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HomeMy WebLinkAbout12.18.74 Special Council Minutes 91 MINUTES APPROVED COUNCIL MEETING SPECIAL DECEMBER 18, 1974 The meeting was called to order by the Mayor at 7:30 P.M. Present: Mayor Daily, Trustees Akin, Graphenteen, Kuchera and McElmury Also Present: Attorney Gorgos, Secretary Karen Finstuen, HRA Members Sifferath Hansen, Meehan, Shea and Snyder, Consultants Chapman and Tooker, Dakota County HRA Representative Arneson, St. Paul HRA Representa- tives Jack Bagley and Lori Peterson The Mayor opened the previously advertised public hearing at 7:30 P.M. He read into the record the published notice of hearing. Warren Sifferath briefly described the reasons for the formation of the Farmington Housing and Redevelopment Authority (FHRA) . He then turned the meeting over to Bill Chapman who explained that the FHRA was formed to work with the people of Farmington, and how a Farmington Downtown Redevelopment Plan (FDRP) had been formalized, which concerns land sale, occupants, relocations, etc. , received a recommendation from the Planning Commission to be presented to the Council. He gave a complete and detailed description of the objectives of the FDRP, explained how the project would be financed, and pointed out that none of this could be done without a Housing and Redevelopment Authority. Warren Sifferath explained the Zoning Ordinance which was adopted in 1969 and that the FDRP would not change that ordinance. Businesses would be placed in the correct zoning area but no land or business would be acquired until a developer were interested. Mr. Bagley then read to the audience steps of acquisition which gave time limits to file claims and maximum amount of claims in residential and business areas. The Mayor then read into the record a letter from the Planning Commission giving their acceptance of the FDRP and recommending it to the Council, a letter from the Downtown Businessmen explaining their wants and needs for the FDRP to help the downtown business area to grow. Also a resolution from the Farmington Industrial Development Corporation endorsing the action of the FHRA. The Mayor then invited discussion from the Audience: John Luckow, 317 3rd St - Would tax increment include all businesses? Sifferath, FHRA - Assessed valuation would not go up but as the mill rate changes they would continue to pick up their share of the taxes. Harry McElmury, council - Is there a limit of years that this money going to the HRA from development would continue? Sifferath, FHRA There would be no limit of years only until completed. Jack Bohm, 317 Walnut - How would this affect residential taxes? Sifferath, FHRA - They would not be affected. Marvin Kuchera, 5 5th St- When would this property be acquired, what about leases with renters? Sifferath - It could be 2 years or 5 years, whenever a developer were interested. As to leases the Authority must satisfy. Leroy Graphenteen - Would aid be given to present owners to rehabilitate their property? Sifferath - No. G. Gilbertson, 804 7th - Regarding zoning, does the Authority supercede the Planning Commission? Sifferath - No, the FDRP overlays the zoning ordinance. Gilbertson - If the Planning Commission would recommend parking require- ment changes in the downtown area would that change other areas in town? Bill Chapman If ordinance were to change it could affect any area depend- ing upon how written, right now the Downtown area apparently has a parking problem and the Planning Commission is doing an occupancy study at this time. Robert Steele, 426 3rd - Wondered if the Planning would be better on this project than that on the Downtown Improvement project of streets and sidewalks and if a business had no parking available what would be done? Sifferath - Business with no parking is not good and the Authority would aid in that problem. 9 A Pat Akin, Council - Parking and pedestrian walkways take up 54,410 sq. ft. of the downtown area and 85,000 is taken up by businesses who would pay taxes? How would we obtain all this land for parking? Chapman - This is feasible but the financing must work first before the parking lots happen. The occupancy study may prove different in need of parking. The City would assume re- sponsibility of G.O. Bonds. Pat Murphy, 421 Elm - What are you asking approval of, just Map 'A' or the entire improvement area? Sifferath - The entire area, development will take place as developers and areas become feasible. R. Steel - Is this primarily the block south of Spruce between 3rd and 2nd? Sifferath - Yes, for a Grocery Store. John McBrien - Regarding the questions that Gilbertson asked - does HRA have the power to rezone? Sifferath - No. McBrien - W 1.1 Parking lots be assedd against benefited property or ad-valorem? Sifferath - That has not bee decided and it would be a council decision. Luckow - Asked for further explanation on parking lots? Sifferath - The parking survey should tell us what requirements each business needs for parking, it would also depend on the type of business, possibly parking costs would be borne by benefited property owners. Eugene Kuchera, Council - For the people in the residential areas affected by this project how could they rebuild at the high cost they would now have to pay? Bagley - As an example, if their property were sold for $15,000 and if they were to receive the maximum relocation claim of $15,000 they would have $30,000 to relocate and re- build. To make this move and receive this claim it would have to be a comparable size house. Pat Akin - Would any compensation be made for people who now live very near the Downtown area, do not drive and would have to relocate to an area further away? Sifferath - No there would be none but we are only talking about six residences at this time. Harold Elbert, 105 Oak - If you are forced to move and cannot find comparable housing, is there a time limit? Bagley - Yes, you have one year to file a claim after the re- location. Eugene Kuchera - Would it be possible to move the house to another location? Sifferath - Yes, if a building permit can be obtained. Richard Anderson - Are there any relocation of house benefits? Bagley - Yes, if the authority has it in their plan. Harbee Theraldson - Would that be to the advantage of the Authority? Sifferath - Yes, if the house were not deteriorated. Al Fischer, 426 3rd - Can I be assured of my same yearly income if my building were destroyed? Bagley - If this is the only business that you have you would be eligible for relocation claim over and above the amount of money you would be paid when the HRA purchased your building. Alice Falls, 309 3rd - Will this subject be put to a vote before the people or is it cut and dried? Lawrence Daily - It will be put to a vote by the council, a referendum is not permitted by law. The Mayor closed off discussion with the public at 9:50 P.M. and asked for comments and discussion by the council. There was a lengthy discussion between members of the Council and others present and Mr. Arneson of the Dakota County HRA explained of housing being made available through the County for displaced persons and the needy. After reviewing what had been discussed throughout the meeting the Mayor asked for a decision. 