HomeMy WebLinkAbout02-24-10 Council Dept Head Retreat City of Oak Park Heights
14168 Oak Park Blvd. N • Box 2007 Oak Park Heights, MN 55082 • Phone (651) 439 -4439 • Fax (651) 439 -0574
City Council Workshop 2/24/2010
Tentative Agenda - items for Discussion. 2v�
(letters in parenthesis are for selecting order of discussion - TBD)
• Engineering Firm (a)
The City Council has discussed the relationships with Bonestroo over the past several months.
Does the City wish to remain with Bonestroo or move to a different firm.
• Osgood / STN 36 - D. Hecker sites (b)
The City has secured some information from its financial consultant so as to consider some
proactive steps for fostering some redevelopment. Discuss what some of these steps are and
consider expending some dollars to implement this plan. (See enclosure #_....A_._.)
• Council Reporting on Committee Assignments. (c)
There has been a request that Council Members and the Mayor give more detailed reports
about what has transpired in their various committee assignments.
• Council Member Committee Assignments - Process to Select. (d)
There has been some discussion about the selection procedure for various committee
liaisons and appointees (Mayor appoint / Council affirm) and possibly seeking to revise it.
• City Bond Council - Briggs & Morgan. (Conflict Waiver Letter with Xcel Energy) (e)
The City has been asked by Briggs & Morgan to sign a "Conflict" waiver as B &M largest client
is Xcel Energy. To date, the City has not agreed to such waiver. (See enclosure #_B_)
• Moelter Site Redevelopment (f)
The City may want to consider the development of a more detailed "master plan" /
feasibility studies for the development of this area. Use a portion of the fund from Xcel to pay
this?
• St. Croix River Crossing (g)
General update /discussion. This could include possible crafting of a "City Position
Resolution ", Oakgreen Ave. widening, status of discussion with Commissioner, etc...?
• Agenda Publication (h)
Discuss Agenda publication options (See enclosure # _C_)
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IF-&J C' ' S tr rt t=
NORTHLAND STRATEGIES
Special Projects Group
February 11, 2010
Eric Johnson
City Administrator
City of Oak Park Heights
14168 Oak Park Boulevard North
P.O. Box 2007
Oak Park Heights, MN 55082 -2007
RE: Redevelopment Planning Services
Dear Eric:
This letter presents our proposal to assist the City of Oak Park Heights to plan for the future
redevelopment of property in the northwest quadrant of Highway 36 and Osgood Avenue. The
proposal provides you with a menu of services. My objective is to provide the City with
flexibility in tailoring a scope of work and budget that best fits your needs. I would be happy to
discuss other services and approaches not described in this letter.
Fifield Background
Before presenting the proposed scope of work and budget, I want to offer a brief summary of
my qualifications and experience for undertaking this work. I have worked with Minnesota
cities for the past 31 years. I started my career in city management, but have worked as a
financial and planning consultant since 1983. During this time, I have helped dozens of cities
evaluate and undertake programs to provide financial support to redevelopment projects. I
also have the unique experience of leading redevelopment planning projects. I have led
downtown /commercial district redevelopment plans in Lakeville, Rosemount, Grand Rapids,
and Little Canada. I have created the implementation strategies for many other redevelopment
plans.
Scope of Work
The proposed scope of work is designed to help city officials gain a sound understanding of
issues influencing the redevelopment of this property, the tools available to the City to facilitate
redevelopment and steps to attract new private investment to the site.
Basic Services
The proposal is based on a core service package with optional services that can be added at the
discretion of the City.
