A) is considered to be one of Golden Valley's "gateway" locations. Fronting on the north side of Olson Memorial Highway (Highway 55) and extending a full mile from the edge of Wirth Park to Highway 100, it establishes the character of the City in the eyes of many travelers coming west out of Minneapolis. In contrast to its length, North Wirth is only about a quarter-mile in width, extending from the highway to the Chicago Northwestern railroad tracks. The area includes about 108 acres of land. Evolution of North Wirth Planning As early as 1973, the triangle of land known today as North Wirth's East Area (bounded by Wirth Park, Olson Memorial Highway, and the Soo Line Railroad tracks) was singled out in Golden Valley's comprehensive plan as "an area in need of renewal". Two of this area's most visible businesses were a 1940's-style drive-in restaurant that closed in 1971 and a gun/bait shop. Neither met zoning code requirements. In the mid-1970's, owners of both came to the City for permission to expand or otherwise alter the use of the properties, which would have required significant variances to legitimize existing conditions. The Council confronted the issue of community image head-on. Giving the businesses a new lease on life appeared contrary to Golden Valley's best interests, but leaving them to deteriorate in place was no longer an acceptable alternative. The North Wirth Parkway redevelopment area was created as a solution to the problem. The original North Wirth Parkway Redevelopment Plan was adopted by a recently established Golden Valley Housing and Redevelopment Authority (HRA) on September 18, 1978. At that time, it covered only the triangular area previously identified as being in need of renewal. In addition to accommodating expansion of facilities owned by the railroad company and an existing paper plant, the plan contemplated construction of a 100,000 square foot office development and a 21,000 square foot convenience retail center. 1 """ 0) 0) I. "r- Ct'i "r- >- ('IJ :E <( t:: III :c ~ - ~ c: o () - 0) I r--. 0) c: o :;::; ::::s o en CJ) 0:: " CITY OlF' GOlLDEN V A.lLlLEY . .. - 'II 1_ ~ _ ~_~__...... I , EXHIBIT A: LOCA TION OF NORTH WIRTH PARKWAY REDEVELOPMENT 'AREA . . "i" N Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 . The first amendment to the plan was adopted on April 9, 1979. The most significant changes were the elimination of the proposed commercial center and the near doubling of the proposed office development to 190,000 square feet. A . proposed Highway 55 traffic signal was also shifted from Indiana Avenue to Meadow Lane, and other traffic circulation details were modified. The second plan amendment was adopted on March 9, 1982. With it, the HRA again increased the amount of office space to be included in the area, this time to 290,000 square feet. The scope of the increase required that construction of a parking ramp be added to the plan as well. The third amendment to the North Wirth Parkway Redevelopment Plan was adopted on February 16, 1988. It enlarged the redevelopment area to its present size and established redevelopment concepts for the newly added territory, which was divided into the Central Area and the West Area of North Wirth Parkway. The original area was renamed as the East Area. A "basis for certification" section of the plan was deleted and replaced by a more generic "finding" statement. The original list of objectives was completely rewritten and increased from five statements to 18. . The plan for the Central Area called for either restaurant/hotel or restaurant/office redevelopment at Highway 55 and Ottawa Avenue as well as more effective use . of land occupied by existing businesses and excess railroad right-of-way. For the West Area, complete redevelopment with medium to high density residential uses was preferred, though limited convenience-type retail uses were also contemplated for part of the area. In both areas, extensive highway access and frontage road improvements were a top priority. Rather than expanding the railroad facilities, the revised East Area plan contemplated complete removal of all railroad uses except for basic trackage, with replacement by light industrial uses for the most part. A second office complex was planned along the highway frontage directly west of the first office development, where previous versions of the plan had called for retention or expansion of existing industrial or railroad uses. The paper company expansion was left in the plan, but was reoriented to the north of the existing site rather than to the east as in earlier plan versions. . The North Wirth Parkway Redevelopment Plan contained in these pages marks the fourth amendment since the creation of North Wirth back in 1978. It reflects the HRA's attempt to maximize available and expected tax increments in order to . best position the North Wirth area for continued improvement through private investment after the district is ended. 3 . . . Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 Environmental Remediation One area to be addressed in this amendment is environmental investigation and remediation which must be done to redevelop the property and comply with federal and state requirements. In 1991 the railroad property (mostly in the East Area) purchased for redevelopment was discovered to have significant contamination. In 1993 a Central Area combined site composed of the former White House restaurant land and the land platted as the Schaper Natural Area was placed on the State Superfund Permanent List of Priorities. The contamination is considered a blight, to be cleaned up to create developable parcels and to avoid migration to adjoining property through surface or ground water. Financing of Activities North Wirth's East Area is a tax increment financing (TIF) district. That designation allows Golden Valley's HRA to finance redevelopment activities throughout the redevelopment area from taxes generated by "captured" increases in taxable value. The taxable valuation of a TIF district is "frozen" when the district is created. Taxes on this base valuation continue to be collected and distributed among the various taxing jurisdicti9ns as usual. As redevelopment activities generate increased valuation for properties within the district, taxes on the amount of valuation over and above the base valuation are distributed directly to the HRA on an annual basis. These moneys, known as tax increment, are used to finance redevelopment activities throughout the redevelopment area. When the district expires these moneys will be distributed to the various taxing jurisdictions. Of course, this is a much simplified explanation of TIF, but it conveys the general idea of how the Golden Valley HRA is able to finance the improvement of the North Wirth area. More detailed financial information is provided in Part III of this plan. More information on the creation and administration of TIF districts can be found in Minnesota Statutes 469.174 - 469.179. 4 Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 . Findings in Support of Redevelopment In order to use the redevelopment powers authorized for local HRA's under state law, a city must first make certain "findings" with regard to the area proposed for redevelopment. Findings for the original North Wirth Parkway area were adopted by City Council Resolution #128 on October 16,1978. Findings for the expanded area were adopted by City Council Resolution #88-15 on February 16, 1988. There are minor variations in wording between the two resolutions, but they consist of the same basic points, identified as follows: · The North Wirth Parkway area is found to be a blighted area within the meaning of applicable state statutes; · The redevelopment program outlined in the North Wirth Parkway plan is necessary to eliminate and prevent the spread of blight; · The affected area is subject to conditions preventing private' development and would not be available for redevelopment without governmental assista~ce and financial aid; . · The plan for the area maximizes opportunities for redevelopment by private enterprise. consistent with the needs of the City as a whole; · The plan is sufficiently complete to indicate its relationship to the City's objectives regarding appropriate land uses, and to indicate the general redevelopment land uses and standards for the area; · There is a feasible method for the relocation of households that may be displaced by redevelopment efforts, and adequate replacement housing and other relocation benefits will be provided to such households by the HRA in accordance with applicable federal and state regulations; and · The objectives and purposes of the North Wirth Parkway plan are consistent with the general land use proposals and planning objectives established by the City of Golden Valley in its comprehensive plan. . 5 Resolution 97-9 (Con't.) EXHIBIT A May 13, 1997 . Redevelopment Goals and Objectives There have been changes in details and wording of statements over the years, but the basic aims of the North Wirth Redevelopment Plan have remained fairly constant throughout all of its amended versions. Specific redevelopment uses and activities are identified in Part II of this plan. Broader goals and objectives are as follows: Goal Remediation of blighting conditions to stimulate appropriate private redevelopment efforts. . Objectives · Acquire and demplish dilapidated, deteriorated, or vacant buildings for which rehabilitation is deemed unfeasible. · Acquire and demolish obsolete buildings or buildings with substantial code deficiencies for which modernization is deemed unfeasihle. · Acquire and demolish facilities with substantial nonconformities in_ parkinglloading areas, landscaped yard areas, percentage of lot coverage, or other aspects of zoning or land use. · Investigate and correct areas of contaminated soil or groundwater. · Identify and implement strategies as necessary to reduce the likelihood of future environmental degradation through intentional dumping or unintentional spills or leaks. Goal Strengthening of area tax base through coordination of redevelopment activities. . Objectives · Assemble small lots or poorly configured unplatted parcels of land into new development sites of suitable size and configuration to meet modern zoning standards and land use demands. · Promote expansion or redevelopment of uses on currently under-used parcels that have potential for greater contribution to the economic welfare of the community. · Evaluate and facilitate reasonable development of vacant land encumbered by steep slopes, poor soils, excessive wetness, or other development-inhibiting natural conditions. · Identify appropriate uses for targeted redevelopment sites, seek qualified developers, and ensure successful redevelopment outcomes via negotiated development agreements. 