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HomeMy WebLinkAboutImplementation Redevelopment Needs & Approach e OAK PARK HEIGHTS COMPREHENSIVE PLANNING PROGRAM implementation • redevelopment needs and approach march 1980 '11.5:::::.7 DirtetC 0 iii 1 ..."::::::::::::::::„.. prepared by: ILL lis NORTHWEST ASSOCIATED CONSULTANTS INC. NORTHWEST ASSOCIATED CONSULTANTS INC. 20 March 1980 TO: Oak Park Heights Mayor and City Council RE: Comprehensive Planning Program - Implementation FILE NO: 798.02 - 80.04 Gentlemen: As a continuation of planning efforts to improve the community, it has been recommended that the City consider the establishment of a Housing and Redevelopment Authority. This topic has proceeded to the point where it will formally be considered at an official public hearing on 24 March 1980. To assist you in a determination on this matter, we have assembled the following report. The purpose and powers of an Housing and Redevelopment Authority are first explained. Issues which should be possibly addressed in a community sponsored improvement effort are summarized in Chapter Two. In Chapter Three, a recommended initial program is provided. The final chapter contains a summary of steps whereby the City, through an Housing and Redevelopment Authority, can proceed with actions. Representatives from Northwest Associated Consultants will be in attendance at your meeting on 24 March to respond further to questions which you may have. In the mean- time should you wish to personally discuss this matter, please contact our offices accord- ingly. Respectfully submitted, NORTHWEST ASSOCIATED • ' h A TS INC. David R. Licht, AICP President DRL/nd 4820 minnetonka boulevard, suite 420 minneapolis, mn 55416 612/925-9420 • comprehensive planning process r.zi1 p lanning tactics 2 la nnig inventory ... entory ... .. .:: :::: •• ... :::::::..:i.: physical • economic c social • land transpor- c o u- p use tation facilities lation values potentials ntia ls • .ti p olicy plan planning and iiii inventory goals and development analysis objectives policies plan Q s ro'ects, programs plans, p � . . . , ..... .. ... . ..... . . .... ... 5 ...... .... ..::. ::: ..::.. .:.. .. .. . . :::. implementation ...: ...... ....:. .. .... :... .:::: .:.:..........:: .•.. . .. .. , ....::: .::::.:. . . .::::..:::.:::... ..... :.: ..... ,:... . ......:........::.:. ...::.:::::::::::.... ....... bjn • Table of Contents Page Introduction 1 Background and Purpose 2 Community Needs and Issues 7 Approach and Programs 15 Procedures for Establishment 17 • Introduction As part of the City of Oak Park Heights' comprehensive planning activities con- ducted during the latter part of the 1970's, various community problems were identified which require attention. Many of these concerns have and will be addressed through established mechanisms such as the City's Zoning and Sub- division Ordinances. Means of community improvement todate have, however, typically been reactionary where the City responds to complaints, directives of other agencies, or development proposals initiated by the private sector. In order to bring about a more complete and comprehensive community improve- ment effort, the City will have to undertake a more direct approach and active form of participation. One method whereby the City can assume direct contri- bution is through a Housing and Redevelopment Authority. Such an agency can respond to a wide variety of issues, including redevelopment, rehabilitation, as well as economic development. • 1 • Background & Purpose The State of Minnesota has declared that there is insufficient supply of adequate, safe and sanitary dwelling accommodations within the state. It has also recognized that in certain rural and urban areas there exists substandard conditions, unsafe and unsanitary housing, buildings and structures used or intended to be used for residential, commercial, industrial and other uses. These substandard deteriorated conditions are injurious to the health, safety, morals and welfare or the citizens of Minnesota. In an effort to protect and promote the welfare of the citizens of this state, the state has incorporated a Housing and Redevelopment Authority as a means for Minnesota counties and municipalities to accomplish such purposes as the clearance, replanning and reconstruction, rehabilitation and modernization of substandard areas and the provision of decent, safe, and sanitary housing for persons of low incomes and their families. To facilitate this type of action, the State of Minnesota through Sections 462.415 to 462.711 of its State Statutes enables the counties and municipalities to establish Housing and Redevelopment Authorities and provides the HRA with powers to accomplish its purposes. The purpose of a Housing and Redevelopment Authority is as follows: • 1 . Alleviate housing shortages. 