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2 Devel Dist 4 and TIF Dist 4-1ClTYOF ! City CenterDrive, PO Box 147 7hanhassen, Minnesota 55317 Phone 612.937.1900 General Fax 612,937.5739 ngineering Fax 612937.9152 ~blic Safe~y Fax 612,934.2524 %b www. ci. chanhassen, mn. us MEMORANDUM TO: Scott Botcher, City Manager FROM: DATE: Todd Gerhardt, Assistant Executive Director July 21, 1999 SUB J: Public Hearing; Consider Establishment of Development District No. 6 and Tax Increment District No. 4-1. Under Minnesota Statute, the city council must hold a public hearing when approving a tax increment financing district (see Attachment #1). Staff has also prepared a development district program outlining the public assistance needed to assist the developments within the boundaries of TIF District No. 4-1 (see Attachment #2). The plan's Statement of Objectives are to provide the following: 1. Provide employment opportunities within the city. 2. Improve the tax base of the city and the general economy of the city and state. 3. Encourage development in areas of the city Which have not been utilized to their full potential. 4. Implement relevant portions of the Comprehensive Plan. (The building of Lake Drive West and a parking lot for Sunset Ridge park.) Listed below are the estimated project costs: Estimated Project Costs Public Improvements: Roadway, sanitary sewer, storm sewer, water, lighting, trail, and parking lot. $1,456,100 Administrative Expenses $ 143,900 TOTAL $1,600,000 Note: Some of the above funds will be spent directly for the cost of the listed improvements. Other funds will be spent to reimburse qualified landowners for the cost of special assessments levied to pay for the listed improvements. e Ci~ o. fChanhassen. A ~rowing community with clean lakes, ~tuafity schools, a charmin~ downtown, thrivin~ businesses, and beautiful barks. A ereat olace to live, work, and olay. Mr. Scott Botcher July 21, 1999 Page 2 The Planning Commission will be reviewing the plan at their July 21, 1999 meeting. Staff will provide a verbal update on their action and whether or not they find the plan consistent with the Comprehensive Plan on Monday evening. Staff has also provided notice to both Carver County and School District 112 (see Attachment #3). No comments have been received. The City Council also requested staff to prepare a conservative analysis of the tax increment generated from the Gateway West project (see Attachment #4). In this analysis you will notice that the example used does generate enough increment to pay off the special assessment and parking lot improvements early (4 to 5 years). The City Council could decertify the district in 2004 or 2005 and, based on these assumptions, place the properties back on the regular tax rolls. RECOMMENDATION Staff would recommend approving the resolution (Attachment #5) adopting a Development District Program for Development District No. '4 and Tax Increment District No. 4-1 and providing financial assistance only in means of special assessment write-down. ATTACHMENTS 2. 3. 4. 5. 6. Public hearing notice Development District Program and Plan Letter to Carver County/School District 112 TIF analysis Resolution Feasibility Report for Lake Drive West g:\admin\tg\Tl F4-1 .doc NOTICE OF PUBLIC HEARING CITY OF CHANHASSEN NOTICE IS HEREBY GIVEN that the Chanhassen City Council will hold a public hearing on Monday, July 26, 1997, at 6:30 p.m. in the Council Chambers in Chanhassen City Hall, 690 City Center Drive. The purpose is to discuss the adoption of a Program for Development District No. 4 and a Plan for Tax Increment Financing, District No. 4-1. A draft copy of the Program and TIF Plan is available for public inspection at Chanhassen City Hall during regular business hours. The following map shows the general boundaries of the proposed Development district and TIF District. All interested persons are invited to attend this public hearing and express their opinions with respect to this proposal. BY ORDER OF THE CITY COUNCIL Scott Botcher, City Manager Phone: 937-1900 (Publish in the Chanhassen Villager on July 15, 1999) DEVELOPMENT DISTRICT PROGRAM DEVELOPMENT DISTRICT NO. 4 AND TAX INCREMENT FINANCING PLAN, TAX INCREMENT FINANCING DISTRICT NO. 4-1 CITY OF CHANHASSEN July 26, 1999 This document drafted by: KENNEDY & GRAVEN, CHARTERED 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 ~HB-164989 CH130-68 TABLE OF CONTENTS SECTION I. 4 Page DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT No. Subsection A. Definitions .......................................................................................... :. .............. 1 Subsection B. Statutory Authority .......................................................................................... 2 Subsection C. Statement of Public Purpose ............................................................................ 2 Subsection D. Statement of Objectives ................................................................................... 2 Subsection E. Environmental Controls ................................................................................... 3 Subsection F. Open Space to be Created ................................................................................ 3 Subsection G. Public Facilities to be Constructed .................................................................. 3 Subsection H. Proposed Reuse of Pr~operty ..................................................................... 3 Subsection I. Development District F~nancing ............. ~ .................................................. iiiiiii 3 Subsection J. Relocation ......................................................................................................... 3 Subsection K. Administration of Development District ......................................................... 3 Subsection L. Map of Development District ...... . .................... ~. ........ ' ............... ~.: .................... 4 SECTION Il. TAX INCREMENT FINANCING PI,AN FOR TAX INCREMENT FINANCING DISTRICT No. 4-1 Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection Subsection A. Statutory Authority .......................................................................................... 5 B. Statement of Objectives ..................................................... i .... i ......... ~ .............. 5 C. Statement of Public Purpose ...................................................... 2 ..................... 5 D. Development District Program ..................... i .................................. ................ 6 E. Description of TIF District ................................... 2.. ......... , .... , ......... ,, ............ :,.. 6 F. Development District Contracts . .......... 