HomeMy WebLinkAboutSeptember 4, 2003 Work SessionCITY OF COLUMBIA HEIGHTS
590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692
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ADMINISTRATION
NOTICE OF CITY COUNCIL MEETING
to be held in the
CITY OF COLUMBIA HEIGHTS
as follows:
Mayor
Julienne Wyckoff
Councilmembers
Robert ,4. Williams
Bruce Nawroda'
Tammera Ericson
Bruce Kedzenberg
City Manao~r
Walt Fehst
Meeting of:
Date of Meeting:
Time of Meeting:
Location of Meeting:
Purpose of Meeting:
COLUMBIA HEIGHTS CITY COUNCIL
PLANNING AND ZONING COMMISSION
ECONOMIC DEVELOPMENT AUTHORITY
KMART ADVISORY BOARD
THURSDAY~ SEPTEMBER 4~ 2003
7:00 P.M.
CONFERENCE ROOM 1
WORK SESSION
AGENDA
1. Review of Kmart Project Study
Council and Commission members: Please bring the book already distributed.
The City of Columbia Heights does not discriminate on thc basis of disability in the admission or access to, or treatment or
employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with
disabilities to participate in all City of Columbia Heights' services, programs, and activities. Auxiliary aids for handicapped
persons are available upon request when the request is made at least 96 hours in advance. Please call the City Council Secretary at
706-3611, to make arrangements. (TDD/706-3692 for deaf or hearing impaired only)
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
August 27, 2003
Columbia Heights City Council
Columbia Heights City Hall
590 40th Avenue NE
Columbia Heights, MN 55421
RE: Kmart Advisory Task Force
Dear Mayor and Councilmembers:
As members of the Kmart Task Force, we would like to express our appreciation to the
City Council for the opportunity to participate in the process of evaluating the redevelopment
proposal for the site. We recognize that a dimension of balance and equity was introduced into
the process by the diversity of the Task Force membership appointments and how it reflects
various interests of the community. We feel this balance is significant in that it assures
meaningful deliberations by the Task Force as well as, representative conclusions and
recommendations.
The information and material presented by the consulting planner, landscape architect
and public financial advisor was concise and pertinent to the redevelopment site. During the five
meetings of the Task Force, all features of the proposal received close scrutiny, considerable
discussion and critical debate. All members remained focused on evaluating how well this
proposal would be responsive to the housing needs of Columbia Heights.
In conclusion, we wholeheartedly lend our support to the proposed development of the
Kmart site by Nedegaard Custom Homes. The consensus position of the Task Force finds the
proposal poses no risk for Columbia Heights and will provide a strong possibility of nurturing
further improvements and redevelopment in the surrounding area.
Thanking you for your kind consideration of our remarks.
Sincerely,
Members of the Kmart Advisory Task Force
H:~h~art2003~Advisory Task Force Ltr
CITY OF COLUMBIA HEIGHTS
CITY COUNCIL WORK SESSION
KMART REDEVELOPMENT
City Council Chambers
September 4, 2003
7 p.m.
1. Introduction - 10 Minutes
Walt Fehst, City Manager
Robert Streetar, Director of Community Development
2. Findings and Recommendations of the Kmart Citizens Advisory Group - 10 Minutes
John Shardlow, Dahlg'ren, Shardlow and Uban, Inc.
3. Development Proposal - 35 Minutes
Robert Streetar, Director of Community Development
John Feges, Nedegaard Construction, Inc.
Kevin Hanson, Director of Public Works
Steve Bubul, Attorney Kennedy and Graven, Inc.
Mark Ruff, Ehlers and Associates, Inc.
4. Council Questions and Feedback
Technical Memorandum:
Summa~ of the Kraa~ Redevelopment
Project, Background, Process Summary,
O~ine of Imp]ementatiorJ Steps
Presented to: The City of Columbia Heights Kmart
Redevelopment Project Advisory Committee
Prepared by: Dahlgren Shardlow aha Uban Inc.
Consulting Planners and Landscaoe Architects
Ehlers & Associates
Public Finance Advisors
Augus,: 15.2003
Kmart Redeveloament Proiect
TABLE OF CONTENTS
Part 1. Introduction.. ................................................................................................................ Page 1
Part 2. Background ................................................................................................................. Page 1
A. Study Area ............................................................................................................................ Page t
B. Summary of Site Analysis ..................................................................................................... Page 1
I. Site Zoning and Data
2. Development Pattern
3. Site Access and Circulation
4. Natural Features: Elevation Change, Slopes Views
C. The Planning Process .......................................................................................................... Page 7
1. Redevelopment Project 9us Tour
2. Redevelopment Project Goals and Objectives
D. Redevelopment Concept Plan .............................................................................................. Page 9
1. Residential Development
2. Commercial Development
3. Parks, Open Spaces and Natural Environment
E. Relevant Studies .................................................................................................................. Page 12
I. Sanitao/ Sewer Capacity Study
2. Housing Absorption Study
3. Traffic Management Study
4. Cheery Heights Neighborhood Drainage Study
5. Columbia Heights Design Guidelines
6. T/F District
7. Effect of TIF on School District
Implementation ..................................................................................................................... Page 16
I. Comprehensive Plan Amendment
2. Zoning Amendments
3. Redevelopment Plan Review and Approval
Part 3. Appendix ..................................................................................................................... Page 18
1. City of Columbia Heights Comprehensive Plan Goals ...................................... Attachment A
2, Results from Survey of Visual Preferences ....................................................... Attachment B
3. Kmart Redevelopment Project Goals and Objectives ....................................... Attachment C
4. Kmad Redevelopment Project Schedule .......................................................... Attachment D
5. TIF Schedule .................................................................................................... Attachment E
Kmart Redevelopment Project
INTRODUCTION
This technical memorandum signals the completion of the
research and analysis, goal setting and concept
development stages of the Kmart area redevelopment
project and the beginning of the development approval and
permitting stages. The purpose of this memorandum is to
summarize and document the process that has been
completed to date and to set forth, in summary fashion the
stages that are to follow.
The document begins with a Background section that
provides basic information about the project site. This
section includes information about both the physical
Site Location Map
characteristics of the site and its surroundings, and information
regarding its comprehensive plan designation, zoning and information
related to its financing and construction.