2. Foster the development and use of stagnant and unproductive real property. 3. Bring substandard buildings, improvements and lots into compliance with public standards for decent, safe, and sanitary housing. 4. Provide low and moderate income families with homeownership opportunities. 5. Dispose of excess land for residential housing development purposes. 6. Insure the sound growth, development and financial stability of the community. An HRA shall be a public body and shall have powers necessary to carry out its purpose. The Authority may exercise all or any of the powers granted by Sections 462.415 to 462.711 of the Minnesota Statutes. The powers and duties of the HRA have been broken down into five categories: administration/establishment, acquisition and sale of property, rehabilitation and redevelopment, financing/revenues/expenditures, and planning . All of the powers and duties of a municipal HRA are limited to an area of operation which shall be the municipal boundaires. 2 ADMINISTRATIVE/ESTABLISHMENT POWERS AND DUTIES 411 1 . To sue or be sued. 2. To amend and repeal rules and regulations not consistent with the Minnesota Statutes. 3. To employ a director, technical experts, and other necessary staff on both a temporary and permanent basis. They must also determine quali- fications, duties, and compensation for the employees. 4. To delegate powers and duties to agents and employees. ACQUISITION AND SALE OF PROPERTY POWERS AND DUTIES 1 . Within the area of operation, the HRA can acquire real or personal property or any interest therein by gifts, grants, purchase exchange, lease, transfer, bequest, devise, or otherwise, and by the exercise of the power of eminent domain. 2. To sell, give, transfer, convey or otherwise dispose of real or personal property or any interest therein and to execute such leases, deeds, conveyances, negotiable instruments, purchase agreements and other contracts or instruments, and take such action as may be necessary or convenient to carry out the purposes • of these actions. 3. To lease or rent any dwelling, accommodations, lands, buildings, structures or facilities. 4. To own, hold and improve real and personal property. 5. To insure or provide for the insurance of any real or personal property or operations of the Authority against any risks and hazards. 6. Cooperate with federal, state or any public body or agency and upon consent of the governing body of the municipality, lease, manage or otherwise take over any housing project already owned and operated by the government of the United States or any agency thereof. 7. Real property shall only be acquired when the buildings or improvements are substandard and the exercise of the power of eminent domain shall be limited to real property which contain buildings or improvements which are vacated and substandard . Substandard buildings or improvements mean buildings or improvements that are dilapidated or obsolescent, faultily designed, lack adequate ventilation, light, or sanitary facilities, or any combination of these or other factors that are detrimental to the safety or health of the community. • 3 REHABILITATION AND REDEVELOPMENT POWER AND DUTIES WITHIN THEIR • AREA OF OPERATION 1 . To demolish, remove, rehabilitate or reconstruct the buildings and improve- ments or to construct new buildings or improvements. 2. To grade, fill and construct foundations or otherwise prepare the site for improvements. 3. To establish and carry out a voluntary repair or rehabilitation program for buildings or improvements. 4. To enforce laws, codes, regulations relating to land use and building or improvement occupancy, and to the compulsory repair, rehabilitation, demolition or removal of the building or improvements. 5. Develop,.test, and report methods and techniques and carry out demonstrations and other activities for the prevention and the elimination of slums and urban blight. 6. Recommend to the municipality the initiation of municipal powers against certain real properties, relating to repair, closing, condemnation, or demolition of unsafe, unsanitary, hazardous, and unfit buildings. • 7. Recommend to the municipality to make allowances concerning enforcement of applicable health, housing, building, fire prevention, and housing maintenance code requirements as the relate to residential dwelling structures which are being rehabilitated by low and moderate income persons for the period of time necessary to complete such rehabilitation as determined by the local HRA. FINANCING/REVENUE/EXPENDITURES POWERS AND DUTIES 1 . To borrow, accept contributions, grants, gifts, services, or other assistance from federal government, state government or private sources. 