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1d Arboretum III Partners Agree CITYOF CHANHASSEN 690 Cify Center Drive PO Box 147 'hanhassen, Minnesota 55317 Phone 952.93Z1900 Generd Fax 952.937. 5739 :ngineedng Department Fax 952.937.9152 Building Depamnent Fax 952.934.252d Web Site www. ci. chanhassen, mn. us TO: FROM: Mayor and City Council Todd Gerhardt, Acting City Manager DATE: June 7, 2001 SUB J: Consider Approval of a Private Redevelopment agreement with Arboretum III Realty Partners, LLP Attached for the city council's review is a Private Redevelopment Agreement between the City of Chanhassen and Arboretum III Realty Partners, LLP (see Attachment 4/1). The city council created TIF District No. 6 in May 1997 (see Attachment #2). In conjunction with the creation of this district, the Tax Increment Plan incorporated the city's current three year incentive program for businesses meeting one of the following qualifications: 1. Discourage business from moving to another state or municipality; 2. Increase employment in the state; 3. Preserve and enhance the tax base of the state. Arboretum III meets two of the three qualifications. They will be enhancing the tax base by approximately $107,520 per year and creating at least 2 new jobs. Arboretum 1II is proposing to construct a 59,900 sq. ft. multi-tenant facility on Lot 2, Block 2, Arboretum Business Park 2na Addition. Attached you will also find the Arboretum llI Realty Partners, IJJP application for tax increment financing. The application' includes the following information: 1. Statement of Public Purpose (see Attachment 4/3). 2. Plans and Drawings of Project (see Attachment $4). 3. Zoning and Planning Analysis (see Attachment $5). 4. "But For" Analysis (see Attachment $6). The applicant completed the "But For" worksheet and the results show that if it were not for the TIF, the project would return 12.1% versus 13.4% after receiving the TIF assistance (see Attachment $6). The estimated amount of incentives available total $83,144.76 based on the city policy of three years worth of taxes minus fiscal disparities and school aid contributions (see Attachment $7). The city would make payments back to Mayor and City Council June 7, 2001 Page 2 Arboretum I~ Realty Partners, LLP on a "pay as you go" plan based on the new taxes generated from their facility: 2003 $53,760.00 2004 $29,384.76 Total Incentives $83,144.76 RECOMMENDATION Staff recommends approval of the Private Redevelopment Agreement with Arboretum 11I Realty Partners, LLP and their request for $83,144.76 in city assistance. ATTACHMENTS 1. Private Redevelopment Agreement 2. Location Map District 3. Application for Business Subsidy 4. Plans and Drawings of Project 5. Zoning and Planning Analysis 6. TIF Application/But For Analysis 7. Development Proposal/Estimated Taxes g:Xadmin\tg~arboretum iii pra.doc DRAFF 6.6.01 CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN THE CITY OF CHANHASSEN AND ARBORETUM III REALTY PARTNERS, LLP This document was drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 470 Pillsbury Center 200 South Sixth Street Minneapolis, MN 55402 RHB-198514vi CH130-66 Section 1.1. Section 2.1. Section 2.2. Section 3.1. Section 3.2. Section 3.3. Section 3.4. Section 4.1. Section 4.2. Section 4.3. Section 5.1. Section 5.2. Section 5.3. Section 5.4. Section 5.5. Section 5.6. Section 5.7. Section 5.8. Section 5.9. Section 5.10. TABLE OF CONTENTS ARTICLE I Definitions Definitions ........................................................................................................ 2 ARTICLE II Representations and Warranties Representations by the City .............................................................................. 3 Representations by the Redeveloper ................................................................ 3 ARTICLE III Public Assistance Construction of the Minimum Improvements ................................................. 4 Reimbursement of Special Assessments .......................................................... 5 Business Subsidy Agreement ........................................................................... 5 No Representation Regarding Available Tax Increment ................................. 7 ARTICLE IV Tax Increment Tax Increment Certification ............................................................................. 7 Real Property Taxes; Special Assessments ...................................................... 7 Assessment Agreement .................................................................................... 7 ARTICLE V Additional Provisions Equal Employment Opportunity ...................................................................... 8 Restrictions on Use ........................................................................................... 8 Soil Conditions ................................................................................................. 8 Notices and Demands ....................................................................................... 8 Disclaimer of Relationships ............................................................................. 8 Covenants Running with the Land ................................................................... 8 Modifications .................................................................................................... 9 Counterparts ..................................................................................................... 9 Assignment ....................................................................................................... 9 Subordination ................................................................................................... 9 SIGNATURES TESTIMONIALS RHB-198514vl CH130-66 SCHED~ A SCHEDUI JE B SCHEDULE C SCHEDULE D REDEVELOPMENT PROPERTY IPGAL DESCRIFFION ASSESSMENT AGREEMENT AND ASSESSOR'S CERTIFICATION FORM OF LIMITED REVENUE NOTE LIST OF PRELIMINARY PLAN DOCUMENTS RHB-198514vi CH130-66 CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the _ day of ,2001, by and between the City of Chanhassen, a Minnesota municipal corporation (hereinafter referred to as the "City") and Arboretum 111 Realty Partners, IJ.P, a Minnesota limited liability partnership (hereinafter referred to as the "Redeveloper"), WITNESSETH: WHEREAS, the City has created and established Development District No. 6, (the "Districf') pursuant to Minnesota Statutes, §§ 469.124 through 469.154 (the "Act") and has created within the District, Tax Increment Financing District No. 6-1, (the "Tax Increment District") also pursuant to the Act; and WHEREAS, the City has further adopted its development district program (the "Program") for the District describing the objectives of the Program and the public assistance needed within the District to carry out the objectives of the Program; and WHEREAS, there has been presented by the Redeveloper to the City for its consideration a proposal for the development of a facility within the District on property located within the Tax Increment District; and WHEREAS, the City has reviewed the Redeveloper's development proposal and has determined that the development, if completed, would serve to accomplish the objectives of the Program. WHEREAS, in order to achieve the objectives of the Program the City has determined to provide aid and assistance to the Redevelopment Property by utilizing tax increment generated from the Redevelopment Property to reduce the special assessments levied to finance the public improvements in the District. WHEREAS, the City intends to fund the special assessment assistance and other redevelopment costs by using tax increments generated from the Redevelopment Property and the Minimum Improvements to be constructed thereon; and WHEREAS, the City believes that the redevelopment of the District pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the City and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements under which the Program has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: RHB-198514vl CH130-66 1 ARTICLE I Definitions Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the context: "Act" means Minnesota Statutes, Sections 469.001-469.047 (formerly Municipal Housing and Redevelopment Act, Minnesota Statutes, Sections 462.411-462.711), as amended. "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Assessed Market Value" or "Assessed Market Valuation" means the market value of real property as determined by the county assessor of the county in accordance with Minnesota Statutes, Section 273.11 (or as finally adjusted by the assessor, board of equalization, commissioner of revenue, or any court). "Assessment Agreement" means the agreement in the form attached hereto as Schedule B among the Redeveloper, the City and the county assessor, which establishes a minimum Assessed Market Value for the Redevelopment Property and the Minimum Improvements. "Available Tax Increment" means any Tax Increment remitted to the City in the years 2003 through 2008 inclusive after first deducting therefrom: (i) payments previously made pursuant to section 4.2 of this Agreement; and (ii) any amounts needed to make payments to a school district pursuant to Minnesota Statutes, § 469.177, subd. 10. "Business Subsidy Act" means Minnesota Statutes, Sections 116J.993 through 116J.995. "City" means the City of Chanhassen, a Minnesota municipal corporation and statutory city according to the laws of the State of Minnesota. "Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property which shall be at least as detailed as the plans required to be submitted to the building inspector of the City. "County" means Carver County, Minnesota. "Limited Revenue Tax Increment Note" or "Note" means the limited revenue obligation of the City to pay the Redeveloper out of Available Tax Increment, the form of which is attached hereto as Schedule C. "Minimum Improvements" means the improvements described in the Preliminary Plans containing an office/warehouse facility of approximately 59,900 square feet. "Preliminary Plans" means those plan sheets and other descriptive material which are identified in the attached Schedule D. RHB-198514vl cm3o-66 2 "Redeveloper" means Arboretum llI Realty Partners, LLP, a Minnesota limited liability partnership, or its successors and assigns. "Redevelopment Property" means the real property, a legal description of which property is contained on the attached Schedule A. "Tax Increment" means that portion of the real property taxes paid with respect to the Redevelopment Property which is remitted to the City as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" means Minnesota Statutes, Sections 469.174-. 