BACKGROUND
Study Area
The Kmart redevelopment site is illustrated on Figure 1. It is a 20.5 -
acre parcel located along Central Avenue in the City of Columbia
Heights. This project area is bordered on the west by Central
Avenue, the north by 49t* Avenue, the east by the Cheery Heights
neighborhood and the south by 47~ Avenue. The site currently
contains a variety of commercial and retail uses including the vacant
Kmart department store, Big Lots, Hollywood Video, Savers, Buffalo
Wild Wings, Subway, TCBY Treats, E! Bustan, Arby's and Welle Auto
Supply. The site is also in close proximity to community schools,
local and regional parks, and adjacent residential neighborhoods.
south a[ong CentraI. Avenue
Summary of Site Analysis
Site Zoning and Data
The current 20.5 acre redevelopment site is guided as commercial and
zoned as GB - General Business District. The site is divided into two
distinct areas: the upper portion of the site is approximately 13.6 acres,
and is where the Big Lots, Arby's and Kmart buildings are located. The
lower portion of the site along Central Avenue and is approximately 6.8
acres in size. See Figure 1 for additional Zoning and Site Data.
Development Pattern
Conventiona/ Suburban Development Pattern
As with most suburban commercial areas, the existing Kmart, are~ is
Oitv of Columbia Heign,,s
[ Legend ]
~ General Business Distnct
Kmart Redevelopment Proiect
characterized by widely spaced buildings set back and isolated from
the street in order to accommodate parking lots: Since land uses
are compartmentalized, residents are forced to make most trips by
car. As a result., streets and signs have been designed to
accommodate the automobile, creating a cluttered environment
lacking a distinct sense of place.
....
the ultimate challenge for a suburban environment ,s to balance
functional needs of vehicles with those of pedestrians, to create a sense~~:
of personal safety and comfort wh~le also nurtunng a memorable ~mage,
to define a focus to the area, reduce clutter, and foster a sense of
community pride. See Figure 2 for current redevelopment site
development pattern.
Traditional Community Development Pattern
Older, more traditional development patterns include more closely
spaced buildings that collectively shape the street corridors and
create a more compact, pedestrian-friendly environment. This is the
basic development pattern that the community and the developer
desire for this project.
k?ew qt'entt3' driw.'av to Kmart site from Central Average
Site Access and Circulation
The Kmart redevelopment site is located along Central Avenue which
is the main commercial corridor in the City of Columbia Heights.
Because of the severe grade change between the upper and lower
levels of the site, the site has a poorly defined internal vehicular and
pedestrian circulation pattern.
Access to the lower portion of the redevelopment site is from Central
and 49~' Avenues. Each of the individual commercial properties along
Central Avenue has a private driveway creating potential pedestrian/
vehicular conflicts. The access points into the lower portion of the
redevelopment site are non-signalized, and the high traffic volumes
create difficulties when turning left to go south on Central Avenue.
Oitv of Columbla Heights
Stee? .~/opes along Central Avenue
The upper portion of the redevelopment site has limited access from
Central and 47t~ Avenues. Because of the steep slopes, there exist
only one access driveway from Central and 47th Avenues. The access
road from 47th Avenue currently does not connect to Tyler Street and
extend into the adjacent neighborhoods. There exists no access to
the upper portion of the redevelopment site from 49~ Avenue, the
existing steep grade and adjacent homes render an access drive in
this area problematic.
The existing bicycle and pedestrian network in the redevelopment site
is limited to a wide sidewalk along Central Avenue between 47th and
49th Avenues and a standard 5 foot sidewalk heading east along 49
Avenue to nearby parks and neighborhood schools.
The redevelopment site is currently served by Metro Transit Bus
routes 10 and 829. Both routes provide service to Downtown
Minneapolis and the northern suburbs of Blaine and Fridley. The
redevelopment site is also within seven blocks of the Columbia
Heights Transit Center. located at 40t~ and Central Avenue. There are
two existing bus stops along Central Avenue within the redevelopment
site that can be enhanced with landscaping, shelters, and signs/
monuments as part of the redevelopment project.
Additional information related to Site Access and Circulation is illustrated
in Figure 2.
Natural Features: Elevation Change, Slopes, Views
The majority of the Kmart redevelopment site is located roughly 10-15
ft. above Central Avenue. The change in elevation provides a
dramatic view from the upper portion of the site to the west towards
adjacent neighborhoods and communities, but has had a negative
impact on the existing commercial uses on the site. The grade
change on the site provides little or no visibility to the commercial from
street level, creates circulation problems for both pedestrians and
vehicles, and has caused issues with stormwater runoff.
The east edge of the site is defined by a very step slope that
separates the Kmart redevelopment site from the Cheery Heights
neighborhood. The slope contains existing vegetation in the form of
overstory trees and shrubs that appear to be in fair condition, but
provide little aesthetic value. Visible signs of soil washout can be
seen in specific locations along the slope, as a result of drainage
problems that persist in the Cherry Heights neighborhood.
The grade along Central Avenue should be reinforced through
sensitive site planning and architectural design. Existing Site
Constraints are illustrated in Figure 3.
Kmart Redevelopment Proiect
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..... . .,~'.. %, .;;..,.. ,., ~.'. ~.~. Non-signalized Intersection : 10 Bus Route
~--.~ Site access/driveway ( ...... Existing Sidewalks
~ Project, Bounclary
Fi(k, ure 2 -,4cce.s.~ and Circulation
CJ~, of Coiumbia Heights
Legend
..I Prolect Boundary Negative Views
--- Slee~ Slopes )~ ~.,, Positive Views
/...,~ ·
~ Existing Vegetabon
Ff,~'ttrt .'~ - E.¥i.*rin,,,. Sitr Featt/re.~
,August 2003
Kmart Redevelopment Project
The Planning Process
In May of 2003, the City of Columbia Heights initiated a planning
process for the redevelopment of the Kmart site. The primary,
objectives for the planning process were to redevelop an outdated and
mostly vacant retail center, provide more employment opportunities
within the City, provide a new housing option previously not available
in the City, increase opportunities for transit use to the redevelopment
site, provided more amenities to promote walking and biking and
ensure community participation throughout the redevelopment
planning process.
