HomeMy WebLinkAbout08-13-2014 Council Packet CITY OF OAK PARK HEIGHTS
WEDNESDAY, AUGUST 13, 2014
CITY COUNCIL MEETING AGENDA
5:30 P.M.
5:30 p.m. L Call to Order/Pledge of Allegiance/Approval of Agenda
Estimated
times
5:35 p.m. 11. Council/Staff Reports
A. Mayor McComber
B. Councilmember Dougherty
C. Councilmember Liljegren
D. Councilmember Runk
E. Councilmember Swenson
F. Staff
• Party in the Park: Sunday, September 7
5:40 p.m. 111. Visitors/Public Comment
This is an opportunity for the public to address the Council with questions or concerns on issues not part of the regular agenda(Please
limit comments to 3 minutes in length).
5:40 p.m. IV. Consent Agenda (Roll Call Vote)
A. Approve Bills & Investments
B. Approve City Council Minutes—July 22, 2014 (1)
C. Approve Special City Council Minutes—July 30, 2014 (2)
D. Approve Change Order 92 — City Street Reconstruction Project— Sanitary Sewer
Line (3)
E. Approve Data Breach Response Policy (4)
F. Authorize Staff to Enter into NLC Video Contest for Congress of Cities and
Exposition (5)
5:45 p.m. V. Public Hearings
None
5:45 p.m. VI. Old Business
A. St. Croix River Crossing Project Update (no enclosure)
B. Street Reconstruction Project Update (no enclosure)
5:50 p.m. VII. New Business
A. STH 36 & Osgood Ave. —Redevelopment Area—TIF (6)
B. Authorize the Design and Replacement of the Water Line in Oren Ave. —Related
to the North Frontage Road Realignment (7)
6:00 p.m. VIII. Other Council Items or Announcements
6:05 p.m. X. Adjournment
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XPark Heights 1
Request for Council Action
Meeting Date August 13, 2014
Agenda Item Approve City Council Minutes—July 22, 2014
Time Req. 0
Agenda Placement Consent
Originating Department/Requestor A ' 'stration/Jennifer Pinski
1
Requester's Signature
Action Requested Approve
Background/Justification(Please indicate any previous action has been taken or if other public
bodies have been advised).
See Attached.
Page 3 of 50
CITY OF OAK PARK HEIGHTS
TUESDAY, JULY 229 2014
CITY COUNCIL MEETING MINUTES
I. Call to Order/Pledge of Allegiance/Approval of Agenda: Mayor McComber
called the meeting to order at 7:17 p.m. Present: Councilmembers Dougherty,
Liljegren, Swenson, and Runk. Staff present: City Administrator Johnson, City
Attorney Vierling, Public Works Director Kegley, City Planner Richards, and
City Engineer Reifsteck. Absent: None.
Mayor McComber added"Authorize the Filing of a Permit for Park Sign
Installation—Oak Park Crossing Park" as Consent Agenda Item G, "Authorize
the Purchase of Two Picnic Tables for Swager Park" as Consent Agenda Item H,
"Authorize the 2014 Ragnar Relay Event" as Consent Agenda Item I, "Set Public
Hearing for Increase in On-Sale Liquor and Wine License Fees" as New Business
Item C, and "Consider RFP for Development of Oak Park Crossing Park—Final
Layout Plan" as New Business Item D.
Councilmember Swenson, seconded by Councilmember Liljegren, moved to
approve the Agenda as amended. Carried 5-0.
II. Council/Staff Resorts:
A. Mayor McComber: She reported that the Playful City USA playground
build was held July 12, and she thanked the volunteers. She stated that the
Parks Commission meeting was held July 21, and the next Parks
Commission meeting was set for August 18 at 7:00 p.m. She also reported
that the Tree City USA ceremonial tree planting was scheduled for August
18 at 6:00 p.m. at Autumn Hills Park and she would be attending the NLC
Steering Committee meetings in St. Paul.
B. Councilmember Dough : He reported he attended the Middle St. Croix
Watershed Management Organization meeting to work on long-range
planning, and he would be attending the Water Resources Meeting on July
24.
C. Councilmember Liljegren: He reported that the Playful City USA
playground build was a success and thanked the volunteers and Joseph's
Family Restaurant for the lunch donation.
D. Councilmember Runk: No report.
E. Councilmember Swenson: He thanked the Police Department and
community members for their role in finding a missing child safe.
F. Staff: Deputy Clerk Pinski reported that Christine Shelley of 5711 Penrose
Avenue North was chosen as the recycling award winner.
Page 4 of 50
City Council Meeting Minutes
July 22, 2014
Page 2 of 5
III. Visitors/Public Comment:
None
IV. Consent Agenda:
A. Approve Bills &Investments
B. Approve City Council Minutes—July 8, 2014
C. Approve Permits for Temporary On-Sale Liquor License for VFW Post
323 at Washington County Fairgrounds on July 30—31 and August 1 —3,
2014
D. Accept Quotes and Award Tree Planting Bid to Abrahamson Nurseries
E. Accept Quotes and Award Tree Removal Bid to S&S Tree and Landscape
Specialists
F. Authorize Contract with Stripe Right for Traffic Control Street Line
Painting
G. Authorize the Filing of a Permit for Park Sign Installation— Oak Park
Crossing Park
H. Authorize the Purchase of Two Picnic Tables for Swager Park
1. Authorize the 2014 Ragnar Relay Event
Councilmember Liljegren, seconded by Councilmember Runk, moved to approve
the Consent Agenda. Roll call vote taken. Carried 5-0.
V. Public Hearings:
None
VI. Old Business:
A. St. Croix River Crossing Proiect Update: Jon Chiglo from MNDOT
reported that traffic was moved to the new west bound lanes on Highway
36. He stated that work on the south frontage road would begin in
September.
B. Street Reconstruction Project Update: City Engineer Reifsteck reported
that the contractor finished installing water services on Olene and Perkins
and they were preparing the subgrade for Class 5 and getting it ready for
curb and gutter the following week. He stated that the temporary water
main at Penfield and Penrose passed the tests and the water main work
would commence.
C. North Frontage Road Realignment: City Administrator Johnson provided
the City Council with two draft Resolution: one endorsing the project with
no turnback and the other endorsing the project and agreeing to turnback
Page 5 of 50
City Council Meeting Minutes
July 22, 2014
Page 3 of 5
with conditions. Councilmember Dougherty requested that the latter
Resolution note that the turnback would occur no sooner than three years
from substantial competition. City Attorney Vierling noted that he would
add a reference to the project number as to substantial completion.
Councilmember Swenson stated that he wanted the realignment to occur,
but could not support the cost to the City. Councilmember Dougherty
stated that the opportunity to change the area was at that time as MNDOT
would not move the road if the City did not take the road over.
Councilmember Liljegren questioned why the area wasn't changed in
2012 as part of the St. Croix River Crossing plan. Councilmember Runk
stated that the City could not afford the risk. He said it was a lot of
money, and it was not clear whether the County was going to build a
median and to what standards.