93 ,. Council Minutes Page 3 12/18/74 Motion by Daily, second by McElmury to adopt resolution Rlll-74 adopting the Farmington Downtown Redevelopment Plan. Voting or: Daily, Graphenteen, McElmury. Voting against: Akin. Abstaining: Kuchera. Motion carried. Motion by Daily, second by Graphenteen to adopt resolution R112-74 requesting tib e ikota County Auditor to certify the most recently determine-(Jan, 1974) assessed valuation of all taxable real property in the Farmington Downtown Redevelopment Project area. APIF, motion carried. Motion by McElmury, second by Graphenteen directing the City Clerk to notify tTe Farmington Housing and Redevelopment Authority in writing, that the Downtown Redevelopment Plan was adopted and to transmit copies of the above resolutions. APIF, motion carried. Motion made and carried to adjourn at 10:50 P.M. Respectfully submitted, Karen M. Finstuen Secretary to Administrator kf REDEVELOPMENT PLAN FOR DOWNTOWN REDEVELOPMENT PROJECT HOUSING AND REDEVELOPMENT AUTHORITY FOR THE CITY OF FARMINGTON, MINNESOTA DECEMBER, 1974 �I PREPARED BYr NASON WEHRMA , N, CHAPMAN ASSOCIATES, INC. MINNEAPOLIS, MINNESOTA AND CHARLES TOOKER, CITYAND TOWN PLANNING FARMINGTON, MINNESOTA CO NTENTS -Page The Redevelopment Plan comprises the following: A. PURPOSE I B. DESCRIPTION OF PROJECT 1 1 i . Boundaries of the Redevelopment Area 1 2. Redevelopment Objectives 1 1 3. Types of Proposed Redevelopment Actions 2 C. LAND USE PLAN 3 1 , Explanation of the Land Use Plan 3 2. Land Use Provisions and Building Requirements- Permitted Uses 3 D. PROJECT PROPOSALS 5 Lund Acquisition 5 2. City and Authority Obligations `5 3. Rehabilitation 6 4. Land Disposition and Developer's Obligations 6 E. PROVISIONS NECESSARY TO MEET STATE AND LOCAL REQUIREMENTS 6 1 Contract Regulations 6 2. Non-Discrimination 6 3. Vacation and Dedication of Public Rights-of--Way 7 F. PROCEDURE FOR CHANGES IN APPROVED PLAN 7 €:XHIBITS Exhibit A Project Map Exhibit B Land Use Plan r A. PURPOSE The Redevelopment Plan is prepared as the basic document for the guidance of re- newal efforts within the Downtown Redevelopment Project. The document is a guide for the City of Farmington, Minnesota, herein known as the "City" and the Housing and Redevelopment Authority for the City of Farmington, Minnesota, here- in known as the "Authority" in the performance of redevelopment activities. Re- development in accordance with this Plan is considered essential for the correction and improvement of a.seriously blighted portion of the central area of the City of Farmington. B. DESCRIPTION OF PROJECT 1 . Boundaries of the Redevelopment Area a. The boundaries of the Renewal Area are shown in Exhibit A Project Map. All reference to the project or project area refers to the lands within the boundary of the Downtown Redevelopment Project. b. Boundary Description tion Beginning at the intersection of the center of Elm Street and Fourth Street and extending southerly to the center of the alley between Spruce Street and Walnut Street then westerly to the center of First Street then norther- ly to the center of alley North of Elm Street then easterly to the center of Second Street then southerly to the center of Elm Street then easterly to the point of beginning. 2. Redeveloppent Objectives With the basic goal of redeveloping the central area of Farmington, the Re- development Pian is intended to accomplish the following objectives through this redevelopment activity. a. Enhance the livabilityd the inherent values of the anpreserve City of Farmington through the elimination of seriously blighted areas of the community by: 1 . Removing substandard, blighted, and obsolete structureq. 2. Removinga land uses andestablishing sound land use relationships. b. Foster economically sound development in the project area by: 1 . Making space for new sound business development in the business area. 2. Providing lands of sufficient size to permit economical and ap- propriate business area development. 1 3. Providing sound development that will assist in preserving and strengthening sound present development in the business area. 4. Encouraging new development within the project and in surround- ing areas. 5. Assuring development incorporating design of the highest standards in architecture, site planning, and landscape architecture. i6. Intensifying land uses to a point that will assure a satisfactory property valuation and local tax return., 7. Providing adequate open spaces, and public areas to improve the environment. 1 8. Preserve architectural character andualit . q Y ' 9.. Protect natural features such as trees. 10. Provide for sound housing with particular concern for middle and low income, elderly and families. c. Provide modern public improvements as may be needed such as high qual - ty street facilities, utility systems, pedestrian spaces, environmental im- provements and public parking areas. d. Accomplish redevelopment in the central area of Farmington by: 1 . Starting with project activities that are feasible and expanding 1 on the scope and involvement of the redeirelopment activity as warranted by local conditions within the redevelopment project. 2. Expanding on activities and the scale of the project as appro- priate to accomplish the above Redevelopment Plan objectives. ' 3. Perform redevelopments in such a manner that business area park- ing is accomplished incorporating perimeter parking. 