The community goals for this planning process that have been
established in the City Comprehensive Plan (adopted in 2001), can
be found in Attachment A in the appendix.
As part of the planning process, the City appointed an eleven member
Redevelopment Advisory Committee comprised of local residents,
business owners, and members of key community groups. The
Advisory Committee served two equally important purposes. The first
purpose is to ensure the awareness and timely participation of
representatives of key community stakeholder groups throughout the
planning process and the second is to serve as a sounding board and
a reaction panel to all of the major project recommendations and
components. The Advisory Committee meet five separate times
throughout the planning process, with one meeting being a
redevelopment bus tour.
Dahlgren Shardlow and Uban, Inc (DSU) was hired to assist the City,
and to work with project developer, Nedegaard Custom Homes, to
create a Redevelopment Master Plan for the Kmart site to meet the
needs of both the community and the developer.
Redevelopment Project Bus Tour
One of the most effective methods to help define the desired
character of development is to visit successful redevelopment projects
in other communities. On May 10th, 2003, the Redevelopment
Advisory Committee embarked on a bus tour to visit six of these
redevelopment projects in other communities. By visiting these
redevelopment projects the committee was better able to understand
mixed-use developments, housing and commercial types, densities,
community open spaces, and other important aspects of planning for
a redevelopment site. A few of the projects that the Advisory
Committee visited includes: a) Golden Valley Town Square in Golden
Valley; b) Woodlake Centre in Richfield; c) Park Commons in St. Louis
Park; d) Main Street Village in New Brighton; e) Downtown
Minneapolis riverfront housing and f) Lexington/County Road D in
Shoreview.
Oi~,' of Coiumbi& Heights
Redevelopment Project Goals and Objectives
As part of the planning process, a meeting was held on May 15:'~,
2003 with the Redevelopment Advisory Committee to define some of
the most important issues and opportunities associated with the
redevelopment project. At this meeting, the Redevelopment Advisory
Committee participated in a SWOT Analysis and Survey of Visual
Preference to help identify some of these project issues and
opportunities.
The first method of issue identification utilized during the planning
process was a SWOT analysis where stakeholders define strengths,
opportunities, weaknesses, and threats as they relate to the
redevelopment project. The Advisory Committee members then have
the chance to identify, using colored dots, the most important of the
issues.
Listed below are the top five results of the SWOT analysis.
Strengths and Opportunities
· Project as a catalyst to further development (11)
· Improve City tax base (7)
· Excellent location (1)
· Opportunities to realize the vision "Rising to new Heights" (1)
· Excellent project team (1)
Weaknesses and Threats
· Doing nothing! (8)
· Some financing options could have negative impact on schools (6)
· Hilltop (4)
· Existing businesses obstructing development process (4)
· Poor design could lead to traffic congestion/safety (1)
The second method of Issue/Opportunity identification is a Survey of
Visual Preference. The Survey of Visual Preference was conducted to
assist the stakeholders in determining which components of the built
environment contribute to a city's overall image, and helps define the
community's preferences for development patterns, architecture, signs,
building setbacks, landscaping, parking areas, and other design
elements.
After viewing approximately 70 slides depicting a broad range of
cityscapes in Columbia Heights and elsewhere, Advisory Committee
members rated each slide on a scale of 1 for "least preferred" to 5 for
"most preferred." Each of the slides was then given an overall score. As
a result, the Advisory Committee was able to reach a consensus about
the preferred visual landscape for the Kmart redevelopment site. These
Kmart Redevelopment Proiect
development preferences provide the basis for the design guidelines
which follow the Survey of Visual Preference results. The three most
preferred and least preferred images for each design category are
illustrated in Attachment B in the Appendix.
As a resul; of the Issue Identification process, a series of specific goal
and objectives have been established for the Kmart Redevelopment
project. The Goals and Objectives establish a foundation for future
redevelopment projects within the City of Columbia Heights. See
Attachment C in the Appendix for a complete list of these Goals and
Objectives for the redevelopment of the Kmart site.
Redevelopment Concept Plan
The Kmad redevelopment plan envisions the creation of a compact,
walkable neighborhood with a mix of housing, commercial and office
uses. The development will connect to existing adjacent
neighborhoods, local and regional parks, neighborhood schools and
provide a pedestrian and transit friendly environment.
The proposed development will be tied together by three major
elements. A central park will act as the focal point for the
neighborhood, and provide an amenity for area residents and
businesses. The proposed commercial properties fronting Central
Avenue will define the edge of the corridor and provide necessary
services to the neighborhood and community as a whole. The
proposed housing will include a type that is not currently offered in the
community, providing options for current residents and freeing up
housing for new residents. The Redevelopment Concept Plan is
illustrated in Figure 4.
Residential Development
The goal of the residential development is to provide the City of
Columbia a variety of housing types, styles and choices to meet the
needs of the community.
The main objectives for the residential development include:
t. Provide a diversity of housing choices that will satisfy
customer preferences for this location.
Support appropriate urban housing densities along with
performance standards to create financial value and
achieve strong purchasing power to support
neighborhood service businesses.
Promote a redevelopment concept that creates an
attractive urban neighborhood that include housing
amenities such as decks, open spaces, gathering
City of Colum3Ja Heiahts
f hmige by ESG Archirec~s¢
Example gf Urban ComtominiunE
Flats product
flmage &v ESG A~rhirecrs!
areas, recreational amenities, pedestrian ways, land-
scaping, and green spaces to ensure a safe, functional
and desirable living environment.
4. Successfully integrate the new neighborhood into the
surrounding older established neighborhoods.
5. Require high quality community design and
construction standards.
The proposed housing types for the Kmart
Redevelopment project are listed below:
Urban Condominiums/Flats - 208 total units
Urban Townhomes - 36 total units
The urban condominium/flats are located in four seperate
buildings, each being four-stories tall. Each of the four
buildings will contain a mix of one level flats and two level
condominuum units. Each building will also have a roof
top viewing area and underground parking to accomodate
two stalls per unit. The individual units will have a private
ground level patio or upper level deck. The price points for these
units will vary between $175,000 and $330,000, with an average price
of $225,000.