Jon Chiglo of MNDOT stated that it was a safety concern and also would
improve access. He stated that TED funds were available and that if the
City Council did not agree to the turnback, MNDOT would instruct the
contractors to reconstruct the area as it was. He stated the likelihood of
reinvesting in the future was not high. Councilmember Runk noted that if
the City did not receive State Aid assistance, and that if the City took over
the road, it would leave the burden entirely on the citizens.
Councilmember Dougherty stated that the project would increase the
values of the commercial businesses and increase tax capacity. Jim
Leonard of Fury Motors stated that the benefit of the realignment was to
promote redevelopment and increase taxes. Mayor McComber stated that
she saw the project as an opportunity that would not be available again.
She stated she preferred the City take back frontage roads that function
properly, and she was uncomfortable taking back roads that were that
close to the mainline. She stated that by improving the area, it would
generate more revenue and traffic that helped businesses which would
protect the welfare of the City.
Councilmember Swenson, seconded by Councilmember Runk, moved to
approve Resolution 14-07-36 which was the resolution accepting the
layout with no turnback. Carried 3-2, McComber and Dougherty opposed.
D. _Approve SRO Service Agreement with the ISD#834: Councilmember
Runk, seconded by Councilmember Swenson, moved to approve the
agreement. Carried 5-0.
E. Community Award Program: Councilmember Swenson, seconded by
Councilmember Liljegren, moved to authorize the community award
program. Carried 5-0.
VII. New Business:
Page 6 of 50
City Council Meeting Minutes
July 22, 2014
Page 4of5
A. Palmer Station—Property Subdivision, Rezoning, Planned Unit
Development/Conditional Use Permit: City Planner Richards read his
planning report. Councilmember Runk questioned why they requested to
reduce the side setback since the lots were large enough. Planning
Commissioner Jim Kremer came forward and stated that his position was
that if the developer can sell houses that are that close together, than he
did not have an issue with it. Councilmember Swenson asked the
developer's opinion on home sprinkler systems. Mick Lynskey, on behalf
of the developer, Creative Homes, stated that they were not interested in
installing them. Councilmember Swenson stated that his concern was that
the houses were close together which posed a greater risk of fires
spreading. Lynskey stated he would talk to the developer but requested
that installation of fire sprinkler systems not be a condition of approval.
Lynskey also requested that the City share in the cost of a drainage pipe
because it was above and beyond and was not necessary. Councilmember
Dougherty stated he would like the pipe proposal to be reviewed by Mike
at the Middle St. Croix Watershed Management Organization.
Councilmember Runk, seconded by Councilmember Dougherty, moved to
approve the rezoning. Roll call vote taken. Carried 5-0.
Councilmember Swenson, seconded by Councilmember Liljegren, moved
to approve the subdivision. Roll call vote taken. Carried 5-0.
Councilmember Swenson, seconded by Councilmember Runk, moved to
approve the Planned Unit Development Conditional Use Permit with the
changes recommended by the Planning Commission at their July 22
meeting. Roll call vote taken. Carried 5-0.
B. Set Neighborhood Meeting with Village Neighborhood: Mayor
McComber, seconded by Councilmember Dougherty, moved to set a
neighborhood meeting for the Village Area on Monday, July 28 at Cover
Park at 6:30 p.m. Carried 5-0.
C. Set Public Hearing for Increase in_On-Sale_Liquor and Wine License Fees:
Councilmember Runk, seconded by Councilmember Liljegren, moved to
set a Public Hearing for the increase on September 23 at 7:00 p.m.
Carried 5-0.
D. Consider RFP for Development of Oak Park Crossing Park—Final Layout
Plan: Councilmember Swenson, seconded by Councilmember Runk,
moved to approve going out for an RFP. Carried 5-0.
VIII. Other Council Items or Announcements
Page 7 of 50
City Council Meeting Minutes
July 22, 2014
Page 5 of 5
Councilmember Swenson, seconded by Councilmember Liljegren, moved to set a
budget worksession with department heads and the City Council on August 5 at
4:30 p.m. Carried 5-0.
IX. Closed Session
City Attorney Vierling reported that the City Council would go into closed
session pursuant to Minnesota Statute 13.d. and that the meeting would be
recorded and maintained for two years pursuant to statute.
Councilmember Swenson, seconded by Councilmember Liljegren, moved to
recess into closed session. Carried 5-0.
Mayor McComber reconvened the regular meeting.
A. Labor Negotiations—Employee Health Care: City Attorney Vierling
reported that an update was given and no motions were made during
closed session.
Councilmember Swenson, seconded by Councilmember Liljegren, moved
to authorize staff to explore options with Health Partners. Carried 5-0.
B. City Administrator Annual Performance Review: City Attorney Vierling
reported that no action was taken during closed session.
X. Adiournment
Councilmember Runk seconded by Councilmember Liljegren, moved to adjourn
at 9:40 p.m. Carried 5-0.
Respectfully submitted, Approved as to Content and Form,
Jennifer Pinski Mary McComber
Deputy Clerk Mayor
Page 8 of 50
2
Oak Park Heights
Request for Council Action
Meeting Date August 13, 2014
Agenda Item Approve Special City Council Minutes—July 30, 2014
Time Req. 0
Agenda Placement Consent
Originating Department/Requestor A stration/Jennifer Pinski
Requester's Signature,,
Action Requested Approve
Background/Justification(Please indicate any previous action has been taken or if other public
bodies have been advised).
See Attached.
Page 9 of 50
CITY OF OAK PARK HEIGHTS
WEDNESDAY, JULY 309 2014
SPECIAL CITY COUNCIL MEETING MINUTES
I. Call to Order/Pledte of Allegiance/Approval of Agenda: Mayor McComber
called the meeting to order at 6:03 p.m. Present: Councilmembers Dougherty,
Liljegren, Swenson, and Runk. Staff present: City Administrator Johnson and
City Attorney Vierling. Absent: None.
Councilmember Swenson, seconded by Councilmember Liljegren, moved to
approve the Agenda as amended. Carried 5-0.
II. Old Business:
A. North Frontage Road Realignment: Councilmember Swenson, seconded
by Councilmember Dougherty, moved to rescind the previous Resolution
passed on July 22, 2014 supporting the new frontage road. Carried 5-0.
Councilmember Swenson stated that the County, the State, and the
property owner had offered new and alternative elements which he
believed responsibly offset the City's costs for long-term maintenance and
indirectly provided the City a funding mechanism for area land
acquisitions.
Councilmember Swenson, seconded by Councilmember Dougherty,
moved to approve Resolution 14-07-38.
Councilmember Dougherty, seconded by Mayor McComber,moved to
remove Item 18. Motion withdrawn by maker of the motion and agreed to
by seconder.
Wayne Sandberg of Washington County stated that Item 18 in the
Resolution added another process which would take months to go through.
He suggested that the word "approve"be changed to "consider." Attorney
Vierling stated that the language in the Resolution was non-binding. He
said the Resolution was the City's position and they may waive it at a
future date.