3. Types of Proposed Redevelopment Actions The public redevelopment program for the Project will comprise the following activities as may be essential to accomplish the objectives: acquisition of properties, relocation of site occupants, demolition of structures, site prepara- tion, reconstruction of streets, reconstruction of utilities, vacation and dedi- cation of streets, development of parking facilities, assembly of lands into disposition parcels, disposal of land for public and private use, review of redevelopment proposals, conservation activities relating to structures and 2 lnatural features that may be allowed to remain, develop housing, perform the appropriate financial activities, and enforce the requirements contained in the Redevelopment Plan. C. LAND USE PLAN ' 1 . Explanation of the Land Use Plan The Land Use Plan Exhibit B shows: -" a. Proposed street rights-of-way b. Land proposed for parking and pedestrian area development. c. Land proposed for private use or sale for private or public uses. 2.. Land Use Provisions and Building Requirements - Permitted Uses 1 . GENERAL BUSINESS, RETAIL OR OFFICE Permitted Uses: Uses allowable within this area shall include.centrai business types of retail, office and general business activities. Use Objective: Thedevelopmentof attractive retail facilities for local and regional service. Alternate Use: Permitted alternate use of the land shall be public,. including public parking. Site Coverage: Maximum building and surface area coverage for de- velopment fonds shall be ninety (90) percent of the total site area. A minimum of ten (10) percent of the site area shall be landscaped and maintained as open space or used as a pedestrian area. Buffer: In instances where this use abuts a property zoned for a residential use, all buildings, parking areas and general paved areas shall be set back from the lot line a minimum of 10 feet. This 10 foot setback area shall be landscaped with lawns, planting or screen walls in a manner subject to Authority approval. Parking: All new developments on lands within the redevelopment area must participate in the development of central area parking. This may be by developing on-site facilities, participating in joint ownership facilities_ land/or contribut- ing to a City parking improvement program. The amount 3 i of parking to be provided shall be up to four car spaces per 1,000 square feet of retai i, office or business floor area. All parking is subject to Author ity acceptance. Service:. On-site loading facilities and space shall be provided for commercial uses with consideration given to minimize traffic obstruction and develop in a manner compatible with the pedestrian areas. Such development will be subject to Authority acceptance. 2. PUBLIC PARKING Permitted: Public parking for service to central area uses. Use Objective: The development of attractive parking facilities in public ownership with appropriate vehicle and pedestrian access.. This Redevelopment Plan assumes that the City will take on the responsibility of operating off-street.parking fa- c i l i he on a district basis. Alternate Use: Public or private uses compatible with the business area and the Redevelopment Plan Objectives. Site Coverage: Maximum building (parking structures) coverage shall be 90 percent of the total site area. A minimum of 10 percent of the site area shall be landscaped and maintained as open space or used as a pedestrian area. 3. HEAVY BUSINESS OR LIGHT INDUSTRY Permitted Uses:. Uses allowable within this area shall include fringe , business type uses, service uses, minor manufacturing and uses compatible to a sound central community area. Use Objective: Provision of space for relocation of uses that are not compatible with a retail, office or business location but are important to be located in the central area. iProvision of space requiring immediate access to vehi- cle parking. Alternate Use: Permitted alternate useof land shall be public. Parking: Al I new developments on lands within the redevelopment area must participate in the development of central area parking. This may be by developing on site facilities, participating in joint ownership facilities, or contribut- 4 ing to a City parking improvement program. The amount of parking to be provided shall be up to four car spaces per 1,000 square feet of heavy business or fight industry floor area. All parking is subject to Authority acceptance. Service: On site loading facilities and space shall be provided subject to Authority acceptance.. 4. MULTIPLE HOUSING RESIDENTIAL Permitted Uses: Uses allowable within this area shall include multiple family housing in accordance with local regulations. D. . PROJECT PROPOSALS 1 . Land Acquisition 1 Identification of Property to be acquired - Exhibit A, Project Map, identifies real properties to be acquired for clearance and redevelopment. Properties can be purchased on the basis of any of the followings a. Properties containing deteriorated, substandard or blighting influence 9 9 buildings. b. Properties necessary ry t create a adequate parcels of land for proper re use. c. Properties necessary to produce appropriate land for development by occupants relocated by this or other public action. d. Properties as necessary to provide space to accommodate the apparent market that is in accordance with the objectives of the Van and is of -benefit to the financial feasibility of the Project. e. Properties that are in a use that is contra to this Plan p contrary 2. City and Authority Obligations a. Adoption of the Redevelopment Plan serves to obligate the Authority to diligently perform the various Redevelopment Actions of the Plan in order to accomplish a successful redevelopment activity. b. Adoption of the Redevelopment Plan serves to obligate the City to aid in the activities of the Authority in the performance of public improve— ments, development of public parking facilities generally in accordance with this Plan and cooperate in the financial activities in order to assure redevelopment success. 5 _ 3. Rehabilitation a. The Authority will press for the rehabilitation of buildings remaining within the boundaries of the Project to be brought to a reasonable level of improvement in accordance with the Redevelopment Plan Objectives and local codes. Assistance will be provided as possible to help owners . find the method and means to perform such improvement. b. Structures for which rehabilitative action is found to be infeasible may be acquired by the Authority. Upon the acquisition of such properties, the Authority may demolish the structures and dispose of properties for uses in accordance with the Plan. 4. Land Disposition and Developers Obligations a. The redevelopers of properties, their successors or assigns will be required by contract with the Authority to observe all provisions of the Redevelop- ment Plan. The contract and the disposition documents for Authority land sale will detail the provisions, standards, and criteria for achieving the objectives and requirements