6 G. Classification of TIF District .... iiii~iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii.iii.i,.., ..... iiiiiii 6 H. Modification of TIF District ............................................................................ 6 I. Use of Tax Increment-. ....................................................................................... 6 J. Excess Tax Increment ....................................................................................... 6 IC Limitation of Increment ................................................................................... 7 L. Limitation on Administrative Expenses ....................................... : .................. 7 M. Limitation on Boundary Changes ..... 2 ............................................................. 7 N. Relocation ........................................................................................................ 7 O. Parcels to be Acquired Within the TIF District .............................................. 8 P. TIF Account ...................................................................................................... 8 Q. Estimate of Project Costs .................................... : ........................................... 8 R. Estimate of Bonded Indebtedness ...: ............................................................... 8 S. Original Tax Capacity and Tax Increment .................................... ~ .... : ...... i.~ .... 8 T. Duration of the TIF District ...................................... , .......... , ........... , .... , ......... 9 U. Estimate of Captured Tax Capacity ................................................................ 9 V. Estimate of Impact on Other Taxing Jurisdiction .............................. ............. 9 W. Annual Repons ............................................................................................. 10 ~HB-164989 CH130-68 SECTION I. DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 A. Definitions For the purposes of the Development District Program for Development District No. 4 and the Tax Increment Financing Plan for Tax Increment Financing District No. 4-1, the following terms shall have the meanings specified below, unless the context otherwise requires: "Administrative Expenses" means all expenditures of the City other than amounts paid for the purchase of land or amounts paid to contractors or others providing materials and services, including architectural and engineering services, directly connected with the physical development of real property in the District, relocation benefits paid to or services provided for persons residing or businesses located in the District, or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued pursuant to section 469.178 of the TIF Act. Administrative Expenses includes amounts paid for services provided by bond counsel, fiscal consultants and planning or economic development consultants; "City" means the City of Chanhassen, a municipal corporation under the laws of Minnesota; "City Council" or "Council" means the Chanhassen City Council; "City DeveloPment District Act" or "Act" means Minnesota Statutes, Sections 469.124 through 469.134, as amended; · "Comprehensive Plan" means the City's objectives, policies, standards and programs to guide public and private land use, development, redevelopment and preservation for all lands and water within the City; "County" means Carver County, Minnesota; "Development District" or "District" means Development District No. 4 in which Tax Increment Financing District No. 4-1 will be located; "Development District Program" or "Program" means the Program. for Development District No. 4, which will be adopted by the City on July 26, 1999; "School District" means the Chaska school district, Independent School District No. 112; "State" means the State of Minnesota; "Tax Increment Bonds" means any general obligation or revenue tax increment bonds issued by the City to finance the public costs associated with Development District No. 4 as stated in the Program or in the Plan for TIF District No. 4-1 or any obligations issued to refund any Tax Increment Bonds; "Tax Increment Financing Act" or "TIF Act" or means Minnesota statutes, sections 469.174 through 469.179, as amended; In .... _"Ta.~ Increme~ Financing District" or "TIF District" or "TIF District No. 4-1" means Tax ctcmem t4nancing District No. 4-1, which is being created and established within Development District No. 4 pursuant to the TIF Act; and RHB-164989 1 CH130-68 "Tax Increment Financing Plan" or "TIF Plan" or "Plan" means the Plan for TIF District No. 4-1, which will be adopted by the City on July 26, 1999. B. Statutory Authori _ty The City has determined that it is necessary, desirable and in the public interest to establish Development District No. 4, pursuant to the provisions of the Act. The City has also determined that the funding of the necessary activities and improvements in Development District No. 4 shall be accomplished in part or in whole through tax increment financing in accordance with the TIF Act. C. Statement of Public Purpose It is found that there is a need for the City to offer assistance for an industrial development proposed to be constructed in an area of the City generally described as west of Powers Boulevard, north of Lake Drive West and east of Audubon Road. The effect of the project will be to increase employment opportunities, improve the tax base and improve the general economy of Chanhassen and the State. In order to accomplish this purpose, the City intends to incur those costs and expenses specified in the Plan for TIF District No. 4-1. The property to be included within Development District No. 4 is currently within the project area for the City's downtown redevelopment project and will be deleted from that project before being included in Development District No. 4. D. Statement of Obiectives The Authority seeks to achieve the following objectives through the Development District Program: I. promote and seCure the prompt development of property in Development District No. 4 in a manner consistent with the Comprehensive Plan and with minimal adverse impact on the environment, which property is currently less productive because of the lack of proper utilization and lack of investment, thus promoting and securing the development of other land in Chanhassen; 2. encourage additional employment opportunities within Development District No. 4 and Chanhassen for residents of the community and the surrounding area, thereby improving living standards and preventing unemployment and the loss of skilled labor and other human resources in the area; 3. secure the increase of property subject to taxation by the City, County, School District and other taxing jurisdictions in order to