Councilmember Swenson, seconded by Councilmember Dougherty,
moved to amend Item 18 from"approve" to "consider by the County
Board." Carried 4-1, Runk opposed.
On main motion, roll call vote taken. Carried 5-0.
Councilmember Swenson, seconded by Councilmember Dougherty,
moved to approve the Resolution as amended. Roll call vote taken.
Carried 5-0.
Page 10 of 50
City Council Meeting Minutes
July 30, 2014
Page 2 of 2
Councilmember Swenson, seconded by Councilmember Liljegren,
authorized staff to begin negotiations for tax abatement. Carried 5-0.
III. Adiournment
Councilmember Swenson, seconded by Councilmember Runk, moved to adjouni
at 6:20 p.m. Carried 5-0.
Respectfully submitted, Approved as to Content and Form,
Jennifer Pinski Mary McComber
Deputy Clerk Mayor
Page 11 of 50
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Page 12 of 50
3
Oak Park Heights
Request for Council Action
Meeting Date August l 3t', 2014
Time Required: 1 Minute
Agenda Item Title: Alaprove Change Order#2—City Street Reconstruction Project—Sanitary
Sewer Line
Agenda Placement Consent coda,"-I,-I�Vellllvl
Originating Depar
questor �//ohnson, City Administrator
Requester's Signa ov Action Requested an
Order#2--City Street Reconstruction Project--Sani
Sewer ne
Background/Justification(Please indicate if any previous action has been taken or if other public
bodies have advised):
The City has discovered an issue with a sanitary line installation in the Village Area—AREA E-that is causing the
need to consider a change order with a cost increase of+/-$13,353.00.(Pending cost quote from contractor)
Please see the attached memo from Andy Kegley,Public Works Director.
Page 13 of 50
Y City of
Oak Park Heights
14168 Oak Park Blvd Re Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax 439-0574
Memorandum
Ta: Eric Johnson, Administrator
Cc: Mayor and Council
From: Andrew Kegley, Public Works Director C�
Date: 081 05114
Re: Penfield Ave Sanitary Sewer Services
Recent utility work on Penfield Avenue has opened an issue regarding sanitary sewer service
tie-ins to the mainline. Prior to construction,two sanitary sewer service lines were tied directly
into a dead end manhole on Penfield Avenue. Connecting sewer service lines directly to a
manhole is not recommended; therefore when Newlook Construction installed a new sanitary
sewer manhole,crews attempted a work around connection to the main line. This connection
is unacceptable to the City and will not remain in place because of the numerous bends.
There are two options for correcting this issue. The correct option is to move the sanitary sewer
manhole about 100 feet north and tap the service lines directly into the sanitary sewer main.
This work will require a change order with(Brad Reifsteck of Stantec's)roughly estimated cost
of$13,354 (see the attached change order from Stantec-note the estimateA likely+ 5%). The
change order could be funded from the sanitary renewal/replacement fund. Reccor+�►FTcDCL�
Another option with no additional costs is to tap the two service lines directly into the manhole
as they previously were. This option will work, however two concerns should be considered.
First, the service lines when tapped directly into the manhole are extremely shallow and are
susceptible to freezing. The second concern is that of maintenance. The manhole will need to
be flushed and cleaned by public works staff on a normal basis to remove sewage and paper
material build-up from the manhole shelves.
TREE CITY U.S.A.
Page 14 of 50
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Owner: City of Oak Park Heights, P. O. Bolx 2007,Stillwater, MN 55C Date August 4,2014
5tantec Contractor; Hard6ves, Inc., 14475 Quiram Dr., Rogers, MN 55374
Bond Co: Western Surety Co_, 333 S. Wabash Ave., Chicago, fL 60604 Bond No:929591853
CONSTRUCTION CHANGE ORDER NO. 2 - Draft
2014 STREET RECONSTUCTION
STANTEC PROJECT NO. 193801994
Description of Work
This Change Order provides for revisions to the sanitary sewer installation on Penfefd Avenue and 57th Street to
accommodate two private sanitary sewer services which run parallel beneath the existing roadway and tie into
an existing manhole. See attached picture for details.
Contract Unit Total
CHANGE ORDER NO.2
No. Item Unit Quantity Price Amount
1 MOBILIZATION LS 1 $1,213.91 $1,213.91
2 REMOVE SANITARY MANHOLE EA 1 $588.24
3 8" PVC SANITARY SEWER PIPE-SDR 26 LF 100 $32.35 $3,235.00
4 CONNECT TO EXISTING SANITARY SEWER PIPE EA 1 $855.63 $855.63
5 8"X4"PVC WYE EA 2 $278.08 $556.16
6 4"PVC SANITARY SEWER SERVICE PIPE LF 20 $25.88 $517.60
7 CONNECT TO EXISTING SEWER SERVICE EA 2 $336.90 $673.80
8 4' DIAMETER SANITARY SEWEER MH EA 1 $4,545.52 $4,545.52
9 FURNISH AND INSTALL NEW SANITARY MH EA 1 $641.72 $641.72
CASTING AND RINGS
10 4"THICK INSULATION SY 50 $45.46 $2,273.00
11 8"X4"PVC WYE EA 2 ($278.08) ($556.16]
12 CONNECT TO EXISTING SEWER SERVICE EA 2 ($336.90) ($673.80)
13 4"PVC SANITARY SEWER SERVICE PIPE LF 20 ($25.88►_ ($51].60}
TOTAL CHANGE ORDER NO. 2: _ $13,353.02
1938019W—DRAFT CH02.Asm
Page 18 of 50
{
r
4
Oak Park Heights
Request for Council Action
Meeting Date August 13, 2014
Agenda Item Approve Data Breach Response Policy
Time Req. 0
Agenda Placement Consent
Originating Department/Requestor Administration/Jennifer Pinski
Requester's Signature
Action Requested Approve
Background/Justification(Please indicate any previous action has been taken or if other public
bodies have been advised).
Financial institutions and legal firms recommend that municipalities have a data breach response
plan in the event of a breach. Staff has prepared a proposed policy for your approval. This
policy would be added to the Policy Binder which the City Council approved in full in December
2013.
Page 19 of 50
0
CITY OF OAK PARK HEIGHTS
DATA BREACH RESPONSE POLICY
WHAT CONSTITUTES A DATA BREACH
A data breach is an incident in which sensitive, protected or confidential data has
potentially been viewed, stolen or used by an individual unauthorized to do so. Data
breaches may occur due to loss or theft of data or equipment on which data is stored,
inappropriate access controls allowing unauthorized use, equipment failure, human error,
unforeseen circumstances such as a fire or flood, purposeful and malicious criminal
attacks, or a system failure that compromises security and leads to data loss.
MANAGING A DATA BREACH
Identify the breach
The City Administrator should be informed in writing immediately. The communication
should outline the nature of the incident and those involved and the type of data
potentially unlawfully accessible/accessed and should include the date and time when the
breach was discovered.