set forth in this Plan. The Authority will select redevelopers of land on the basis of their proposals, determination of their ability and timing for the performance of improvements, and conformance to the Redevelopment Plan. b. Disposition of properties may be through fixed price offerings, through nego- tiations, where objectives are determining factors or by other means which in the determination of the Authority will best assure the attainment of the City and Authority objectives of this Pion. Disposition of land for public use will be performed by direct negotiation. i , c. On-site utilities for any primary use, including among other things, elec- trical lines, telephone lines and other communication and utility lines, shall be constructed by the developer and shall be placed underground. E. PROVISIONS NECESSARY TO MEET STATE AND LOCAL REQUIREMENTS 1 .. Contract Regulations Every.contract for sale, lease, or redevelopment of property within,the project area shall include prohibitions against land speculation and will require com- pliance with all applicable State and local laws and ordinances. 2. Non-Discrimination Every contract for sale, lease, or redevelopment of property within the project area shall include prohibitions against discrimination or segregation by reasons of race, color, creed, religion, sex, or national origin, and shall require that 6 ' MAIN ST. U) I■C -- uv z F o I-- w ccnn ELM ■I■1■I■I■1■I■I■I■I■I■I■I■)■I■I■I■I■I■I■I■I minim I■1 Elm I■I■loin ST. ■ o/, la DE " 14 13�1�' --- � — ��''�� q 13(x) 13(�) ■ � ]2 ■ I1 LI �8 ■ ■ w (R ■ 1 E) 6 ■_ ■ 1�?' rn�ry t q ■ ■_ 4 u � u l0 9 6 � 6 3 I ■_ ■ 2(s) 2(. ■ OAK ; ST. 4 4 5(2) IS(g1 q 4) In IC ■ ■ � � 77-----�1 ✓�(1) II I 1 13 I IS 1 1e �I ■ i 8 i i ■ x ■ 2 ■ ( I(z) O SPRUCE : ST. i Ial d � 4Lin I _ )0 I■I■II■I ■ H U) _ F- OLL i I- u FL WALNUT ST. PROJECT MAP ACQUISITION AREAS PROJECT BOUNDARY I■I■I■I■I■I■I.I■I■ REDEVELOPMENT PLAN DOWNTOWN REDEVELOPMENT PROJECT F �- �loo 400 - _ scale HOUSING AND REDEVELOPMENT AUTHORITY NASON,WEHRMAN,CHAPMAN,ASSOC. INC. Am Apk NORTH FARMINGTON, MINNESOTA MIN NORTH LILAC DRIVE MINNEAPOLIS, MINNESOTA tMAIN ST. I ------------ ~ I ,I ■z ■ Z ■ O LuU ■ ELM G I■Irl■Irulrl■I■Inrlrlrl■IrIrI■uI■IrIrIrlrl■Irlrlrirlrlrl ST. ■ Fo1B ■ i ■ ■ OAK ; ST. i ■ ■ ■ s SPRUCE i ST. i ■ H r [ElmIrlrlrlrlr uI I■I■I ■_ H co rr cc LL = O u- WALNUT ST. PERMITTED USES USE PLA ILAND L P PUBLIC PARKING H MULTIPLE FAMILY HOUSING PROJECT BOUNDARY I■I.I■Irlrlrlrl■Ir HB HEAVY BUSINESS OR LIGHT INDUSTRY B GENERAL BUSINESS, RETAIL OR OFFICE REDEVELOPMENT PLAN ' MI, DOWNTOWN REDEVELOPMENT PROJECT o Io10o aoo scale HOUSING AND REDEVELOPMENT AUTHORITY NASON,WEHRMAN,CHAPMAN,ASSOC.INC. NORTH FARMINGTON, MINNESOTA M�NNEAPO�ILILAC MINNESOTA - Nl�:A ` A DOWNTOWN REDEVELOPMENT PROJECT REPORT HOUSING AND REDEVELOPMENT AUTHORITY for the CITY of FARMINGTON, MINNESOTA DECEMBER 1974 Prepared By NASON, WEHRMAN, CHAPMAN ASSOCIATES, INC. MINNEAPOLIS, MINNESOTA and CHARLES TOOKER - CITY and TOWN PLANNING FARMINGTON, MINNESOTA TABLE OF CONTENTS Page PURPOSE OF STUDY 1 REDEVELOPMENT PROJECT INFORMATION 3 1 . Land Use 3 2. Occupancy 3 3. Building Condition and Obsolescence 3 PROJECT SELECTION AND INVOLVEMENT 6 1 . Condition Summary 7 2. Redevelopment Summary 7 3. Acquisition 8 4. Relocation 9 5. Disposition 10 FINANCE REPORT 11 1 . General 11 2. Estimate of 'Project Cost 12 3. Basis of Financial Feasibility 13 RENEWAL PROCEDURE 14 MAP EXHIBITS 1 . Building Use Map 2. Building Conditions 3. Property Map 4. Disposition Map PURPOSE F OS O STUDY The Central Area of Farmington, Minnesota is bounded generally by Pine Street on the north, Fifth Street on the east, Maple Street on the south, and First Street on the wesr. Within this area lies the Central Business District of Farmington. This District is bounded generally by the Burlington-Northern Trackage on the west cnd Trunk Highway 50, which is Elm Street,on the north and residential areas on the south and eas+. A can;ral area study was prepared and information is presented in the separate report which relates to the Central Area which is a part of the Community Development Plan. This Dowr;town Rede- velopment Project Report evolves as a study relating to a defined redevelopment project within the central area of Farmington and the limits of this project are shcwn on various exhibits of this Report and may be described as follows: Beginning at the intersection of the certer of Elm Street and Fourth Street and extending southerly to the center of the alley between Spruce Street and Walnut Street then westerly to the center of First Street then northerly to the center of alley North of Elm Street then easterly to the conte: of Second Street then south- erly to the center of Elm Street then easterly to the point of beginning. The central area of Farmington and the defined redevelopment project area contain build- ings with deteriorated and obsolete conditions, inadequate parking, a mixture of various commercial service, inadequate housing and light industrial uses surrounded by residen- tial development. Nearly all land is occupied by urban developments and a substantial parcelization of land has taken place over ri period of years to a point that adequate ;,ize tracks of land for new development are unavailable. The businesses and the busir.ass area do not now serve the general public in a proper manner. Shopping strips and business districts are forming elsewhere on open land to the detriment of the business district of Farmington. This Downtown Redevelopment Project Report serves to address the problems of condition and obsolescence within the project area and serves to recommend further redevelopment activities in accordance with state statutes, which will serve to improve upon the central area of Farmington. It is readily apparent that redevelopment will not take place and improvements will not be made to the central area of Farmington without the actions and the activities of a redevelopment program of some form. T:!e redevelopment project as defined is somewhc.t extensive and, therefore, the activity serves to provide the legal framework and start of a program of improvement in the central area. This Report serves to do the following: (1) Review the conditions existing within a segment of the central area of Farmington. (2) Define an appropriate program for redevelopment of a segment of this area. (3) Define and display implications of a project relating to acquisition, relocation and disposition. (4) Display financial feasibility of accomplishing "rhe redevelopment program, and (5) Direct a systematic outline of a program of events in order to accomplish redevelop- ment for this portion of Farmington. i Some of the survey and research activities that are presented within this report are per- formed in order to determine the logical and the general eligibility of a renewal type program in accordance with Minnesota law. This Report also includes the Redevelopment Plan, Downtown Redevelopment Project for the City of Farmington. This document is included for local consideration of the Authority, Planning Commission and Council. Activities of this study were performed by the office of Nason, Wehrman, Chapman Associates, Inc. of Minneapolis, and Charles Tooker, City and Town Planner of Farmington. Planning Activities were in coordination with the Housing and Redevelop- ment Authority of Farmington which is the organization with the primary responsibility for the performance of redevelopment activities. 