HomeMy WebLinkAboutItem 08
November 7, 2016 Item No.________
RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE
DISTRICT NO. 1 FOR TAXES PAYABLE 2017
Staff recommends adoption of the following motion: Move to approve Resolution Imposing a
Service Charge for Special Service District No. 1.
Approval of the motion will result in approval of the special service charge for taxes payable
2017.
Overview
On July 6, 1998, the City Council approved Ordinance 631 establishing a Special Service District
No. 1. The Special Service District Advisory Board has requested City Council consideration of
levying a special service charge payable in 2017 and approval of the budget for the period of
July 1, 2017 to June 30, 2018.
The allocation of the total service charge to the downtown properties is based on the net tax
capacity of the commercial values of the properties in the district. The Special Service District
Advisory Board is recommending that the service charge payable remain unchanged ($27,500)
consistent with those of prior years.
The resolution states that a maximum charge of $6,000 will be charged per property owner.
Mark Hotzler, President of Metro Equity Management, acknowledged via the attached letter
that the value of his property ownership generates a service fee greater than the suggested fee
cap but that he waives his right to the cap.
Primary Issues to Consider
• Purpose of the public hearing
• Budget
• Special Service Charge
• Legal considerations
Supporting Information
• Special Service Charge Allocation
• Letter from Mark Hotzler
• Presentation to the City Council by the Downtown Lakeville Business Association
Financial Impact: $ Budgeted: Y☐ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
27,500 Sp Svc Chg
Ordinance establishing a Special Service District
Primary Issues to Consider
• Purpose of the public hearing
Minnesota Statute 428A.03 requires that a public hearing must be conducted each calendar year
with notices mailed to each business organization subsequent to the service charge. After the
public hearing is conducted, and the resolution is adopted, the amounts will be certified to the
Dakota County Treasurer/Auditor for collection with taxes payable in 2017.
• Budget
The proposed budget for period of July 1, 2017 through June 30, 2018 is as follows:
Actual Budget Proposed
Fiscal Year Fiscal Year Fiscal Year
Ended Ended Ended
June, 2016 June, 2017 June, 2018
Revenues - service charges
Current Levy collected 27,509$ 27,500$ 27,500$
Delinquent levy collected 464 - -
Other revenues 7,115 3,750 -
Net service charges 35,088 31,250 27,500
Expenditures
Executive Director (Wage/Payroll Tax)11,429 12,250 11,250
Tech/Auto allowance 300 300 300
Insurance - 220 -
Postage/PO Box Rental 70 75 75
Office supplies 124 300 250
Retirements/Flowers Etc.- 20 20
Professional fees (Acctg/Computer)460 265 265
Meeting expenses (Chamber/DLBA Board)22 20 20
Website 492 350 350
Flower Pots 2,380 1,500 -
Brochures/marketing/Advertising 812 3,940 8,420
Events:
Farmers Market 675 1,600 1,200
Trick or Treat 880 250 -
Holiday Lighting 73 100 -
Holiday on Main 5,022 5,000 5,200
Block Bash 6,367 7,000 -
Easter 62 - -
Promotional Events (Retail Committee Events)(73) - -
County assessment fee 158 150 150
Total expenditures 29,253 33,340 27,500
Net change 5,835 (2,090) -
Balance - Beginning 7,001 12,836 10,746
Balance - Ending 12,836$ 10,746$ 10,746$
• Special Service Charge
The Service charge for a specific parcel may vary from year to year as a result of changes to tax
classification, assessed market value or changes in value due to property improvements.
• Legal considerations
The Special Service District is subject to Minnesota Statutes 428A and City of Lakeville
Ordinance 631.