The City Administrator may then chose to investigate the breach directly, or delegate to
an appropriate member of staff who will be the alternate investigating officer.
Contain any continuing issue
The designated investigating officer must establish if the breach is current, and therefore
if it can be halted or the effects minimized by taking systems offline but not shutting
them down, revoking access or informing staff responsible for the continuing cause of a
breach, and securing the premises.
Recovery and Damage limitation
The designated investigating officer must act promptly to identify the extent of the
problem, what data has been at risk, and take appropriate steps to recover data and
minimize risk. This could include:
1. Informing the Police of stolen equipment
2. Reporting and attempting to recover lost equipment
3. Briefing staff as to the nature of the breach and to be mindful should they
receive inquiries using said data
4. Informing the Communications Officer should inquiries from the press be
received
5. Accessing of back-ups to replace lost or damaged data
6. Contacting the bank or banks of account holders if account holder details have
been unlawfully shared to prevent fraudulent use
Page 20 of 50
7. If the data breach included entry codes or passwords, then these must be
changed immediately, and involved users (members of staff or volunteers)
inforined.
Investigation
• The designated investigating officer should ascertain whose data was involved in
the breach, the potential effect on the data subject and what further steps need to
be taken to remedy the situation.
• The investigation should consider:
• Type of data and its sensitivity
• What protections are in place(e.g. encryption)
• What has happened to the data
• Whether the data could be put to any illegal or inappropriate use
• How many people are affected
• What type of people have been affected (residents, businesses, staff, etc.) and
whether there are wider consequences to the breach.
• A clear record should be made of the nature of the breach and the actions taken to
mitigate it.
The investigation should be completed urgently and wherever possible within 24
hours of the breach being discovered/reported. A further review of the causes of
the breach and recommendations for future improvements can be done once the
matter has been resolved.
Notification
• Some people/agencies may need to be notified as part of the initial containment,
i.e. the Police, Banks, Server administrators, etc.
The decision about whether to inform those whose data may have been unlawfully
shared will normally be made once an investigation has taken place.
• The Investigating Officer should, on seeking legal advice, decide whether anyone
should be notified of the breach.
• Every incident should be considered on a case by case basis. The following points
provide guidance on whether notification is advisable:
• Are there any legal/contractual requirements to notify?
• Will notification help prevent the unauthorized or unlawful use of personal
data?
• Could notification help the individual — could they act on the information to
mitigate risks?
• Consider the dangers of over-notifying. Not every incident warrants
notification and over-notification may cause disproportionate enquiries,
concern and use of staff time.
• The notification should include a description of how and when the breach
occurred and what data was involved. Include details of what you have
already done to mitigate the risks posed by the breach.
• When notifying individuals, give specific and clear advice on what they can
do to protect themselves and what you are willing to do to help them. You
Page 21 of 50
should also give them the opportunity to make a formal complaint if they
wish.
REVIEW AND EVALUATION
• Once any containment, investigation and, if appropriate, notification of the breach
is over, the investigating officer should provide a report to the City Administrator
considering both the causes of the breach and the effectiveness of the response to
it.
• If systemic or ongoing problems are identified, then an action plan must be drawn
up to put these right. If the breach warrants a disciplinary investigation, this
matter must be taken up by the chief executive in compliance with employee
contracts or volunteer agreements.
• This policy may need to be reviewed after a breach or after legislative changes,
and as a matter of best practice.
Page 22 of 50
lie,
Oak Park Heights
5
Request for Council Action
Meeting Date August 13, 2014
Agenda Item Authorize Staff to Enter into NLC Video Contest for Congress of Cities and
Exposition
Time Req. o
Agenda Placement Consent
Originating Department/Requestor Mayor Mary McComber
Requester's Signature
Action Requested Approve
Background/Justification(Please indicate any previous action has been taken or if other public
bodies have been advised).
The National League of Cities has created a video contest which provides cities with an
opportunity to win free registrations to the Congress of Cities and Exposition in November in
Austin, Texas. The contest requires entrants to create a short video demonstrating ways that the
City is driving change for the future. The City is in the process of planning the design of a new
park and will be gaining a significant addition to the City's trail system as part of the St. Croix
River Crossing Project. These would be good points to bring up in the video to show how the
City will look in the future. Submissions are due by September 15. I recommend we authorize
staff to enter the contest. See attached for details.
Page 23 of 50
NATIONAL
LEAGUE
of CITIES
Win 3 Free Registrations for the Congress of Cities!
AUGUST 1,2014
By Alison Clark
NATIONAL rA
EXPOSIT;LEAGUE OF CITI
AND
of CITIES AUSTIN,TX
I
NLC just launched a video contest to award one lucky city three free registrations to the Congress of
Cities and Exposition November 18-22 in Austin. A second city will win three half-price registrations.
We want to see a video from your city!
With a conference theme of"The Future of Cities," the content and sessions in Austin will showcase
the innovative ways cities are driving change today, and will help you prepare for your community's
future.
In keeping with this theme, tell us in a short video what your city might be like 25 years from
now. Videos can be no longer than 90 seconds in length, and must be submitted between August 15
and September 15 to be considered. Please see the contest page for all the details, including how
and where to post your video.
Get the camera rolling and share your ideas, hopes and predictions for your city!
Already registered for the conference?We still want you to see your video! Submit an entry and if
your city wins, we will reimburse your already-paid registration fee.
O 2013 National League of Cities 11301 Pennsylvania Avenue NW Suite 550,Washington,DC 20004
Page 24 of 50
` 6
Oak Park Heights
Request for Council Action
Meeting Date August 13th, 2014
Time Required: 10 Minutes
Agenda Item Title: STH 36 &Osgood Ave. —Redevelopment Area—TIF
Agenda Placement New Business
Originating Department/Re for is J om Citv Administrator
Requester's Signature
Action Requested See Belo
Background/Justification(Please indicate if any previous action has been taken or if other public
bodies have advised):
Staff will be continuing to prepare options for both a TIF District and a Tax Abatement Proposal for the STH 36&
Osgood Redevelopment Area. If the City Council ultimately decides that it desires to implement the use of a TIF for
refunding of land acquisition or other eligible costs,it must consider the following two steps.
1. Accept the findings in the report entitled"Renewal and Renovation Tax Increment Financing District—
Eligibility Study—2014"as attached.This is necessary in the event that TIF is the preferred route as it
allows the City to hold that substandard condition/property as part of the approval calculations,yet
allow the property to be demolished.This action would be valid for a period of perhaps 48 months.
2. The City would adopt a Resolution calling for certain public hearing and Tip'timelines;See the
enclosed draft document; Staff will provide final dates at the meeting.
Staff will continue to evaluate the use of TIF and/or Abatement over the coming days;however the above two
actions do not bind the City to any particular action
1 have again enclosed the current draft of the Abatement 0cument4tian that would ultimately be submitted to
Washington County.