2. To contract with the federal government for financial assistance and meet the conditions which the federal government may attach to its financial aid for a project. 3. To issue bonds, notes, or other evidence of indebtness for any of its corporate purposes and secure bonds through mortgages upon property held or to be held by the HRA or by pledge of its revenues. • 4 4. To procure or agree to the procurement of government insurance or guarantees • of the payment of any bonds or part thereof issued by the Authority, including the powers to pay premiums on such insurance. 5. To invest any funds held in reserves or sinking funds not required for immediate disbursement in property or securities in which saving banks may legally invest funds. 6. To make expenditures as may be deemed appropriate to carry out the purpose of the Authority. PLANNING POWERS AND DUTIES 1 . Undertake and carry out studies and analysis of the housing and redevelopment needs within the area of operation. These studies shall include the following data: a. Population and family groups distribution according to income levels. b. Type and amount of available housing stock (1) Rental units (2) Sale prices • (3) Desirable land use The results of these studies should be made available to the public, and building, housing supply industries. 2. Determine the income level constituting low or moderate family income. The Authority shall use such a determination as a basis for the maximum amount of income for admissions into housing development projects owned and operated by the HRA. 3. To compile and maintain a catalog of all vacant, open, and undeveloped land or land which contains substandard building and improvements within the Authority's operation area. The HRA should also compile and maintain a catalog of all Authority owned real property that is in excess of the fore- seeable need of the HRA. • 5 O [3 6g /� y/O ; O OWC 1 a CC GO Z / ao • z Cr D LL ✓� NNW / •. \ I d O W Q2N / 3ii ' 0�2 /• ,,hill! j` 6°Ca ya: a -o _o a N U E .L a) > .+- / L - 4- t L / t O O / �)•L 9 iI N •>/z/.01 U/ .ate _ B g 0 in '�a. e a ro ,,....- di® ---E .- O a a J / N C _a_ S J PEPMN AV C( ( i _ En 0 \N.'N �oV' .3-,ii:::::::::::::?t-'_;.y° ,."aWi`: `� d„ V 1111111,..11 02 CO a O N A\ U xao v d 3A.r An06• d ' t Q O S N'3n^ , O- '3 ofiz,„„„rii..... e ,• ,434:., orii in iy r7 p ii C — +s- N IBY =).-MI VwVNVd C Q Q = >, a� 6,j fl. 0 ©N z z' ' f C N � 0 } co 11r _ L a I I 59\ N \ �/ 3nV C 000950 ! e." 7-n-N "a 0 .� *g a ? ��awo O `® I o DX i� o Q a N I Q ai (Ak 1 -= o c a .,.:T'i: N �w0 O 0 1 C� _L) N N n I 3AV 3N310II j a VOM10 W V) 73 I d V. a C a I §- C j ..N 3AV-01314010 � . iP1L1Lo • o C ll ]� 'L_.I':_J I'L E �i� . 1L l� J�1C 1 w. Q ici ❑ED_-0 . 6 Q FnFIr f❑1 • Community Needs & Issues INTRODUCTION Oak Park Heights is a growing community experiencing problems associated with growth and aging development. In the following paragraphs, the full range of problems currently being confronted by the City are discussed and summarized. COMMUNITY GROWTH Oak Park Heights has experienced an increased growth rate over the last six years. While the growth issue in Oak Park Heights does not appear to be particularly serious, given the present service capabilities, however, if growth continues within the community, the need for annexation will be greater. Potential annexa- tion will require a thorough review of service capabilities and overall land use impacts. USE OF VACANT LAND Eighteen percent of Oak Park Heights is vacant and available for future develop- ment. As much of the remaining vacant property in Oak Park Heights is comprised • of small fill-in parcels, opportunities to encourage larger scale and more intense development is limited. However, there are a few fairly large vacant areas within the City that could accommodate major scale development projects. Much of the vacant land is distributed throughout the community in relatively small parcels. The development of these parcels should be closely regulated to ensure conformance with City requirements and compatibility with the uses existing in the area. As each of the large parcels abuts a major road or commercial area, their eventual development presents new issues as well as significant opportunities. Accordingly, Oak Park Heights should strongly discourage piecemeal or uncoordinated develop- ment of these remaining parcels , as a non-planning approach may stagnate future property values and diminish the City's ability to attract new viable businesses and residents. 