Market Special Service
PROPERTY Value Charge
PID #OWNER 2017 2017 2017
22 44450 02 121 Richard/Ann Miller 432,900 7,908 883.43$
22 44450 12 020 20777 LLC 252,400 3,270 365.30$
22 44450 12 042 20779 LLC 159,700 2,444 273.03$
22 02900 78 051 Holyoke Professional LLC 902,000 17,290 1,931.53$
(22 13700 084 01)
22-47600-01-010 Holyoke Crossing LLC 1,644,500 32,890 3,674.26$
22-13700-02-081 Holyoke Crossing LLC 135,500 2,710 302.74$
(22-44450-111-13)
22-47600-01-020 Holyoke Crossing LLC (former J+J Hold.) 2,254,100 44,332 4,952.49$
8,929.50$
22 85100 01 051 Seven Sixty Five LLC (Former J & J Holding Co.) 150,500 2,260 252.47$
22 44450 12 050 Seven Sixty Five LLC (Former J & J Holding Co.) 150,500 3,010 336.26$
588.73$
22 63700 01 040 Lakeville Real Estate Management LLC 56,500 1,130 126.24$
22 63700 01 080 Lakeville Real Estate Management LLC 283,600 5,672 633.64$
22 63700 01 030 Lakeville Real Estate Management LLC 56,000 1,120 125.12$
22 63700 01 020 Lakeville Real Estate Management LLC 283,800 4,926 550.30$
1,435.30$
22 44450 12 044 Gregory J./Nancy Papatola Tste Smith 415,300 6,280 701.56$
22 44450 12 040 Gregory J./Nancy Papatola Tste Smith 105,500 2,110 235.72$
937.28$
22 85100 01 100 Marquette Bank Lakeville 816,200 15,574 1,739.83$
22 85100 01 080 Wells Fargo Bank Minnesota 51,800 777 86.80$
22 85100 01 070 Wells Fargo Bank Minnesota 45,400 681 76.08$
22 85100 01 020 Marquette Bank Lakeville 114,100 2,282 254.93$
2,157.64$
22 13700 02 010 KNS Investments 259,200 4,434 495.34$
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Proposed Special Service Charge Allocation
Tax Capacity
Value
Market Special Service
PROPERTY Value Charge
PID #OWNER 2017 2017 2017
22 44450 07 120 Rose Acceptance Inc 255,000 4,350 485.95$
22 44450 10 070 Fairfield Crossing LLC 511,400 9,478 1,058.82$
22 44450 10 090 Fairfield Crossing LLC 42,000 840 93.84$
1,152.66$
22 44450 10 110 Fairfield Place LLC % Mark Hotzler 117,600 1,764 197.06$
22 85100 01 041 James L Richman 259,000 4,430 494.89$
22 85100 01 071 James L Richman 12,900 258 28.82$
523.71$
22-44450-10-041 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 188,000 3,010 336.26$
22-44450-10-010 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 48,700 974 108.81$
22-44450-10-020 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 48,700 974 108.81$
22 44450 10 030 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 57,900 1,158 129.36$
22 44450 10 040 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 17,200 344 38.43$
721.67$
22 85100 01 050 20757 LLC % Metro Equity Management LLC 195,200 3,154 352.34$
22-32190-00-011 HMWHC LLC 45,900 689 76.97$
22-32190-01-010 HMWHC LLC 617,100 10,840 1,210.98$
1,287.95$
22 44450 07 183 Lakeville Family Bowl, Inc. 255,100 4,352 486.18$
22 44450 06 101 Marcor Properties LLC 317,500 5,600 625.60$
22-47600-02-010 H & V Apartments (Ace Hardware) 1,123,100 21,712 2,425.53$
(22 44415 010 01)
22-44415-01-011 Dakota County CDA 594,400 11,138 1,244.27$
TOTAL 246,165 27,500.00$
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Proposed Special Service Charge Allocation
Tax Capacity
Value
1
CITY OF LAKEVILLE
Resolution No. _____
RESOLUTION IMPOSING A SERVICE CHARGE FOR SPECIAL SERVICE
DISTRICT NO. 1 FOR TAXES PAYABLE 2017
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, as follows:
SECTION 1. Recitals: Findings
1.01. Pursuant to Ordinance No. 631, the City created a special service district for certain
property located adjacent to Holyoke, Holt, and Howland Avenues from 202nd
Street West on the north to 210th Street West on the south. The specific properties
included within this land area (the “District”) are identified on Exhibit “A” attached
hereto.
1.02. Notice of a public hearing has been given and a public hearing has been held.
SECTION 2. Imposition of Service Charge
2.01. Amount of Service Charge. There is hereby imposed a service charge in the amount
and against the properties specified on Exhibits “A” and “B”, attached hereto (the
“Service Charge”).
2.02. Nature and character of Special Services – Budget. There is hereby approved a
budget for Special Service District fiscal year beginning July 1, 2017 through June 30,
2018 as specified on Exhibit “C” a copy of which is attached hereto.