6 . . . Resolution 97-9 (Con't.) EXHIBIT A May 13, 1997 · Development in this area will occur with an emphasis on protection of wetlands and other natural resources. .GQal Improvement of public infrastructure to encourage more effective use of available land. Objectives · Assist MnDOT as necessary with expedited reconstruction of the frontage road system for Highways 55 and 100, and with signalization of improved access points. · Reconstruct or augment the internal street system as necessary to provide efficient access and to accommodate large-scale development. · Provide and/or upgrade storm water detention, drainage, and filtering facilities. Provisions For Plan Amendment The North Wirth Parkway Redevelopment Plan may be amended from time to time as required for adjustment to changing conditions. Approval of any such amendment must be undertaken in accordance with applicable provisions of state law. Where the HRA determines that a change in the Plan is necessary, and further determines that such change does not alter or affect overall redevelopment area boundaries, nor does it depart substantially from the general land uses established in the Plan, such change shall not constitute an amendment to the approved North Wirth Parkway Redevelopmwnt Plan and shall not require City Council approval. 7 Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 . Part II: REDEVELOPMENT PLAN COMPONENTS As indicated in Part I of this plan, North Wirth is divided for planning purposes into three sub-areas: the East Area, the Central Area, and the West Area (Exhibit B). The following pages present a summary of land use characteristics and planned and completed redevelopment activities for each sub-area. East Area Among the three sub-areas, the East Area displayed the least advantageous initial land use characteristics. Ten years older than the other two parts of North Wirth, it has also been the focus of the most extensive redevelopment activity over the years. Even with time out for remediation of significant soil an~ groundwater contamination, most targeted redevelopment projects have' been completed or are well in hand. (Exhibit C) . Boundaries and Size Triangular area bounded on east by Wirth Park, on south by Olson Memorial Highway (Hwy. 55), and on northwest by railroad tracks. Also known as "original" North Wirth Parkway area. Approximately 38 acres in size. Initial Land Use Characteristics (1978) · Unplanned intermixing of small scale residential, commercial, and industrial uses near park and highway, with Hennepin County Animal Humane Society, a major box manufacturer, and encroaching railroad uses extending southeasterly from the railroad tracks. · Most of area platted in small (40 to 50 feet wide) residential lots dating back to 1915. · Many vacant lots under widely dispersed ownership. · . Widespread zoning nonconformities, including businesses in residential structures, inadequate on-site parking, inadequate or nonexistent landscaped areas, and structures too big for sites. · Increasing building code violations and structural decline. · Inadequate and hazardous access to and from highway. . · No curbs, gutters, or sidewalks on internal streets; pavement nonexistent or deteriorated; many street and alley segments vacated for railroad yard use. 8 EXHIBIT B: 0>1 I "'" 0> C o +::: ::J o en 0)" , a:: I . --~ -~- NORTH WIRTH PARKWAY AND SUB-AREAS ------. --- -/J- NORTHWESTERN - --= - -- --- 7' - --r- - --n- - - RAILROAD --- CENTRAt!fREA n J'I ,--'- ..L _ _ ,~ ',.. FROllTAGE '!oj), ..I ( , [bjl;t. I' ;. _. _ /,' \ 10 OLSON MEMORIAL HW~ I - - I L OLSON MEMORIAL /\\ ------~-~jr~~-ll-l r-lj-lj-lj--' \~tO\)O~t 'l'l\~\~ 0'1 ~",~~-N",i 1 NO SCALE ....... (J) (J) 'l'"- EXHIBIT c: (\") 'l'"- co :2E <( ?- m :c >< w ----------- - RAILROAD ---- (J)' , I ....... (J) c: o :.;::; :J (5 UJ Q) c::: EAST AREA AND TAX INCREMENT DISTRI~ -'/ I ~ ~ '/DEVELOPMENT I SITE I ~' I ~I POND I I ~1 1 IZ}-l _~~_D~~_~~ ~ I 1 LANE /----1 I I Ll----l SI TE I ; MEN T I ,. I [:A~P 1 : @ \ SITE I I 0, \ ~ I ~ DAHLBERG g' Lr-, JZ~ p.-- I POSSIB1JE INC. ~LjIRTH PAR~/ - /')/ /'. 1 rCQUIS'- B 1::' ____~EN!