HomeMy WebLinkAbout04-07-2015 Worksession City of Oak Park Heights Worksession
Date: Tuesday, April 7, 2015
Location: Oak Park Heights City Hall Council Chambers
Time: 6:00 p.m.
1. Call to Order
2. Finance Department Personnel
3. North Frontage load Update
4. Adjourn
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THIS PAGE IS INTENTIONALLY LEFT BLANK
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City of Oak Park Heights
14168 Oak Park Wvd. N•Box 2007.Oak Park Heights,MN 55082•Phone(651)439-4439•Fax(651)439-0574
4-3-15
MEMO
TO: Mayor and Council M zrs //
FROM: Eric Johnson, City Adm - trator
RE: North Frontage Road u / esolution and Agreement
The enclosed City Resolution 14-07-38 has been the foundation of the Staff's positions on discussions
with The State of MN on the north frontage road matter. MNDOT would like to have a final agreement
in place by April 1S`"and as such,Staff has some questions for the City Council relative to this possibility.
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RESOLUTION 14-07-38
CITY OF OAK PARK HEIGHTS
WASHINGTON COUNTY,MINNESOTA
A RESOLUTION BY THE CITY COUNCIL FOR THE CITY OF OAK PARK.HEIGHTS THAT
OUTLINES PARAMETERS THAT WOULD FACILITATE THE REALIGNMENT AND
RECONSTRUCTION OF THE NORTH FRONTAGE ROADWAY AND WOULD FACILITATE THE
USE OF CITY LANDS AND TURNBACK BY THE STATE OF MINNESOTA AND WASHINGTON
COUNTY FOR SUCH PROJECT
Whereas the State of Minnesota's existing North Frontage Roadway located west of Osgood Ave. and
north of State Highway 36 experiences delays, traffic congestion and safety concerns at its intersection
point with Osgood Ave,and;
Whereas, the City has worked extensively with Washington County and the State of Minnesota to find
engineering and financial solutions to provide relief from these conditions through a frontage roadway re-
alignment, and,
Whereas the Frontage Road connection is to a County owned roadway and from State roads,and;
Whereas despite this non-ownership or impacts caused by the by the City, the City pledges its available
economic support for the Project via the City's acquisition of the property at 6130 Osgood Ave and
completed the necessary hazardous materials study totaling more than $330,000.00 that would facilitate
the new intersection location as proposed by the State of Minnesota and Washington County, generally
depicted below,and;
ST.CAM NlvfJt CH08Sfiac J{J'NOPTN FRONTAGE ROAD
3E#jMI AMROACH P WELT tt SQ)PR_F1A.4E4 ALTERNA1wr -
at.rw,u
Whereas the State of Minnesota may facilitate a favorable agreement with the current St. Croix River
Crossing Project contractor that can complete the proposed layout correcting these deficiencies during the
2014 construction year, and
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Whereas,The city council was previously willing to allow it's lands to be used for the realigned frontage
road but not willing to accept a full turnback of the proposed new frontage road due to financial concerns
and tinning relative to the tumback event; and,
Whereas the County acknowledges the city has secured at considerable cost critical lands to facilitate the
relocation of the aligned frontage road; and
Whereas the city has provided documentation to county representatives as to redevelopment proposals
for the area that are key to the re-alignment of the frontage road and an tax abatement program that allows
the city to recoup some of its expenses; and,
Whereas, Commissioner Gary Kreisel has represented to the city that:" I feel confident that I could
support a proposal from Oak Park Heights that assures the redevelopment of the northwest corner of
Osgood and the Borth Frontage Road along Highway 36 and look forward to learning more about the
city's plans"; and,
Whereas MnDot is willing to delay turnback for a period of four (4) years from the date of substantial
completion of this contract now projected to be November 25, 2014 and agreeing that MnDot will assui:e
all maintenance of the newly realigned frontage road until turnback is completed; and,.
NOW, THEREFORE, BE IT RESOLVED that the City of Oak Park Heights the City Council does
hereby approve the layout of the proposed relocated frontage road and that is owned by the State of
Minnesota as presented.
BE IT FURTHER RESOLVED that if the Project should proceed as proposed, the City of OPH will
provide to the Project, at no cost to the State of Minnesota or to Washington County, unencumbered
access to its lands acquired by the City using its own property tax generated dollars, so that the proposed
new re-aligned Frontage roadway may proceed.
BE IT FINALLY RESOLVED that the City will assume the ownership of the proposed realigned North
Frontage Roadway four years following substantial completion of the MnDot project now assigned as
MnDot project # if certain conditions are met and duly incorporated into
formal agreements, subject to final City Council approval, between the City and the State of Minnesota
and/or Washington County which shall contain the following minimum conditions:
1. The intersection of the TH 36 North frontage road and Osgood Avenue will be moved to
approximately 300 feet north of its current location. See the Project Plan as shown above.