better enable such entities to pay forpublic improvements and governmental services and programs required to be provided by them; 4. promote the concentration of appropriate industrial uses and related development within Development District No. 4 in order to develop the area in a manner compatible with its highest and best use; and 5. encourage development within the District which is aesthetically pleasing and which creates a positive visual image of the community. RHB-164989 2 CH130-68 E. Environmental Controls It is not anticipated that any development within the Development District will present environmental concerns which cannot be accommodated through compliance with applicable laws. All public improvements and private development will be cOnstructed and carried out in compliance with applicable environmental standards. F. Open Space to be Created Any open space within the Development District will be created in accordance with the development controls of the City and will be adequate for the needs of the residents of the community as well as those who work in or visit the Development District. The City intends to make certain improvements to Sunset Ridge Park in connection with development of the Development District. G. Public Facilities to be Constructed All p. ublic facilities constructed within the Development District will be' financially feasible and compatible with the City's Comprehensive Plan. H. ProPosed Reuse of Property The City does not intend to acquire property within Development District No. 4. Property within the Development District will be reused in accordance with the City's. ordinances and Comprehensive Plan as well as with this Program and the Plan for TIF District No. 4-1. No property will be acquired or sold by the City without entering into an agreement with the developer regarding the specific reuse of the land. I. Development District Financing Within Development District No. 4, ~e City will establish TIF District No. 4-1 to finance the cost of development activities. Project costs for TIF District No. 4-1 will be met at least in part through pledged increment. Details of project cost are contained in the TIF Plan which follows this Program. J. Relocation Although no reloCation is anticipated in connection with any project within Development District No. 4, the City accepts its responsibility for providing for relocation pursuant to section 469.133 of the Act. If relocation i~ necessary, provision will be made in accordance with Minnesota Statutes, sections 117.50 through 117.56, as amended. K. Administration of Development District Maintenance and operation of the public improvements is the responsibility of the administrator of Development District No. 4. The administrator will be appointed by the City Council. Each year the administrator will submit to the City the maintenance and operation budget 1~'HB-1649 $ 9 3 CH130-65 for the following year. The administrator will administer the Development District pursuant to the provisions of section 469.131 of the Act; provided, however, that such powers may only be exercised at the direction of the City. No action taken by the administrator shall be effective without authorization by the City. The City has not and does not anticipate the need to create an advisory board to advise it on the planning, construction or implementation of the activities and improvements outlined in the Development Program.. L. Map of Development District A map of the area to .be included within Development District No. 4 is attached hereto as Exhibit A. RHB-164989 4 CH130-68 SECTION I1. TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT No. 4-1. A. Statutory Authority. Pursuant to section 469.175, subd 4 of the TIF Act, the City is authorized to establish tax increment financing districts to facilitate and provide f'mancing for the development objectives articulated in the Development District Program. At the time of the adoption of the Program for Development District No. 4, the City also intends to establish TIF District No. 4-1 pursuant to the TIF Act. B. Statement of Objectives. The City seeks to achieve the following objectives through the establishment of TIF District No. 4-1; 1. provide employment opportunities within the City; State; improve the tax base of the City and the general economy of the City and 3. encourage development in areas of the City which have not been utilized to their full potential; 4. provide funding for certain public roadway and infrastructure improvements which are essential for full development of the Development District; and 5. implement relevant portions of the Comprehensive Plan. The City's specific objective in establishing TIF District No. 4-1 is to provide for roadway, sewer and water, lighting, and park improvements in' the vicinity of a large industrial area. These improvements are necessary in order to encourage development of the Eden Trace industrial park and to promote an increase in the City's tax base. The land to be included in TIF District No. 4-1 is currently within the City's downtown TIF District No. 1 and must be deleted from tht pre-1979 district before being certified to TIF District No. 4-1. C. Statement of Public Purpos.e. In adopting the Plan for TIF District No. 4-1, the City will make the following findings: 1. Anticipated development would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future and, therefore, the use of TIF is deemed necessary; 2. The TIF Plan will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the Development District by private enterprise; whole; and The TIF Plan conforms to general plans for development of the City as a 4. The area included within T1F District No. 4-1 qualifies as an economic development TIF district within the meaning of the TIF Act. The conclusions to be reached by the City Council regarding the above are based upon the recommendations of city staff and the planning commission as well as the familiarity of members of the City Council with the property involved and the likelihood that the land will I~H~-164989 CH130-68 5 develop within the reasonably foreseeable future solely through private efforts. The City Council's conclusions are also be based on a calculation that the increased market value of the land within TIF District No. 4-1 which could reasonably be expected to occur without the use of tax increment financing would be less than the increase in market value estimated to result from the proposed development after subtracting the present value of the projected tax increment for the maximum duration of the TIF District. D. Development District Pro~ram. At the time of the establishing TIF District No. 4-1, the City also intends to adopt a Program for Development District No. 4. The plan for development of