The urban townhomes are two-level side by side units. Each unit has
a private front entrance and a garage accessed from the rear of the
unit. The price points for these units will vary between $225,000 and
$330,000.
Commercial Development
The commercial development will be another important component of
the new neighborhood. The commercial parcels will front Central
Avenue to take advantage of views and will utilize shared/ramp
parking behind the buildings where possible. There will also exist the
opportunity for office uses within the development. The goal of the
commercial development is to maintain and improve the commercial
areas as a vital retail and service location. The main objectives for the
commercial development include:
Identify and recruit business types that will be
successful in this location and support land use
densities and values that make redevelopment
financially feasible. This may require authorization of
some flexibility from the current zoning standards
related to setbacks, density, parking, open space and
building height.
Kmart Redevelopment Projec;
r
- 3~_:.= ..'- .... ·
[Legend ]
I C~mmerc4al
Mixed Use Offic~J ·
;Commercial.
MuI~- Family
Resldenba[
Civic/PulPit
Townhomes
O~e~ Soace
The images showri'are illustrative
examples and do not get depict
an actual development proposal·
Fi,..,ure 4 - Redevelopment Conc'ept P/tm
City of Columbia Heights
Strive to retain existing local businesses when possible,
or to relocate them into places that will allow them to
continue to contribute to the
prosperity of the community. Identify and support the
location of businesses that will contribute to the draw-
ing power of the redevelopment site.
Implement strategies to reduce parking
requirements, including reduced parking ratios, shared
parking, mass transit, and trails/sidewalks.
It is planned that the commercial developments along Central Avenue
will be phased in over time as portions of the residential development
are completed.
Parks, Open Spaces and Natural Environment
The Kmart redevelopment project will include a neighborhood park
that will act as the focal point for the neighborhood and provide an
amenity to the surrounding community. A series of trails and
landscaped boulevards will connect the park to the elements within
the development and to the adjacent neighborhoods. A stairway
connection will also be provided from the development up to 47th
Avenue to provide access to the adjacent neighborhoods.
The existing slope along the eastern edge of the site will be enhanced
with terraced walls, native landscape materials and stormwater
enhancements. Other sloped areas throughout the development will
receive the same type of treatments.
Relevant Studies
The City is currently working on additional planning studies that will
have an impact on the proposed redevelopment of the Kmart project
area. The City has currently undertaken or has completed a Sanitary
Sewer Study, Housing Absorption Study and Traffic Management
Study based on the developer's draft concept proposal.
Sanitary Sewer Capacity Study
The City of Columbia Heights has recently completed a sanitary
sewer study for the Kmart redevelopment site and adjacent properties
along Central Avenue for the purpose of identifying future capacity
issues as they relate to the redevelopment site. The study findings
suggest that the current 10" main line pipe that runs parallel to Central
Avenue is currently undersized to meet the needs of the proposed
development. Subsequently, the existing pipe will need to be
increased to 12' in size. The estimated cost to increase the pipe size
of the sanitary sewer is approximately $300,000.
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August 2003
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Kmart Redevelopment Proiect
Housing Absorption Study
The City of Columbia Heights is currently working with DSU Research
to determine realistic absorption levels and unit pricing for the
housing types proposed for the Kmart redevelopment site. The focus
of the study is to research and identify similar housing, both in type
and price point, within the City of Columbia Heights and neighboring
communities, market area and determine the realistic absorption rate
of these units. The study will be completed and presented to the EDA
in September of this year.
Traffic Management Study
The City has contracted BRA Consulting Engineers to conduct a traffic
management study to determine the future impact that increased local
traffic from the proposed Kmart Redevelopment project will have on
intersections at 47% 49th and Central Avenues. The study will also
provide projected trip generations from the proposed development, as
well as, study the proposed road connection to 49~' Avenue from the
study area. Additional information related to traffic control devices,
and/or traffic calming techniques will be reviewed to determine the
need in relation to the current traffic volumes and circulation patterns.
The study will be completed in September of this year.
Cheery Heights Neighborhood Drainage Study
The City staff is currently working with the Cherry Heights
neighborhood, located directly to the east of the Kmart redevelopment
site, to determine the most appropriate and economically viable
solution to alleviate a recurring drainage problem within the area.
Although unrelated and not caused directly by the redevelopment site,
it is a very important issue that is being addressed. The process is
ongoing, and decisions regarding the drainage solutions will be
forthcoming in the next couple of months.
Columbia Heights Design Guidelines
The City staff, with the aid of URS Corp., the planning consultant, has
recently completed a draft of the Columbia Heights Design Guidelines.
The primary purpose of the guidelines are to guide developers or
business owners wishing to propose expansions, renovations or new
construction of buildings or parking within the commercial districts and
to assist City officials and staff in reviewing development proposals.
The guidelines are applied to three very unique design districts
located throughout the community. The Kmart redevelopment site
falls within the Highway District which extends along Central Avenue
from 42nd Avenue north to the City Boundary.
TIF District
The process of capturing increased property taxes from one or more
tax parcels is known as tax increment financing. TIF has been used in
Memorandum
Cib, of Columbia Heights
Minnesota since the early 1970s, especially for redevelopment
purposes. The theory is that the redevelopment would not occur with
out the use of TIF, therefore the increased taxes are not "lost" by the
City, County and School District. (see attached description of the
effect of TIF on school districts). Over 2,000 TIF districts exist in the
state today. The City of Columbia Heights has used TIF several times
since the mid-1970s to assist housing, retail, industrial and office
uses.
There are several types of TIF districts, depending upon the type of
development proposed and depending upon the existing condition of
the property. The Kmart site, including all property between 47~
Avenue and 49'" Avenue adjacent to Central Avenue is proposed to be
included in a new TIF district. The Kmart property alone is valued at
$2.2 million dollars and pays approximately $75,000 a year in local
property taxes. The proposed housing development of 244 housing
units with an expected market value of over $50,000,000 is expected
to generate over $550,000 of local property taxes.