7 • ANNEXATION Annexation has been a major issue in the City's past and is likely to continue to be an issue in the future. This issue will grow in importance as the remaining vacant land is developed . Oak Park Heights has displayed need for additional land as the limited amount of vacant land has restricted commercial and industrial growth. An area proposed for annexation has been identified by the Oak Park Heights Comprehensive Plan. The area located along the northern side of Highway 36 on the western border of the community is viewed as a logical boundary extension. This proposal is supported by the fact that Oak Park Heights provides utility services to a major portion of this area, and the uses developing in the Township are similar to the adjacent uses within the City. As such, the area is felt to be best governed by one unit which can exercise uniform control and thus establish compatible transitions between activities. HOUSING One generalized category of community issues relates to housing. This area is reflective of the community's development as a whole, in that older, deteriorating structures as well as new construction is a concern. • Housing Choice Residential development in Oak Park Heights is dominated by conventional, single family detached homes which comprise 73 percent of the existing housing stock. Only 22 percent of the total housing units in Oak Park Heights are apartments with a small portion of these units condominiums (owner-occupied apartments). The remaining five percent of the housing units consist of two-family and four-family structures. This type of housing stock breakdown suggests very few housing opportunities currently existing for young couples seeking owner-occupied housing of a more contemporary nature. As single family housing costs continue to rise rapidly, more young families will seek alternative type owner-occupied housing. In the absence of such alternatives, Oak Park Heights is likely to experience rapid polarization of population age groups. Consequently, mid-density alternatives (townhouses, patio homes, quadraminiums, etc.) which economize land and building costs and are therefore more affordable to young families should be carefully considered in the overall housing stock. Housing Condition While the majority of the housing in Oak Park Heights is in sound condition, or in need of minor repair, certain blocks within the eastern portion of the community are • experiencing serious problems with housing deterioration. 8 A housing condition survey was prepared for the City of Oak Park Heights in • June of 1977. In conducting the housing survey, 100 questionable homes were selected for a detailed, on-site exterior review. The on-site survey results indicated that 41 homes were actually in fair to good condition, needing only superficial repairs. Of the remaining 59 homes, however, 20 structures appeared to be in need of and suitable for rehabilitation, and 39 homes were considered to be potentially beyond the stage of economical rehabilitation. The following map indicates the blocks where substandard housing exists and the amount of substandard housing on the block. The Oak Park Heights Housing Plan, 1979 provides a more detailed explanation of the map and housing survey. • • 9 MIN C J M •f z v / I • i!I v g E •• ; . i o ,4 v c,`° 11 r.' E 5`• o / i7, rt a P N !T ".1. �J p� c._, P'* go N i{{1PERN�yi� ® CI O N AV IlN3d 1- C ST C iir� �_ —R—j� .6c...,--° C L e �N �«�l .... (n O 1 .�pQ :::C,.1.0.,0. 1�1 rn W08V3d O Q) N I (h v N'3n d \-, Q L' E 4..N1 • 0 \; N s l ntla ,`I O TT "4:1 • a i' : \ ... . C 3 13 8 ; 7 ° WVNVd 0 . � ]N C L 0 0 O,_.1. N0 v0i •C1 0 c T 1 ( N J7/3nr 000050 N. w OPEN = = u 0 'N •'3nv Q ,, ,r.".9..I I I.� SS— (41 I I I illk iii ill 3nv _LLI 3nr 01314010 CI. M - z r' _ ®I 10 a0 Ti ...-1- ill / i i: 0: c !'i 1 . / \ so ap t N . \ • L. c 11 Z V IElt, -v tcP e.11 0 Q. 3�y�� I� G` `,1• / :F • E // t , /� . te,1111 0 tt V/ N 3 i * PK �/ c P J/ PEPKIN •Y O ./ z I� O E X �- ® .a _ x L COP N ntl PJ�-311N3d• / 0 / _ I_ 6 N C n vs l C © • ,.. A„ N ntlFj N'3 3d N -JAp- -I N(�11�3d£ - �, Nan a 4 :•y+ } L • :L C_ . .::p......•:; >% O N V • 4., .� = N 3n intle�:,p,:•,,, . CO Q. •— } . -D • I} N N —SAS Sltlpd b m-i 6 rI• _ 3 - O. (�1- O u N -SAp YwVNpdEE' ^ -D J ff E - a) c E Y z N N tn 0 u i ' ‘ tlF f j e J N 3Ap R NVW' ® •, n" -I-I N 3np Oct 050 . VA c VI �'N ofN cc e *.11111\ z ,i^yM10 3 1``, ' I _ 1.-. 1 0 c .--/i ....