179, as the same may be amended from time to time. "Termination Date" means the date when the City has paid the full amount due under the terms of this Agreement and the Limited Revenue Tax Increment Note. "Tax Official" means any city or county assessor; county auditor; city, county or state board of equalization, the commissioner of revenue of the state, any state or federal district court, the tax court of the state, or the State Supreme Court. "Unavoidable Delays" means delays' which are the direct result of acts of God, unforeseen adverse weather conditions, labor disputes, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action causes delays, acts of any federal, state or local governmental unit (other than the City in enforcing its fights under this Agreement), City defaults as to the Redeveloper's delays, Redeveloper defaults as to the City's delays, or other matters which are not within the control of the Redeveloper as to the Redeveloper's delays or not within the control of the City as to the City's delays. ARTICLE II Representations and Warranties Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) The City has the fight, power and authority to execute, deliver and perform its obligations according to this Agreement and all other documents to be executed by the City pursuant hereto. The City assures the Redeveloper that the individuals who execute this Agreement and all other documents executed by the City or on behalf of the City are duly authorized to sign the same on behalf of the City and to bind the City thereto. Section 2.2. Representations by the Redeveloper. The Redeveloper represents that: (a) The Redeveloper has the right, power and authority to execute, deliver and perform its obligations according to this Agreement. (b) If the Redeveloper constructs the Minimum Improvements on the Redevelopment Property, it will do so in accordance with the terms of this Agreement, and all local, state and federal laws and zoning, building code and public health laws and regulations. RHB-198514vl CH130-66 3 (c) If constructed, the Minimum Improvements will have an Assessed Market Value of not less than $2,100,000 inclusive of the value of the Redevelopment Property. (d) As of this date, the Redeveloper has received no notice or communication from any local, state or federal official that the activities of the Redeveloper or the City in the Project Area may be or will be in violation of any environmental law or regulation. The Redeveloper is aware of no facts the existence of which would cause it to be in violation of any local, state or federal environmental law, regulation or review procedure. In the event that the City is required to take any action to obtain any necessary permits or approvals with respect to the Redevelopment Property under any local, state or federal environmental law or regulation, the Redeveloper will cooperate with the City in connection with such action. (e) If the Redeveloper constructs the Minimum Improvements, it will use its best efforts to do so in accordance with all applicable local, state or federal energy conservation laws or regulations. (f) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement or instrument of any evidences of indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party or by which it is bound, or constitutes a default under any of the foregoing. (g) The Redeveloper would not be willing to construct the Minimum Improvements but for the commitment by the City to grant financial assistance as outlined in this Agreement and the use of tax increment for such assistance is essential to the Redeveloper's ability to carry out its obligations under this Agreement. ARTICLE III Public Assistance Section 3.1. Construction of the Minimum Improvements. Subject to the terms and conditions of this Agreement, the Redeveloper agrees to purchase the Redevelopment Property and if it constructs the Minimum Improvements on the Redevelopment Property, it will do so substantially in accordance with the Construction Plans. Should the Redeveloper construct the Minimum Improvements, it agrees to maintain, preserve and keep them in good repair and condition, subject to reasonable wear and tear and casualty excepted. Notwithstanding anything to the contrary set forth in this Agreement, the Redeveloper has no obligation to construct the Minimum Improvements. The Construction Plans must reasonably conform to the Preliminary Plans unless such nonconformity is approved by the City. The City agrees that it will promptly consider any proposed amendment to the Construction Plans, will not unreasonably withhold its approval of such proposed amendments and will approve the same if the amended plans: i) do not indicate a reduction in the Assessed Market Value of the Minimum Improvements; and ii) in the reasonable judgment of the City, such amendment is in conformity with the applicable land use regulations of the City. RHB-198514vi CH130-66 4 Section 3.2. Reimbursement of Special Assessments. a) In order to facilitate the financial feasibility of the redevelopment of the Redevelopment Property and in consideration for the Redeveloper's fulfillment of its covenants and obligations under this Agreement, the City will provide to the Redeveloper public assistance in the form of payment of special assessments from the Available Tax Increments. The public assistance will be payable by the City only as indicated in this section 3.2. b) Subject to the provisions of this Agreement, the City agrees to provide a write-off of special assessments presently assessed or to be assessed against the Redevelopment Property for public improvements in the amount of $83,144.76. In each year commencing with the year 2003 and ending in the year 2004, the City shall pay all of the Available Tax Increment to the Redeveloper up to the amount needed to reimburse the Developer for all the special assessments payable that year; Available Tax Increment for any such years in excess of said amount will be paid to Redeveloper to offset any deficiency of Available Tax Increment in any other such years but only up to the total aggregate of $83,144.76. For the purposes of this section, costs which are eligible for Special Assessment Write-Off treatment include: i) the actual assessable cost of public improvements constructed by the City and benefiting the Redevelopment Property and ii) the amount (as approved by the City) of improvements constructed or funded by the Redeveloper which benefit the Redevelopment Property which would have been considered assessable public improvements if constructed by the City. Section 3.3. Business Subsidy Agreement. The provisions of this Section constitute the "business subsidy agreement" for the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (1) The subsidy provided to the Redeveloper involves use of tax increment for the payment of special assessments levied against the Redevelopment Property as more fully described elsewhere in this Agreement. The subsidy has a value of $83,144.76. (2) The public purposes for the subsidy are as described in the Development District Program for the District. (3) The goals for the subsidy are: to secure development of the Minimum Improvements on the Redevelopment Property; to maintain such improvements for at least 5 years as described in clause (6) below; and to create the jobs and wage levels in accordance with Section 3.3 (b) hereof. (4) If the goals described in clause (3) are not met, the Redeveloper must make the payments to the City described in Section 3.3 (c) (5) The subsidy is needed because land acquisition costs, and the cost of public improvements assessed against the Redevelopment Property, make development of the Minimum Improvements financially infeasible without public assistance, all as determined by the City upon approval of the TIF Plan. RHB-198514vl CH130-66 (6) The Redeveloper must continue operation of the Minimum Improvements for at least five years after the date of issuance of the certificate of completion. (7) The Redeveloper does not have a parent corporation. (8) The Redeveloper has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Redevelopment Property or the Minimum Improvements. (b) Job and Wage Goals. Within two years after the date on which the Redeveloper first receives assistance under this Agreement (the "Compliance Date"), the Redeveloper shall cause to be created or employed as the Redevelopment Property at least two new full-time equivalent jobs on the Redevelopment Property (excluding any jobs previously existing in the State as of the date of this Agreement and relocated to this site) and shall cause the annual wages of the two new employees on the Redevelopment Property to be no less than $40,000, exclusive of benefits. Notwithstanding anything to the contrary herein, if the wage and job goals described in this paragraph are met by the Compliance