~~, /#,) 1 // L_______j TION_ -'-J 940~Or! ~J TRUNK HWY. NO. 55 / \'0tO'VO?: 't1\~\\\ o ...... ? ~~'f..'l'l ~ Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 . Planned Characteristics Mix of large scale office, office/warehouse, and light industrial uses, with office development preferred adjacent to highway. Animal Humane Society to remain in place. Due to prohibitive cost of acquisition, box manufacturer to remain in place with site improvements as feasible. Activities Completed to Date · Buyout and removal of all residential uses and all railroad uses except basic trackage. · Construction of redesigned internal street system. · Construction and signalization of redesigned highway access. · Construction of local storm water ponding facility. · Remediation of soil and groundwater pollution generated by former uses. · Development of Wirth Park Center -- 260,000 square foot office complex in three buildings, with associated parking ra~p (can accommodate approximately 40,000 square feet of additional office space through vertical expansion of tallest office building and parking ramp). . · Development of Dahlberg, Incorporated -- 87,700 square foot corporate headquarters and hearing aid manufacturing facility. · Development of Grow Biz International-- 47,500 square foot office, warehouse, and training center for company specializing in purchaselresale of various popular commodities. Current Action Plan Components · Development of one remaining site east of Dahlberg Drive, including necessary soil corrections. · Development of one remaining site west of Dahlberg Drive, including necessary soii corrections. · Development of one remaining site north of Animal Humane Society. · Potential acquisition and demolition of one remaining older building (Juhl Brokerage) on highway side of easterly development site, with accompanying relocation of existing business. . 11 Resolution 97-9 (Con't.) EXHIBIT A May 13, 1997 . Central Area . . Central Area redevelopment plans have been the least ambitious of the three, with few targeted redevelopment sites. Activities have been slowed by three factors: the need to wait for MnDOT to complete necessary highway frontage road and access improvements: the discovery of previously unsuspected soil and groundwater contamination, and legal problems arising in connection with one of the proposed redevelopment sites. (Exhibit D) Boundaries. and Size Area bounded on north and east by railroad tracks, on south by Olson Memorial Highway (Hwy. 55), and on west by property line between City-owned open space area and Valley Village Apartments excess land. Approximately 43 acres in size. Original Land Use Characteristics (1988) · . Mix of industrial, office, ~howroom, and hospitality/service uses, not always appropriately zoned. · Highly visible vacant and deteriorating restaurant building fronting on highway, on a site partially filled with construction debris, later determined to include contamination. · Excess railroad right-of-way sitting vacant in northeasterly angle between tracks, with difficult topography and no street access to accommodate sale and development. · Moderate zoning nonconformities, including inadequate on-site parking and inadequate or nonexistent landscaped areas. · Most of area never platted, some parcels with no direct street access, several parcels of ample size but with poor configuration for optimized site use. · Poorly located frontage road with hazardous access to and from highway. · Approximately 15 acres of City-owned permanent open space in westerly half of area, providing a natural surface water management area at the westernmost edge, portions of which were filled in with construction debris; . site of illegal dumping over the years. Planned Characteristics Same basic mix of industrial, office, and hospitality/service uses, with open space at west end. Most existing buildings to remain in place, with site improvements as feasible. Productive re-use of excess railroad right-of-way and former restaurant property, and augmented use of permanent open space. . 12 EXHIBIT 0: CENTRAL AREA OLSON MEMORIAL .------------- - ~ RAILROAD --- <(I 1-1 iD J: >< W NORTHWESTERN _--1 -:r-r- IMPROVEMENT PROJECT (ENVIRONMENTAL CLEANUP, I STORM WATER MANAGEMENT, II RECREATIONAL FACILITIES) I" ~ wi ,,-LLL _ _ _ J~I I FRONTAGE RD. <( . r ---I~I ( i I~ / \ .10 /" \ PO ENTIAL I L AC UISITION I --- ----.;""RG -=OiR~ - \-\U3j: ~ / (' ( I I \ '. I ;1 I.LJ I I~ -~ M - m I I"- m c o . :+:i :J "0 en Q) a:: -~----~--U-/#~~-ll--l r-lr-l r-l NO SCALE ~~~ , Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 . Activities Completed to Date · Construction of redesigned highway frontage road and signalization of access. · Acquisition of excess railroad right-of-way, platting and provision of street access through linkage to East Area development site. · City-ordered demolition of deteriorated former restaurant building. · Environmental studies and commencement of remediation activities for soil and groundwater contamination found on City-owned open space and former restaurant site. · Commissioning of study for proposed lighted ball fields and related storm water management improvements on City-owned open space. . Current Action Plan Components · Completion of clean-up activities on City-owned property . · Coordination of platting for relocated frontage road segment and various 'parcels of land affected by it, including City-owned property and tax-forfeit former restaurant property · Acquisition of former restaurant site, currently a