Task 1 - Create project area profile
Northland will collect background information about the redevelopment property and
assemble a profile of the project area. Information in the profile will include:
45 South 7 Street, Suite 2000, Minneapolis, MN 55402
Main: (612) 851 -5900 / Direct: (612) 851 -4992 / Email: rfifield @northlandsecurities.com
Member PINRA and SIPC
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Propose! for Redevelopment Planning Services
February 11, 2010
Page 2
1. Map showing existing parcels.
2. Aerial and street level photographs of the property.
3. Ownership.
4. Valuation - current and five year history.
5. Parcel size.
6. Building characteristics.
7. Land use designations - zoning and comprehensive plan.
Task 2 - Create Toolbox
Northland will prepare a summary of tools available to the City to facilitate redevelopment in
the project area. The toolbox will include:
1. Tax Increment Financing (TIF).. Information on TIF will include:
• Criteria for establishment of TIF district options.
• Potential uses of TIF.
• Preliminary analysis of TIF funding capacity.
2. Tax Abatement. The explanation of tax abatement will include:
• Basic overview of tax abatement.
• Potential uses of tax abatement.
• Calculation of overall abatement limit for Oak Park Heights.
• Preliminary analysis of tax abatement funding capacity.
3. EDA Powers. State Law gives economic development authorities important powers to
facilitate redevelopment projects. This section of the tool box will summarize the key
powers of an EDA.
4. Other Municipal Tools. Cities have a variety of other finance tools that may play a role
in redevelopment projects. This section of the tool box will provide brief summary on
the potential use of the primary tools, including:
• Special assessments.
• Special service district.
• Park dedication.
5. Outside Funding. Although limited, there remain some outside funding support for
redevelopment projects. Northland will summarize the use, funding criteria and
application cycle for:
• State DEED grants.
• Livable Communities Demonstration Account grants.
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Proposal for Redevelopment Planning Services
February 11, 2010
Page 3
• Community Development Block Grants
Task 3 - Conduct Council workshop
Northland will design and conduct an interactive workshop with the City Council. This 1 -2
hour session will present the information created in Tasks 1 and 2, provide the Council
members with the opportunity for questions and engage the Council in a discussion of where to
go next.
Task 4 — Prepare Report
Northland will compile the information produced by this project into a written report. The
report will also describe the action steps set in Task 3.
Additional Services
There are several other tasks that could be conducted by Northland to facilitate planning for
redevelopment in the project area. We offer them as additional services to be added at the
discretion of the City.
Conduct Redevelopment Findings Assessment
State Law requires specific findings on the presence of "structurally substandard" buildings as
criteria for certain types of TIF districts. The basis for the findings requires inspection and
evaluation of existing buildings. Northland does not provide these services, but can assist the
City in contracting with a qualified party.
Conduct Developer Interviews
Commercial development has been slow to recover from the recession. Recent development
trends and projects do not provide meaningful guidance for redevelopment in Oak Park
Heights. To obtain real world insights, Northland would conduct interviews with up to five
development companies. Questions to be explored include:
• Overall view of commercial development in east metro area.
• Observations about potential uses for the project area.
• Thoughts on market and timing of redevelopment.
• Need for and type of public assistance.
Prepare Redevelopment Concepts
It is often helpful to visualize the alternatives for the type, layout and density of redevelopment.
Northland would engage the services of a qualified planning /urban design firm to assist with
these services. These services would be designed to assist the City Council in articulating
public plans and objectives for future development. This task would also provide more
accurate development data for the financial analysis.
Budget
Northland will provide the Basic Services described in this proposal for a cost not exceeding
$3,600. The Additional Services — Developer Interviews has a budget of $1,700. The budgets for
other Additional Services require further guidance from the City.
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Proposal for Redevelopment Planning Services
February 11, 2010
Page 4
The budgets are based on the estimated number of hours required to complete these tasks at an
hourly billing rate of $160 /hour plus reimbursable expenses for travel, printing and mailing.
Northland will bill on a monthly basis for services performed and actual reimbursable
expenses.