2. The proposed North Frontage Road and Osgood Ave intersection will be designed to
accommodate a future traffic signal.
3. Once the roadway is constructed the County may not close the left-tum in lane(from northbound
Osgood Ave) to the new frontage roadway(westbound)nor restrict nor alter any other access to
such roadway without the written consent of the City.
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4. The Westbury Property currently has a single family home built in the 1900s+/-. This home has
lead and asbestos present. The City of Oak Park Heights has conducted a hazardous materials
assessment and shared the information with the County and the State of MN. The State of MN
may use the data provided by the City or may seek alternative review or testing as it may deem
necessary.
S. The State of MN,at no cost to the City will: abate any hazardous material required by Federal or
State law prior to any demolition and will then demolish the home and other structures perform
any necessary hazardous material disposal and otherwise prepare the site for road construction.
6. Necessary land will be purchased by the County and/or the State of MN,to allow for the frontage
road to be constructed as shown in the Project Plan.No part of this expense shall be the direct or
indirect obligation of the City of Oak Park Heights.
7. Multiple segments of temporary easements will be purchased from the Owner to facilitate the
construction of the project as shown in the Project Plan by the County and/or State the of MN as
well and a new access to Oren Avenue from the Fury Motors North Lot that lies north of the
proposed new frontage road alignment. No part of this expense shall be the direct or indirect
obligation of the City of Oak Park Heights.
S. Any required private access or other property owner accommodations provided to or on behalf of
the Carquest building/site(or for any other lands impacted by this Project) shall be entirely the
cost of The State of MN and/or the County.Any liabilities for"takings"or other condemnation
actions as a result of the implementation of this Plan shall be fully defended and/or paid by the
County and the State of MN.
9. A new frontage roadway will be constructed by the State of MN,connecting existing Oren
Avenue with Osgood Avenue wholly consistent with the Project Plan. The appropriate
connection to Oren Avenue will also be constructed by the State of MN at no cost to the City.
Any deviations shall be subject to the approval of the City, consistent with the terms of this
Agreement.
10. All specifications and designs for the North Frontage Road realignment and any accesses thereto
shall be as approved by MnDot and the City Engineer for Oak Park Heights.The State will ensure
that the final improvements meet the City's established requirements and will provide"as built
surveys and record plans to the City to allow mapping into the City systems.
11. The existing north-south segment of Oren Avenue will be reconstructed by the State of MN,to
Frontage Road standards of MnDot to include concrete curb and gutter and a new bituminous
surface(not a"reclaim"nor a"mill&overlay") .
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12. The existing portion of 60'Stmt no longer used will be demolished and the bituminous
surfacing removed by the State of MN and vegetation restored.
13. The State of MN may turnback the portion of the north frontage road within the City's
jurisdiction and its related areas to the City of Oak Park Heights but not sooner than four years
from substantial completion of the roadwork, estimated to be not sooner than November 27,
2018.The newly re-aligned frontage roadway and its elements shall be in a condition reasonably
anticipated for a roadway of this type and age.Defects shall be corrected by the State prior to any
such turnback. Until such turnback is completed the State of MN shall be responsible for all
surface maintenance, including snowplowing.
14. Any lands accepted by the City under this Agreement and/or a subsequent turnback shall be
wholly and completely released by the State of MN and the County to the City without
restriction. There shall be no reservations or rights expressed or implied being preserved by the
State of MN and/or any other party from this Agreement or any other prior agreement or contract.
The State of MN and the County shall be required to ensure that all lands to be conveyed to the
City under this Agreement,or as may be necessary for the perpetuation of the new frontage road
area,are free of all other public or private encumbrances except those belonging to the City.
Should there be errors or defects in such conveyances to the City,the State of MN shall be
required to correct such deficiencies and deliver marketable title to the City on the lands.
15. Once the turnback is completed,The City of Oak Park Heights shall be responsible for future
surface maintenance which includes the following: sealcoating,mill& overlay, reclaim and
future reconstruction of the new North Frontage road including the current Oren Ave and the area
lying east of Oren Ave to Osgood Ave within its jurisdiction.
16. Unless approved by fully executed written agreement,the City will not maintain any facilities
that serve a private function,regardless of their location.This includes, but is not limited to all
private infrastructure including any stairways, storm water piping,etc. Unless expressly and
separately approved by the City, the State of MN and the County must ensure that all private
facilities to be constructed shall not be located on lands to be conveyed to the City.
17. All required land acquisitions obtained as part of this project for public purposes will be turned
over to the City of Oak Park Heights. The City will become the owner and of the new frontage
road segment,would retain ownership of the existing Oren Avenue,and would assume ownership
of the portion of 601 Street N between Oren and the current boundary with the City of Stillwater.