Page 25 of 50
RENEWAL AND RENOVATION TAX
INCREMENT FINANCING
DISTRICT ELIGIBILITY STUDY
City of Oak Park Heights
TIF DISTRICT 1-2
(created 20 14)
1 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 26 of 50
Aerial View of Study Area:
aria - +•�.. �• � . ..�._,.�,
o Area (2014)
T - (Outlined in Red)
Jut-
OVA
' � � 'x; •,r{. � � :_ *r- }ma"""r 1
it
ppy^1 {
�JL ' - "C0,7 • -
t fiax M3 pa•cci ac w try CfKgmp.tsw-.l►rc-a1NOTT%rr b
[he%i m RSh W f has xi rawmenf cwpa the?s'shWG
All
- [ r ,t �rF�.ii _.1 c"'re Cate+LanectryaDaea�sasasapa=atcparcn �
Fl.
—ter.
2 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 27 of 50
Identification of Study Area
INVOLVED PROPERTIES:
ARCELKEY BLDG_NU15MEETNAPAE STFiF3TTYA£ SUFFIX DIR
38 330302D430038 LEONARD INVESTMENTS LLC
39 33U3020430f139 WORTMAN DANIEL D&FRANCHESKA 6148 OSGOOD AVE N
40 3303020430040 CITY OF OAK PARK J*IW T5 ECONOMIC DEVELOPMENT ALrFH 6M OSGOOD AVE N
42 3303020430D43 LEONARD INVESTMENTS LW 147r12 60TH ST N
56 _ 330302043OZ6 M II LLC (CARQUM 6318 OSGOOD AVE N
$7 _ 33030"30057 ERicKSON POSTACQUISITION INC 14738 6M $T N
59 3308020430059 WF_STBURY RANDY 6130 OSGOOD AVE N
lit CMC Z.
Will 0040
T!F Area (2014)
(Outlined in Red)
` •F'TE: F Yi�vli L<IF l2 r[ � 10059.
�
w 0042 i �...;5+. jl ` _ `.T- •l �U s4 ..$'�.4f�',� :I$u*tSYL:i - IG3
t FIN71I ;�F tY
i t O
1 �. c` - Nose TICS parser attualy encompasses She 6.vd.,ea leads -
z y b the soutrr,UNDO T teas at easement over tits p4e shaped
t
k-44.+ Jv ! ' ,.�.�.r N 'a piece,tui incc"ctty appears as a separate pa"I t
`- .•-- ... � �= •� � -.� '�� tl � City of qst Pukllripilia .I�'
hl � r0 n. 1 . .s..: ..,r.•s...uv !.I
IR 1311
Filet
0 F2.5 12 25D SM
3 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 28 of 50
CRITERION 1 —Coverage Test
Minnesota Statutes, Section 469.174, Subdivision 10a (a) (1)(i) requires two tests for occupied
parcels:
..."parcels consisting of 70 percent of the area of the district are occupied by buildings,
streets,utilities, or paved or gravel parldng lots"
The coverage required by the parcel to be considered occupied is defined under Minnesota
Statutes, Section 469.174, Subdivision 10(e), which states: "For purposes of this
subdivision, a parcel is not occupied by buildings, streets, utilities, or paved or gravel
parking lots unless 15 percent of the area of the parcel contains building, streets, utilities,
or paved or gravel parking lots."
FINDINGS
TABLE 1 IMPROVED SQUARE FEET OF LOTS
City of Oak Park Heights
T1 AREA(2014)-COVERAGE TEST
Site Square Occupied Percent
PING AticEress Feet square Feet Occ fed
3303020430038 Vacant-Parking Lot Only 79,026.20 42,000.00 - 53%
3303020430039 6148 OSGOOD AVE N 52,702.66 11,575.00 22%
�Q94244;144 Q
'46o �a49Q AVE N 56,598.17 141844:40 19%
3303020430042 14702 60TH ST N 264,788.87 218,000.00 82%
3303020430056 #6118 OSGOOD AVE N 18,396.16 15,820.00 86%
3303020430057 14738 60TH ST N 37,246.00 29,000.00 78%
3303020430059 6230 OSGOOD AVE N 14,716.07 9,235.00 63%
7 of 7 parcels met the 15% coverage test under Minnesota Statutes, Section 469.174,
Subdivision 10(e), which results in parcels consisting of 100 percent of the area of the
proposed T1F District being occupied by buildings, streets, utilities or paved or gravel
parka nug lots. Tbis exceeds Me 70 percent area coverage requirement for the proposed TIF
District under Minnesota Statutes,Section 469174,Subdivision (a) (1).
4 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 29 of 50
CRITERION 2—Substandard Buildings
The second criterion that must be satisfied is that at least 2 of the 6 (20%) of the buildings in the
proposed renewal and renovation district must be found to be substandard based upon an internal
inspection. The governing statutes state:
Minnesota Statute 469.174, Subd 10a(a)(1) (i)
"...and 20 percent of the buildings are structurally substandard......."
Subd. 10(b)
"For purposed of this subdivision, "structurally substandard"shall mean containing
defects in structural elements or a combination of deficiencies in essential utilities and
facilities, light and ventilation, fire protection,including adequate egress, layout and
condition of interior partitions,or similar factors, which defects or deficiencies are of
sufficient total significance to justify substantial renovation or clearance."
Subd. 10(c)
"A building is not structurally substandard if it is in compliance with the building code
applicable to new buildings or could be modified to satisfy the building code at a cost of
less than IS percent of the cost of constructing a new structure of the same square footage
and type on the site. The municipality may find that a building is not as structurally
substandard under the preceding sentence on the basis of reasonably available evidence,
such as the size,type, and age of the building, the average cost of plumbing, electrical,or
structural repairs, or other sim-ilar reliable evidence, The muni.6pality may not make
such a determination without an interior inspection of the property,but need not have an
independent, expert appraisal prepared of the cost of repair and rehabilitation of the
building."
BUILDING ANALYSIS
The properties at 6130 and 6180 Osgood Ave.N. were inspected from the exterior and the
interior. Building Code violations for each building are listed below but are not limited to:
5 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 30 of 50
6130 Osgood Ave.N. —The single.family home, with attached storage building and detached
garage is currently occupied.
1. Several types of siding in place(primarily 4. Several types of roofing material—all in
wooden)missing and damaged in areas. 2006 some point of failure. Interior shows evidence
IRC 703 —Remedy Cost: $15,000 of water intrusion. R905—Remedy Cost:
$20,000
2. 1900's home with various additions and old 5. 20+yr, old heating system. Home formerly
windows. If energy calculations were run it is coal heated. Closed off spaces and crawl
likely that current R-values would not meet spaces. Wood burning fireplace has been
code. MN Energy Code-Remedy Cost: primary heating source. ME/HVAC should be
$10,000 replaced. 2006 IMC/IFGC—Remedy Cost:
$15,000
3. Attic living area does not have compliant 6. Other areas of violation include but are not
stairway and has door to outside with no means limited to(a)potential asbestos in kitchen floor
of egress. IRC 311 —Remedy Cost: $5,000 the(b)electrical wiring(c)smoke detector
placement and(d) likely some structural
damage to framing as a result of water
intrusion.