The remaining commercial development on Central Avenue is
currently valued at under $3,500,000 and produces under $70,000 in
local taxes per year. The potential commercial redevelopment is less
certain at this time. Under one scenario, the new commercial
development could result in a new market value of over $15,000,000
with a potential local tax impact of over $430,000 per year.
The type of TIF district proposed for the six parcels of property is a
renewal and renovation district as defined in Minnesota Statutes,
Section 469.174, and subdivision 10(a). A renewal and renovation
district is defined by the following requirements for establishment.
The term is limited to 16 years of captured increment
There are no restrictions on the type of new development (i.e. income
restrictions, manufacturing use, etc).
The main requirement is that at least 20% of the buildings are
structurally substandard.
An additional 30% of the buildings require substantial renovation or
clearance to remove existing conditions such as inadequate street
layout, incompatible uses or land use relationships, overcrowding of
buildings on the land, excessive dwelling unit density, obsolete
buildings not suitable for improvement or conversion, or other
identified hazards to health safety, and well-being of the community.
The City hired the professional engineering firm of SEH Inc. to
determine wether or not the City would qualify for TIF. As a result of
the SEH evaluation, TIF will be available for the redevelopment
project.
,&ugust 200;3:
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Attached is a schedule of events required for the establishment of the
tax increment district (see Attachment E in Appendix). The County
and School District must be notified at least 30 days prior to a public
hearing held by the City Council. The notification must be
accompanied by a TIF plan which spells out the type of development
expected, the budget for the proposed TIF costs, the fiscal impact
upon the other taxing jurisdictions, and the restrictions on the use of
increment. The TIF plan is designed to be a general document, with
not-to-exceed budgets. The County and School Board can comment
upon, but cannot veto a TIF district.
The other document prepared for a TIF financing is a development
agreement. The development agreement is much more specific about
the terms and conditions of the assistance for 'the developer.
A development agreement is proposed to be adopted on the same
date as the TIF plan. The development agreement is expected to
cover the developer's request for TIF assistance associated with the
housing. The current request is the costs of the demolition of Kmart
site and other related site improvements totaling approximately
$800,000. To fund these costs will only require a few years of the 16
years of TIF. The development agreement is also expected to contain
a requirement that the developer finish at least a portion of the
commercial development within a specific period of time and will limit
the amount of developer profit if assistance is provided.
The remaining years of TIF will most likely be needed to facilitate the
commercial development portion of the project. Commercial
development is more difficult to finance with TIF for a variety of
reasons.
The 2001 property tax reforms introduced a state property tax which
cannot be captured. Fiscal disparities removes a significant portion of
the local property tax stream. Commercial properties pay less in land
sale proceeds than residential property. Commercial uses have a high
parking requirement per s.f. of building. Therefore, structured parking
(parking decks) will also add to the cost of the project.
The demolition, acquisition and relocation costs of the non-Kmart
parcels could range from $4.5 million to $5.5 million.
The net tax increment from the housing and the high-end commercial
uses could be as high as $4,000,000. The amount of TIF does
depend upon a number of factors including the density of the
commercial, the speed of development and the value of the
development. The land sale proceeds from the commercial property
could be $900,000. Therefore, the redevelopment of the whole TIF
district is potentially "feasible". One other factor, however, which
Technical Memorandum
Kmart Redevelopment Proiect
Ci,%, of Columbia Heights
would require additional assistance, would be the need for additional
parking ramps on the site to accommodate the density of the
commercial development. Generally, there is a likelihood that the TIF
district will run the ful! term if the commercial is all redeveloped. If
only a portion of the commercial strip is redeveloped, then the TIF
district may run a shorter time than 16 years.
Effect of TIF on School District
The immediate benefit to the school district from TIF projects is higher
pupil units, which could bring $200,000 to $250,000 of new net
revenue to the schools for each 100 pupil units. The TIF district also
brings higher potential for new referendum market value property
taxes of $57,000 for each $50,000,000 of new investment (or at least
reduces everyone else's taxes by $57,000 per year).
If one believes that the project would not go forward without TIE there
is no negative impact on the school. If one believes that the TIF was
not justified, the negative impact on other taxpayers is $122,000 per
year attributable to the debt service levy for each $50,000,000 of new
investment.
Implementation
Included in this section is the background information on the TIF
findings, TIF process, Comprehensive Plan and Zoning amendments
required for the development and a schedule of the redevelopment
plan process. See Attachment D in the Appendix for a complete
schedule of the redevelopment approva~ process.
Comprehensive Plan Amendment
The draft Kmart Redevelopment Plan proposes mixed-use development
that includes residential, commercial, park, office, and civic uses. The
Comprehensive Plan and Official Zoning do not currently allow for
mixed-use developments within the subject area. The subject
properties are guided Commercial and zoned GB-General Business
District. Since the Comprehensive Plan is the framework for guiding
zoning and development decisions, it must be amended to change the
land use designation of the subject parcels to be consistent with the
concepts proposed in the draft Kmart Redevelopment Plan.
The Transit Oriented Mixed-Use land use designation is the most
appropriate Mixed-Use designation for the subject properties. The
Comprehensive Plan provides a description of areas guided Transit
Oriented Mixed-Use. Specifically, the Comprehensive Plan states that
these areas "will focus on the commuting needs of Columbia Heights
residents. As a result, a higher percentage of service-oriented
August 2003
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Kmart Redevelo[}ment Project
commercial/retail development will be necessary with high-density
residential development providing the balance of the development.
Redevelopment of these areas will also provide the opportunity
for pedestrian linkages to other parts of the community and
improvement of the overall non-motorized circulation system within the
community that will help improve the image of Columbia Heights." (Page
22, Comprehensive Plan). On August 6th, the Planning Commission
recommended the Comprehensive Plan amendment for approval by the
City Council. On August 11, the City Council approved the
Comprehensive Plan amendment for the reguiding of the Kmart
redevelopment parcel based on Metropolitan Council approval.
