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HomeMy WebLinkAbout05-28-02 MEMORANDUM TO: Economic Development Commission CC: Robert Erickson, City Administrator Ann Flad, Economic Development Coordinator FROM: David L. Olson, Community & Economic Development Director DATE: May 23, 2002 RE: May Director's Report As Commission members have been previously informed, there will not be an EDC meeting on Tuesday, May 28th. The next meeting of the EDC will be Tuesday, June 25th at the Lakeville Area Arts Center. The meeting will follow the E-Commerce Certification event that will be held on the same day starting at 4:30 p.m. at the Art Center. More information will be forthcoming on this event. C/I Subcommittee Staff and Chairman Vogel have met with two public relations firms as recommended by the Subcommittee. The firms have been requested to submit proposals to assist. the C/I Subcommittee and the EDC in the preparation of plan and strategy to be used to inform residents on the benefits of commercial/industrial development in the community. When proposals have been received, a meeting of the C/I Subcommittee will be scheduled to review the proposals as well as discuss the various options for funding this initiative.- Ben Franklin Building Staff has recently met on two occasions with John and Jerry Enggren and their architect to discuss concepts for the renovation of the existing facade on the Ben Franklin building. Progress is being made in coming up with a design concept that is consistent with the Historic Fairfield District guidelines and also is complimentary with other recent projects in the Historic Downtown area. It is anticipated that a concept plan will be ready for review by the EDC at the June meeting. Sale of Arden International Kitchens On May 6th, Arden International Kitchens. was purchased by Arden International, LLC which is . owned Jeno Paulucci. Mr. Paulucci owns a number of pre-packaged food companies several of which are located in the Duluth area. The City has not received any information as to what changes may occur at the Arden plant in Lakeville. When information becomes available, it will be forward to the Commission. Airlake Airport Fixed Based Operator (FBO~ Steve Wentworth continues to make upgrades to the interior of FBO building at Airlake Airport. City staff is coordinating with MAC staff to schedule an Airport Advisory Board meeting in June. Mr. Wentworth has scheduled a grand opening for Saturday, June 8t" which is geared towards airport facility users. He has also expressed interest in scheduling a Business After Hours Event with the Chamber of Commerce. Staff will attempt to coordinate an EDC meeting to be held in the FBO building at the Airport in July or August. I-35 - Co. Rd. 50 Moratorium Attached please find copies of recent correspondence between the City and property and business owners located in the moratorium area along Co. Rd. 50 east of I-35. This city has initiated correspondence that is intended to keep property and business owners informed. on issues associated with moratorium, the preliminary design process, and the impacts on market values as determined by the County Assessor. The City will continue. this effort for through remainder of the moratorium period. Dakota Electric Golf Event Attached please find information on the annual Dakota Electric Association golf event to be held at Crystal Lake Golf Club. If any Commission members are interested, please contact me by May 28t". State of the City Event A reminder of that the State of the City event will be held, Thursday, May 30t" with registration starting at noon. Please contact the Chamber of Commerce at 952.469.2020 to confirm your attendance. The City will pay for the cost of the event for EDC members. Finally, Have a safe and enjoyable Memorial Day Holiday. ~J ASSOCIATIO__N_ Your Touchstone Energy"Farmer A locally awned, nonprofit eledrit utility April 30, 2002 Dave Olson City of Lakeville 20195 Holyoke Avenue Lakeville, Lakeville 55044 Dear Dave, Dakota Electric Association, along with its sponsors, invites you to be our special guest at the Fourth Annual Dakota Electric Appreciation Event. The appreciation event is Wednesday, June 26, 2002, at the Crystal Lake Golf Club, 16725 Innsbrook Drive, Lakeville, (952) 432-6566. A map to Crystal Lake Golf Club is enclosed. The golf tounlament timeline is as follows: 12:30 p.m. Registration - Box Lunch/Driving Range 1:30 p.m.. Shotgun Start - 4 Person Best Ball 6:30 p.m. Awards Dinner & Prizes Dave, I hope your schedule allows you to attend. Please R.S.V.P. by calling Mary Jo at 651-463-6301 or a-mail to mfischer@dakotaelectric.com. Space is limited so register soon! Deadline for registration is Wednesday, May 29tH Sincerely, Greg Miller President/CEO Dakota Electric Association 43U~ 1~ _ _ , rriccom May 23, 2002 RE: Determination of Market Values for Properties in the Vicinity of I-35 