PICTURES CAN BE FOUND IN—Exhibit l
Estimated total cost to bring building up to current building code standards: $65,000+1-
Estimated cost of a new building: $199,314
15% of the estimated cost of a new building: $29,897
Since the estimated total cost to renovate the existing building exceeds 15% of the cost to
construct a new building, the building at 6130 Osgood Ave.N. does meet the statutory definition
of"substandard."
6 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 31 of 50
6180 Osgood Ave.N.—The single family home, with attached garage, is currently vacant and
has been so for approximately four years.
1. Wooden siding and eaves are damaged in 5. If energy calculations were run it is likely
areas and show signs of moisture intrusion/ that current R-values would not meet code.
damage. 2006 IRC 703 -Remedy Cost: MN Energy Code- Remedy Cost: $20,000
$15,000
2. Extensive mold to finished lower level and 6. Fire separation is absent between house and
visible to upper level interior walls. Full connected garage. IRC 302—Remedy Cost:
abatement to lower level and wall, attic areas $$9000
required. Remedy Cost: $50,000
3. Hot water boiler heating system is not in 7. Other areas of violation include but are not
operation and has not been in recent use. limited to(a) smoke detectors (b)electrical and
Mechanical systems require updating, MN current fuse box panel(c)plumbing systems
Energy Code,2006 IMC &IFGC—Remedy (d)chimney flues and(d) likely structural
Cost: $20,000 damage to wood framing as a result of element
instruction to Douse.
4. Foundation has failed to the SW corner and
is showing evidence of failure to the W. IRC
404—Remedy Cost$20,000
PICTURES CAN BE FOUND IN—Exhibit 2
Estimated total cost to bring building up to current building code standards: $130,000+/-
Estimated cost of a new building: $209,874
15% of the estimated cost of a new building: $31,481
Since the estimated total cost to renovate the existing building exceeds 15% of the cost to
construct a new building, the building at 6180 Osgood Ave.N. does meet the statutory definition
of"substandard."
7 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 32 of 50
FINDING
2 of the 5 buildings (33.3 percent) in the proposed TIF District contained code deficiencies
exceeding the 15 percent threshold required by Minnesota Statutes, Section 469.174,
Subdivision 10(c).
Minnesota Statutes, Section 469.174, Subdivision 10(c), provides for the minimum threshold of
code deficiencies that must be met in order to consider a building substandard. If a building
meets the minimum code deficiency threshold under Minnesota Statutes, Section 469.174,
Subdivision 10(c), then in order for such building to be "structurally substandard" under
Minnesota Statutes, Section 469.174, Subdivision 10(6), the building's defects or deficiencies
should be of sufficient total significance to justify substantial renovation or clearance."
In our professional opinion, 2 of the 2 buildings (100 ,percent) in the proposed TIF District are
structurally substandard to a degree requiring substantial renovation or clearance, because of
defects in structural elements or a combination of deficiencies in essential utilities and facilities,
light and ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors which defects or deficiencies are of sufficient total significance to
justify substantial renovation or clearance.
CONCLUSION
The statutory conditions for both lot coverage and percentage of substandard buildings in the
proposed redevelopment area are met.
8 of 47 Renewal and Rennov Dis-Oak Park Heights Eligibility Study
Page 33 of 50
Exhibit 1
Photographs of 6130 Osgood Ave.
(PHC)T-0-5
N oT wD �)
9 of 47 Renewal and Rennov Dis-Oak Park Heights Digibility Study
Page 34 of 50
RESOLUTION NO.
RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL
ON THE PROPOSED MODIFICATION OF THE DEVELOPMENT PROGRAM
FOR DEVELOPMENT DISTRICT NO. 1 AND THE PROPOSED
ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT NO. 1-2
THEREIN AND THE PROPOSED ADOPTION OF THE TAX INC "
lNT
FINANCING PLAN THEREFOR;
BE IT RESOLVED by the City Council(the"Council")for the City of Oak Park Heights,Minnesota(the"City"),as
follows:
Section 1. Public Hearing. This Council shall meet on ,at approximately 7:00 P.M.,
to hold a public hearing on the proposed modification of the Development Program for Development District No.
land the proposed establishment of Tax Increment Financing District No. 1-2, (a renewal and renovation district—
map of area below), and the proposed adoption of the Tax Increment Financing Plan therefore (together the
"Program and Plan"),all pursuant to and in accordance with Minnesota Statutes, Sections 469.124 to 469.133, and
Sections 469.174 to 469.1794,inclusive, as amended, in an effort to encourage the development and redevelopment
of certain designated areas within the City;and
_ W3B f
a' 71F Area 1-2(2014)
= jutfined in Red)
t `
OR "4t
Q55g4 •� ., 'Y _
fiT
N4 �, Hale Thupaicel acl ly encomyaesee lie-tlnitletl-la
—1y pp—as amepar er am.1
' piece eul irkaa.cUy apeA as a aeparne Pagel
rquit r rr - — -
Fer
0 525 325 250 M 9D
Section 2. Notice of Public Hearing, Filing of Development..-Program TIF Plan and Development
Aoyee entI City staff is authorized and directed to work with Ehlers&Associates,Inc.,to prepare the Program and
Plan, and to forward documents to the appropriate taxing jurisdictions including Washington County and
Independent School District No. 834. The City Administrator is authorized and directed to cause notice of the
hearing,together with an appropriate map as required by law,to be published at least once in the official newspaper
of the City not later than 10,nor more than 30, days prior to , and to place a copy of the Program
and Plan on file in the City Administrator's office at City Hall and to make such copy available for inspection by the
public.
Dated:
Adopted:
Mayor
ATTEST:
City Administrator
Page 35 of 50
SCHEDULE OF EVENTS
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY,MINNESOTA
FOR THE MODIFICATIO. OF
Dates would be DEVELOPMENT DISTRI 1
revised,but the s
actions would be AND THE ESTABLISHMENT OF "��'
in similar order TAX INCREMENT FINANCING DISTRICT NO 1-2
(a renewal and renovation district)
Affi�,20f4 City building official reviews buildings for substandard qualifications.
May 27,2014 City Council calls for public hearing on the proposed modification of
Development District No. 1 and the proposed establishment of Tax Increment
Financing District No. 1-2.
l.,l°• 'a,?,�'^ '. Project information (property identification numbers and legal descriptions,
detailed project description, maps, but/for statement, list of sources and uses of
funds, and estimated fiscal impacts of the project public improvements and on
fire and police protection)for drafting necessary documentation sent to Ehlers&
Associates.
NIA Project information submitted to the County Board for review of County Road
Impacts(at least 45 days prior to public hearing). The County Board,by law,has
45 days to review the TIF Plan to determine if any county roads will be impacted
by the development.