\�1i;11; z 'N 3 A ' c1:;;111 N 3nq VON110 W 3np \ QQ m N 3AN 01314010 V. . ! N� a l-�1111� :. c0 ?1,' :+4ba 12 • COMMERCIAL AND INDUSTRIAL DEVELOPMENT Commercial and industrial development presents a full range of issues and problems which must be confronted by the City of Oak Park Heights. The community must address these problems and also plan for future expansion and the improvement of existing commercial and industrial uses. The following sections identify the community issues which effect the commercial and industrial development. Local Service Area Oak Park Heights may be considered a minor commercial hub in that it contains the newest and largest integrated trade facility within the surrounding river community area. Oak Park Heights can expect, in the future, continued expansion of its commercial activity along Highway 36. Commercial uses located in the Oak Park Heights area will generally have a local orientation, drawing exclusively from the small trade area consisting of Stillwater, Oak Park Heights, Bayport, and surround- ing township residents. In the absence of further annexation, and the decentralization of the commercial focus, Oak Park Heights is limited in its ability to accommodate commercial uses of greater than local scale. The community should make a concentrated effort to capture the largest possible share of the locally oriented retail and service development. • Strip Commercial Development The City of Oak Park Heights is tri-sected by Highways 95 and 36. Physical barriers can have both positive and negative impacts upon a community. Along the river, Highway 95 has had a positive effect upon the community, as it provides a physical separation between non-compatible uses. Highway 36 on the other hand has had a negative effect on the community by dividing the City's commercial core, creating safety problems and concerns involving the coordination and the cohesion of the overall commercial area. Some considerations to reduce the impact of the highway barrier on the commercial area include intersection improvements and an effort to '° coordinate development on each side of the highway to diminish the effects of the physical separation. At the present time, however, commercial activity on both sides of the highway is developing rapidly in an uncoordinated, linear strip fashion, oriented towards the highway separation. Hazardous Intersections Highway 36 disects the commercial core and has caused safety problems within the community. Traffic accidents experienced in Oak Park Heights tend to be worst on and around Highway 36 and Osgood Avenue. Two factors are blamed for the relatively high traffic accident incidence in this area: speed and poorly designed intersections. While it is reasonable to suggest that Highway 36 is responsible to a large degree for the accident rates, local land use and the orientation of access points along service roads share in the blame as well . 11 According to State Highway plans, intersection problems which have contributed to the safety hazards will be corrected through redesign measures. However, total solution of the safety problems will require that Oak Park Heights force strict ad- herence to basic transportation planning principles and their associated development policies. Pedestrian Traffic While different communities tend to vary greatly concerning their individual policies on sidewalk improvements, most metropolitan communities require sidewalk installation along major thoroughfares leading to community focal points. In Oak Park Heights, the location of the commercial center and community park (Valley View Park) in relation to the physical barrier re- presented by Osgood Avenue, suggests a need for sidewalk facilities. At present, the children who live on the west side of Osgood Avenue walk to the St. Croix Mall or Valley View Park along Osgood Avenue. As Osgood is designated as a minor arterial which will carry high volumes of traffic, safety provisions directed towards orienting the pedestrian traffic away from Osgood Avenue, will become increasingly important. Land Use Transition At the present time, there are numerous instances of where the transition between use types, most notably commercial and residential development, is inadequate, thereby diminishing the quality of the residential environmental . An orderly transition of land use intensity has been suggested surrounding the center. Higher density housing types (10 plus units per acre) and limited business commercial development have been proposed to protect residential neighborhoods. Residential densities should decrease as one moves away from the commercial center; though a strict concentric "circle" pattern is not necessary and usually not feasible. To address this issue, a residential-business transitional district was established within the Oak Park