As a result of this transfer.
a. The City will be the exclusive permitting and regulatory authority for the entire roadway
and retain full control over any/all utility locations,use,closures, easements,weight
restrictions and future modifications.
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b. Unless altered in this Agreement,the City would be responsible for maintenance and
operations of the roadway as specified above.
18. The Washington County Board of Commissioners considers approving a tax abatement plan in
substance to that which is appended hereto
19. The State of Minnesota shall maintain surface water management from the realigned frontage
road and/or any adjoining lands tributary thereto to be conveyed to the City via this Agreement.
The off-site downstream facilities shall receive drainage from this area and be wholly managed
by the State of MN consistent with all Federal, State or Local requirements. The City is not
required to make any upfront or future cost sharing contributions for any downstream
maintenance or management of water from this area or as a result of the implementation of this
Project Plan.
20. There shall not be any street lighting(illumination)installed as part of this project scope if any
street lighting is requested or required by any entity,the requesting party shall pay for the
installation and pay for all required maintenance and electricity costs to operate .
21. There shall not be any plantings,trees or any other organic or inorganic ornamental elements of
this Project. All facilities shall be of highly durable,maintenance free construction.If any such
plantings or ornamental items are requested or required by any entity,the requesting party shall
pay for the installation and pay for all future required maintenance and care at their own expense.
22. The County nor the State of MN may not close any other access points to Osgood Ave or the
South Frontage Road(lying south of STH 36)until such time as a comprehensive plan for doing
so has been agreed to between the City and the road authority in charge of the affected roadway.
23. The County and MnDot agree to cooperate to execute all subsequent agreements needed to
facilitate this Resolution and its conditions.
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This Resolution is adopted by the City Council of the City of Oak Park Heights, Minnesota, this
day of July 2014.
Mc omber,Mayor
ATTEST: ,
6 �
ri Jo on,Ci dministrator
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EXHIBIT A
TAX ABATEMENT PLAN
City of Oak Park Heights - 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 55052
Phone: 651-4394439
Fax: 651.439.0574
Email: ea'ohnson i ofoak rkhei ts.com
Date Submitted:
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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:ea'ohnson cityofoakparkheigts.com
2. Description of the Request:
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 "STH 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 /
easements, once purchased the City would convey such necessary lands to the State of Minnesota for the
proposed re-routing and/or would anticipate contributing other such lands for a larger redevelopment,
MAP 1 —Redevelopment Area—General (following extent parcel lines)
Redevelopment Area-Outlined in=
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This area is a major intersection in the Oak Park Heights / 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
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1 � /� ST,CROIX RIVER CROSSIIUG 1��oRTH FRONTAGE RoAO
�1�� � Mw APPROACH PROJECT ripYf� PREFERRED? ALTERNATIVE
SEA S.P.22U-114
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 renewal and 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 the attached proposal (Attachment#1) from
Leonard Investments that would show the anticipated layout for the new dealership.
3.Parcels Included in the Request:
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The following parcels are included in the request and are also shown in Map 3 below:
GtX of Oak Park hekhts
Abatment Area-O tfon A GREEN 14 Values ftm Waslifnaton Courttv
ACRES
PIN TAX_NAME ,POLY EM%_LAND EMY BLDG EMV_TOTAL TAK CAPAC
1 3303020430039 WORTMAN DANIEL D&FRANCHFSKA(homestead) 121 $ 150,000 $ 112,300 $ 262,300 $ 2,487
2 3
3OM04-VMp CrrY OF OAK PARK HFIGHTS ECONOMIC DFVFLO 1.30 S 105,000 $ 6,000 $ 111,00D $
3 3303020430038 LEONARD INVESTMENTS LIJI 1.81 $ 237,100 $ - $ 237,100 $ 4,742
4 3303020430047 STATE OF MN-DOT 0.39 $ 11500 $ $ 1500 $
5 3303020430057 ERICKSON POST INC 0.47 $ 227,000 $ 57,700 $ 284,700 $ 4,944
6 3303020430056 200511LLC 0.42 $ 1831800 $ 244,900 $ 428,700 $ 7,824
r
7 3303020430042 LEONARD INYESTMENTSLLC 6.08 $ 1„3559,200 $ 90,900 $ 1,450,100 $ 28,252
T.W. 11.68 $ 2,.2E,60 W $ 54800.00 S 2,775 00 $ 4&4900
Map 3-Tax Abatement Area (also showing the new roadway layout)
16
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4.Beginning date and the amount requested for the abatement:
Effective for taxes payable in 2015; $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 Counttr Mould 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 Heiehts: $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+$185,000= $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 utiffzed, but are estimated to not exceed
$55,000.
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/STH 35
intersection which can experience backups. These backups are on a County roadway and which should be
alleviated. See the proposed layout below that would be implemented if this proposal was approved.
s.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. Lastly,the road constriction would facilitate the economic
development projects for the immediate area and which is ripe for redevelopment.
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