the City outlined in the Program will provide the basis of the City's efforts to develop portions of the community which have not and remain unlikely to be developed solely through private efforts. The Plan for TIF District No. 4-1 is consistent with the Program for Development District No. 4. E. Description of TIF District. The TIF District is composed of land located generally north of Lake Drive West, east of Audubon Road and west of Powers Boulevard. A map of the boundaries of TIF District No. 4-1 is attached hereto as Exhibit A and is co-terminus with the boundaries of Development District No. 4. F. Development District Contractsl The City has not yet entered into a development contract with regard to the development of any property within TIF District No.' 4-1. Contracts regarding property with TIF District No. 4-1 will be entered into in accordance with section 469.176, subd 5 of the TIF Act. G. Classification of TIF District. TIF District No. 4-1 qualifies as an economic development TIF district, pursuant to section 469.174, subd. 12 of the TIF Act. H. Modification of TIF Plan. The Plan for TIF District No. 4-1 may be modified by the City, provided that any enlargement of the geographic area of the TIF District, increase in amount of bonded indebtedness to be incurred, including a determination to capitalize interest on the debt if that determination was not a part of the original Plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in the portion of the captured tax capacity to be retained by the City, increase in total estimated tax increment expenditures or designation of additional property to be acquired by the City shall be approved upon the notice and after such discussion, public hearing and findings as required .for approval of the original Plan. I. Use of Tax Increment. Pursuant to section 469.176, subd 4 of the TIF Act, all revenues derived from TIF District No. 4-1 shall be used in accordance with the TIF Plan. The revenues shall be used to f'mance or otherwise pay the capital and administrative costs of development activities within the Project as identified in the Program and Plan. J. Excess Tax Increment. Pursuant to section 469.176, subd 2 of Se TIF Act, in any year in which the increment exceeds the amount necessary to pay the costs authorized by the TIF Plan, the City shall use the excess amount to do any of the following, in the order determined by the City: 1. prepay the outstanding bonds or other obligations; RHB-164989 6 CH130-68 2. discharge the pledge of tax increment therefor; 3. pay into an escrow account dedicated to the payment of bonds or other obligations; or 4. return the excess amount to the County auditor who shall distribute the excess amount to the City, the County and School District in direct proportion to their respective tax capacity rates. The City may also choose to modify the TIF Plan in order to provide for other public expenditures within the Project. K. Limitation of Increment. 1. No increment shall bepaid to the City from TIF District No. 4-1 after three years from the date of certification of the original tax capacity of the property in the TIF district by the County auditor unless within the three year period (a) bonds have been issued pursuant to section 469.178 of the TIF Act, or (b) the City has acquired property within TIF District No. 4-1, or (c) the City has constructed or caused to be constructed public improvements within TIF District No. 4-1. 2. If, after four years from the date of certification of the original tax capacity of TIF District_No. 4-1, no demolition, rehabilitation, or renovation of property or other site preparation, including qualified improvement of a street or right-of-way adjacent to a parcel but not installation of underground utility service, including sewer or water systems, have been commenced on a parcel located within TIF District No. 4-1 by the City, or by the owner of the parcel in accordance with the TIF Plan, no additional increment may be taken from that parcel, and the original tax capacity of that parcel shall be excluded from the original tax capacity of the TIF District. If one of these activities subsequently commences, the City shall so certify to the County auditor, and the tax capacity of the property as most recently certified by the commissioner of revenue may be added to the TIF District. 3. No tax increment shall in any event be paid to the City from TIF District No. 4-1 after nine years from the date of receipt by the City of the fn-st increment or 11 years from the date of approval of the Plan, whichever occurs first. L. Limitation on Administrative Expenses. Pursuant to section 469.176, subd 3 of the TIF Act, Administrative Expenses are limited to 10 percent of the total tax increment expenditures budgeted or the expenses actually incurred, whichever is less. Any time the City increases the budget of TIF District No. 4-1 and expends additional increment on budgeted items, the amount of increment allocated to Administrative Expenses may be increased as long as the total of Administrative Expenses does not exceed statutory limitations.. M. Limitation on Boundary Changes. The geographic area of TIF District No. 4.1 may be reduced, but cannot be enlarged after five years following the date of certification of the original tax capacity by the County auditor. N. Relocation. Although no relocation is anticipated, the City accepts as binding its obligations under state law regarding relocation benefits and, if necessary, will administer relocation services for families, individuals and businesses displaced by public action. CH130-68 O. Parcels to Be Acquired Within the TIF District. It is not anticipated that the City will acquire any property within TIF District No. 4-1, except such easements or other interests in property as may be necessary to complete roadway and other infrastructure improvements. P. TIF Account. The tax increment received with respect to the TIF District No. 4-1 shall be segregated by the City in a special account on its official books and records. Q. Estimate of Project Costs. The following costs are authorized for expenditures within TIF District No. 4-1: Public Improvements, including roadway, sanitary sewer, storm sewer, water, lighting, trail and par $1.456,100 Administrative expenses 143,900 TOTAL $1,600,000 Some of the above funds will be spent directly for the cost of the listed improvements. Other funds will be spent to reimburse qualified land owners for the cost of special assessments levied to pay for the listed improvements. R. Estimate of Bonded Indebtedness. The City may choose to sell bonds in an amount not to exceed $2,052,000 to finance the public costs authorized by the Plan for TIF District No. 4ol. The City may sell general obligation bonds