Zoning Amendments
The Official Zoning will be amended to be consistent with the mixed-use
development concepts proposed for the subject area. Once the
Metropolitan Council approves the Comprehensive Plan amendment,
the City will begin zoning amendment proceedings to change the
zoning of the property from GB - General Business District to MXD -
Mixed-Use Development District. In addition, the text of the MXD
district will be amended to ensure the code allows the flexibility needed
to implement mixed-use redevelopment projects. Public hearings will
be held regarding the zoning amendments. The rezoning procedures
are scheduled to begin in September 2003 and be completed in
October 2003.
Redevelopment Plan Review and Approval
The Kmart Redevelopment Concept Plan review period is scheduled for
completion in August 2003. The EDA and Planning Commission are
scheduled to endorse the final Concept Plan on August 20, 2003. After
the Concept Plan is endorsed, the EDA and the developer will begin
negotiating a Development Agreement and the developer will begin
preparing a Preliminary Plat for the Kmart site. Once the rezoning and
development agreement are approved in September, the developer will
submit a Preliminary Plat to the City for review and approval. The
Preliminary Plat review and approval period will begin in September and
be completed by October 2003. The approval of a Preliminary Plat
requires at least one (1) public hearing with the Planning Commission
and one (1) meeting with the City Council. After approval of the
Preliminary Plat, the developer will prepare a Final Plat for City review
and approval and for recording with Anoka County. The approval of a
final plat requires at least one (1) public hearing with the Planning
Commission and one (1) meeting with the City Council.
Technical '~lemorandum Page
Attachment A
CITY OF COLUMBIA HEIGHTS
Comprehensive Plan
The following goals have been drafted to outline a vision for Columbia Heights through
the year 2020.
CommttniO, Image Goals
1. Establish and maintain a strong sense of community.
2. Strengthen the image of the Community' as a desirable place to live and work.
Land Use Goals
1. Promote and preserve the single-family housing stock as the community's
strongest asset.
2. Preserve and enhance the existing viable commercial areas within the community.
3. Provide opportunities and mechanisms for successful redevelopment of targeted
areas xvithin the community.
4. Advocate higD~ quality development and redevelopment within the community.
Housing Goals
1. Provide a variety of life-cycle housing opportunities within the community.
2. Advocate housing efforts that attract and retain residents, especially young
families.
3. Promote and preserve the single-family housing stock as the community's
strongest asset.
4. Strengthen areas of commercial and civic activity by introducing complementary
housing development.
5. Support high quality housing development and redevelopment projects.
Historic Preservation Goals
I. Preserve and maintain the community's unique historical and cultural elements.
Conservation Goals
1. Guarantee access to direct sunlight For solar energy systems.
2. Promote energy conserx'ation tlu-oughout the community.
Transportation Goals
1. Increase pedestrian and bicycle safety in residential neighborhoods.
2. Manage and maintain the investment in the existing roadway system.
3. Embrace transit as a means to improve the livability and diversity of Columbia
Heights.
4. Provide for safe and efficient alternative modes of transportation.
ll"ater Suppl)' attd Wastewater Goals
1. Maintain a high quality and reliable water supply and distribution system.
2. Maintain a high quality and reliable sanitary sewer system.
Park attd Open Space Goals
1. Promote parks and trails as essential elements of a broader strategy to provide
fiscal strength, encourage private economic ~owth, improve conm~unity image,
and enhance the quality of life in Columbia Heights.
2. Encourage the development and maintenance of a unified park system and
cooperative recreational programs.
3. Provide for a safe, flexible, and attractive park and open space system based on
community characteristics, changing demo~aphics, and overall needs.
4. Fund park and recreation facilities in an effective and equitable manner.
Economic Development Goals
1. Enhance the economic viability of the community.
2. Provide a wide variety of emplo.wnent opportunities within the community.
Intergovernmental Cooperation Goals
I. Support intergovernmental efforts that benefit the community.
Attachment B
City of Columbia Heights
Survey ~:d Visual Preference
General Image and Character
The most preferred images indicate a preference for development that is the scale and character of a traditional small town or village.
The preferences for design components appear to include, two to three story buildings, the use of brick, stone and other traditional
materials, as well as, outdoor pedestrian scaled spaces, generous landscaping, and parking tots that are buffered from view.
The least preferred images reveal a distaste for conventional suburban development dominated by automobiles and franchise
architecture, as well as, parking areas clearly insight located between buildings and the street.
~P~f~.'.t.~.l_mages
Traditional Townhomes
~ Varied Roof Forms
· Quality Materials
· Usable Open Space
(Average Score 5.4)
: [~LPreferred Images
New England Village character
PedesFian ~ace
TraOitional Materials
Mature Streetsca~e
(Average Score 4.8)
Auto Oriented conventional development . Cluttered Signs and Shapeless Streetscape
2attern · Overscaled intersection is pedestrian
Poorly defined Pedestrian space unfriendly
NO boulevard landscaping · Buildings set back from street behind parking
,,~(Average Score 0.8) (Average Score 1.1)
· Varied Roof Forms
· Pedeslrian Scaled
· C~esive Character between Buildinc_ and
S:reetscape
(Average Score 4.5)
Conventional residential street
No Pedestrian sidewalks/facilities
(Average Score 1.5)
Attachment B
';=urvey of Visual Preference :. . . .... City of Columbia Heights
Commercial Building Types
The most preferred commercial building types include traditional retail and urban office buildings located close to the street with signifi-
cant architectural character, landscape enhancements and pedestrian scaled amenities.
The least preferred commercial building types are conventional generic suburban malls end "Big Boxes" characterized with massive
parking lots separating the building from the street.
Building Defines Street Corridor
Interesting Corner Treatments
Ground Level Interest
Understated Signs and IVlatenals
~Average Score 5.3)
LeaSt~P~.i;_e_f_e_r_r_e_.d
· Minimal Lanscaping
Conventional Suburban Strip mall
Back Lit Garis~ Vinyt Canopy Signs
· Building set back from Street behind Parking
~Average Score 1.2)
· Live/Work Units
· Residential Character
· Semi Public Space at Entry
(Average Score 5.2)
· Pedestrian Scale Building Module
· Interesting Roof Forms
· Understated Signs
· Effective Use of'Color and matedal
(Average Score 4.6)
· Minimal Landscaping
· Building Separated from Street by Parking
Area
· Auto Dominated "Big Box" Character
(Average Score 1.5)
· 1-Story Basic Onadourned Building
· Building set back from Street behind Parking
(Average Score 1.7)
Attachment B
City of Columbia Heights .- ': Survey of'Visual Preference
Franchise Architecture
The most preferred types of franchise architecture appear to be buildings that respond to site specific conditions, use high quality
traditional materials, conservative colors and small signs.