2.03. Calculation of Service Charge. The Service Charge shall be calculated as a
percentage of the net tax capacity of the taxable property located in the Special
Service District. The minimum charge levied against a property owner shall be
$100.00 and the maximum charge shall be $6,000.00 per property owner. If the
charge that would otherwise be imposed on a property owner is greater than the
maximum allowable charge, the overage shall be redistributed against the other
parcels in the District based upon net tax capacity. If the charge that would
otherwise be imposed on a property owner is less than the $100.00 minimum charge,
the charge against other parcels in the District shall be reduced based on net tax
capacity.
2
For taxes payable in 2017, the Service Charge will be $27,500.00.
2.04. Distribution of Total Service Charge. The distribution of the total Service Charge
among properties within the District and subject to the Service Charge may vary and
shall be recalculated pursuant to the formula specified in Section 2.03 if and to the
extent that (i) commercial/industrial property tax classification rates increase or
decrease based on action by the Minnesota legislature; or (ii) the net tax capacity of a
parcel increases or decreases based on changes in the assessed value of the parcel
attributable to improvements or changes made to the property; or (iii) a parcel
increases or decreases in size by acquisition or sale.
2.05. Effective Date. The effective date of the Service Charge will be January 1, 2017.
SECTION 3. Collection of Service Charges
3.01. Collection. The Service Charges shall be payable and collected at the same time and
in the same manner as provided for payment and collection of ad valorem taxes. For
purposes of determining the appropriate tax rate, taxable property or net tax capacity
shall be determined without regard to captured or original net tax capacity under
Minnesota Statutes, Section 473F.08.
3.02. Penalty and Interest. Service Charges made payable in the same manner as provided
for payment and collection of ad valorem taxes, if not paid on or before the
applicable due date, shall be subject to the same penalty and interest as in the case of
ad valorem tax amounts not paid by the respective date.
3.03. Due Date. The due date for the Service Charge payable in the same manner as ad
valorem taxes is the due date given in law for the real or personal property tax for the
property on which the service charge is imposed. Services Charges imposed on net
tax capacity which are to become payable in the following year must be certified to
the County Auditor by the date provided in Minnesota Statutes, Section 429.061,
Subd. 3 for annual certification of special assessment installments.
SECTION 4. Revenue Surplus
To the extent that the total of Services Charges collected exceed the cost of services
rendered within the District, at the election of the City, either: (i) such excess
amount shall be held as a reserve to pay the cost of future services provided under
this resolution; or (ii) the next ensuing year’s levy of taxes and service charges shall
be decreased by a corresponding amount.
3
SECTION 5. Recording
The City may record this Resolution against parcels located within the District and
subject to the Service Charge for the purpose of providing notice of the Service
Charge to prospective purchasers of such parcels.
4
ADOPTED by the Lakeville City Council this 7th day of November 2016.
CITY OF LAKEVILLE
BY: ____________________________________
Matt Little, Mayor
ATTEST:
_____________________________________
Charlene Friedges, City Clerk
5
6
Market Special Service
PROPERTY Value Charge
PID #OWNER 2017 2017 2017
22 44450 02 121 Richard/Ann Miller 432,900 7,908 883.43$
22 44450 12 020 20777 LLC 252,400 3,270 365.30$
22 44450 12 042 20779 LLC 159,700 2,444 273.03$
22 02900 78 051 Holyoke Professional LLC 902,000 17,290 1,931.53$
(22 13700 084 01)
22-47600-01-010 Holyoke Crossing LLC 1,644,500 32,890 3,674.26$
22-13700-02-081 Holyoke Crossing LLC 135,500 2,710 302.74$
(22-44450-111-13)
22-47600-01-020 Holyoke Crossing LLC (former J+J Hold.) 2,254,100 44,332 4,952.49$
8,929.50$
22 85100 01 051 Seven Sixty Five LLC (Former J & J Holding Co.) 150,500 2,260 252.47$