Thank you for the continued opportunity to serve the City of Oak Park Heights. I look forward
to your questions and comments about this proposal. I would be happy to make changes based
on your input. After we have agreed on a final Scope and Budget, I will prepare a formal
service agreement for the project
erely, ,
Rusty eld
Director of Northland Strategies /Senior Vice President
cc: Nick Skarich, Northland Securities
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1® B tr
February 16, 2010 651.808.6620
mippel @briggs.com
VIA E -MAIL j
Erlc-Jehnsoff -- —
Administrator
City of Oak Park Heights
Oak Park Heights City Hall
PO Box 2007
14168 Oak Park Boulevard
Oak Park Heights, MN 55082 -2007
Dear Mr. Johnson:
Thank you for your February 2 e -mail. Briggs and Morgan has represented the City as
bond counsel and in connection with tax increment financing matters since 1976. I personally
have worked with the City since 1976.
As you know Briggs and Morgan also represents Xcel Energy ( "Xcel "). From time to
time during this 34 year period there have been issues between the City and Xcel that have
involved legal representation. Since Xcel has substantial facilities located within the boundaries
of the City potential issues between Xcel and the City may arise again in the future. If these
issues arise your City Attorney would be handling such matters. In the event that Xcel contacts
our office and requests our legal representation we would request that the City agree that Briggs
can represent Xcel and waive any potential conflict of interest.
In the past when we have requested that the City sign a waiver letter relating to a
particular issue, the City has declined. Unfortunately this has necessitated that Xcel retain other
counsel. This puts us in a difficult situation with our firm's biggest client.
My hope is that we could develop a pattern of dealing with this situation that works for
the City and Briggs. My proposal is that if Briggs is asked by the City to represent them on a
bond issue or tax increment financing matter (we have no open files for the City presently so our
representation of the City has concluded) the City would agree to execute a conflict waiver letter
for the period of time that the matter is open. When the matter is closed the City would be
closed as a client. During the period that the conflict waiver letter is in effect, if a matter arose
that Xcel sought our representation involving the City we would not be precluded from
representing Xcel. If a bond issue or tax increment financing matter arises while we are
representing Xcel, Briggs would request that Xcel sign a similar waiver letter so that Briggs
could represent the City. The City reserves the right to determine on a project by project basis
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February 16, 2010
Page 2
whether it wants to sign an Xcel waiver letter. For example, a determination by the City to sign
a waiver letter if a City project occurs in 2011 would not preclude the City from determining in
subsequent years that it does not want to sign a waiver letter. My request is that the City council
decide this issue when the next City project is scheduled to occur and determine at that point
what the City's relationship is with Xcel.
There is no perfect solution to the situation unless the City chooses to no longer use our
services. You suggested in your email that the issue would also be moot if Briggs chose to sever
it's relationship with the City. Being the ultimate optimist and because of my long history with
the City I'm not choosing to do that.
Briggs values its representation of the City for the past 34 years and we appreciate the
City's consideration of the proposal set forth in this email.
Very truly yours,
2465527vl
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OAK PARK HEIGHTS
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r.
Memo
To: Eric Johnson
From: Jennifer Pinski
Date: January 7, 2010
Re: Agenda Publication
Per Minnesota Statutes, the City must provide public notice of regular meetings by
posting notice of the date, time, place, and purpose of the meeting on the principal
bulletin board of the City.
In addition to posting notice, the City must also mail or deliver notice to each person
who has filed a written request for notice of meetings with the City. As an alternative
to mailing or delivering the notice, the City may publish the notice once in its official
newspaper.
The City of Oak Park Heights has been publishing the Agendas in the paper rather
than mailing notice to individuals.
As you may be aware, the Stillwater Gazette (which was designated as the official
newspaper for the City in 2009) has reduced their publications from five days a week
to three. This changes the publication deadlines for Agendas.
From this point forward, the City could continue to publish Agendas in the
newspaper; however, the Agendas will need to be prepared two days earlier than
they currently are in order to meet publication deadlines; OR, the City could maintain
a list of individuals requesting notice and mail or deliver the notices to them.
The City does also post Agendas and Minutes (once they are approved) on the City's
website.
I recommend the City Council discuss the options and provide staff with direction.
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