2 REDEVELOPMENT PROJECT INFORMATION In order to make determinations as to public improvement activities, information has been gathered relating to the Project area. Such information gathering has related to building conditions, building obsolescence, occupancy, and land use within the segment of the Central Area of Farmington. Information for each of these items is presented below. LAND USE Existing building use information has been gathered as related to the various occupants of the various kinds of land use and presented in map form as an exhibit entitled, Build- ing Use, Map No. 1 . Information gathered reflects the fact that most of the buildings within the area of consideration were constructed in the late 19th century or earlier 20th century and are now in use for commercial or service purposes. Some upper floors of business buildings are residentially occupied. The area includes many small one and two story business buildings, vacancy, upper floor residences and burned out areas. The area also includes a number of active business occupants so important to a business area. Park- ing is somewhat unorganized and an orderly system of off-street parking does not exist. City office, financial institutions and Telephone Company facilities within the eastern segment of the project are key good uses as is the Post Office in the southern segment. Trucking activities and auto related uses (garage and service) are somewhat adverse to the area. OCCUPANCY Occupant information has been gathered relative to properties within the subject area and a tabulation of occupants to be affected by redevelopment activities is presented within the segment of this report entitled Project Selection and Involvement. As a result of information gathered, it appears essential that special consideration be given to each and every business and residential occupant within the segment of the business area that would be affected by the renewal program. BUILDING CONDITIONS AND BLIGHTING INFLUENCE The project area was surveyed and analyzed to determine the extent of inadequacy of buildings. An exterior survey of buildings was performed to determine and rate building conditions and obsolescence. Upon determining generally the redevelopment to be per- formed, further interior surveys were made to be sure of conditions of questionable build- ings. The results of survey are presented on Map No. 2 entitled Building Conditions. Building conditions as indicated on the map entitled Building Conditions are defined as fol lows: 3 1 Substandard - Buildings which are deteriorated or dilapidated to a point beyond which a prudent person would go to remodel or repair to present day stan- dards for future use. Deteriorated - Buildings which are deficient to a point requiring extensive repair or replacement beyond normal maintenance but not to a point warranting c learance. Sound - Buildings needing only normal maintenance in order to continue in use in accordance with present day standards. The Blighting Influence Survey wcs conducted along with the exterior building surveys. Blighting influence isan element overriding the previous structural consideration and provides the further basis for the determination that redevelopment is a logical and appropriate public action. A building may be obsolete as well as substandard, deteriorated or sound. The 1 obsolescence factors itemized and defined below may seem at first glance to be individual characteristics, but on closer study, they are found to be inherently related. One fac- tor alone does not generally justify an 'obsolete" classification, however, when two or three factors apply on the same building, the obsolete characteristics become more ap- parent. The criteria used for determining building obsolescence is as follows: Obsolescence Factors: 1 . Use conversion obsolescence a. improper conversion to present use. b. vacant space not appropriate for conversion to desirable business district use. 2. Space obsolescence a. inadequate size for resent use. q p b. excessive space for present use. ce building size not compatible with contemporary business practice. 3. Age obsolescence a. building age such that, despite acceptable maintenance, construction technology used in original structure make building unsuitable for ex- tended use. b. building designed for specific use does not now meet contemporary codes for re-use. 4 Functional obsolescence a, lack of proper facilities for efficient or proper operation. b. lack of growth potential. 4 5. Obsolescent or adverse blighting influence a. character of building such that it impairs desirable growth and new construction on adjoining property (blighting influence). b. character and type of building is not compatible with the develop- ment of a strong, healthy business complex. 