May 27, 2014 Ehlers & Associates confirms with the City whether building permits have been
issued on the property to be included in TIF District.
jut,o 2014 City building official provides final report.
r.,,,.. 6, 2014 Fiscal/economic implications received by School Board Clerk and County
Auditor(at least 30 days prior to public hearing).[Ehlers&Associates willfax&
mail on or before June 6, 2014.1
June-124 220-14 Planning Commission reviews Development Program and TIF Plan at 7:00 P.M.
une 1 6 20 T 4 Ehlers & Associates conducts internal review of Development Program and TIF
Plan.
uae 2g '014 Date of publication of hearing notice and map for establishment of TIF District
(at least 10 days but not more than 30 days prior to hearing). [Stillwater Gazette
publication deadline: June 18, 2014. Ehlers c& Associates will submit notice,
map, and instructions to the newspaper via email on or before June 18, 2014.]
EHLERS
i AEdO CfATEB LNG
Page 36 of 50
SCHEDULE OF EVENTS - PAGE 2
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY,MINNESOTA
FOR THE MODIFICATION OF
DEVELOPMENT DISTRICT NO. I
AND THE ESTABLISHMENT OF
TAX INCREMENT FINANCING DISTRICT NO. 1-2
(a renewal and renovation district)
City Council holds a public hearing at 7:30 P.M.on the establishment of Development
District and the establishment of TIF District, and passes resolution approving
the Development Program modification and TIF Plan. [Ehlers &Associates will
send Council packet information to City via email by July 1, 2014.]
City can issue building permits.
By June 30,2015 Ehlers & Associates files Development Program and TIF Plan with the MN
Department of Revenue and the Office of the State Auditor, and requests
certification of the TIF District with Washington County.
An action under subdivision 1,paragraph{a), contesting the validity of a determination by an authority under section 469.175,
subdivision 3,must be commenced within the later of:
�1 180 days after the municipals s approval under section 469.175,subdivision 3;or
2� 90 days after the request for certification of the district is filed with the county auditor under section 469.177,
subdivisionl.
EHLERS
a snoci.rce .c
Page 37 of 50
City of Oak Park Hei Tax Abatement
Proposal
Application Submitted by:
City of Oak Park Heights
Project Title: STH 36&Osgood Ave Redevelopment
Contact: Eric Johnson
City Administrator
PO Box 2007
Stillwater, MN 55082
Phone: 651-439-4439
Fax: 651-439-0574
Email; Johnson(a)city_ofoakparkheigts.com
Date Submitted:
Tax Abatement-Redevelopment STH 36&Osgood Ave. Page 1
Page 38 of 50
1. Name of the Applicant:
City of Oak Park Heights
PO Box 2007
Stillwater, MN 55082
Phone: 651-439-4439
Fax: 651-439-0574
Email: ealohnson(a)cityofoakparkheigts.com
2. Description of the Request:
L n ideal situation the Tax Abatement Plan would have been considered prior to the frontage road
gnment matter, However due to the timing of the request by the State of Minnesota and Washington
nty for the City to take action on the frontage road alignment, all must acknowledge that the frontage
plan has been approved and should not negatively impact this proposal. Accordingly:
The City is seeking a total of $550,000 in Washington County and City of Oak Park Heights Tax
Abatement funding to acquire lands necessary to re-align /reconstruct the state owned frontage
road at its intersection with CSAH 24 (Osgood Ave.) and to facilitate a proper redevelopment area
for in a portion of the City known generally as the "STN 36 & Osgood Ave. Redevelopment Area"
and is shown in detail below. The City is seeking the necessary funds to purchase and/or reimburse the
City costs for necessary lands at 6130 and 6180 Osgood Ave. Once purchased the City would convey such
necessary lands at 6130 Osgood to the State of Minnesota for the proposed re-routing of the State
Frontage Road and/or would anticipate contributing 6180 Osgood Ave. to aid in the land assembly for a
larger redevelopment in the balance of the area.
MAP 1 - Redevelopment Area-General (following parcel lines)
r
�8180 03good Ave
T .+ _
'* , ' •'° Redevelopment Area
1
d{ y Outlined in RED
AIP
►' ' r ''`" c 6130Osgood.A L
e e a'i"r`1
! Tai _,* y,,,' �• _ - a,=:� t � � I ^ -
+ State Tnk Highway 36 — _ _
Fast.
0 7.6 1,25' 258 3 6W -�— -T,I
Tax Abatement-Redevelopment STH 36&Osgood Ave. Page 2
Page 39 of 50
This is area is a major intersection in the Oak Park Heights 1 Stillwater Area Community and the current
alignment causes significant difficulties for the motoring public as well as re-development difficulties due to
significant stacking and cueing problems. As such and as part of this Redevelopment, the City, County and
State desire to realign the frontage road to a point approximately 300' to the north; Map 2 below
demonstrates the general roadway concept plan in greater detail.
Map 2— Proposed Layout for Realigned Frontage Road
1�--i--�-
..J
DIP
�I L€�pkysS
7:=amt a.l�lis^
Ara. {
ST.CRDIX RIVER CROSSING 'NORTH FRONTAGE ROAD
3 (p MN APPROACH PROJECT ��nl�`�tPREFERRED ALTERNATIVE
..✓ S E H S.P.8214—IU
The Redevelopment Area is largely dominated by the former Denny Hecker car dealership site now
repurposed as a Fury Motors Jeep Dealership. The balance of the Area also contains derelict, aged and
underutilized facilities in need of demolition, renewal and/or redevelopment. With this realignment Fury
Motors, plans to construct a new dealership, potentially valued at over $5,000,000 and new development
opportunities would be enhanced on other properties in the area. Enclosed attached proposal (Attachment
#1) from Leonard Investments that would show the anticipated layout for the new dealership.
In addition, the new frontage roadway provides additional commercial opportunities on lands bordering to
the north of the new alignment. Accordingly the City has strategically purchased a portion of these lands
(being the 6180 Osgood Ave site) that could be contributed to facilitate a larger redevelopment of this area.
Tax Abatement-Redevelopment 5TH 35&Osgood Ave. Page 3
Page 40 of 50
3. Parcels Included in the Request:
The following parcels are included in the request and are also shown in Map 3 below enclosed in the green
box:
City of Oak Park heights
Abatment Area-O tion A GREEN 2014 Values from Washin ton Coun
ACRES
PIN TAX-NAME POLY EMV LAND EMV_BLDG EMV TOTAL TA7(_CAPAC
1 3303020430039 WORTMAN DANIEL D&FRANCHESKA(homestead) 1.21 $ M,000 $ 112,300 $ 262,300 $ 2,487
2 3303020430040 CITY OF OAK PARK HEIGHTS ECONOMIC DFVELO 1.30 $ 105,000 $ 6,000 $ 111,000 $ -
3 3303020430038 LEONARD INVESTMENTS LLC 1.81 $ 237,100 $ $ 237,100 $ 4,742
4 3303020430047 STATE OF MN-DOT 0.39 $ 1,500 $ $ 1,500 $ -
5 3303020430057 ERICKSON POST INC 0.47 $ 227,000 $ 57,700 5 284,700 $ 4,944
6 3303020430056 200511 LLC 0.42 $ 183,800 $ 244,900 $ 428,700 S 7,824
7 3303020430042 LEONA RD I NVFSTMENTS LLC 6.08 $ 1,359,200 $ 90,900 $ 1,450,100 5 28,252
Totals 11.68 $ 2,263,600.00 $ 511,800.00 $ 2,775,400.00 $ 48,249.00
Map 3—Tax Abatement Area (also showing the new roadway layout)
f �
i 5>s. § r - Es= " Tax Abatement Area#1 -In Greens !