tax-forfeited property, for completion of environmental clean-up and ultimate redevelopment in combination with small portion of City-owned property "orphaned" by construction of new frontage road. · Establishment of lighted ball fields, trail, tot lot and other park facilities on City-owned open space, and upgrading of area to be retained for storm water management. · Development of former excess railroad right-of-way site which is part of an East Area lot. West Area West Area redevelopment plans have experienced the least progress of the three. There is some uncertainty about the redevelopment potential of the westernmost end of the area due to the lack of final design plans for Highway 100 expansion and associated frontage road reconstruction. In the late 1980's, a proposal for complete area redevelopment with high density luxury apartments fell through due to poor market conditions, which have only recently begun to improve again. (Exhibit E) . 14 EXHIBIT E: !::I OJ! J: >< W I I --~ t:::::I: ~ --l 10 12 I I I / I .~ 0> I I"- 0> c: o ~ ::J "0 en Q) c::: NO SCALE >- .$ I WEST ARE I I L r--FUTURE FRONTAGE ROAD EXTENSION . / ==--. ACROSS RAILROAD TRACKS ~- ~ ~-- --- W I- <( l- (/) r-~1~-~_--- I ~. ;:-H.90DAY~). -- ,) , 'L- --1f I L_ _..~,;' OLSON MEMORIAL HWY. --- - ----.--- /\\ (( --\ Ln ri \1 . Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 . Boundaries and Size Area bounded on south and west by Highways 55 and 100, on north by railroad tracks, and on east by property line between Valley Village Apartments excess land and City-owned open space area. Approximately 27 acres in size. Original land Use Characteristics (1988) · Aging, low density apartment development (111 units on 16 acres -- three unplatted parcels, two of them mostly vacant, wet and low), restaurant, General Motors employee training facility, and part of an old motel converted for small office uses (remainder of motel buildings demolished several years earlier, with bulk of site left vacant). · Widespread zoning nonconformities, including inadequate on-site parking and inadequate or nonexistent landscaped areas. · All parcels except two in apartment site small and/or with difficult to develop configurations. -. Hazard()us access to and from both highways. . Planned Characteristics Medium to high density residential use, which may involve more efficient redevelopment of existing apartment site. Possibility of limited office or convenience/service facilities along either highway frontage. Activities Completed to Date · Construction of redesigned Highway 55 portion of frontage road; closing of hazardous access points on both highways, with traffic channeled to new signalized access in Central Area. Current Action Plan Components · Support of and assistance with MnDOT efforts in final design and construction of Highway 100 frontage road. · Support of and assistance with MnDOT efforts to consolidate and dispose of . any remnant parcels created by additional right-of-way acquisitions for Highway 100 frontage road. · Extension of storm water management improvements as identified for Central Area. . 16 . . . Resolution 97-9 (Con't.) EXHIBIT A May 13,1997 Part III: FINANCIAL PLAN Costs incurred by the Golden Valley HRA in its North Wirth redevelopment activities fall into several categories. These include land acquisition, building demolition, business and household relocation, environmental remediation, public improvements such as streets and utilities, and administrative costs. The HRA is committed to only use tax increment proceeds to finance these expenditures. The tax increment district comprising all of the East Area is the source of funding for the whole redevelopment area. In most cases the proceeds of tax increment bonds will be used to finance these redevelopment expenditures. The debt service on the bonds will be repaid by. the tax increment generated by the district. Tax increment not needed for debt service can be used to directly finance redevelopment expenditures. Exhibit F is an analysis of the projected cash flow in the district based on projects. which are currently being planned for the area as of the date of this amendment. Other projects are likely to come up in the future, especially in the Central Area. The district is in excellent financial position and should be able to finance these projects. 17 . . . City of Golden Valley - HRA - Tax Increment EXHIBIT F District Projections. North Wirth IaxJncrement Fund: ;0 CD en 1997 1998 1999 2000 2001 Q. c - o. Projected Cash Balance @1/1 $4,500,000 $2,246,565 $2,707,205 $3,179,450 $3,840,120 ::J co " I fJw: co - (') 0 ::J Estimated Tax Increment 1,225,000 1,225,000 1,225,000 1,225,000 1,225,000 ~ - UH: ..... Trans. to Cap. PrQj. Funds: co Central Area Ballfields (Incl. Environmental Cleanup & Wetland Mitigation) (2,730,000) m >< :c Debt Service: lD -i 1995 Taxable Tax Incr. Ref. Bonds (5.81%) (748,435) {764, 360) (752,755) (564,330) (534,820) )> Projected Cash Bal. @12131 $2,246,565 $2,707,205 $3,179,450 $3,840,120 $4,530,300 Bonds Outstanding @ 12/31 $2,365,000 $1,715,000 $1,040,000 $520,000 $0 s: m '< -"" w -"" co co "