Date, those goals are deemed satisfied despite the Redeveloper's continuing obligations under sections 3.3 (a)(6) and 3.3 (d). The City may, after a public heating, extend the Compliance Date by up to a year, provided that nothing in this Section will be construed to limit the City's legislative discretion regarding this matter. The wage and jobs goals stated in this section 3.3 (b) need only be met one time before the Compliance Date. (c) Remedies. If the Redeveloper fails to meet the goals described in Section 3.3 (a)(3), the Redeveloper shall repay to the City upon written demand from the City (a) a "pro rata share" of the amount of subsidy expended by the City to write down the cost of the Redevelopment Property and to write-off special assessments against the Redevelopment Property. The term "pro rata share" means percentages calculated as follows: (i) if the failure relates to the number of jobs, the jobs required less the jobs created, divided by the jobs required; (ii) if the failure relates to wages, the number of jobs required less the number of jobs that meet the required wages, divided by the number of jobs required; (iii) if the failure relates to maintenance of the facility in accordance with Section 3.3 (a)(6), 60 less the number of months of operation as the required facility (where any month in which the facility is in operation for at least 15 days constitutes a month of operation), commencing on the date of the certificate of completion and ending with the date the facility ceases to be so operated as determined by the City, divided by 60; and (iv) if any more than one of clauses (I) through (iii) apply, the sum of the applicable percentages, not to exceed 100%. RHB-198514vl CH 130-66 Nothing is this section shall be construed to limit the City's remedies otherwise available to it under this contract. In addition to the remedy described in this Section and any other remedies available to the City for failure to meet the goals stated in Section 3.3 (a)(3), the Redeveloper agrees and understands that it may not receive a business subsidy from the City or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Redeveloper satisfies its repayment obligations under this Section, whichever occurs first. (d) Reports. The Redeveloper must submit to the City a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 2003 and continuing until the later of (i) the date the goals stated in Section 3.3 (a)(3) are met; (ii) 30 days after expiration of the five-year period described in Section 3.3 (a)(6); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 3.3 (c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The City will provide information to the Redeveloper regarding the required forms. If the Redeveloper fails to timely file any report required under this section, the City will mail the Redeveloper a warning within one week after the required filing date. If, after 14 days of the postmarked date of the warning, the Redeveloper fails to provide a report, the Redeveloper must pay the City a penalty of $100 for each subsequent day until the report is filed. The maximum aggregate penalty payable under this section is $1,000. Section 3.4. No Representation Regarding Available Tax Increment. The City's financial commitment under this Agreement regarding reimbursement of te special assessments is a revenue obligation only and will be paid by the City only after sufficient Tax Increment has been received by the City to fully pay the special assessments. The City makes no representations or warranties that the Available Tax Increment will be sufficient to reimburse the Redeveloper for the special assessments. The Redeveloper acknowledges that Available Tax Increment is subject to calculations by the County and changes in State law, including proposals to modify the property tax system regarding financing of public education which may be enacted by the Minnesota legislature in 2001. Some or all of the reimbursement may not be made prior to the Termination Date due to insufficient Available Tax Increment. The Redeveloper also acknowledges that the estimates of Available Tax Increment which may have been made by the City or its agents, officers or employees are estimates only and are not intended for reliance by the Redeveloper. ARTICLE IV Tax Increment Section 4ol. Tax Increment Certification. The City has established the Tax Increment District pursuant to the Tax Increment Act. Section 4.2. Real Property Taxes; Special Assessments. The Redeveloper shall pay all ad valorem taxes and special assessments on the Redevelopment Property. Section 4.3. Assessment Agreement. At closing, and as a precondition to the City's obligations, the parties shall execute the Assessment Agreement and the City shall secure the Assessor's Certification, all in substantially the form of the attached Schedule B. At the time of execution, the instrument must have been executed by the county assessor. Subsequent to execution by the parties, the instrument shall be recorded as provided for in the instrument. The Redeveloper shall not cause the Redevelopment Property to be removed from the public tax rolls or to become exempt from RHB-198514vl CH~30-6a 7 assessment for general real estate taxes by reason of any conveyance, lease, abatement or other action until the Termination Date. ARTICLE V A d ditional Pro visions Section 5.1. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that in the event the Minimum Improvements are constructed as provided for in the Agreement, it will comply with all applicable federal, state and local equal employment and nondiscrimination laws and regulations. Section 5.2. Restrictions on Use. The Redeveloper agrees for itself, and its successors and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to, and only to and in accordance with, the land use regulations of the City of Chanhassen in effect on the date of the issuance of a building permit for construction of Minimum Improvements as the same may be amended from time to time. Section 5.3. Soil Conditions. The Redeveloper acknowledges that the City makes no representations or warranties as to the condition of the soils on the Redevelopment Property or its fitness for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property. The Redeveloper further agrees that it will indemnify, defend, and hold harmless the City, its governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Redevelopment Property, unless resulting from any actions of the City or its agents. Section 5.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement or the deed by either party to the other shall be sufficiently given or delivered only if it is dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered personally; and (a) in the case of the Redeveloper, is addressed to or delivered to the Redeveloper at 3610 So. Co. Rd. 101, Deephaven, Minnesota 55391, Attn: David Kordonowy; and (b) in the case of the City, is addressed to or delivered personally to the City at 690 City Center Drive, Box 147, Chanhassen, Minnesota 55317, or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section. Section 5.5. Disclaimer of Relationships. The Redeveloper acknowledges that nothing contained in this Agreement nor any act by the City or the Redeveloper shall be deemed or construed by the Redeveloper or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the City and the Redeveloper. Section 5.6. Covenants Running with the Land. The terms and provisions of this Agreement shall be deemed to be covenants running with the Redevelopment Property and shall be binding upon any successors or assigns of the Redeveloper and any future owners or encumbrances RHB- 198514v I CH130-66 8 of the Redevelopment Property but shall terminate and be of no further effect on the Redevelopment Property after the Termination Date. Section 5.7. _Modifications. This Agreement may be modified solely through written amendments hereto executed by the Redeveloper and the City. Section 5.8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 5.9. Assignment. The Redeveloper may at any time that it is not in default under this Agreement assign its fights and obligations hereunder to another entity which is acceptable to the City in its reasonable discretion. The assignment must be evidenced by an instrument in recordable form and acceptable to the City whereby the Redeveloper assigns and the assignee accepts all of the Redeveloper's fights and obligations hereunder. Section 5.10. Subordination. The City agrees to subordinate its fights and interest under this Agreement upon written request by the Redeveloper to any mortgagee providing financing for construction of the Minimum Improvements or acquisition of the Redevelopment Property. Notwithstanding anything herein to the contrary, the City does not agree to subordinate its fights under the Assessment Agreement. RHB-198514vl CH130-66 9 IN WITNESS WHEREOF, the City has caused this Agreement to be executed in its corporate name by its duly authorized officers and sealed with its corporate seal; and the Redeveloper has caused this Agreement to be executed in its corporate name as of the date first above written. THE CITY OF CHANHASSEN, MINNESOTA (SEAL) By Linda C. Jansen Its Mayor And Todd Gerhardt Its Acting City Manager STATE OF MINNESOTA COUNTY OF On this ~ day of ,2001, before me, a Notary Public within and for said county, appeared Linda C. Jansen and Todd Gerhardt, to me personally known, who being by me duly swom, did say that they are respectively the Mayor and Acting City Manager of the City of Chanhassen, Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the corporation. Notary Public RHB-198514vi c~3o-66 10 REDEVELOPER: ARBORETUM 1II REALTY PARTNERS, LLP By Steiner Realty Group II, LLP Its General Partner By David