5 PROJECT SELECTION AND INVOLVEMENT Study activities served to define a redevelopment type project for an eight block segment of the Central Area of Farmington. This project area is shown on exhibits of this report. Various things can be accomplished in the name of redevelopment, however, only limited activities will be performed for initial actions. Successful performance of the project will provide the incentive for further rehabilitation and redevelopment with or without public assistance. The initial activities defined are limited enough to be handled and performed within a reasonable time, yet large enough to provide a significant spark of improvement and change. The extent of the I project area is such that the benefits of performance of a project utilizing the "tax incre- ment" features of the State Statutes relating to redevelopment are worthwhile. Federal assistance for redevelopment is seeked in order to help financially accomplish the activities, however, with the limitation of federal funds, the above financing method is considered essential. Project activities reflect recommendations as generally contained in the early comprehen- sive plan and also the recent Central Area Development Plan, Project conditions and implications and activities are described in this section. Although building conditions and obsolescence exist warranting substantial acquisition and clear- ance, only partial acquisition is contemplated early. The Redevelopment Plan determined as a result of this study serves to authorize limited initial acquisition. However, the ex- pansion of acquisition and clearance based on the terms of the Redevelopment Plan are es- sential to the success of redevelopment. A summary of project involvements together with exhibits showing these involvements is presented. 6 CONDITION SUMMARY BLIGHTING NON INFLUENCE BLIGHTING TOTAL SOUND BUILDINGS 6 40 46 DETERIORATED 1 33 34 SUBSTANDARD 2 29 31 TOTAL 9 102 111 TOTAL of substandard plus other buildings that are obsolescent or blighting 38 REDEVELOPMENT SUMMARY An eight block project. Purchase of 17 properties. Relocation of 11 resident and 14 non-residence occupants. Removal of 20 buildings. As a part of total project activities, it is essential for the City to purchase properties for public parking use as called for in the Plan. ACQUISITION Acquisition will be accomplished by the Authority as shown on the Property Map No. 3. The following represents a tabulation of parcels within the project contemplated for acquisition by the Authority. PARCEL NO. (Old) PARCEL NO. (New) NAME OF OWNER AREA (Approx.) 6196 14-77000-024-22-1 Herman E. Kossow 2138U- 6194 ,36194 14-77000-010-22-1 Paul Bunyan Dairy Store 1,810 6193&95 14-77000-022-22-1 Newman M. & Gilberg Kuchera 9,780 6190 14-77000-020-22-1 Fred M. Seed & G. E. Stelzel 9,750 6192 14-77000-021-22-1 Roy W. Almquest & Donna 2,250 6155&56 14-77000-060-19-1 Alfred F. Fischer 16, 150 6157 14-77000-070-19-1 Alfred F. Fischer 10,200 6158 14-77000-090-19-1 Alfred F. Fischer 5,760 6161 14-77000-093-19-1 Percy C. Steele & Wife 3,360 6154 14-77000-040-19-1 P. H. Feely & Son, Inc. 11,880 j6149 14-77000-010-19-1 Frederick Griebe, Sr. 10,200 6210 14-77000-061-23-1 Lisle J. Baltes, et, al. 3,300 6055 14-77000-050-08-1 P. H. Feeley & Son, Inc. 13,200 6054 14-77000-040-08-1 Barbara Thomas 10,200 6053 14-77000-030-08-1 Merle H. & Rose McClintock 10,200 6052'2 14-77000-022-08-1 Leslie & Marlene Krueger 5, 180 6052 14-77000-021-08-1 Willard & Mildred Ackerman 6,2200 6051 14-77000-020-08-1 Cecil Lord 9,000 i ACQUISITION AREA 140,820.00 l i 1 8 t RELOCATION The following is an indication of project relocation involvement based on the extent of acquisition contemplated: ' 11 Rc�sidc-aces 14 Non-residence occupants As a preliminary acquisition, the Authority contemplates reviewing occupant needs, providing assistance by seeking relocation resource information and aiding occupants in their selection and relocation. The Authority will assist and compensate relocatees in accordance with State law. From the information presented above, and with local knowledge of relocation resources I (both business and household) it is believed that relocation can be accomplished satis- factoaVy. Every effort will be given to aid relocatees find adequate quarters and co- ordinate in order to minimize hardship. I9 DISPOSITION ' A review was made of potentials for land sale. It appears that central area disposition potentials include office and retail business, residential and public. Uses logical for public development include parking and pedestrian development . The Authority would expect to dispose of the parcels for the following uses. PARCEL USE AREA A PUBLIC (Pedestrian Way) 2 210 sq. ft. B PUBLIC (Parking) 13,970 sq. ft. 1 C GENERAL BUSINESS 12,000 sq. ft. D GENERAL BUSINESS 53,980 sq. ft. E GENERAL BUSINESS 10,200 sq. ft. F PUBLIC PARKING 11,880 sq. ft. G PUBLIC PARKING 26,350 sq. ft. H GENERAL BUSINESS 3,360 sq. ft. I GENERAL BUSINESS 51760 sq. ft. Public sales will be negotiated and private sales will be made on the basis of satisfac- tory development proposals. Map No. 4, entitled Disposition Map, shows the above areas. For estimation purposes, it is assumed that land sales may be made for a value in excess of $1.25 per square foot. Onthebasisof 139,710square ft. of land sale, it is assumed that disposition proceeds will be about $174,000. 10 FINANCE REPORT Genera With the findings made that conditions exist within the Downtown Area warranting a rede- velopment activity and assuming that there is a market for some land sales, the important task is to define a feasible program. With the limitation of available Federal renewal type Community Development funds, local financial feasibility for redevelopment is essential. 1 A basis assumption in the preparation of this Report is that the tax increment financing pro- vision of the Municipal Housing and Redevelopment Act (Section 462.585 of the State Stat- utes) be utilized in financing the renewal activities. This project assumes that Housing and Redevelopment Authority will sell revenue bonds to finance the redevelopment project costs. At the time that the Redevelopment Plan for the project is approved by City Council, the Authority will notify the County Auditor to certify as to the assessed value of real property within the project area. Based on the proportion of assessed value to the increased assessed value within each following year, the County Treasurer shall remit to the Authority the in- crease tax increment as provided by law. The tax increment funds shall be received by the Authority and utilized for the retirement of the bonds until the public redevelopment costs of the project including interest have been paid. As an alternative for later determination and by agreement, the City may is- sue the bonds for retirement by the tax increment provisions in accordance with state sta- tutes. Early activities of the project involve the acquisition of lands that will serve to assemble parcels of land forre-use. Various central area type uses such as retail and office uses needing space within the business area of Farmington may be interested in the acquisition of redevelopment lands produced. Any of various uses may develop to the extent neces- sary to assure financial feasibility. Because of the importance of the financial aspects of this project, it is essential that finan- cial feasibility