IM St P're fe rre di:m a_g_ ii!
The least preferred images are typical prototypical trademark buildings tinat can be found anywhere, use bright colors and excessive
signage.
· Quality Materials · interesting Corner Treatment
· Understated Signs · Use of Quality Materials
· Minimal Parking in Front * Strong Entrances from both Street and Parking
· Adequate Landscaping · Windows with Awnings on Street
· Pedestrian Scaled Building (Average Score 3.7')
(Average Score 4.2)
The Building is a Sign · Standard McDonald's I~ue - for an~here USA
· Cheap Materials and Look · Building set back from Street behind Parking
· Generic Character with no Landscaping (Average Score 2.0)
(Average Score 0.9)
· integration of Building ;haracter and
materials with Streetscape
· Strong Entrance at Intersection
· Windows with treatments on street
(Average Score 3.2)
· Simple Plain Building
· S~led for autos not people
(Average Score 2.1)
Attachment B
:. City of Columbia
Residential Building Types
The most preferred images indicate a preference for development that is human scale with traditional architecture. The preferences
for design components appear to include, three to four story buildings, the use of brick,, stone and other traditional
materials. ~s well as, outdoor pedestrian scaJed spaces, generous landscaping, and parking lots that are buffered from view.
The least preferred images include conventional suburban character with unusable openspace.
· Three Stoo' Condominiums with Quasi-
Public Interior Open Space
· Varied Roof Forms
· Quality Materials
· .,,,1 (Average Score 4.8)
,. Dated/Generic design
· Three S, to~ Apartment Complex
~ {Average Score 1.9)
· Traditional Architecture
· interesting Roof Forms
· High Quality Materials
· Human Scale
{Average Score 4.5)
· Mixed Use Retail with Apc~,'tments
· Varied Roof Forms
,, Appropriate Landscape
· Creates Pedestrian Scaled Street
(Average Score 4.5)
· Seven Story Apartment Complex · Mixed Use Retail with Apar:,ments
(Average Score 1.9) · Building set back 'from Street behind Parking
(Average Score 2.9)
Attachment B
Signs
The most preferred signs are understated small scare monument signs and overhanging signs. Design components include a style
that reflects the building architecture, use of high quality metals, brick, wood and other traditional materials, spot lighting rather than back
lighting, and complementary landscaping.
The least preferred signs are those that appear overstated, do not complement the building architecture, appear to be temporary, and
use plastic back lit leFering.
· Low Monument Sign
· Simple Discreet Lettering
· High Quality Materials
(Average Score 4.6)
~?:' '~. :~-~:~.-3',':7~-7 7.
· Sign Scaled for Maximum Sight Distances
· "loud" Colors and Graphics
(Average Score 1.2)
· Clock Tower
Combined with
Small Signs
· Community ~ocal Point
(Average Score 4.1)
· Small Lettering
· Discreet Canopy Signs
· Traditional High Quality Materials
(Average Score 3.8)
· Back Lit Vinyl Canopy Signs
· Garish Colors
(Average Score 1.4)
· Building is a Sign
· Not Pedestrian Scale
· "Loud" Colors and Graphics
(Average Score 1.5)
Attachment B
Parking Lot Treatments
The preferences forparking lot treatments include designs that buffer views [o parking areas from the street and separate parking
lots from pedestrian space. The preferred components include a combination of overstory trees with ornamental railings and brick or
stone piers which are integrated into an overall streetscape design, as well as, Iow ornamental shrubs and grasses in a naturalized
planting arrangement.
The least preferred parking lot treatments are those that have little or no separation between parking lots and the public realm and leave
clear views to parked cars·
· Multi-Functional Parking/Plaza Space
· High Quality Materials and Lighting
(Average Score 4.9)
Least Preferred Irnage~
· No Buffer Be~een Parkin9 Lot, Sidewalk and · Buiidin~ Obscur~ Behind Sea of Parkm9 · No BuHer ~iween Parkln~ Lot, ~l~ewal~ an~
Street · No Lan~s~pin9 8tree~
· No Landsca~in9 · Sea of Parkin9 · Sea of Parkin9
~. No Differentiation beiween Pedestrian and · Narrow Boulevard · No difference be~een Pedestrian and Vehicle
Vehicle realm (Averaoe Score 0.5) Realm
(Ave~oe Score 0.5~ · No Landscapin9
(Average Score 0.~)
Creates Pedestrian'
I~ :.~: '_ · , -...,.
· Efec:lve in Tight Space
scaled environment
(Average Score 4.61
·Simple Effective Landscaping
· Rh~hmic use of Tr~s and Wall
· Use of Quali~ Matenals
(Avenge Scorn 4.5)
Attachment B
Open.Spaces
The most preferred images include spaces that are inviting, enclosed by trees and shrubbery,, and include a central feature.
The scores indicate that most of the images left a }ositive impression, although tight oublic spaces and underutilized single function
plazas received the lowest score.
Most'PreferredJ-mages ~
· Active Fountai" Creates an Inviting Fo~l Point
~ Averaoe Score 5.0)
Least ~r?er_~eSd'~a ges
· Too Compact and
Ciu~ered
(Average Score 2.8)
· Interesting Planting t~eds and Spaces Beyond
Creation of Appealing Place
{Average Score 5.0)
· Expansive Public Space
· Appears Cold and Unfriendly
(Average Score 2.9)
,, Quiet Intimate Neigh:)orhood Square
(Average Score 4.8)
· Tight Urban Sidewalk Cafe
(Average Score 3.7)
Attachment C
City of Columbia Heights
Kmart Redevelopment Site
Goals and Objectives
Community Redevelopment Goals
Goal A: Establish a model for redevelopment in Columbia Heights through the
Kmart redevelopment project.