22 44450 12 050 Seven Sixty Five LLC (Former J & J Holding Co.) 150,500 3,010 336.26$
588.73$
22 63700 01 040 Lakeville Real Estate Management LLC 56,500 1,130 126.24$
22 63700 01 080 Lakeville Real Estate Management LLC 283,600 5,672 633.64$
22 63700 01 030 Lakeville Real Estate Management LLC 56,000 1,120 125.12$
22 63700 01 020 Lakeville Real Estate Management LLC 283,800 4,926 550.30$
1,435.30$
22 44450 12 044 Gregory J./Nancy Papatola Tste Smith 415,300 6,280 701.56$
22 44450 12 040 Gregory J./Nancy Papatola Tste Smith 105,500 2,110 235.72$
937.28$
22 85100 01 100 Marquette Bank Lakeville 816,200 15,574 1,739.83$
22 85100 01 080 Wells Fargo Bank Minnesota 51,800 777 86.80$
22 85100 01 070 Wells Fargo Bank Minnesota 45,400 681 76.08$
22 85100 01 020 Marquette Bank Lakeville 114,100 2,282 254.93$
2,157.64$
22 13700 02 010 KNS Investments 259,200 4,434 495.34$
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Proposed Special Service Charge Allocation
Tax Capacity
Value
7
Market Special Service
PROPERTY Value Charge
PID #OWNER 2017 2017 2017
22 44450 07 120 Rose Acceptance Inc 255,000 4,350 485.95$
22 44450 10 070 Fairfield Crossing LLC 511,400 9,478 1,058.82$
22 44450 10 090 Fairfield Crossing LLC 42,000 840 93.84$
1,152.66$
22 44450 10 110 Fairfield Place LLC % Mark Hotzler 117,600 1,764 197.06$
22 85100 01 041 James L Richman 259,000 4,430 494.89$
22 85100 01 071 James L Richman 12,900 258 28.82$
523.71$
22-44450-10-041 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 188,000 3,010 336.26$
22-44450-10-010 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 48,700 974 108.81$
22-44450-10-020 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 48,700 974 108.81$
22 44450 10 030 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 57,900 1,158 129.36$
22 44450 10 040 Veterans tlaza LLC c/o aetro 9quity
aanagement LLC 17,200 344 38.43$
721.67$
22 85100 01 050 20757 LLC % Metro Equity Management LLC 195,200 3,154 352.34$
22-32190-00-011 HMWHC LLC 45,900 689 76.97$
22-32190-01-010 HMWHC LLC 617,100 10,840 1,210.98$
1,287.95$
22 44450 07 183 Lakeville Family Bowl, Inc. 255,100 4,352 486.18$
22 44450 06 101 Marcor Properties LLC 317,500 5,600 625.60$
22-47600-02-010 H & V Apartments (Ace Hardware) 1,123,100 21,712 2,425.53$
(22 44415 010 01)
22-44415-01-011 Dakota County CDA 594,400 11,138 1,244.27$
TOTAL 246,165 27,500.00$
EXHIBIT B
SPECIAL SERVICE DISTRICT - DOWNTOWN
Proposed Special Service Charge Allocation
Tax Capacity
Value
8
Actual Budget Proposed
Fiscal Year F iscal Year Fiscal Year
Ended Ended Ended
June, 2016 June, 2017 June, 2018
Revenues - service charges
Current Levy collected 27,509$ 27,500$ 27,500$
Delinquent levy collected 464 - -
Other revenues 7,115 3,750 -
Net service charges 35,088 31,250 27,500
Expenditures
Executive Director (Wage/Payroll Tax)11,429 12,250 11,250
Tech/Auto allowance 300 300 300
Insurance - 220 -
Postage/PO Box R ental 70 75 75
Office supplies 124 300 250
Retirements/Flowers Etc.- 20 20
Professional fees (Acctg/Computer)460 265 265
Meeting expenses (Chamber/DLBA Board)22 20 20
Website 492 350 350
Flower Pots 2,380 1,500 -
Brochures/marketing/Advertising 812 3,940 8,420
E vents:
Farmers Market 675 1,600 1,200
Trick or Treat 880 250 -
Holiday Lighting 73 100 -
Holiday on Main 5,022 5,000 5,200
Block Bash 6,367 7,000 -
E aster 62 - -
County assessment fee 158 150 150
Total expenditures 29,253 33,340 27,500
Net change 5,835 (2,090) -
Balance - Beginning 7,001 12,836 10,746
Balance - Ending 12,836$ 10,746$ 10,746$
EXHIB IT C
SPECIAL SERVICE DISTRICT NO. 1
Downtown Lakeville Business Association
Established in 1998 by City Council Resolution
PRESENTATION TO THE
LAKEVILLE CITY COUNCIL
November 7, 2016
Paul W. Haglund, Paul Haglund & Company, LLC President
Mark Hotzler, Metro Equity Management, LLC Vice President
James Kretsch , Kretsch Law Office, PLLC Director
Kristina Murto, Ensemble Creative and Marketing Director
Jane Hotzler, Metro Equity Management, LLC Proxy Director
ADVISORY BOARD
Nancy P. Smith Property Owner
Jon Koznick Property Owner
Lisa Vossen Pink Door Boutique
Megan Seiler Lakeville Brewing Company
Art Kosieradzki SiebenCarey
BOARD OF DIRECTORS
THANK YOU!
