Loading...
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 Visit Our Website at: www. ci. columbia-heights.mn.us 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 I1% KMax, £ ~'~::1;~'"': ~? "'"' .'"' ,..., ..'.~' _~ ~ ._ ..... . .,~'.. %, .;;..,.. ,., ~.'. ~.~. 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. I I I I I I I I i ! ! ] 1 1 J J _1 ,"~tj'u 12 August 2003 ..! .I 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: I I I I ! ! i I ! 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 I i I I I I I I i 1 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. o 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. I o 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. 1 o 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 1