L. Kordonowy General Partner of Steiner Realty Group II, LLP STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this __ day of , 2001, by David L. Kordonowy, a general partner of Steiner Realty Group Il, LLP, a Minnesota limited liability partnership and a general partner of Arboretum III Realty Partners, LLP, a Minnesota limited liability partnership on behalf of said limited liability partnership. Notary Public RHB-198514vl CH130-66 1 1 SCHEDULE A to CONTRACT FOR PRIVATE REDEVELOPMENT REDEVELOPMENT PROPERTY LEGAL DESCRIFFION: Lot 2, Block 2, Arboretum Business Park 2nd Addition RHB-198514vl CHi30-66 A-1 SCHEDULE B Form Of ASSESSMENT AGREEMENT and ASSESSOR'S CERTIFICATION By and among THE CITY OF CHANItASSEN and ARBORETUM III REALTY PARTNERS, LLP and CARVER COUNTY ASSESSOR This Document was drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 470 Pillsbury Center Minneapolis, Minnesota 55402 RHB-198514vl CH130-66 B-1 THIS ASSESSMENT AGREEMENT, dated as of this ~ day of ,2001, by and between the City of Chanhassen, a Minnesota municipal corporation (the "City") and Arboretum Ill Realty Partners, LLP, a Minnesota corporation (the "Redeveloper"). WlTNESSETH: WHEREAS, on or before the date hereof the City and Redeveloper have entered into a Contract for Private Redevelopment (the "Contract") regarding certain real property located in the County of Carver, pursuant to which the City is to acquire certain property, hereinafter referred to as the Redevelopment Property and legally described in Attachment A hereto; and WHEREAS, it is contemplated that pursuant to said Contract the Redeveloper will construct a 59,900 square foot office/warehouse facility upon the Redevelopment Property; and WHEREAS, the City and Redeveloper desire to establish a minimum market value for said land and the improvements to be constructed thereon, pursuant to Minnesota Statutes Section 469.177, Subdivision 8; and WHEREAS, the City and the County Assessor for Carver County, have reviewed the preliminary plans and specifications for the improvements which it is contemplated will be erected; NOW, THEREFORE, the parties to this Agreement, in consideration of the promises, covenants and agreements made by each to the other, do hereby agree as follows: 1. The minimum market value which shall be assessed for the separate parcel described in Attachment A, with the Minimum Improvements and other improvements constructed thereon shall upon substantial completion be not less than $2,100,000. The parties to this Agreement expect that the construction of the above-referenced improvements will be entirely completed on or before December 31, 2001. 2. The minimum market value herein established remains in full force and effect until the Termination Date defined in Article I of the Contract, at which time this Agreement shall terminate and the City shall provide the Redeveloper with a release in recordable form. 3. This Agreement shall be promptly recorded against each parcel by the Redeveloper with a copy of Minnesota Statutes Section 469.177, Subdivision 8, set forth in Attachment B hereto. The Redeveloper shall pay all costs of recording. 4. Neither the preambles nor provisions of this Agreement are intended to, nor shall they be construed as, modifying the terms of the Contract between the City and the Redeveloper. No provision of this Assessment Agreement shall prevent he Redeveloper from appealing assessed values in excess of $2,100,000. 5. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties. RHB-198514vi c~30-66 B-2 SEAD CITY OF CHANHASSEN, MINNESOTA By And Linda C. Jansen Its Mayor Todd Gerhardt Its Acting City Manager STATE OF MINNESOTA COUNTY OF On this __ day of ,2001, before me, a Notary Public within and for said county, appeared Linda C. Jansen and Todd Gerhardt, to me personally known, who being by me duly sworn, did say that they are respectively the Mayor and Acting City Manager of the City of Chanhassen, Minnesota, a municipal corporation under the laws of the State of Minnesota, on behalf of the corporation. Notary Public RHB-198514v 1 CH130-66 B-3 REDEVELOPER: ARBORETUM Ill REALTY PARTNERS, LLP By Steiner Reaky Group Il, LLP Its General Partner By David L. Kordonowy General Partner of Steiner Realty Group II, IJ~P STATE OF MINNESOTA COUNTY OF The foregoing instrument was acknowledged before me this~ day of , 2001, by David L. Kordonowy, a general partner of Steiner Realty Group II, L~, a Minnesota limited liability partnership and a general partner of Arboretum m Realty Partners, LLP, a Minnesota limited liability partnership on behalf of said limited liability partnership. Notary Public RHB-198514vl CH130-66 B-4 CERTIFICATION BY COUNTY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the minimum market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor, being legally responsible for the assessment of the above described property, hereby certifies that the minimum market value assigned to such land and improvements commencing on December 31, 2001 (to be calculated on January 2, 2002) shall not be less than $2,100,000 until termination of this Agreement. Assessor for Carver County, Minnesota STATE OF M/NNESOTA COUNTY OF CARVER ) ) ss ) The foregoing instrument was acknowledged before me this ~ day of 2001, by , the County Assessor for Carver County, Minnesota. Notary Public RHB-198514vl CH 130-66 B-5 ATTACHMENT A Legal Description of Land REDEVELOPMENT PROPERTY: Lot 2, Block 2, Arboretum Business Park 2nd Addition RHB-198514vi CH130-66 B-6 ATTACHMENT B Section 469.177, Sub& 8. Assessment agreements. An authority may, upon entering into a development or redevelopment agreement pursuant to section 469.176, subdivision 5, enter into a written assessment agreement in recordable form with the developer or redeveloper of property within the tax increment financing district which establishes a minimum market value of the land and completed improvements to be constructed thereon until a specified termination date, which date shall be not later than the date upon which tax increment will no longer be remitted to the authority pursuant to section 469.176, subdivision 1. The assessment agreement shall be presented to the county assessor, or city assessor having the powers of the county assessor, of the jurisdiction in which the tax increment financing district is located. The assessor shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, shall execute the following certification upon such agreement: The undersigned assessor, being legally responsible for the assessment of the above- described property upon completion of the improvements to be constructed thereon, hereby certifies that the market value assigned to such land and improvements upon completion shall not be less than $2,100,000. Upon transfer of title of the land to be developed or redeveloped from the authority to the developer or redeveloper, such assessment agreement, together with a copy of this subdivision, shall be filed for record and recorded in the office of the county recorder or flied in the office of the registrar of titles of the county where the real estate or any part thereof is situated. Upon completion of the improvements by the developer or redeveloper, the assessor shall value the property pursuant to section 273.11, except that the market value assigned thereto shall not be less than the minimum market value contained in the assessment agreement. Nothing herein shall limit the discretion of the assessor to assign a market value to the property in excess of the minimum market value contained in the assessment agreement nor prohibit the developer or redeveloper from seeking, through the exercise of administrative and legal remedies, a reduction in market value for property tax purposes; provided, however, that the developer or redeveloper shall not seek, nor shall the city assessor, the county assessor, the county auditor, any board of review, any board of equalization, the commissioner of revenue or any court of this state grant a reduction of the market value below the minimum market value contained in the assessment agreement during the term of the agreement filed of record regardless of actual market values which may result from incomplete construction of improvements, destruction or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the property by a public entity. Recording or filing of an assessment agreement complying with the terms of this subdivision shall constitute notice of the agreement to any subsequent purchaser or encumbrancer of the land or any part thereof, whether voluntary or involuntary, and shall be binding upon them. RHB-198514vl CH130-66 B-7 SCHEDULE C Form of Limited Revenue Tax Increment Note $83,144.76 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF CARVER THE CITY OF CHANHASSEN LIMITED REVENUE TAX INCREMENT NOTE The City of Chanhassen (the "City"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Arboretum m Realty Parmers, LLP or its assigns ("Redeveloper"), solely from the Available Tax Increment generated by the Redevelopment Property described in Exhibit B hereto (the "Redevelopment Property") and Minimum Improvements located on such parcel, to the extent and in the manner hereinafter provided, the amount of this Note, being $83,144.76, on the Payment Dates (as hereinafter defined) or such greater amount, if any, which the City is required to pay in accordance with the terms of this Note. Each payment on this Note is payable without interest and in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to Redeveloper and mailed to Redeveloper at its postal address within the United States which shall be designated from time to time by Redeveloper. The Note is a special and limited obligation and not a general obligation of the City, which has been issued