Heights Zoning Ordinance. This transitional zone would allow a mixture of high density housing and low intensity office uses. The district would provide acceptable transitional uses intended to protect low density homes from impacts re- sulting from incompatible uses, while potentially accommodating some of the higher - density housing needs. Incompatible Land Use Arrangement In addition to problems of inadequate land use transitions and buffering between major use areas, existing use patterns in several areas of the City have resulted in a poor functional relationship between differing use types. For example, the Oak Park Heights Comprehensive Plan Development Framework indicates that the few industries located away from the river front area are dispersed throughout the community. Some of these industrial uses are located in areas of less intense residential neighbor- hoods and have a negative impact on the area. 13 • Riverfront Development The majority of industrial development is located along the St. Croix River. The Allen S. King Plant facility occupies nearly three-fourths of the river front area and any further development will be physically constrained from both a size and use perspective. Based on the character of the riverfront uses, it is anticipated that any further development along the river will be of a similar high intensity nature. The development of the remaining vacant land in the river front area will be subject to limitations imposed through flood plain regulations, and St. Croix River restrictions (Wild and Scenic River). While the legitimacy of these restrictions are not questioned, many feel that their general application to the existing Oak Park Heights river front environment at this point in time is too late to bring about any significant positive change. Due to the general location of the remaining vacant parcels, little, if any, further visual disruption is likely from additional industrial development. Reclocation of Industrial Activity The few industrial uses which are located away from the river front area tend to be randomly dispersed through the community. The question of proper location for future industrial development is important. The key factor in determining proper • location should be overall compatibility with surrounding land uses. Future develop- ment should be directed toward areas where a concentration of industrial activity is being encouraged. PUBLIC AND SEMI-PUBLIC LAND USE Non-Taxable Land Uses Due primarily to the existence of the two prison sites and Valley View Park, approxi- mately one-third of Oak Park Heights represents non-taxable property. The presence of the Allen S. King Power Plant in Oak Park Heights tends to offset the substantial loss of revenue potential from the public property. In light of the limitations on future industrial development, decisions to dedicate further public land should be cautiously reviewed to insure that a sound tax balance is maintained. Washington County Administrative Offices The present location of the Washington County Administrative Office in Oak Park Heights draws traffic off of Osgood Avenue through the surrounding residential neighborhoods. Furthermore, as the County Sheriff's department is located adjacent to these residential neighborhoods, nearby residents have been forced to accept noises and light typical of active commercial uses and clearly not compatible with residential areas. The proposed expansion of the County Administrative Offices is viewed as a . further intrusion into the established residential neighborhoods and is anticipated to increase the current extent of disruption. Expansion of the County facility is also likely to result in the loss of additional tax revenue producing property in Oak Park Heights. 14 • Approach & Programs In pursuit of community improvement at the local unit scale of government, it is recommended that the City proceed immediately to establish a Housing and Redevelopment Authority. This mechanism, as noted in the initial chapter of this report, will add new powers and means whereby the community can advance and correct existing problems. To be recognized, however, is that community improvement will be a relatively slow and evoluntionary process. Due to limitations on funding sources, plus other factors, projects will have to be prioritized and addressed on a programmed basis. In this regard, it is initially recommended that the City concentrate on the eastern portion of the City. The rationale for this position is that this area of the community contains a variety of land use problems such as deteriorating hous- ing, incompatible land use patterns, and unused City