to finance the public improvements within the TIF District. The City may also enter into a "pay-as-you-go" revenue obligation with the developers of industrial facilities to reduce their special assessment obligations. ' S. Original Tax Capacity and Tax Increment. Pursuant to section 469.177, subd. 1 of the TIF Act, the original, tax capacity for T1F District No. 4-1 is $10,000. Each year the County auditor will measure the increase or decrease in the total tax capacity of property in the TIF district. Any year in which the tax capacity of TIF District No. 4.1 exceeds $10,000, an increment will be. payable to the City. Any year in which the tax capacity is below $10,000, no value will be capturea and no increment will be payable to the City. The property which will be included in TIF District No. 4 is currently within the City's downtown TIF District No. 1, a pre-1979 TIF district. Upon removal from TIF District No. 1, the land will receive a step-up in original value. The value used for this analysis is based on an estimate that the original tax capacity of the land will be $10,000 upon inclusion in TIF District No. 4. Each year after the certification of the original tax capacity, the Coun.ty auditor will increase or decrease the original tax capacity of property within TIF District No. 4-1 as a result of: 1. change in the tax exempt status of the property; 2. reduction or enlargement of the geographic boundaries of the TIF District; or RHB-164989 CH130-68 reduction of valuation by means of a court-ordered abatement, stipulation 8 agreement, voluntary abatement .made by the assessor or auditor or by order of the Minnesota commissioner of revenue. In addition, each year the auditor will adjust the original tax capacity of the property within TIF District No. 4-1 in compliance with the requirements of section 469.177, sub& l(f) of the TIF Act. T. Duration of the TIF District. In accordance with section 469.176, gubd 1 of the TIF Act, the City wishes to retain its right to receive TIF payments until nine years from the date of the receipt of the fa-st increment, or 11 years from the date of approval of the Plan, whichever first occurs. U. Estimate of Captured Tax Capacity. Pursuant to sections 469.175, subd. 1 and 469.177, subd. 2 of the TIF Act, the estimated net captured tax capacity of TIF District No. 4-1, will be $243,800 upon full development of the TIF District in 2004. The captured tax capacity was estimated in the following manner: Tax Capacity After Completion (2004) Original Tax Capacity Captured Tax Capacity $253,800 - 10,000 $243,800 Pursuant to section 469.177, subd. 2 of the TIF Act, it is found and declared that all of the captured tax capacity generated by TIF District No. 4-1 is necessary to finance or otherWise make permissible expenditures authorized by section 469.176, subd. 4 of the TIF Act. V. Estimate of Impact on Other Taxing JUrisdiction. In is anticipated that $360,000 in increment will be captured annually within TIF District No. 4-1. This increment amount is based on the value of the development following completion of all development in 2004. For the purposes of estimating increment during the life of TIF District No. 4-1, no inflation has been assumed in the value of the new development. The composite original tax capacity rate for the affected property is 147.611 percent. Applying the percentage of the total tax capacity rate attributable to each taxing jurisdiction to the annual increment of $360,000 reveals the annual "loss" of tax dollars by each jurisdiction if the projects would have occurred without TIF. Although the City believes the actual impact on other taxing jurisdictions is zero because development would not have occurred within the reasonably foreseeable future without public intervention, the assumed amount of tax dollars foregone by each jurisdiction is listed below: · Estimate of Annual Amount of Tax Increment Attributable to Various Taxing Jurisdictions Taxing Jurisdiction City of Chanhassen Carver County Chaska School District Other TOTAL Tax % of Total Capacity Tax Est. Tax Loss Rate Capacity ($) 27.536 18.6 66,960 46.606 31.6 113,860 69.138 46.8 168,480 4.331 2.9 10,800 147.611 100.0 360,000 IR5~-164989 9 CH130-68 W. Annual Reports. Pursuant to section 469.175, subd 6 of the TIF Act, the City must file an annual financial report regarding TIF District No. 4-1. The report shall be filed by August 1 of each year with the School board, the County board and the State auditor. The report to be filed by the City shall include the following information: 1. the original tax capacity of TIF District No. 4-1; 2. the captured tax capacity of TIF District No. 4-1, including the amount of any captured tax capacity shared with other taxing districts; 3. the outstanding principal amount of bonds issued or other loans incurred to finance project costs in TIF District No. 4-1; 4. for the reporting period and for the. duration of TIF District No. 4-1, the amount budgeted under the TIF Plan and the actual amount expended for the following categories: (a) acquisition of land and buildings through condemnation Or Purchase; (b) site improvement or preparation costs; (c) installation of public utilities or other public improvements; (d) administrative costs, including the allocated cost of the City; 5. for properties sold to developers, the total cost of the property to the City and the price paid by the developer; and 6. the amount of tax exempt obligations; other than those reported under clause (3), which were issued on behalf of private entities for facilities located in TIF District No. 4-1. In addition, the City must report annually to the Minnesota commissioner of revenue the following amounts for the entire municipality: (1) the total principal amount of nondefeased tax increment financing bonds that are outstanding at the end of the previous calendar year; and (2) the total annual amount of principal and interest payment that are due for the current calendar year on (i) general obligation tax increment financing bonds, and (ii) other tax increment financing bonds. RHB-164989 10 CH130-68 The City must annually report to the commissioner of revenue the following amounts for TIF District No. 4-1: (1) the type of district, whether eConomic development, redevelopment, housing, soils condition, mined underground space, or hazardous substance site; (2) the date on which the district is required to be deCertified; (3) the captured net tax capacity of the district, by property class as specified by the commissioner of revenue, for taxes payable in the current calendar year; (4) the tax increment revenues for taxes payable in the current calendar year; (5) whether the tax increment f'mancing plan or other governing document permits increment revenues to be