by the City to aid in financing a "project", as defined in Minnesota Statutes Section 469.174, of the City consisting generally of defraying certain capital and administration costs incurred and to be incurred by the City within and for the benefit of its Redevelopment Project (the "project"), and Tax Increment Financing District (the "District"). EXCEPT AS TO TH~ OBLIGATION TO MAKE PAYMENTS FROM TAX INCREMENT, THE NOTE IS NOT A DEBT OF THE CITY OF CHANHASSEN, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE CITY OF CHANHASSEN, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. Any payments on this Note which are due on any Payment Date shall be payable solely from and only to the extent that the City shall have received as of such Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment" means any Tax Increment generated as a result of real property taxes paid in the years 2003 through 2008 inclusive and received during the six (6) month period preceding a Payment Date, after deducting therefrom the following amounts: (i) any payment made to Redeveloper of amounts due hereunder with respect to RHB-198514vi cm3o~ C-1 previous Payment Dates, and (ii) any amounts needed to make payments to a school district pursuant to Minnesota Statutes, § 469.177, subd. 10; and (iii) any amounts required to make fiscal disparities contributions and school aid contributions. For the purposes of this Note, "Tax Increment" means the portion of the real property taxes generated with respect to the Redevelopment Property and Minimum Improvements constructed on the Redevelopment Property which is remitted to the City commencing in 2001 as Tax Increment pursuant to Minnesota Statutes § 469.174-469.179. For purposes of this Note, a "Payment Date" shall mean each of the Scheduled Payment Dates set forth on Exhibit A attached hereto, and each additional Payment Date required in connection with any extension of the term of this Note as set forth below, because of changes made in Minnesota Statutes §§ 469.174-469.179. Notwithstanding anything to the contrary in this Note, on each of the Payment Dates, the City shall pay to Redeveloper all of the Available Tax Increment up to the amount of the Scheduled Payment; but in no event shall the aggregate of all such payments be in excess of $83,144.76. To the extent that on any Payment Date the City is unable to make a payment from Available Tax Increment equal to the Scheduled Payment due on such date as a result of having received, as of such date, insufficient Available Tax Increment, such failure shall not constitute a default under this Note and, except as provided below, the City shall have no obligation under this Note, or otherwise, to subsequently pay any such deficiency. If, and only if, on any Payment Date there is insufficient Available Tax Increment to make the Scheduled Payment due on. such date and such insufficiency is a result of changes made in Minnesota Statutes §§ 469.174-469.179 subsequent to the date of the Contract for Private Redevelopment dated between the City and Redeveloper (the "Redevelopment Contract"), the amount of such deficiency in the Scheduled Payment shall be deferred and shall be paid on the next Payment Date on which the City has Available Tax Increment in excess of the amount necessary to make the Scheduled Payment due on such Payment Date, and if such deficiency has not been paid in full by the final Scheduled Payment Date set forth on Exhibit A attached hereto, the Note shall nonetheless terminate and the City shall have no obligation to make payment of such deficiencies. This Note shall not be payable from or constitute a charge upon any funds of the City of Chanhassen, and the City shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increment, and then only to the extent and in the manner herein specified. Redeveloper shall never have or be deemed to have the right to compel any exercise of any taxing power of the City or of any other public body, and neither the City nor any council member, officer, employee or agent of the City, nor any person executing or registering this Note shall be liable personally hereon by reason of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by Redeveloper without the prior written consent of the City. RHB-198514vl CH130-66 C-2 This Note is given subject to the limitation contained in Section 5.4 of the Redevelopment Contract. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to have happened, and to be performed precedent to and in the issuance of this Note have been done, have happened, and have been performed in regular and due form, time, and manner as required by law; and that this Note, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the city council of the City of Chanhassen has caused this Note to be executed by the manual signatures of the Mayor and the City Manager of the City and has caused this Note to be dated as of Linda C. Jansen, Mayor Todd Gerhardt, Acting City Manager RHB-198514vi cm3o-66 C-3 EXHIBIT A Scheduled Payment Dates and Amounts of Scheduled Payments Scheduled Payment Dates July 31, 2003 December 31, 2003 July 31, 2004 December 31, 2004 Scheduled Payments* $26,880.00 $26,880.00 $14,692.38 $14,692.38 · Scheduled payments are to be made up to these amounts but only from Available Tax Increment. RHB-198514vl CH130-66 C-4 EXHIBIT B Description of Redevelopment Property Lot 2, Block 2, Arboretum Business Park 2nd Addition RHB-198514vi CH130-66 C-5 SCHEDULE D LIST OF PRELIMINARY PLAN DOCUMENTS [to be completed] RHB-198514vl CH 130-66 D-1 sel!lN .1~'~ Z'O " /_'0 0 L-9 jaqtunN l!oJ~,S!CI :11.1. 9 .~eqmnN lo.uls!Q luemdole^eQ 9 'ON lo! ls!cI lueme oul xej. CITY OF CHAxNHASSEN APPLICATION FOR BUSINESS SUBSIDY Address: ~a{0 CO~ ~ /O/, Location of Proposed Development: Type(Partnership, etc.)' Telephone: Nature of Business: Project Cost Breakdown: $ Total: $ Date: . HISTORY OF APPLICANT Have you ever filed bankruptcy? Yes No ~ If yes, provide details on separate sheet. Have you ever defaulted on any loan commitment? Yes If yes. provide details on separate sheet. No / Have you ever applied for conventional financing for the project'? Yes IF_.. No X If yes. provide details on separate sheet. If no. why not? List financial references: Name/Address/Contact b. 5. Other information pertinent to your application: 6. Name of Counsel: INFORMATION CONCERNING APPLICANT'S PROPOSED PROJECT FOR EXISTING INDUSTRIAL DEVELOPMENT LOCATED IN TIF DISTRICTS(National Weather, 2-2: Hennevin County, 3-1; Gateway. 6-1: Entertainment District, 4): AND Eden Trace, 4-1. 1. Is the proposed project a new facility or rehabilitation and/or expansion of existing facility? 2. Industrial/Commercial: I ~d~t $ ~'~,~ 3. ~Vhat is the present employment of your £u-m? 4. What will the employment be at completion of project? Estimated Project Cost? ~. 2q a.. g)oo 6.. What is the principal business or product of the company? o 7. Potential other use of proposed development? 8. Will this development attract other related industries'? Yes ~( How? No 9. What are the proposed financing arrangements? GI".4ABON~..""' PATTEF~N - T'T"PIC, AL ELEVATION ~ETAIL I, NITH LANI~.~C_,.APE ELEI".4ENTS 5.OALE: 1/6' = I'oO" ,~¢.,ALE: I/l&" = I'-O" GNOI~.TH ELEVATION ~_..^LE: ~/~&" = r-O" (~) 5OUTH ELEVATION~ .e(...AL~': I/~&" ,, r-o" (ST (I=I~ONT) ELEVATION QI~IASONI~ PATTI=I~N - TYPICAL I=LI=VATIOlN I~I=TAIL I~IITH LANI~APt= t=Lt~MI=NTS (I~IE~ST I=I_I~VATION I=A~t gI_t~VATION SOUTH t~LE~VATION ( N~F~TH ELEVATION [:i,: j ONORTH t~I~VATION O$OUTH EI..EVATION QENTR&NCK STEINER HEARTLAND Ankeny Kell Architects, P.A. 821 Ra)e'mfl4 A~nue, SL Paul. lin ,5~114 NORTH ELEVATION WEST EL£VATION SOUTH ELEVATION -~-" ' ~¥~'~"'~;~"'~ ..... ~-~""" ~' "'~¥~ .... ~¥~' '.'r,~' Ir~l~_ .,."'~,~-~, ~e~fln nnn n n nn:nnnn n fln n',n n'n'n n nnnn:nn n n n n,n,n n'n n n n n'n n,n n n n n'nnn n'n n nnnn n nnn ~ I '-- t I .... I EAST ELEVATION ELEVATIONS FOR PROPOSED 113.~OO S.F. BUILDING e : · . e .... nnnnn : NORTH ELEVATION WEST ELEVATION n-~n nnnnn rt,'~on SOUTH ELEVATION nn:~on nn'nn nn n-~j~- n nnnnnn n nnnnnn n -'1'~1- n nnn .... j l iJ~Jil~l~f'q U EAST ELEVATION ELEVATIONS FOR PROPOSED 50/IOO S.F. BUILDING Steiner ? Development, Inc. Werlm~a, ~ $53~i (01,2) ARBORETUM BUSINESS PARK FOR ,STEINER DEVELOPMENT ,SCALE: I' = .-~' ,.~O' MARCH Iq. SMUCKLER ARC~TECT$ · DDIO CITY OF PC DATE: June 16, 1999 CC DATE: July 12, 1999 CASE #: #99-13 Site Plan By: Generous, Hempel:v STAFF REPORT PROPOSAL: LOCATION: APPLICANT: Request for Site Plan Approval for a 59,990 sq. ft. office warehouse building, Arboretum Business Park, Building I11, Steiner Development. .. 