n Support of New Business’
n Member Support
n Holyoke Avenue Improvement Project
PARTNERS
CITY OF LAKEVILLE
INDEPENDENT SCHOOL DISTRICT 194
LAKEVILLE AREA ARTS CENTER
LAKEVILLE COMMUNITY EDUCATION & ECFE
PAN-O-PROG COMMITTEE
HERITAGE SENIOR CENTER
360 COMMUNITIES
LAKEVILLE AREA CHAMBER OF COMMERCE
DAKOTA COUNTY HERITAGE LIBRARY
ST. PAUL FARMERS’ MARKET
“To create a unique ‘Downtown’ business environment which blends the cultural, historical and economic opportunities of a rapidly growing community situated in a major metropolitan area.”
“From a non-retail, service business perspective, I believe the DLBA provides a sounding board for the
business owners. It helps us connect with the other members, building mutually supportive
relationships. From a marketing company’s perspective, we understand the value of the DLBA in
brand building as it provides a consistent and on-going awareness of Downtown Lakeville to the
greater community and beyond.” -Steve Volavka, Ensemble Creative & Marketing
MISSION STATEMENT
KEY OBJECTIVES
n Promote the Downtown Businesses
n Coordinate communication between businesses
n Work cooperatively with other civic organizations
n Utilize social media and website to communicate
information and events to the public
n Sponsor promotional events that attract people to
Downtown Lakeville
“The DLBA has really helped me & Frenchies become integrated into this wonderful downtown business
community! I have met so many new people to market and network with. Thank you Anne and the
DLBA for all of your support!” -- Kate Wensmann, Frenchies Modern Nail Care
NEW INITIATIVES
n Puppet Wagon
n Ready, Set, Achieve Partnered Event
n Sponsorships
n Holyoke Avenue Improvement Project
n Social Media Campaigns
“Thank you (DLBA) for everything you guys have done!!!! My family and I appreciate it greatly.”
-Jeff Beck, Toppers Pizza
WEBSITE & SOCIAL MEDIA
n Facebook engagement increased over 160% since 2015
n Increased presence on Twitter - over 350 new followers
n Newsletter audience continues to increase
n www.downtownlakeville.com website
n Over 11,621 new users visited our website this year
n Largest spike of website traffic during summer months
“We appreciate the support of the DLBA with keeping us informed about Lakeville updates and happenings.
They help get the word out about our Toys for Tots drive and any other promotions we have going on
throughout the year. They are always a first line of contact for any downtown questions for us.”
- Julie Miller, Miller-Hartwig Insurance
SPRING &
SUMMER
EVENTS EASTER
BLOCK BASH FARMERS’ MARKET
& PUPPET WAGON
FALL & WINTER EVENTS
HOLIDAY
LIGHTING
CEREMONY
SMALL
BUSINESS
SATURDAY
HOLIDAY ON MAIN
RETAIL COMMITTEE EVENTS
Promotion of Other Downtown Events
MOVING FORWARD
n Emphasis on Marketing for Downtown Lakeville
n Consider Signage Options for Downtown Lakeville
n Holyoke Avenue Improvement Project Communication
n Continue to promote Downtown Lakeville
n Continue to support business development and new businesses
n Continue to increase social media, website and email audience
“The DLBA assists in creating positive experiences for its members through marketing efforts, assisting in
fostering and maintaining business connections, and reaching out to the general public in an effort to preserve
the downtown area as a place of historical significance, community, pride and commerce. We enjoy working with
the DLBA on a regular basis and know that Downtown Lakeville and the City of Lakeville are better places due to
the existence of the DLBA and the leadership that helps guide it in an ever changing business environment.”
-Brandon Lichty, Metro Equity Management
“ An abundance of attractive design features may not make a downtown a distinctive place
without a well-organized, coordinated public-private partnership, a calendar of events and
promotions to make the public aware of this special place, and a mix of economic functions to
draw people there.”
-National Main Street Center and Trust for Historic Preservation