and Co. Rd. 50 Dear Property and Business Owner: Attached please find a copy of a memorandum from Bill Peterson, County Assessor to Commissioner Krause that states the County's findings value issues relating to the moratorium placed on commercial parcels in the I-35 and Co. Rd. 50 area in Lakeville. The City Council requested that the County Assessor specifically review the situation to determine what if any adjustments to values may be warranted as a result of the moratorium. As the memo indicates, the Assessor's will continue to study the situation for the January 2003 assessment and future years however are not recommending adjustments be made at this time for the reasons stated. If you have further questions on this issue, please contact the County Assessor's Office at 651.438.4200. Sincerely, i'~ David L. Olson Community & Economic Development Director cc: Mayor and City Council Paul Krause, Dakota County Commissioner Bill Peterson, Dakota County Assessor Robert Erickson, City Administrator Keith Nelson, City Engineer ;'ty ~ f .~E~ak~~ '~~~1ke r3v~~~u~ ~ i~Y C O U N T Y Dakota County Assessing Services Dakota County Administration Center 1590 Highway 55 Hastings MN 55033 651.438.4200 Fax 651:438.4469 www.co.dakota.mn.us MEMORANDUM DATE: May 6, 2002 T0: Commissioner Krause FROM: Bill Peterson, Dakota County Assessor SUBJECT: Lakeville Commercial Property Moratorium Assessing staff and I have. reviewed the value issues relating to the new moratorium placed on commercial parcels in the 135 and Highway 50 area of Lakeville. Listed below are our findings: • The moratorium took effect after the January 2, 2002 assessment date. Any impact on value can't legally be considered until the 2003 assessment. Based on an inspection of the area it is our belief that only a handful of parcels (apx. 11) are affected by the moratorium. We do not believe that the improved commercial parcels are measurably impacted. There are also a number of improved residential use parcels that still have a highest and best use of residential (these are primarily parcels east of Hwy 50 with frontage on 173`d, 175`h and Junelle Path). For this reason we do not believe they are negatively impacted by the moratorium either. • The schedule we used to value the parcels in the moratorium area calls for $5.00/sf on improved and $4.00/sf on vacant parcels. Adjustments were made for proximity to 135, access and topography. The result is that the improved CI parcels with good visibility to 135 have a value of over $6.00 per square foot. The vacant parcels off the freeway range from $.50/sf to approximately $4.00/sf. This is an indication of the consideration we've already given to these properties relating to access and topography. • A recent sale that occurred within the moratorium area and just prior to the moratorium taking effect indicates that assessed values were probably considerably below actual market value prior to the moratorium. • The vacant commercially classed parcels in the moratorium area have not had an assessed value increase for two to three years. This reflects considerations we've made regarding the area's development problems. • The sales Gnat have occurred to the north near 162"` street, to the south near the new Target area and to the west of 135 are good indicators of value once the road project is completed (Apx: $5-$9/sf). Our range of apx. $.50/sf to $4.00/sf shows that we have already taken into consideration the difficulties in the moratorium area. We believe that once the project is completed the property values in the area will be higher and will be confirmed by sales. This will also be reflected in higher assessed values in future years. Conclusion: It is our belief that the best indicator of value and the effects of the moratorium will be reflected in sales that occur in the moratorium area during the moratorium period. We feel that consideration has already been given to this area, as reflected in the differences between the assessed values and the sales that have taken .place in the area Since the moratorium did not take effect until April, 2002 we will continue to study the situation for the January, 2003 assessment and future years. We have not found any indications that we are cunently over-assessed and it is our recommendation that no adjustments be made at this time.. We are available to meet with any moratorium area property owners to discuss their individual assessments. Please give me a call at 651-438-4208 if you have any questions. CC: Brandt Richardson Thomas Novak Robert Erickson ~ r May 17, 2002 Dear Property and Business Owner: Enclosed please find a copy of the Messages page that will appear in Thisweek News & Life and Times Newspaper. The article is intended to respond to questions and concerns that have been expressed regarding the recent moratorium on new development in the I- 35/Co. Rd. 50 Interchange area. If after reading this