2885 Water Tower Place, Lot 2, Block 2, Arboretum Business Park 2nd Add. Steiner Development 3610 South County Road 101 Wayzata, MN 55391 (612) 473-5650 PRESENT ZONING: PUD, Light Industrial/Office Park 1l.l i ACREAGE: ADJACENT ZONING AND LAND USE: 4.53 acres N - PUD, vacant S- PUD, old Wrase homes E - PUD, Heartland Building W- PUD, All About Lights Building WATER AND SEWER: Available to the site PHYSICAL CHARACTER: 2000 LAND USE PLAN: The site has been rough graded for development as part of Arboretum Business Park 2nd Addition. Office/Industrial ~O~t~n ~ ~ '~ '~~' Future street ;t. 82nd Street/ \ Cot~\t~ Arboretum Buildings Park Building 3 June 16, 1999 Page 2 PROPOSAL/SUMMARY The applicant is requesting site plan review approval for a 59,990 sq. fr. office warehouse building. The PUD would permit up to 71,000 square foot office warehouse building on this site. The building is a maximum of 28 feet high at the top of the parapet. The building material is predominantly tilt-up pm-cast concrete panels. The north, east and south elevations are smooth finished panels. The western elevation is raked concrete panels. The western side of the proposed building has loading docks that will face the loading docks for neighboring uses. Color is introduced through painted coatings. Base panels and the middle band along the bank of windows is medium tan. The primary entrance color is a darker tan. The top panel, central reveal panel in entrances, and the raked panels are light tan. Two inch reveal accent rectangles and circles are brownish red to match the brick. The entrance areas are projected approximately five feet out from the building. Entrances are further highlighted through the use of reddish brown architectural masonry brick for the first eight feet of height. Walled mounted lights are located on the sides of the entrances. The proposed development offers a transition opportunity from the highest quality development expected and required at the perimeter of the project to the more office-warehouse oriented structures anticipated in the interior of the development. This building uses tilt-up pre-cast concrete panels as well as introduces architectural masonry at the building entrances. To further emphasize the transitional nature of this building, staff is recommending that the panel area above the entrances that is currently only being proposed as a two inch reveal be recessed five three feet in line with the doorway plane balancc of thc building facadc. All roof mounted equipment shall be screened by walls of compatible appearing material or camouflaged to blend into the building or background. Wood screen fences are prohibited. The applicant has not provided details about the location, size, or parapet height above roof for the city to review and analyze the screening of such equipment. We are hereby notifying the applicant of the screening requirement. Staff is recommending approval of site plan #99-13 for Arboretum Business Park Building 3 subject to the conditions of the staff report. BACKGROUND On February 8, 1999, the City Council approved site plan #99-1 for a 5,737 square foot Kwik Trip convenience store and gas station with a drive through car wash. (Staffhas learned that this project, as proposed, will not be constructed.) Arboretum Buildings Park Building 3 June 16, 1999 Page 3 On June 22, 1998, the city approved a site plan for a 55,911 square foot building (All About Lights) and a 52,956 square foot building (On The Level) within Arboretum Business Park 2nd Addition. On May 11, 1998, the City Council approved Arboretum Business Park 2na Addition consisting of six lots and the fight-of-way for Water Tower Place, formerly known as Coulter Boulevard, and a site plan for a 113,600 square feet office-industrial-warehouse buildings (Steiner Building 2). On July 28, 1997, the City Council approved the following: the ordinance for PUD//92-6 rezoning approximately 154 acres from Agricultural Estate, A2, to Planned Unit Development, PUD, and the PUD//92-6 granting final plat approval for Arboretum Business Park. On June 9, 1997, the City Council approved site plan/t97-6 for Heartland America, a 101,600 square foot office industrial building (Steiner Building 1) on Lot 3, Block 1, Arboretum Business Park. GENERAL SITE PLAN/ARCHITECTURE This property is zoned PUD light industrial/office park. The use of the PUD zone is to allow for more flexible design standards while creating a higher quality and more sensitive proposal. The development must comply with the Development Design Standards for Arboretum Business Park. The PUD requires that the development demonstrate a higher quality of architectural standards and site design. LANDSCAPING Minimum requirements for landscaping include 6,038 sq. ft. of landscaped area around the parking lot, 24 trees for the parking lot, and bufferyard plantings along abutting property lines and Water Tower Place. The applicant's proposed landscaping as compared to the requirements for landscape area and parking lot trees is shown in the following table. Vehicular use landscape area Trees/parking lot Water Tower Place bufferyard C - 30' width (*75% of total shown) East property line bufferyard B (*75% of total shown) Required 6,038 sq. ft. 24 overstory 5 overstory trees 14 understory trees 14 shrubs 4 overstory trees 8 understory trees 8 shrubs Proposed >6,038 sq. ft. 18 overstory 3 overstory trees 13 understory trees 2 overstory trees 12 understory trees Arboretum Buildings Park Building 3 June 16, 1999 Page 4 South prop. line buffer yard B 2 overstory trees 2 overstory trees (*75% of total shown) 5 understory trees 12 understory trees 5 shrubs * As stated in city ordinance, the project developer shall be responsible for providing 75% of the required plantings. The applicant does not meet minimum requirements for parking lot landscaping. Staff recommends that the applicant increase plantings for the parking lot on the north side of the site as well as add landscape peninsulas in order to meet minimum ordinance requirements. Buffer yards for Water Tower Place and the south and east property lines are satisfactory. The developer shall add two landscape peninsulas to the easterly parking lot. Each landscape peninsula must have one shade tree. Landscape peninsulas less than 10 feet in width must have aeration tubing installed. Site landscaping must be irrigated. Two mistakes appear on the applicant's landscape plan. The three overstory trees located at the site entrance off of Water Tower Place are labeled incorrectly; no "BL" exists in the plant schedule. Additionally, two trees on the south side of the lot have not been labeled. Staff recommends the applicant correct the mistakes. LIGHTING/S IGNAGE Lighting for the interior of the business center should be consistent throughout the development. A decorative, shoe box fixture 20 foot tall 400 watt metal Halide lot light with a square ornamental pole shall be used for area lighting. All light fixtures shall be shielded with a 90 degree light cut- off. Any wall mounted lighting shall be shielded from direct off-site view° Light level for site lighting shall be no more than ½ candle at the property line. All freestanding signs be limited to one monument sign per street frontage. The sign shall not exceed eighty (80) square feet in sign display area nor be greater than eight (8) feet in height. The sign treatment is an element of the architecture and thus should reflect the quality of the development. The signs should be consistent in color, size, and material throughout the development. The applicant should submit a sign package for staff review. Wall sign shall be permitted per city ordinance for industrial office park site. All signs shall require a separate sign permit. PARKS AND RECREATION The developer shall pay full trail fees pursuant to city ordinance. Arboretum Buildings Park Building 3 June 16, 1999 Page 5 GRADING The site was initially rough graded with the overall development of Arboretum Business Park 2nd Addition. Only minor grading is proposed for the building and parking lot improvements. A small retaining wall is proposed along the northeasterly comer of the site for the drive aisle and parking lot. The retaining wall appears to be less than four feet in height. All retaining walls in excess of four feet in height require a separate building permit through the City's Building Department. Staff suggests the applicant consider some type of guard rail adjacent to parking stalls where the retaining wall is proposed (approximately four-foot drop behind the curb from parking stall) or use landscaping measures. Erosion control fencing is proposed around the perimeter of the site. The plans need to incorporate a rock construction entrance at the drive aisle access point onto Water Tower Place. The rock construction entrance shall be maintained until the drive aisles and parking lots are paved with a bituminous surface. DRAINAGE In conjunction with Arboretum Business Park, a comprehensive stormwater management system was developed and constructed to convey the site's stormwater runoff into regional stormwater ponds for pretreatment prior to discharging into downstream wetlands. The plans propose on extending existing storm sewer leads in Water Tower Place to convey parking lot and rooftop storm runoff. The applicant's engineer will need to supply detailed storm drainage calculations and drainage area maps for the individual catch basins. The calculations shall be based on a 10- year, 24-hour storm event. The stormwater calculations and drainage maps shall be submitted to staff for review and approval prior to issuance of building permit. Depending on storm sewer calculations, additional catch basins may be required to adequately address stormwater runoff from the site. UTILITIES Municipal sanitary sewer and water service is available from Water Tower Place. The plans propose on extending sanitary sewer and storm sewer into the site. Water service is proposed to be extended from the existing 24-inch watermain along the westerly property line. Extension of these private utility improvements will require building permits and inspections through the City's Building Division. All the utilities are proposed to be constructed and privately owned and maintained by the property owner and not the City. Therefore, detailed construction plans are not required. However, a utility plan sheet will be required with the building permit application. All utilities shall be constructed in accordance with the City's latest edition of standard specifications and detail plates and/or State plumbing codes. Arboretum Buildings Park Building 3 June 16, 1999 Page 6 This property was assessed for sewer and water and street improvements under City Project No. 97-ID; however, according to City Ordinance the property may also be subject to additional sewer and water hookup charges at time of building permit issuance. Sewer and water hookup charges are determined based on