expended (i) to pay bonds, the proceeds of which were or may be expended on activities located outside of the district, (ii) for deposit into a common fund from which money may be expended on activities located outside of the district, or (iii) to otherwise finance activities located outside of the tax increment financing district; and (6) any additional information that the commissioner of revenue may require. RHB-164989 11 CH130-68 H a RTERED 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http://www, kennedy-graven.com RECEIVE dUN 8 5 lggg CITY OF RONALD H. BATTY Attorney at Law Direct Dial (612) 337-9262 email: rbatty@kennedy-graven.corn June 24, 1999 Superintendent David Clough Chaska School District No. 112 110600 Village Road Chaska, MN 55318 Re: Chanhassen Development District No. 4 and TIF District No. 4-1 Dear Superintendent Clough: This is to notify the school district that the City of Chanhassen will conduct a public hearing on the captioned matter at the regular city council meeting on July 26, 1999, starting at 6:30 p.m. in the Chanhassen city hall. The City intends to create a new Development District and TIF district to assist an industrial project located north of Lake Drive West, east of Audubon Road and west of powers Boulevard. Enclosed is a draft copy of the Development District Program and TIF Plan. A representative of the school district is invited to attend the public hearing or you may send written comments regarding this matter to Mr. Don Ashworth at Chalfftassen city hall. If you haVe any questions regarding this matter, please feel free to call Mr. Ashworth at 937-1900 or myself at 337-9262. Sincerely, Ronald H. Batty HRA Attorney RHB:lh Enclosure cc: Todd Gerhardt RHB-165004 CH130-68 H A RTER E D 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http://www, kennedy-graven.com June 24, 1999 RONALD H. BATTY Attorney at Law Direct Dial (612) 337-9262 email: rbatty~kennedy-graven.com Mr. Dick Stolz County Administrator Carver County Courthouse 600 East Fourth Street Chaska, MN 55318 Re: Chanhassen Development District No. 4 and TIF District No. 4-1 Dear Mr. Stolz: This is to notify the county that the City of Chanhassen will conduct a public heating on the Captioned matter at the regular city council meeting on July 26, 1999, starting at 6:30 p.m. in the Chanhassen city hall. The City intends to create a new Development District and TIF' district to assist an industrial project located north of Lake Drive West, east of Audubon Road and west of Powers Boulevard. Enclosed is a draft copy of the Development District Program and TIF Plan. A representative of the county is invited to attend the public hearing or you may send written comments regarding this matter to Mr. Don Ashworth at Chanhassen city hall. If you have any questions regarding this matter, please feel fi-ee to call Mr. Ashworth at 937-1900 or myself at 337-9262. Sincerely, HRA Attorney RHB :Ih Enclosure cc: Todd Gerhardt IlaZ-IB-164991 CH130-68 000000000000 ~00000000000 ~00000000000 000000000000 ~~~~0 000000000000 ~000000000 0 0000000000 0000000000 ~0000000 00000000 0 00000000 0 o£ooo £ooooo ~ 000 O0 0 O~ 0 O~ ~ O~ ~ 000 O0 0 O~ O~ ~ 000 O0 0 O~ 0 O~ ~ O~ ~ 0000 O0 0 0 0 O~ 0 0 0 O~ ~ 000000 O0 0 000 0 O~ 0 000 0 O~ ~ 00000000 O0 0 00000 0 O~ 0 00000 0 O~ ~ ~~ 0 O0 ~000000000 000 O0 0000000000 0 O~ 0000000000 0 O~ ~0000000 00000000 00000000 0 ~00000 0 ~000000 o o oooo 000 O0 0 OO 000 0 ~-- 0 ~- ~'~ ~,~'~ CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: RESOLUTION NO: MOTION BY: SECONDED BY: A RESOLUTION ADOPTING A DEVELOPMENT DISTRICT PROGRAM FOR DEVELOPMENT DISTRICT NO. 4 AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 4-1 BE IT RESOLVED By the City Council (the "Council") of the City of Chanhassen Minnesota (the "City") as follows: Section 1. Recitals. 1.01. It has been proposed that the City establish Development District No. 4 pursuant to Minnesota Statutes, Sections 469.124 through 469.134 and create Tax Increment Financing District No. 4-1 pursuant to Minnesota Statutes, Sections 469.174 through 469.179 within Development District No. 4. 1.02. The Council has investigated the facts and has caused to be prepared a development district program (the "Program") describing the public assistance needed within Development District No. 4 and tax increment financing (the "Plan") describing the specific acts to be taken to assist development within the boundaries of Tax Increment Financing District No. 4-1. 1.03. The City has performed all actions required by law to be performed prior to the establishment of Development District No. 4 and Tax Increment Financing District No. 4-1 and the adoption ora Program and Plan relating thereto, including, but not limited to, notification of Carver County and Independent School District No. 112; a ~eview of the Program and Plan bY the Planning Commission for their consistency with the general plans for development of the City; and holding a public hearing regarding the Program and Plan upon such notice as is required by law. 1.04. The Program and Plan are contained in a document entitled "Development District Program, Development District No. 4 and Tax Increment Financing Plan, Tax Increment Financing District No. 4-1, City of Chanhassen, Minnesota," dated July 26, 1999, and on file in the office of the City Manager. 1.05. The Council has fully reviewed the contents of the Program and the Plan and has on this date conducted a public hearing thereon at which the views of all interested persons were heard. Section 2. Findings Related to Establishment of Development district No. 4. 2.01. The Council hereby finds that the establishment of the Development District No. 4 is intended, and in the judgement of the Council, its effect will be to provide an impetus for industrial development, increase employment, and otherwise promote the public purposes and objectives specified in the Program. 2.02. It is further found and determined that: a) The land in the Development District No. 4 would not be made available for industrial development without the public intervention and financial assistance described in the Program and Plan; b) The Program will afford maximum opportunity, consistent with the sound needs of the city as a whole, for the development of the District by private enterprise; and c) In accordance with the findings made by the planning commission, the Program conforms to the general plan for development of the community as set forth in the city's comprehensive plan. Section 3. Findings Related to Establishment of Tax Increment Financing District No. 4-1. 