article you have additional questions, please contact Keith Nelson, City Engineer at (952)985-4501 or David Olson, Community & Economic Development Director at (985)985-4421. Sincerely, . ' ~ 2.. Keith H. Nelson David L. Olson City Engineer Community& Economic Development Director g~~°,s• qv 4 rv 4A ~.i c I' ' May 10, 2002 Re: City Council approves Preliminary Design Contract for CSAH 50 and I-35 Dear Property or Business Owner: The Lakeville City Council approved at its May 6`h, 2002 meeting, a scope of services agreement with SRF Consulting Group for development of a Preliminary design layout, traffic forecast and traffic operations evaluation for CSAH 5 and 50 in the vicinity of the I-35 interchange. This action is consistent with the direction given by the City Council on April 15`h to proceed with official mapping of the CSAH 50 / I-35 interchange area east of I-35. The agreement with SRF includes a project timeline that will result in the preliminary design hopefully being completed by April 2003 with official mapping to follow. Included in SRF's scope of services will be individual meetings with property owners in the study area. Property owners interested in scheduling a meeting with a representative of SRF should contact Marie Cote at (763) 475-0010. . The City Council is committed to completing this preliminary design project on an aggressive schedule and is committed to a favorable long-range outcome. If you have questions, please do not hesitate to call City Hall at (952) 985-4400 and ask for either of us. Si cerely, ~ ,f'' f ~ Keith H. Nelson, P.E.. ~ David L. Olson City Engineer Community & Economic Development Director c: Mayor and City Council Paul Krause, Dakota County Commissioner Planning Commission Robert Erickson, City Admnistrator Mark Krebsbach, Dakota County Engineer John Sass, Dakota County Project Manager Dennis Eyler, SRF Consulting Group, Inc. Marie Cote, SRF Consulting Group, Inc. City of Lakeville 20195 Hoh-oke Avenue • Lakeville, MN 55044 Phone (952) 985-4400 • FAX (952) 985-4499 • w~ww.lcakeville.m~~us ,.y ~ , , Apri117, 2002 Re: Council initiates official mapping in I-35/Co. Rd SO interchange area Dear Property Owner: The Lakeville City Council adopted an interim ordinance at its Monday, April 1 S, meeting temporarily prohibiting development and new construction in the area east ofthe I-3 5/Co. Rd. 50 interchange to allow the City time to study and officially map future road alignments. New alignments are necessary to address long- standingtraffic congestion and safety concerns in that area. The ordinance will be in effect until the adoption of official maps and other official controls or Apri114, 2003, whichever occurs first. As you know, the Dakota County Transportation Department has stated that Co. Rd. 50 in the I-35/Co.Rd. 50 area is at capacity today. In addition, no County funding is in place to improve the roadway withinthe next five years. Accordingly, City staff has stated that commercial development in that area would be premature unless the developer were willing to fund road improvements. Business owners and property owners in the interchange area who have been pursuing development opportunities have been stymied by the limitations of road capacity and access points. These issues, along with public safety issues, will be addressed during the design process. Until these studies have been completed and official maps and appropriate controls adopted, vacant land cannot be developed and the footprint of a building cannot be changed. Business and property owners will be able to make changes to the inside of their buildings, along with exterior improvements that do not expand the footprint. Although the ordinance may restrict your business plans today, ultimately the realignment and improvements to the roadways will help you make the highest and best use of your property. A copy of the complete ordinance is enclosed, along with a map of the area covered by the ordinance. If you have questions, please do not hesitate to call City Hall at 952-985-4400 ask for either of us. Sincerely, i~~~ ,/d David L. Olson eith H. Nelson, P.E. Community & Economic Development Director City Engineer Enclosures c: Mayor and City Council Paul Krause, Dakota County Commissioner Planning Commission Robert A. Erickson, City Administrator Mark Krebsbach, Dakota County Engineer Dennis Eyler, SRF Consulting Group, Inc. a m ! Memo Box May 20 -City Council meeting, 7 p.m., ~ ~ City Hall, 20195 Holyoke Ave. May 23 -Police Department Bike Auction, 6 p.m., Police Station, 20110 Holyoke Ave. ~--..~.._-..