property. These problems are described in greater detail in the issues section of this report. In addition to the general need for redevelopment and rehabilitation of structures and uses within the eastern portion of Oak Park Heights, a number of opportunities are presently available for immediate action. One such situation is generated by C&P's interest in expansion of operations and possible relocation to a more suitable • and compatible site for their operation. Reutilization of the City's sewer treatment plantand old Village Hall properties are a second area of possible attention. The feasibility of a tax increment prDject involving the relocation of the C&P operation and the redevelopment of their present location into a multiple family use has been evaluated on a preliminary basis and found to be a highly workable effort. Additionally, it appears that other vacant parcels in the area could be combined with the project. This would likely increase the project feasibility plus be a further improvement of the general area. Finally site improvement costs of the multiple family redevelopment site could possibly be decreased through cooperation enlisted from sources such as Northern States Power and the contribution of fill, material . Should the City proceed with the establishment of an Housing and Redevelopment Authority, it is recommended that it designate the eastern portion of the community as a redevelopment and tax increment project area. Furthermore, it is suggested that directives be given to investigate possible property acquisitions with owners surrounding the present C&P location. Finally, it is recommended that City staff investigate more formally site improvement costs and means whereby such expenses could be lessened. While other possible programs exist within the City as well as the eastern portion, it is considered critical that the City proceed in a cautious fashion, demonstrating • initial accomplishments with the C&P project. Should this project prove successful, other possible improvements can be identified and prioritized and subsequently undertaken. 15 S . 88 f °w° de, 0.yw Iw ct j hi /: 4,:: Z 0.?.�w IY ( v d7a cYf 11 c O t '' `Jet .4":0 4) • t;, i a 0 m /R U - d O 4) 0) 5 V 7= w Cl) a a� Q /,• -- rj E ' B a o f �� a a � �� y_ to �O II 4 .0 L. J • ~ / RWN PV NN e.....„14 N AF'1-131lN3d / -' H W R 5(PGECOPCH D_� N Z R `I— 0 6 zaa ® Intl 35081 _^_ Q LI®':�i_ - ,�N '3ntl 83 3d riI,+Intl NI®tl3 13d,i F I I Q N n' as O V�E\N 3A. AOORtl3d O N3A d 1 �� j 0 Smtle o R_,e :II.,a VWVNtld 1111 Z V/ i : 2 O �� 2 �� F L Z �� _ Q ' e_ �� P 'N'3/NihNW450�-11; ® U N 7)3ntl ''MM 1V 000050 / �M ¢ H ORES W a — 3 J ei Y N '3/WI UVWO / `1 1 S_ V y Nml'3ntl 3N310I. on P -- J W N '3ntl tlONIl0 7 j3np ■ -- ':N 30....01313010 I Q a_ „, <CI. i 1 . g.� o • Procedures For Establishment • The 1979 State Legislature made the use of tax increment financing a two step process. First a generalized Redevelopment Plan must be prepared and then a very specific Tax Increment Financing Plan is prepared. Each requires a separate public hearing. If the enabling legislation found in 462.11 is going to be used, a Housing and Redevelopment Authority must be created. The creation of a Housing and Redevelopment Authority involves a precise number of legislatively established procedures, steps and resolutions which must be strictly adhered to. In order to generally organize the required pro- cedure, an outline of initial events is summarized on the following page. • 17 • CREATION OF A HOUSING AND REDEVELOPMENT AUTHORITY - PROCEDURAL STEPS 1 . Findings by City Council The City Council by resolution, makes the following findings: a. That substandard or deteriorated areas exist which cannot be re- developed without government assistance. b. That adequate housing accommodations are not available to veterans or servicemen and their families. c . That there is a shortage of decent, safe and sanitary dwelling accommodations available to persons of low income. d. Declare that there is a need for a Housing and Redevelopment Authority to function in that community. 2. Public Hearing The Council will consider the resolution only after a public hearing is held . 3. Publication of Resolution The resolution will be published in the same manner as ordinances are in the municipality. 4. File with State Planning Agency The City Clerk will file e resolution w the manning Agency. Actually there area number of certificatesith c, etc. that are filed with the resolution. 