3.01. It is the opiniOn of the Council that development of the properties included within Tax Increment Financing District No. 4-1 would not reasonably be expected to occur solely through private investment within the reasonably foreseeable future due to the lack of adequate public investment and that the increased market value of property within the TIF District would be less than the increase in market value estimated to result from the proposed deyelopment after subtracting the present value of the projected tax increments for the maximum duration of the TW District and that the use of tax increment financing is therefore necessary. 3.02. The Council finds that the Plan for Tax Increment Financing District No. 4-1 conforms to the general plan for development of the City, based upon the recommendations of the planning commission. 3.03. The Council finds that the Plan for Tax Increment Financing District No. 4-1 will afford maximum opportunity, consistent with the sound needs of the City as a whole, for development of the District by private enterprise. 3.04. The Council further finds that the establishment of Tax Increment Financing District No. 4-1 is intended, and in the judgement of the Council, its effect will be to promote the public purposes and accomplish the objectives specified in the Program and Plan, 3.05. The Council has relied upon the opinions and recommendations of its staff and planning commission and the personal knowledge of the members of the Council in reaching its conclusions regarding the creation of Tax Increment Financing District No. 4-1. 3.06. The Council hereby finds that Tax Increment Financing District No. 4-1 is an economic development tax increment financing district within the meaning of Minnesota Statutes 469.174, Subd. 12. 2 Section 4. Approval of Development District Pro~ram and Tax Increment Financing Plan; Establishment of Development District and Tax Increment Financing District. 4.01. The Program for Development District No. 4 and the Plan for Tax Increment Financing District No. 4-1 are hereby approved and adopted. Development District No. 4 is hereby established. Tax Increment Financing District No. 4-1 is hereby established. 4.02. The boundaries of Development District No. 4 and Tax Increment Financing District No. 4-1 are described in the Program and Plan therefore, and are incorporated herein by reference. 4.03. The City elects to make a qualifying local contribution each year with respect to Tax Increment Financing District No. 4-1 in an amount necessary to satisfy the requirements of Minnesota Statutes 273.1399, subd. 6. 4.04. The City elects for Tax Increment Financing District 4-1 to be treated as described in Minnesota Statutes, section 469.177, subd.3(a) with regard to fiscal disparities. 4.05. The City Manager is authorized and directed to transmit a certified copy of this resolution together with a certified copy of the Plan to theauditor of Carver County with a request that the original tax capacity of the property within Tax Increment Financing District No. 4-1 be certified to the City pursuant to Section 469.177, Subd. 1 of the Tax Increment Financing Act and to file a copy of the Program and the Plan with the Minnesota State Auditor. 4.06. The City may, at the appropriate time, take action to issue and sell its general obligation bonds pursuant to the Tax Increment Financing Act to finance the costs identified in the Plan for Tax Increment Financing District No. 4-1. Passed and adopted by the Chanhassen City Council this dayof ~ 1999. ATTEST: Scott Botcher, City Manager Nancy K. Mancino, Mayor YES NO ABSENT CITYOF CHANHASSEN 690 Cig Center Drive, PO Box' 147 Chanl~sen, Mi, nesom 55317 Pho,e 612.93Z 1900 General Fax 612.937.5739 £~gi,eeri,g Fax' 612.937.9152 Public SafeO, Fax 612.934.2524 11% wwu:ci, cha,l~assen, mn. us MEMORANDUM TO: FROM: DATE: SUB J: Todd Gerhardt, Acting City Manager Anita L. Benson, City Engineer March 15, 1999 Approve Feasibility Report for Lake Drive West Street and Utility Improvements (Powers Boulevard to Audubon Road) Project No. 98-16 This is the public heating on the feasibility report for the Lake Drive West Street and Utility Improvement Project No. 98-16. This proposed improvement project was petitioned for by Eden Trace Corporation and Redmond Products, Inc. to construct Lake Drive West from Powers Boulevard to Audubon Road. The primary project elements consist of the following: o Extension of sanitary sewer services to the proposed lots in the Lake Drive West right-of-~way. / Installation of 12-inch diameter trunk watermain to connect water System in Powers Boulevard to Audubon Road. Construction of Lake Drive West (36 feet wide) between the existing street returns constructed at the touchdown points of Powers Boulevard and Audubon Road. Construction will include street lighting and boulevard landscaping (tree planting) to be completed separately by the developers except along the boulevards adjacent to city property. A retaining wall will be included at the west end of the project to minimize impacts to the Lake Susan Hills storm pond/wetland. Construction of storm sewer within the project right-of-way and from the right-of-way to ponding areas provided by the developer. The construction of an 8-foot wide bituminous trail along the north side of. Lake Drive West. 6. Construction of an 18 to 20 stall parking area for Sunset Ridge Park. The feasibility report includes a detailed cost estimate, proposed preliminary assessment schedule, and construction schedule. The total project cost is estimated to be approximately $1,456,000. This project is proposed to be financed Todd Gerhardt March 15, 1999 Page 2 by a combination of special assessments to benefiting properties and local funds. The project is considered feasible from an engineering and financial standpoint. As required by law, notification has been made to all property owners proposed for special assessments and publication has been made in the Chanhassen Villager newspaper. Along with the hearing notification, all property owners have been mailed a copy of the feasibility report. The project engineer, Mr. Phil Gravel of Bonestroo, Rosene, Anderlik & Associates, will be present at the public hearing to provide a presentation of the feasibility report and respond to any pertinent questions which may arise. If, at the close of the public hearing, there are no relevant questions or concerns which would require further investigation, it is recommended that the City Council formally approve the feasibility report dated February, 1999 (revised March, 1999) for Lake Drive West Street and Utility Improvements, Project No. 98-16. It is staffs intent to request authorization for preparation of plans and specifications for the project at the April 12, 1999 regular City Council meeting. Manager's Comments Staff is still reviewing the different funding/financing options for the project. Staff will present these options at your April 12, 1999 meeting. Attachments: 2. 