--r''`' a ~ Ci Coun coo erate on interchan a .reconstruction tY~ tY p g Making improvements to roads and interchanges Interchange at 1-35 and Co. Rd. 50 . within the City of Lakeville is more complicated than it The biggest challenge facing the City and County might seem. Both the City and the County have to agree today is improving the interchange at I-35 and Co. Rd. 50 Area included on the design, timing and funding sources, any one of (Kenrick Ave.). Over the years, Nelson said, that inter- in moratorium which can be a significant hurdle. In addition, state and change sometimes has been referred to as "malfunction I-35/Co. Rd. 50 federal transportation agencies are involved in the ap- junction" and "spaghetti junction." Through the years, proval process. business owners and residents have asked the Council and Collaboration between the City and the County in the staff to address the traffic situation. 175" St. recent past has resulted in a number of successful As the City has grown and additional development has 176u St. projects. City Engineer Keith Nelson listed the following taken place, it has become obvious that the configuration as recent examples: of the ramps, the frontage road (Kenrick Ave.) and Ca ~ Reconstruction of Co. Rd. 46 from Hwy. 5 to Rd. 50 cannot continue to handle traffic volumes. Several - Cedar Ave. (1992-1996) years ago the City Council, frustrated by the lack of ~ Reconstruction of Co. Rd. 50 from the Southfork County and State funding, took the position that perhaps area through historic downtown (1995-1997) road improvements would occur as development oc- O Reconstruction of Cedar Ave. from Dodd Blvd. to curred. the south City limits (2000-2001) Recently, Mayor Bob Johnson said, it became appar- I-35 Q Reconstruction of Pilot Knob Rd. from Co. Rd. 46 ent that the conditions on the east side of the interchange Co.Rd.50 to Farmington (1999-2002) would adversely affect existing businesses and the safety Now, the City and County face even greater chal- of motorists if additional commercial/retail development \ lenges as they collaborate on upgrading three 40-year-old occurred without necessary road improvements. With 1 freeway interchanges to current standards. The f rst several pending developments in the area, the City Council phase of improvements to Co. Rd. 60 (185th St.) will determined that improvements could not wait until the A moratorium on development is in effect in this area east begin next month. Improving the I-35/Co. Rd. 70 (McStop County makes reconstruction of this interchange aprior- of the I-35/Co. Rd. 50 interchange to allow time to study, area) interchange. is not expected to occur for three to five ity. At this time, the County does not include the upgrade design and officially map transportation improvements.. years. Planning for the I-35/Co. Rd. 50 interchange is in its Capital Improvement Plan, afive-year plan that being aggressively pursued following implementation of a schedules funding and timing for road improvements. "This would only have exacerbated the existing recent moratorium on new development. City Administrator Robert Erickson said several va- problems," Erickson said. Earlier this year, the City Council authorized the cant properties in the Southfork area are being considered s~ Can property owners sell their land? City's financial consulting firm, Springsted, Inc., to for development or redevelopment. A shopping center • Property owners can sell their land, existing business explore possible funding sources for aL hree fr~e::~ay- proposed across the street from Southfork would add or residence, although no develop:: ent can occur until the interchanges. Finance Director Dennis Feller and Com- 175,900 square feet, including a grocery store. By com- moratorium ends. Also, they can make improvements to munity & Economic Development Director David Olson parison, 82,400 square feet of commercial/retail space the inside and outside of buildings, but the overall footprint are working closely with Springsted. currently exists in the Southfork shopping center and the cannot be changed. Olson said, "The interchange study will take into Kenwood Center. In addition, the owner of the former sj What is "official mapping"? consideration the full range of financing sources permit- Tom Thumb property has proposed two businesses with Official mapping allows the City to preserve a corri- ted by state statute. The objective is to maximize the use drive-up windows. dor for a future roadway project and plan its design. of appropriate external financing sources such as County In looking at the proposed shopping center, Dakota Without this tool, a developer could place a building in an participation and State and Federal transportation grants, County calculated that the new development would in- area needed for the right-of--way, making it fiscally along with non-tax revenues. Improving these inter- crease traffic by 25%. The County Highway Department impossible to finish that corridor. changes will benefit existing and future businesses." also determined that traffic volumes on Co. Rd. 50 already Nelson said developing the future transportation plan Interchange at I-35 and Co. Rd. 60 have reached capacity. for the I-35/Co. Rd. 