the number of sewer availability charges (SAC units) which are determined by the Metropolitan Council Environmental Services (MCES) upon plan review. The applicant and/or the contractor applying for building permits will be responsible for the additional sanitary sewer and water hookup charges over and above what was assessed. The 1999 hookup charges for sanitary sewer and water are $1,252 and $1,632, respectively per unit. STREET AND PARKING LOT CIRCULATION The drive aisle widths and parking stalls throughout the project appear to be in conformance with City Code. Staff is recommending that the access point onto Water Tower Place be expanded to accommodate truck turning movements. This can be accomplished by simply expanding the turning radius of the drive aisle. Expanding the drive aisle radii to a minimum of 25 feet may also impact an existing storm sewer catch basin in Water Tower Place. The catch basin grate will need to be changed to a drive-over type grate. The City's Standard Detail Plate No. 5207 for industrial driveway aprons shall also be utilized. A six-foot wide concrete sidewalk is located along the south side of Water Tower Place. The plans are proposing a five-foot wide concrete walk from Water Tower Place to the parking lot on the north end of the building. Due to the severe grade change, the grades of the sidewalk will be in excess of 10%. Staff recommends the sidewalk be relocated to follow the proposed curb line of the drive aisle out to Water Tower Place. The grade of this drive aisle is much less severe. In addition, staff recommends the sidewalk along the north side of the building be extended out to the drive aisle to make a connection point with the proposed sidewalk out to Water Tower Place. There is a driveway access agreement between Lots 1 and 2 for use of the shared driveway access out to Water Tower Place. MISCELLANEOUS The applicant should enter into a site plan agreement with the City and provide the necessary security to guarantee erosion control measures, site restoration, landscaping and boulevard restoration. Staff recommends the applicant escrow $2,500 to guarantee boulevard and curb restoration. The City's boulevard area must be restored with sod. The utility plans were not reviewed at this time, they will be reviewed by a mechanical inspector when plans are submitted for permits. Staff recommends that the building owner and or their representative meet with the Inspections Division as soon as possible to discuss plan review and permit procedures. Arboretum Buildings Park Building 3 June 16, 1999 Page 7 SITE PLAN FINDINGS In evaluating a site plan and building plan, the city shall consider the development's compliance with the following: (1) Consistency with the elements and objectives of the city's development guides, including the comprehensive plan, official road mapping, and other plans that may be adopted; (2) Consistency with this division; (3) Preservation of the site in its natural state to the extent practicable by minimizing tree and soil removal and designing grade changes to be in keeping with the general appearance of the neighboring developed or developing or developing areas; (4) Creation of a harmonious relationship of building and open space with natural site features and with existing and future buildings having a visual relationship to the development; (5) Creation of functional and harmonious design for structures and site features, with special attention to the following: ao An internal sense of order for the buildings and use on the site and provision of a desirable environment for occupants, visitors and general community; b. The amount and location of open space and landscaping; Materials, textures, colors and details of construction as an expression of the design concept and the compatibility of the same with adjacent and neighboring structures and uses; and de Vehicular and pedestrian circulation, including walkways, interior drives and parking in terms of location and number of access points to the public streets, width of interior drives and access points, general interior circulation, separation of pedestrian and vehicular traffic and arrangement and amount of parking. Arboretum Buildings Park Building 3 June 16, 1999 Page 8 (6) Protection of adjacent and neighboring properties through reasonable provision for surface water drainage, sound and sight buffers, preservation of views, light and air and those aspects of design not adequately covered by other regulations which may have substantial effects on neighboring land uses. Finding: Subject to the revisions contained in the staff report, the proposed site plan is consistent with all plans and specifications and development design standards for the Arboretum Business Park Planned Unit Development. PLANNING COMMISSION UPDATE The Planning Commission held a public hearing on June 16, 1999, to review the proposed site plan. The Planning Commission voted four for and two against a motion recommending approval of the site plan subject to the conditions of the staff report with modifications to condition number #4 for requiring the applicant and staff to work together to resolve the issue regarding the entrance detailing. The two dissenting votes were due to the fact that the commissioners did not feel that the building elevations were providing a sufficiently high quality of architecture as required by the' PUD. Staff has been working with the applicant to come to a resolution for the entrance detailing. The applicant has submitted a sketch of the entrances which creates a portal to the building by recessing the area above the entrance three feet, bringing it in line with the plane of the doorway. This provides an opportunity for the developer or individual tenants to add down cast lighting and other architectural details at their entrances. In addition, the applicant has shortened the arch parapet detail above the doorway, expanding on the detailing of the Heartland Building. Staff believes that these revisions meet the expectations originally voiced regarding this detail. This detail also strengthens the architectural bonding to the buildings to the west with the recessed doorway in a projected entrance feature. RECOMMENDATION Staff recommends that the City Council adopt the following motion: "The Chanhassen City Council approves Site Plan #99-13, for a 59,990 sq. ft. office warehouse building (Building Iff) as shown on plans prepared by Steiner Development, Inc., dated May 14, 1999, subject to the following conditions: Arboretum Buildings Park Building 3 June 16, 1999 Page 9 o The applicant shall enter into a site plan agreement with the City and provide a $2,500 security to guarantee boulevard and curb restoration provide the necessary security to guarantee erosion control, site restoration and landscaping. 2. The development must comply with the Development Design Standards for Arboretum Business Park. 3. The applicant shall provide areas for bicycle parking and storage on site. 4. Tho dcvclopor shall work with staff on resolution of thc entrance details. ., Increase plantings for parking lot in order to meet 'ordinance requirements. Placement of required trees shall first be considered on the north side of the lot, then landscape islands, and finally in other areas on site. o Revise plant schedule and landscape plan to specify mislabeled trees at entrance of site and along south property line. 7. The applicant shall submit revised landscape plan including the above revisions. 8. Each landscape peninsula must have one shade tree. Landscape peninsulas less than 10 feet in width must have aeration tubing installed. 9. The developer shall add two landscape peninsulas to the easterly parking lot. 10. The developer shall pay full trail fees pursuant to city ordinance. 11. Detailed storm drainage calculations including drainage area maps for each catch basin shall be submitted to the City Engineer for review and approval. The storm sewer calculations shall be for a 1 O-year, 24-hour storm event. The calculations and drainage map shall be submitted prior to issuance of a building permit. 12. The site plan shall be modified to incorporate sidewalk out to Water Tower Place following the drive aisle in the northwest comer of the site. In addition, the proposed sidewalk along the north side of the building shall be extended northerly adjacent to the parking stall in the northwest comer of the site to provide continuity between the sidewalk for Water Tower Place and the proposed building. Arboretum Buildings Park Building 3 June 16, 1999 Page 10 13. The plans shall revise the mining radius of the drive aisle out to Water Tower Place to a minimum of a 25-foot radii. In addition, if necessary, change the catch basin grate in Water Tower Place to a drive-over type pursuant to City staff. 14. The applicant and/or contractor applying for the building permit shall be responsible for the additional sanitary sewer and water hookup charges over and above what was assessed. The number of sewer and water hookup charges are based on the number of SAC units determined by Metropolitan Council Environmental Services. The 1999 hookup charges for sanitary sewer and water are $1,252 and $1,632, respectively per unit. 15. Revise plans to include rock construction entrance. 16. Thc applicant shall cntcr into a site plan agreement with thc City and provide a $2,500 security to guarantee boulevard and curb rcstoration. Thc security may bc in thc form of a letter of credit or cash escrow." ATTACHMENTS 4 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Development Review Application Arboretum Business Park Building 3 Narrative Sketch Entrance Elevation Reduced Copy of Site Plan Reduced Copy of Building Elevations Public Heating Notice and Mailing List Proposed Revision to Building Entrance, front view Proposed Revision to Building Entrance, side view PUD Plan, Arboretum Business Park Building Elevations - All About Lights Building Elevations - On The Level Building Elevations -Heartland Building Building Elevations -Steiner Building II Planning Commission Minutes for June 16, 1999 \~cfsl\vol2Xplan\bgXarboremm business park bldg 3.doc lB: B4: 3B 61Z-?"