Objective:
1. Accomplish a redevelopment project consisting of a mixture of residential,
commercial, and potentially civic uses in a compact and integrated
neighborhood design that economizes on land area, shares parking,
provides easy access, creates business synergy and promotes community.
Goal B: Establish a strong image and distinct character to create a sense of place
and community pride.
Objectives:
1. Encourage an attractive and exciting mix of housing and business types
that will draw community residents to the site and attract customers from
throughout the trade area.
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Promote the redevelopment as a focal point for the community and a
success story to provide momentum to support further reinvestment
throughout Columbia Heights.
Create a uniform streetscape treatment that Will unify the appearance and
enhance the experience of the being in this neighborhood.
Goal C: Integrate the redevelopment site with the surrounding neighborhoods to
encourage use by City residents.
Objectives:
1. Designs shall accommodate transit stops to make site more accessible to
non-motorists.
2. Promote development that encourages pedestrian traffic, internal
circulation and accessibility to neighborhoods.
3. Improve connection to the site through the use of improved sidewalks,
trails, road improvements and signage.
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Take care in the design process to screen and buffer service, loading and
other potentially negative site features from surrounding neighbors.
Carefully analyze both existing and future traffic patterns and identify and
implement the traffic improvements and management strategies necessary
to avoid congestion and safety problems.
Goal D: Achieve high quality in the redevelopment design and visual appearance of
the redevelopment site.
Objective:
1. Prepare, adopt and enforce design standards that will ensure an attractive
built environment.
Commercial Goals
Goal A: Maintain and improve the commercial areas as a vital retail and service
location.
Objectives:
1. Identify and recruit business types that will be successful in this location
and support land use densities and values that make redevelopment
financially feasible. This may require authorization of some flexibility
from the current zoning standards related to setbacks, density, parking,
open space and building height.
Strive to retain existing local businesses when possible, or to relocate them
into places that will allow them to continue to contribute to the prosperity
of the community. Identify and support the location of businesses that will
contribute to the drawing power of the redevelopment site.
3. Implement strategies to reduce parking requirements, including reduced
parking ratios, shared parking, mass transit, and trails/sidewalks.
Residential Goals
Goal A: Provide a variety of housing types, styles and choices to meet the needs of
the community.
Objectives:
i. Provide a diversity of housing choices that will satisfy customer
preferences for this location.
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Support appropriate urban housing densities along with performance
standards to create financial value and achieve strong purchasing power to
support neighborhood service businesses.
Promote a redevelopment concept that creates an attractive urban
neighborhood that include housing amenities such as decks, open spaces,
gathering areas, recreational amenities, pedestrian ways, landscaping, and
green spaces to ensure a safe, functional and desirable living environment.
Successfully integrate the new neighborhood into the surrounding older
established neighborhoods.
5. Require high quality community design and construction standards.
Attachment D
KMART REDEVELOPMENT REQUIRED PUBLIC ACTIONS
DATE MEETING ACTIONS
August 7 Kmart Advisory Group · Approve Final Concept
August 6 Planning Commission · Recommend Comp. Plan Amendment City Council and to Metro Council
August 11 Council Meeting · Resolution Calling for TIF Public Hearing for 9/22
August 20 EDA Meeting · Resolution Calling for TIF Public Hearing 9/22
September 2 Planning Commission · Zoning Amendment- Public Hearing
· Tax Increment Financing Plan compliance with the City's Comprehensive
Plan
September 4
Joint City Council /
Plann[ng Commission /
EDA Work Session
· Presentation of Plan and approval to move forward
September 16
EDA
· Development Agreement
· Tax Increment Financing Plan
September 22
City Council
· Tax Increment Financing Plan
· Comprehensive Plan Amendment
· Zoning Amendment
October 7 Planning Commission · Preliminary Plat
October20 City Council · Preliminary Plat
Attachment E
SCHEDULE OF EVENTS
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
AND THE
CITY OF COLUMBIA HEIGHTS
ANOKA COUNTY, MINNESOTA
FOR A MODIFICATION TO THE DOgVNTOWN CENTRAL BUSINESS DISTRICT (CBD)
REVITALIZATION PLAN FOR THE CBD REDEVELOPMENT PROJECT
AND THE ADOPTION OF A TAX INCREMENT FINANCING PLAN
FOR TlZ[E ESTABLISIIMENT OF THE K-MART/CENTRAL AVENUE
TAX INCREMENT FINANCING DISTRICT
(a renovation and renewal district)
Draft as of July 11~ 2003
July 24, 2003
August 6, 2003
Project information, property identification numbers, and maps sent to Ehlers
& Associates for drafting documentation.
Ehlers & Associates confirms with the City whether building permits have
been issued on the property to be included in the TIF District.
August 11, 2003
City Council calls for public hearing on the modification to the Downtown
CBD Revitalization Plan for the CBD Redevelopment Project and the
establishment of the K-Mart/Central Avenue Tax Increment Financing
District.
August 22, 2003
Fiscal/economic implications received by School Board Clerk and County
Auditor (at least 30 days prior to public heating). [To befaxed and mailed
on August 21, 2003]
September 2, 2003
Planning Commission finds the Plans to be in compliance with City's
comprehensive plan.
September 11, 2003
Date of publication of hearing notice and map (at least 10 days but not more
than 30 days prior to hearing). [Focus News publication deadline September 4,
2003 -Ehlers & Associates to submit notice and map to paper.]
September 16, 2003 EDA approves the Plans.
September 22, 2003
City Council holds public hearing at 7:00 P.M. on a Modification to the
Downtown CBD Revitalization Plan for the CBD Redevelopment Project and
the establishment of the K-Mart/Central Avenue Tax Increment Financing
District, and passes resolution approving the Plans. [Ehlers & Associates will
mail final Council packet information to the City by September 1 I, 2003]
By December 30, 2003
Ehlers & Associates files Plans with the MN Department of Revenue and
requests certification of the TIF District from Anoka County.
*Because the City staff believes that the proposed tax increment district will not require unplanned county road
improvements, the TIF Plan was not forwarded to the County Board 45 days prior to the public hearing. The County Board,
by law, has 45 days to review the plan to determine if any county roads will be impacted by the development. Please be
aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing.
EHLERS
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