Qw Option A i±
_ a ^r w•. z
a.
•s
� � H.er,•e 6p,nun r. fi c� �
OR
t
91
� i• �EE E�o'F - -
I
.l_tira.rK,�-r� ..
r t En` 'F;^ " r; i
Al -k Alt-
TH STREW H —
60TH STREET NORTH
-GOVT STREET Null I rl
t�rs3cl
Feet
0 62.5 125 250 375 500
Tax Abatement-Redevelopment STH 36&Osgood Ave. page 4
Page 41 of 50
4. Beginning date and the amount requested for the abatement:
Effective for taxes payable in 2016; $550,000 (1) is the total net abatement request from Washington County
and the City. (Not including Fiscal Disparities—generated FD revenues would be remain applied to the FD
Pool). Both The City and the County would equally contribute their tax revenues for a period of ten years or
until such time as the abatements generated from each unit of government collects fifty percent of the
$550,000.
Total Abatement from Washington County: $275,000.00
Total Abatement from the City of Oak Park Heights: $275,000.00
Total Abatement: $550,000.00
(1) Calculated as the cost of the Westbury Property parcel#3303020430059 totaling $330,000 and the cost of
the EDA owned property parcel#3303020430040 totaling$165,000, ($330,000 +$165,000 =$495,000), In
addition$55,000 for the investigative, administration and demolition& restoring of the site located at 6180
Osgood Ave.Actual costs for the actions would be ultimately utilized, but are estimated to not exceed
$55,000.
(2)Abatement study and site investigation of 6180 Osgood Ave(and 6130 Osgood) is enclosed in Attachment#2.
5.A description of the (specific) benefit to Washington County
In addition to the overall economic development of the immediate area which is anticipated to advance the
County's tax base, the roadway realignment significantly improves the functionality of the Osgood 1 STH 36
intersection which can experience backups. These backups are on a County roadway at its interface with a
State Frontage road and which should be alleviated with this new alignment made possible by the
Abatement proposal; See Map 2 (above) demonstrates the proposed layout that would be implemented if
this Abatement Proposal was approved.
6.A description of the public interest proposed by the abatement.
The overall public interest is also advanced by this proposal as it solves a major traffic concern in the area
community. The project also provides for the demolition of two properties that are known to be
contaminated with mold, asbestos and lead paint. Lastly, the road constriction would facilitate the economic
development projects for the immediate area which is ripe for redevelopment and which would increase the
local tax base and provide employment opportunities as well,
Tax Abatement-Redevelopment STH 36&Osgood Ave. Page 5
Page 42 of 50
Attachment#1
Proposed Fury Motors—Dealership
(Plan provided by J. Leonard -& Fury Motors)
77 rHIwS
klqq Ho
- I
- I
0
0
a
x _
I 101 1111111111111
SFnti s&MAY]6
5TE"I
Tax Abatement-Redevelopment ST 36&Osgood Ave. Page 6
Page 43 of 50
Attachment 2
6130 &6180 Osgood Ave.- Site Reviews, Pollution Investigation and
Phase I Summary (6130 Osgood)
Tax Abatement-Redevelopment STH 36&Osgood Ave. Page 7
Page 44 of 50
7
Oak Park Heights
Request for Council Action
Meeting Date August 13"', 2014
Time Required: 1 Minute
Agenda Item Title; Authorize the Desiggand Replacement of the Water Linc in Oren Ave—
Related to the N 'Frqptage Road Realignment.
Agenda Placement New B nes
Originating Departme stor Johnson Cit Administrator
Requester's Signature
Action Requeste Disc ion Action re uested Below
Background/Justificati (Please indicate if any previous action has been taken or if other public
bodies have advised):
The City Council recently altered its position on the rerouting of the North Frontage Road, accordingly
the City must consider the replacement of the water line that lies within Oren Ave. as this area will have
effectively new surface and it is best to replace these underground services at the time of the new
roadway. The estimated cost is$82,500+/-.
Please see the attached memo from Andy Kegley,Director of Public Works.
Staff is requesting permission to proceed with this reconstruction and its related design work.
A few additional points:
1. Funding for this water main reconstruction is available in the Water and Sewer Reconstruction
Fund.
2. Staff is awaiting the street design and the soil borings MNDOT committed to provide to the City.
3. The City would expect to get bids from the MNDOT contractor Ames and the City's contractor,
New Look Inc.
4. As it relates to the sanitary main, this can be"sleeved"at a future date.
Page 45 of 50
Wcityef
(yak Park Heights
14168 Oak Park Blvd N.•Box 2007.Oak Park Heights,MN 55482•Phone(651)439-4439+Fax 439-0574
Memorandum
Ta Eric Johnson,Administrator
Cc: Mayor and Council
Frvnc Andrew Kegley, Public Works Director
Datw. 07130/14
Fto Utility Replacement under Newly Constructed Streets-Oren Ave
Summary: Aging infrastructure should not be buried under newly constructed streets. Utilities
under Oren Ave were installed in 1977 and are fast approaching the end of their useful life. It
would be prudent to, at a minimum replace the water main under Oren Ave and line the
sanitary sewer under the same.
Estimated cost to replace water main under Oren Ave: $82,500.
Estimated cost to line sanitary sewer under Oren Ave: $44,500.
Overall the condition of the utilities under the N. Frontage Rd. and Oren Avenue appear to be
relatively good, but they are approaching the end of their useful life. Although some water
main was replaced on the N. Frontage Road as part of the SCRC project,remaining portions of
the Water main were installed in 1968. The newer and directly impacted segments on Oren
Avenue were installed in 1977.
The water main material is cast iron pipe.As we know,when cast iron pipe ages it becomes
brittle and susceptible to breaking when the ground shifts during season/temperature changes.
It would be prudent to remove the old Main and install new ductile iron pipe in areas where the
road will be reconstructed. It is estimated that roughly 660 linear feet of water main will lie
under a new frontage road alignment(currently Oren Ave). The estimated cost to replace this
segment of water main at $125/LF is $82,500.
TREE CITY U.S.A.
3 of 40
Page 46 of 50
The sanitary sewer pipe is VCP, or concrete. Existing 2014 sanitary sewer cleaning and video
records indicate some cracks in the main and grease deposits from former and perhaps current
restaurants along the N. Frontage Rd,but overall it appears to be in good condition.
Sewer lining can occur at any time but at a minimum the sewer under Oren Ave should be
lined. The estimated cost to perform sewer lining @$70/LF is $44,500.
2
TREE CITY U.S.A.
4 of 40
Page 47 of 50
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