50 area, including official mapping, Construction will begin soon on the first phase of Erickson said, "With several pending projects in the is a major undertaking. Once again, it will involve working improving the interchange area at Co. Rd. 60 (185th St.). area, the City had to take atime-out so development did closely with Dakota County, the Minnesota Department A northbound exit ramp and a southbound entrance ramp not preempt developing a solution to the road problems." of Transportation (MnDOT) and the Federal Highway wilt be constructed, and Kenrick Ave. will be realigned. On April 15, he said, the City Council took the bold step Administration. Dakota County recently was awarded federal and of declaring a moratorium on new development in the area The study portion of the project is moving quickly. state funding for the next phase of improvements, sched- east of the I-35/Co. Rd. 50 interchange. It extends north Just two weeks after the moratorium was authorized, the uled for 2004. At that time, freeway bridges will be to Fleet Farm on Kenrick Ave. and south to the Southfork City Council approved the hiring of a traffic consultant, replaced and 185th St. will be reconstructed to a four-lane Village Apartments. The interim ordinance that estab- the SRF Consulting Group, Inc. SRF previously headed roadway from I-35 to the Scott County line. lished the moratorium also calls for studying and officially an I-35/Co. Rd. 50 interchange study that included several In 1997, in anticipation of future improvements in this mapping future road alignments and right-of--way widths. meetings with business owners and landowners. That area, the City purchased 17 acres in the southeast quad- Since the moratorium was approved, Erickson said, study was completed in 1998. Also, the Dakota County rant of I-35 and Co. Rd. 60 for $469,142. The County some questions have surfaced, along with a few misun- Assessor's Office has been asked to determine if the recently reimbursed the City for its share (55%) of land derstandings. Following are some questions and answers: current market value for taxes payable in 2003 is appro- costs. ~ How long will the. moratorium be in existence? priate, considering the moratorium. "The County wasn't prepared to acquire the land City Attorney Roger Knutson explained that by law ~ Who is responsible for the traffic situation? when it was available, so we purchased it," Nelson said. the City Council can initially implement a moratorium for • In a meeting this week with Mayor Johnson, when "The City saved taxpayers an estimated half a million only 12 months. If necessary, it can be extended for an asked about his recent comments, Dakota County Com- dollars by acquiring the land then instead. of waiting until additional 18 months. missioner Paul Krause said, "The County shares respon- this year." Nelson explained that historically Dakota Erickson said the City hopes to complete the redesign sibility with the City of Lakeville for this intersection." County has not purchased large parcels of land until a of the interchange in one year, and then immediately Erickson agreed, saying that the City and County will project has been designed and programmed. proceed with the official mapping and obtaining the work together on the planning process. The County Interchange at /-35 and Co. Rd. 70 necessary approvals from state and federal agencies and controls access spacing and placement of traffic signals, Although improvements to the interchange at I-35 Purchasing rights-of--way. prepares construction standards and handles bidding. and Co. Rd. 70 could be several years down the road, the ~ Why didn't property owners receive prior notice? Krause said, "One of the most important things the City and County are actively working on the preliminary ~ Some people have criticized the City for not notifying County can do for the City is to fully cooperate in the design. The consulting firm of TKDA and Associates has individual property owners prior to implementing the design and make sure that we end up with the best possible been retained to develop that design. moratorium. The proposed moratorium was listed on the outcome." In order to dedicate time to the project, the Council Council's official agenda, as required by law, and was For more information about interchange improve- also authorized reimbursing Dakota County for the salary Published on the City's web site. Erickson explained that menu, please call Mark Krebsbach, Dakota County's of a project engineer for athree-year period. Earlier this the moratorium -had to be established quickly before Transportation Director/County Engineer, at 952-891- year, Dakota County Project Manager John Sass was Potential developers. applied for building permits and 7102 or Keith Nelson, Lakeville's City Engineer, at 952- selected to fill that role. qualified for exemptions from the moratorium. 985-4501. ~