~7-5789-> 61Z&737BSB ?a~e BBZ CITY OF CHANHABBEN ego COULTER DRiVE CHANHASSEN, MN 6B311 ~i2) 937-~900 DEVELOPMENT REVIEW APPLICATION Comprahe'nsive Plan Amendment _._ Temporary Sales Permit Conditional Uae Permit ; _ Interim Use Perrhlt _-_ Non-conforming Use Permit . ---_- Planned Ur~lt ;De~'elopment' ._ . ~ Rezoning _ Sign Permits Sign Plan Review Vacation of ROW/F_a~ements Variance Wetland Alteratlon Permit , Zoning Appeal Zoning Ordinance Amendment . _ .. Notlflcatlon Sign Bubdlvlaion' ~ Escrow for Filing Fee,/Attomey Cost'" ($$0 CUPISPRNAC. NAR/WAP/Metes and Bounds, $400 Minor SUB) TOTAL FEE $ j/~~..~::~ A list of mil pmpa~'y ownam within SO0 feet of the boundaries of the property must be Included with the application. Building material samples must be submitted with site plan revleva, 'Twenty-~lX full ilze folded ~oples of the plane must be submitted, Including an 8%" X I'1" reduced copy of transparency'for.each plan shaeL · '~ Escrow will be required for other applications through the development oontract NOTE - When multiple applications are processed, the appropriate fee shall be charged for each application. 05/14/99 10:04:54 612- '-573g-> 6124737BSB ) Page B03 .... . - .. tOTAL^¢ EAO , .. ~~DB PRESENT .. ~B . ~ NO P~EBE~ ~D 0SE ~EBIONA~ON .... . .. REQUE~ ~D'UB~ DESIGNATION ...... R~$ON FOR This appllcetlon mdst be~,completed In full and be typewritten or olearl,v printed and must be aoc. ompanled by all Information and plans requlred jby. apJ~lloable 01ty Ordinance provisions, Before filing this application, you should confer with the Planning Department to cleteh~ne'the specific ordinance and procedural requirements applicable to your appll~tlon. ^ determlnatlon of Col'npl,eteness of the application shall be made within ten buslness days of application sul0mlttal, A written. notice of applloatlod deficiencies shall be mailed to the applicant within ten business days of application, ' · ~ This Is to certlly that I em: making application for the described a~tlon by the Oi~ and that I am responsible for complying with all City requlremen~ With. regard lo this request, This appll~tlon should be processed in my name and I am the party whOm the Ci~ lhoutd ooq~ct ~gardtng any matter pertaining to this application, I have attached e copy of proof of ownership (either copy of Own.ePs Duplicate Cer'tlt~r,,ate of Title, Abstract of Title or pumhaee agreement), or I am the authorized person to make this applloa~0n ahd the fee owner has also signed this application, i will keep myself Jnfomled of the deadlines for submission of material and the progress of thl~ application. I further understand that additional fees may be charged for consulting fees, feasibility studies, etc, with an estimate prior to any authorization to proceed with the study, The documenl~ and Information I have submitted are true and'correct to the bast of m.y Imowiadge. , --ApplIcetlon Received oh The city hereby notJfles the applicant that development review cannot be completed within 80 days due 'to public hearing requlrement~ and agency review. Therefore, the ~lty Is notifying [he appllcan[ that the city requires en automatic 80 day extenelon for devel~pmeht review, Development review shall be completed within '120 days unless additional review Fee Paid _. .. Receipt No. The applicant ehouid oodtact staff for a copy of tho staff report which will be available on Friday prior to the meeting, If not contacted, a copy Of the report will be mailed to the appllosr~'~ ,address, 06/01/99 13:13 FAX 61~4737055 STEINER DEVELOPt[ENT INC. ~002/003 Arboretum Business Park Building 3 The 59,990 SF 18 FT clear height building is located on the highest site of the Arboretum Business Park. The Business Park is made up of terraced sites, which were created out of the rolling Chanhassen landscape, which has a vertical drop of over 100 feet across the Park. The building's facade is silhouetted against the adjacent water tower and the arched entry forms are a recall of the rounded water tower geometry. The building is a functional multi tenant light industrial building surrounded by heavy landscaped sloped transition hills between property lines. The painted smooth finish pre cast concrete provides an effective architectural extedor that gives the fa(;ade architectural definition and character. The exterior is similar to Arboretum Business Park Building 2 in terms of projected entrance forms, window details and exterior finish. Brick is added to the entrance elements and the entrance parapet is arched to provide its own identity. The color of the building will be similar to the building to the west ALL About Lights which is earth tone tan colors. The earth tone tan colors were also used on Arboretum Business Park Building 2. The brick at the entrances is to be a dark red-brown and the accent panels above will be painted to match. 06/01/99 13'13 FAX 61~4737~58 _. STEINER DEVELOPMENT INC. ~003/003 0¥ $310N NOIJ. OI*I~IISNO0 [ S3£ON ~V~3N30J 11 ,0 I/ ,file I/ ............ 7:? / P' ;' .... "' ,,~'.'Z',, ~ 4--- -~-A2': ¢'.1 %, ~,,, . ; ,->--..~ .. ,~i ,'"~','- _, . ..-,',.--., _... r,.--... -"'~' .,,._,.,,-.... ,' Vii.. 't ' , /:,~' / L , ~ ,? ..' ' ' ' '" -- ~;~,-" ~ ,-- , ,- ,." -. /."' .. ..._ _ / ' ":= ~ ~ .~.,-.t': ,':i,-.~--~ ~._..,-,.'~ ~ ' ~ " ..... :'""'.: "&" ' :-: ,"k.~4,.~... ....... X ...... "- '~ *" ""¢,:,,: ....... !,,,:7,t' ...... ; .,7 ' ir .' -. -,_ _,FX.- ,., 2 ..... ., '!' ."s- ......... . .... .------" ...... ~ .............................................................................. /, / ........... . .... : ............ / ~V 'o~ eot ......... :~ ~~ ....... '.' .......... ~ '-x ................. x ..... - I I '/~ ~' ' ": ---7 .... ~~ ~ ~ ~- , ~ : N,. I'ICE OF PUBLIC HEARIN~ ') PLANNING COMMISSION MEETING WEDNESDAY, JUNE 16, 1999 AT 7:00 P.M. CITY HALL COUNCIL CHAMBERS 690 CITY CENTER DRIVE PROPOSAL: Request for Site Plan Review for an Office Warehouse Facility APPLICANT: Steiner Development LOCATION' South of Water Tower Place NOTICE: You are invited to attend a public hearing about a proposal in your area. The applicant, Steiner Development, requesting Site Plan Approval for a 59,990 sq. ft. office warehouse building on 4.53 acres zoned PUD and located south of Water Tower Place, east of TH 41, Arboretum Business Park, Building II1. What Happens at the Meeting: The purpose of this public hearing is to inform you about the developer's request and to obtain input from the neighborhood about this project. During the meeting, the Commission Chair will lead the public hearing through the following steps: 1. Staff will give an overview of the proposed project. 2. The Developer will present plans on the project. 3. Comments are received from the public. 4. Public hearing is closed and the Commission discusses project. The commission will then make a recommendation to the City Council. Questions and Comments: If you want to see the plans before the meeting, please stop by City Hall during office hours, 8:00 a.m. to 4:30 p.m., Monday through Friday. If you wish to talk to someone about this project, please contact Bob at 937-1900 ext. 141. If you choose to submit written comments, it is helpful to have one copy to the department in advance of the meeting. Staff will provide copies to the Commission. Notice of this public hearing has been published in the Chanhassen Villager on June 3, 1999. ArboretUFuturestreet "--'> 'f~ ~o~le_~ 82nd Street/. \ 4 Auti 5 Autu 6 Autu THE MINNESOTA LANDSCAPE ARBORETUM 3675 ARBORETUM DRIVE CHANHASSEN, MN 55317 COEUR TERRA LLP 3610 SOUTH HIGHWAY 101 WAYZATA, MN 55391 CHASKA GATEWAY PARTNERS :3610 HWY 101 S WAYZATA, MN 55391 CENTURY 2000 PARTNERS LLP 3610 HWY 101 S WAYZATA, MN 55391 WATERTOWER PARTNERS LLC 729 NEWTON AVE S WATERTOWN, MN 55388 ~aq~'i sse~pp¥ , + ~)09 ,00£, ,0 ~ 'bI~SSVHI~IVHD IVd SS:lNISn8 NNJ.~UOaUV~ NV'Id Grid '" [, S3~J3V EZ'[S[ = 1V101 k ;L"bl. = MO~! 98'8'k = )l~lVd g9'88 = $101 8n13 HI'IV~H SOlNI13 S331d-I0 HNV8 Ava ~ ~. .OlNRO 331..-I=10 3~IVOAVO --- NNVg 1SV=I [ SJ.01 ,U.I'II.Lfl 'lVltl.LSI3(]NI =131-1-10 asvaA~ =lOIddO =IOIAtF:IS Alnlln aSnOHaUVA~ lVl~lsnaNI g'c S101 ~ C- [ S101 U31N30 NOIIOflOO~Jd /SB~lUVnOQV~H 33 uO[V~ 7VlUISnQNI ' HD~JV'~S3~J 331ddO mo1 "BUT-FOR" ANALYSIS WORKSHEET Mortgage Equity Tax Increment TOTAL SOURCES Land Sitework Soil Correction Demolition Relocation Subtotal Land Costs WITH NO BUSINESS SUBSIDY Sources and Uses SOURCES USES ~ 7 WITH BUSINESS SUBSIDY Sources and Uses SOURCES USES Construction Finish Manufacturing Subtotal Construction Costs Soft Costs Taxes Finance Fees Project Manager Developer Fee Contingency Subtotal Soft Costs TOTAL USES Income Statement Sq. Ft. Per Sq. Ft. Sq. Ft. Rent-Space I l~q~ ~.. (, q., t"/,~ ~'g Lq Rent-Space 2 Rent-Space 3 ~q~'2. C1.$3 ~Sq~'LO tlq qtt'~-'- Other Income Statement Per Sq. Ft Mortgage Net Income Total Return on Equity I hereby certify the above financial information is true and accurate. Signature Title Date April 18, 2001 DEVELOPMENT PROPOSAL FOR STEINER DEVELOPMENT 59,900 Square Feet Office Warehouse Facility Chanhassen, Minnesota - Carver County New Minimum Market Value: $2,100,000.00 - 150,000.00 $1,950,000.00 x 3.4% $ 66,3O0.98 x 3,600.00 (150,000 x 2.4% = 3,675) $ 69,900.00 x 153.820% Local tax rate $ 107,520.00 Total property taxes + 2 School aid/Fiscal disparities contribution $ 53,760.00 Total Annual Incentives Payments 2003 2004 $53,760.00 $29,384.76 Total Incentives $83,144.76