be assured. It is further essential that the Authority and the City have ample assurance that the finance plan as approved by the Authority and as authorized by Council is truly workable. In order to assure this, finance information is presented in this section. In order to further assure success, the Redevelopment Plan is prepared and the redevelop- ment procedure is defined within this report stating an orderly sequence of events which will allow the Authority to judge the adequacy of development proposals before the Author- ity takes the steps to commit the purchase of properties within the project area. This step is not only essential for financial security of the project, but further for the purpose of get- ting the best possible interest rate on bonds to be marketed by the Authority. It appears that the project as defined can be performed by acquiring properties as designa- ted and performing necessary relocation, demolition and public improvement activities. City purchase of lands and development of parking facilities is essential to the disposition 11 and redevelopment of Authority lands. Success will depend on the sale of redevelop- ment land for solid new uses with building values such that a substantial real estate tax return will be realized. The Estimate of Project Cost provides the financial basis for project feasibility. ESTIMATE OF PROJECT COST Administration $ 30,000 Legal Services 5,000 Acquisition Expense 17 properties @ $500 8,500 Disposition Expense 9 properties @ $800 71200 1 Relocation Expenses 25 relocatees @ $100 $2,500 Moving costs 25 @ $500 12,500 Relocation Payments Business 14@ $2,000 28,000 Residents 11 @ $9,000 99,000 142,000 Advance Planning (Central Area and Redevelopment) 10,000 Real Estate Purchase 512,000 Site Clearance (20 buildings @ $700) 14,000 Site Improvement Pedestrian Development 7,000 Other Environmental Improvements 33,000 40,000 Interest ($100,000 @ 8% for 2 years) 16,000 Contingencies + 10% 78,500 GROSS PROJECT COST $863,200 DISPOSITION PROCEEDS (Redevelopment - 85,300 sq.ft.) 106,200 (Public Use - 54,410 sq.ft.) 68,000 174,200 NET PROJECT COST $680,000 12 BASIS FOR FINANCIAL FEASIBILITY The redevelopment project area involves about eight blocks in the central area of Farmington. The following assumptions are made concerning project financing: 1 . The eight block area is estimated to have a 1974 Assessor's Market Value of about------ $2,500,000 2. The reassessment now in progress may serve to increase the market value in 1 1975 by one-third over the 1974 base or a total of about------ $3,300,000 3. Project activity wi I I serve to remove properties with estimated Assessor's Market Value for 1975 (based on the Real Estate Purchase price) of about---- $ 512,000 4. It is expected that the improved building and land value of lands sold for redevelopment may have a value (assuming 1976 construction of)---- $1,623,000 5. The normal increase of property values can conservatively be estimated at three percent per year. 6. Projections of cost of project and repayment of bonds, it is assumed that maximum bonding would be on the basis of the net project cost plus 2 years of interest at 6% on689,000 (689,000 + 12%) would be approximately------ $ 730,000 On the basis of the above assumptions, a tabulation was prepared as a test of the tax increment. Assuming the bonded amount on the above $730,000 and a tax increment ranging from $13,824 in 1975 and $556,464 for 1989 (15 years in the future) there ap- pears to be no problem in repaying the bonds together with reasonable debt service. 13 RENEWAL PROCEDURE On the basis of the project defined within this report, it appears that a redevelopment acti- vity in the central area of Farmington is feasible. The state statutes require that communities preparing to perform a redevelopment activity must seek federal assistance when available. At the present time, the new Federal Community Development Act rules are in preparation. Federal funds for redevelopment may be available by a proper application from the City of Farmington to HUD. The public bodies of Farmington should proceed in an orderly manner 1 to perform a local redevelopment activity in accordance with the state statutes. In order to satisfy local law, and perchance funds are available, it is important to seek diligently to gain Federal assistance in the activity contemplated. The following steps are suggested: 1 . Housing and Redevelopment Authority accepts the Downtown Redevelopment Project Report as a guide to redevelopment activities and further adopt the Redevelopment Plan for the Downtown Redevelopment Project. 2. Authority transmits the Redevelopment Plan together with the supporting Planning Report to the Planning Commission and request report on the Plan. 3. Planning Commission review and report to the Authority and Council in regard to ' the Plan. 4. Authority transmits Redevelopment Plan and supporting preliminary planning report to the City Council with the request for adoption. 5. City Council reviews the Redevelopment Plan and supporting documentation, holds a public hearing on the Plan and takes action in accordance with State Statutes. 6. Authority requests County Auditor to certify to the assessed value of real property within the project area. 7. The City prepares a Community Development Plan, Program and Application to the Federal Department of Housing and Urban Development and seeks Federal assistance for this project and other important local improvements. 8. Authority transmittal of a certified copy of the Redevelopment Plan and the support- ing documentation to the Minnesota State Housing Commission at the State Planning Agency. 9. Authority completes background documentation and prepare promotional materials to aid in the seeking of developers for the redevelopment of lands within the Project. ' 10. Authority receives and reviews development proposals and upon the receiptt of satis- factory proposals, the Authority (or the City) proceeds with the process of selling redevelopment (tax anticipation) bonds to cover the Authority performance of re- development activity. 14 1 11. Authority proceeds to perform redevelopment activities including the purchase of property, demolition of structures, relocation of occupants, performance of neces- sary project improvements, and the disposition of land to private and public de- velopers. 12. City proceeds to establish a parking improvement program, to purchase land from ' the Authority and develop needed parking facilities as called for within the Re- development Plan. 13. City accomplishes zoning changes as necessary to accomplish redevelopment. 