5. Mayor Appoints Commissioners th The Housing and Redevelopment Authority omissioners Pl can be the City Council members themselves or area residents. The Mayor:. will appoint five members with initial terms of one, two, three, four, and five years respectively. The creation of a Housing and Redevelopment Authority will give the authority to carry out additional programs besides tax increment financing. The Housing and Redevelopment Authority will be able to participate in federal and state housing • programs, as well as redevelopment projects not using tax increment financing. 18 HOUSING AND REDEVELOPMENT PLAN - PROCEDURAL STEPS The Redevelopment Plan is a broad generalized plan for a neighborhood or area of the community. The Redevelopment Plan is a collection of goals and policies by which to implement those goals. The Tax Increment District Financing Plan is a very specific work program. The Redevelopment Plan is the method through which the City or Housing and Redevelopment Authority is empowered to legally carry out tax increment financing. Plan Contents 1 . Legal Basis Established a. Statutory authority b. Statement of public purpose c. Legal description of boundary d. Objectives 2. Redevelopment Activities Section a. Redevelopment activities • b. c. Land use Environmental controls d. Administration e. Redevelopment program f. Rehabilitation program g. Relocation program h . Maintenance of district or project area, i.e. fund source, agency responsibilities Steps for Plan Approval 1 . The City Council holds a public hearing with at least ten days notice. 2. The City Council passes a resolution with the following findings: a. Land would not have been made available for redevelopment without financial aid being sought. b. The plan offers maximum opportunity consistent with needs of locality on a whole. c. The plan conforms to a general plan for the development of the locality as a whole. 19 • TAX INCREMENT FINANCING DISTRICT - PROCEDURAL STEPS It is possible to prepare the Redevelopment Plan and Tax Increment Plan simultaneously if you know exactly what is to be accomplished and developers are in hand right from the initial step. This is seldom the case. The two step process is beneficial . p p One, it allows the community to set its goals and policies and remove any impediments to development prior to serious negotiations with a developer. Nothing scares potential developers away quicker than a community that hasn't reached some commitment or understanding upon what it is trying to do. Two, it allows some flexibility and allows for minor plan changes before it has gone through the entire approval process. Steps for Formation of Tax Increment District 1 . Determine the Type of Project a. Redevelopment Fifty percent of buildings are substandard or 20 percent are substandard and 30 percent are incompatible. If dealing with bare land, the value of the land plus any soil correction costs together must exceed its fair • market value. b. Housing Any project involving federal, state or local subsidies. c. Economic Those projects qualifying either as a redevelopment project or housing project, but will discourage industry from leaving or result in increased employment. The project type is extremely important as the length of the bonding period is determined by the project type. Redevelopment 25 years Housing 25 years Economic 10 years 0 20 • 2. Tax Increment Financing Plan A Tax Increment Financing Plan must be prepared prior to establishment of Tax Increment District. Contents of Financing Plan a. Determination that redevelopment will not occur without public participation. b. Verification of project type. c. Parcels to be included in the district. d. Parcels upon which development will occur. e. Parcels to be acquired. f. Parcels with development planned prior to district establishment. g. Use of tax increment funds. h. Use of excess tax increments. i. Limits on administrative costs. 1. Original assessed value. k. Estimated captured assessed value. I . Duration of district. m. Estimate of costs. n. Source of revenue o. Estimated impact on other taxing jurisdictions. p. Fiscal disparities option. Financing Plan Approval Steps a. Explain financing plan to County Board of Commissioners and School Board. b. HRA approves financing plan. c. City Council holds public hearing on the plan with at least 10 days notice. d. City Council sends approving resolution with financing plan to State Planning Agency. e. Request certification of district with County Assessor. 3. Sale of Land Another public hearing is necessary prior to the sale of land to specific developers. 4. Developer's Contract The act contains restrictions on the sale of bonds without firm development contracts with your developer. Therefore prior to final preparation of the financing plan, a developer's contract will be negotiated. 21