15 MAIN ST. to a N Z 0---------- ■ U) Tin ELM ST. D % 4 13(l) ■ i EM o LI _ ' j w R ■ u u M1 0 ■ E OAK ST. a ❑ 13 ■ U 0 a V 04 i SPRUCE ST. 0 0 ................ C3 0 1-1 -- 0101-1 F- CC 0 LL LL LL LL WALNUT ST. LEGEND STANDARD INDUSTRIAL CLASSIFICATION BUILDING USE CULTURAL PROJECT BOUNDARY TRADE SERVICES TRANSPORTATION RESIDENTIAL FU I UNDEVELOPED OR VACANT 0 100 400 DOWNTOWN REDEVELOPMENT PROJECT , 2 Scale HOUSING AND REDEVELOPMENT AUTHORITY NASON,WEHRMAN,CHAPMAN,ASSOC.INC. NORTH 1415 NORTH LILAC DRIVE �� :A FARMINGTON, MINNESOTA MINNEAPOLIS, MINNESOTA MAIN ST. rn ■o � Z O LuCoU i � ELM ■I■I■I■I■I■Irl■I■I■I■I■I■I■I■I■I■I■IrI■I■I■I■I■I■I■ulrl■I■I ST. • �. Ir. .. I3c:> ■ - 130) - � : ■_ LIi+F ■ ■ 0 ?: ::X i OAK ; ST. Rai x � . 1 ■ O ■ 09 i ■ SPRUCE : ST. M »`: ❑ [ r t ❑ o o � I■I■I■I■l■I■I■I■I I■I■I ■_ H L OLL WALNUT ST. LEGEND BUILDING CONDITIONS SOUND ® PROJECT BOUNDARY DETERIORATED I■I■I.I.I■I.I■I.I■ SUBSTANDARD 0 OBSOLESCENT 1DOWNTOWN REDEVELOPMENT PROJECT o ioo aoo ~ � scale HOUSING AND REDEVELOPMENT AUTHORITY NASON,WEHRMAN,CHAPMAN,ASSOC.INC. NORTH FARMINGTON, MINNESOTA MINNEAPOLIS!LMNNESOTA MAIN ST. H ' 1■0 z O ■ ELM .1■1.1■1.1.1■1■1■1.1.1■LI■1■1■1.1■1.1■1■1.1.1.1.1.1.LI■1■1 ST. JQA 6196 6 6 6195 6190 & 6192 G i ■ h FL OAK ; ST. 6154 61 i e 6 6155 & ■ 6156 ■ MLJ L mi6,158 SPRUCE 6157 i ST. 6052.5 6 52 6 51 Eim ■1 ■_ F— 055 160530 _ 05 = =O LL LLLLL WALNUT ST. PROPERTY MAP NOTE: ACQUISITION PARCELS ARE SHOWN AS FOLLOWS: 6149 PROJECT BOUNDARY 1■1.1.1.1■1.1.1.1. ' DOWNTOWN REDEVELOPMENT PROJECT o loo 400 ogcale HOUSING AND REDEVELOPMENT AUTHORITY NASON,WEHRMAN,CHAPMAN,ASSOC.INC. NORTH FARMINGTON, MINNESOTA MINNEAPOLIS, MINNESOTA r-"A ' MAIN ST. H I'z o U U) U) i ■ ELM G I■I■ul■I■I■I■I■i■I■I■I■I■I■i■I■ul■I■I■I■I■I■I■I■ul■I■I■I ST. 1 � G ■ G � ' : G ■ G OAK ; ST. G G G 1 � ' SPRUCE : ST. G G fr cc 0 LL G i ■ ■ ■ i G � I■I■I■I■I■I■I■I■I ■I■I ■_ WALNUT ST. DISPOSITION PARCELS ARE SHOWN F DISPOSITION MAP ' DISPOSITION PARCELS A. 3,300 SQ. FT. PROJECT BOUNDARY I■1.1.1.1■�■I.I.I■ B. 13,970 SQ. FT. F. 11,880 SQ. FT. ' C. 12,000 SQ. FT. G. 26,350 SQ. FT. D. 54,000 SQ. FT. H. 3,360 SQ. FT. E. 10,200 SQ. FT. I. 5,760 SQ. FT. DOWNTOWN REDEVELOPMENT PROJECT o Too aoo scale HOUSING AND REDEVELOPMENT AUTHORITY NASON,WEHRMAN,CHAPMAN,ASSOC.INC. NORTH FARMINGTON, MINNESOTA M�NNEAPO�IS"MINNESOTA �II FARMINGTON INDUSTRIAL ®EVELOPG E T CORP. G,. Farmington, Minnesota 55024 . NWA RESOLUTION WHEREAS, the FARMINGTON INDUSTRIAL DVELOPMENT CORPORATION wds formed for the purpose of developing Industrial and Commercial Business in the City of Farmington, .and WHEREAS, its present nymber of stockholders total 46 tax-payers and residents of the, City of Fgrmington, and WHEREAS, its Board of Directors was directed by its Stockholders i i/ to concentrate its efforts in developing and up-grading the, downtown commercial area, NOW 11114fl11Ki111i1 I►id 1T l0:N 11Vl1:D0 14mb '10110% Ira,�•u�inKbni� '[HdilabM,i.nl. Development Corporation endorses the action of the local IWUSING & 1=b'T"LOFMta'1!2 AUTHORITX in the development of the downtown commercial area and urges the approval of the plan that will accomplish this goal, and BE IT MIT ER 1t�OLVNDr that tho Secretary be directed to forward a copy of this resolution to the City Council of the City of Farmington for their consideration. Signed this 17th day of Decembers 1974. { Gordon Rot , oretary r , �r COUN'T'Y OF DAKOTA STATW OF MINNP;SOTA ss On this 17th day of December, 1974 personally appeared before me, a notary ymblic for and within said County & St(Lte, GOIWON RATTY, ,who swears and deposes that he is the Secretary of the Farmington Industrial Development. Corporation and that the foregoing is a truse and correct copy of a resolution passed by its Board of Directors at a meeting'1keld on the 16th day of ,Deoei,,1974.' ` 1Y.`Nl. JOIIN&OFj ' Wo1ery public, Dakota County, Minn. ' My Commission Expires Dec. 8, 1916 . I i 8RAAY I1�!��IRE J 325 OAK STREET • FARMINGTON, MINNESOTA 55024 ® 463-7111 (Area Code 612) December 12, 1974 The Honorable Mayor and Council City of Farmington, Dakota County Civic Center 325 Oak Street Farmington, Minnesota 55024 Dear Mr. Mayor and Councilmen: At the regular meeting of the Farmington Planning Commission there was presented by the Farmington HRA and their consultants , certain plans and documents as referred to in the minutes of the meeting, copies of which I am forwarding to you under separate cover. You will note that after considerable discussion the Commission acted favorably upon the HRA requests and we recommend respect fully that the council take similar action. Please consider this letter the "written opinion of the Planning Agency" required under MSA 462 .521 . Roger4Shir e-y, rChairma-n RS/kf CC: HRA Chairman Agenda 12/18 - C. R. oinTHIony CO. --. j RETAIL DEPARTMENT STORES AND SUBSIDIARIES ADDRESS REPLY To December 13 , 1974 City of Farmington Farmington City Hall 325 Oak Street Farmington, Minnesota 55024 Councilmen: For a long time now there has been discussion regarding the improvement of downtown business district both public utilities and renewal of the building conditions. There are many reasons why this is necessary and it is our belief that they need not be listed since the members of the council are fully aware of the present situation. The pbblic uutilities have now been improved at very considerable cost to all of us doing business in the downtown area. This improvement was necessary and we,, asked that it be accomplished and it was accomplished at our expense. This is however only half the job. The other half will not be compelete until we have replaced the burned out buildings , the empty buildings and either replace or rehabilitate those that detract from our business activities. There is only one way to get this done. We ask the council to not loose sight of what f was the original intent when the H.R.A. was established. We feel that this intent willbe carried out if the plans J presented are approved. We fully understand that this is difficult and sometimes controversial task, we also believe that unless the council takes a courageous positive stand the work of the H.R.A. will be wasted. It would put Farmington in a less than competitive position with the tither emerging shopping centers i the area. This we believe would be to the detriment ,, of the entire community anddnot just the business are �� ��'/z�, �� .���.y,,n,L� ���f✓yam ���% ~� g � � _ . first Warldna Ba a r 0, M . g p ! n 5 l D �. urPho ��� � ear ` .