3. 4. Feasibility Report. Affidavit of Mailing of Public Hearing Notice. Public Hearing Notice. Notice of Public Hearing in Chanhassen Villager. c: Dave Hempel, Assistant City Engineer Phil Gravel, Bonestroo & Associates Mark Undestad, Eden Trace Corporation Tom Ries, Lake Susan Partnership Don Patton, Lake Susan Partnership David Stockdale Redmond Products, Inc. \Xcfs lXvo12~ng~public',98 - 16\approve feasibilility.doc CITY OF Feasibility Report for Lake Drive West Street and Utility Improvements Chanhassen, Minnesota February, 1999 (Revised March, 1999) City Project No. 98-16 File No. 393-98-810 Bonestroo Rosene Anderlik & Associates Engineers & Architects Eonestroo, Rosene, Anderlik and Associates, Inc i$ an Affirmative A orion/Equal Opportunity Employer Principals: Otto G. Bonestroo. P.E. · Joseph C. Anderlik, P.£. · Marvin L. Sorvala. Richard E. Turner. P.E. · Glenn R. Cook. P.E. · Roi~ert G. Schunicht. RE. · Jerry A. 8ourdon, P,E. · Robert W. Rosene, P.E. and Susan M £berlin, C.P.A.. Senior Consultants Associate Principal$: Howard A. Sanford, RE. · Keith A, Gordon, P.E. · Robert R. Pfefferle, RE. · Richard W. Foster. RE. · David O. Loskota. RE. · Robert C. Russek, A.I,A. · Mark A. Hanson, P.E. · Michael T. Rautmann. J~E. · Ted K.Field; P.E, · Kenneth R Anderson. P.E. Sidney R W'illiamson, RE., L.S. · Robert F. KOtSmith · Agnes M. Ring · Michael R Rau, P.E. · Allan Rick Schmidt, RE. Offices: St. Paul Rochester, Willmar and St. Cloud, MN * Milwaukee, t~/ebsite: www. bonestroo.com February 17, 1999 (Revised Mamh 8, 1999) Honorable Mayor and City Council City of Chanhassen · 690 City Center Drive P.O. Box 147 Chanhassen, MN 55317 Re.' Lake Drive West Street and Utility Improvements City Project No. 98-16 Our File No. 393-98-810 Dear Mayor and Council: Transmitted herewith is our report on the street and utility improvements for Lake Drive West to serve Outlot D, Chanhassen Lakes Business Park. The project area includes the area south of the TCW Railroad between Audubon Road and Powers Drive. This project was previously proposed in 1990 as project 90-01. The report presents and discusses the proposed street and utility improvements and includes a cost estimate and preliminary assessment roll. An executive summary is included at the beginning of the report. We will be pleased to meet with the Council and other interested parties at a mutually convenient time to discuss this report. Thank you for the opportunity to assist the City With this project. Respectfully submitted, BONESTROO, ROSENE, ANDERLIK & ASSOCIATES, INC. Phil Gravel LPG: I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly Registered Professional Engineer under the laws of the State¢~/~c~"/f°f Min~esot~ L. Phillip Gravel, III, P.E. Date: February_ 17, 1999 (Revised March 8, 1999) Reg. No. 19864 Table of Contents Transmittal Letter ................................................................................................................ 1 Table of Contents .................. '. ............................................ ~ ................................................ 2 I. Executive Summary ..................................................................................................... 3 Figure 1 - Location Plan ....................................................................................... 4 II. Introduction ................................................................................................................ 5 III. Proposed Improvements ............................................................................................... 7 IV. Cost Analysis / Financing ................. ~ ......... ; ........................................................ ....... 10 Table 1 - Project Costs ........................................................................................ 10 Table 2 - Proposed Assessment Rates ........ i ............................................. ' .......... 1 i Table 3 - Residential Equivalent Units (REUs) .................................................. 12 Table 4 - Revenue Summary .............................................................................. 13 Table 5 - Assessable Properties .......................................................................... 13 Project Schedule .......................................................................................................... 14 Easements & Permits ......................................................................... 5 ............... i ....... 15 Summary & Recommendations .................................................................................. 16 Appendix Appendix Appendix Appendix A - Preliminary Cost Estimate B - Summary of Assessment Charges C - Preliminary Assessment Roll D - Summary of Previous Assessments Figure 2 - Sanitary Sewer Figure 3 - Water Main Figure 4 - Streets, Trail and Storm Sewer Figure 5 - Street Typical Section - Lake Drive West Figure 6 - Typical Section - Retaining Wall Segment Figure 7 - Area to be Assessed Figure 8 - Assessable Footage Lake Drive West Street and Utility Improvements Feasibility Report Page 2 I. Executive Summary This report presents information concerning municipal improvements necessary to improve Lake Drive West between Audubon Road and Powers Boulevard (CSAH 17) as sho~vn on Figure 1. The improvements will serve the proposed development by Eden Trace Development on property sometimes referred to as the "Redmond" property. The proposed development by Eden Trace consists of 10 commercial/industrial lots located north of the proposed alignment for Lake Drive West. The south side of the proposed Lake Drive alignment includes a residential high density housing site (owned by Lake Susan Parmership), City park property (Sunset Ridge Park), and the back side of two lots in the Lake Susan Hills neighborhoodl Municipal improvements for the site include the construction of Lake Drive West (including street lighting and landscaping) along the alignment of an existing trunk sanitary sewer line through the site. The alignment for the road was determined as part of the comprehensive plan and previous platting process. Water main, sanitary sewer servicesl storm sewer, bituminous trail, and a parking area for Sunset Ridge Park are also planned within the project. It is proposed ~o complete the project in one phase. There will be only minor traffic disruptions associated with this project as the water main stubs and other provisions were included with the Audubon Road and Powers Boulevard projects. The costs of the proposed improvements are presented in the appendices and a cost summary, cost allocation and unit cost summary are presented in the Cost Analysis section. Financing for the project will come from property assessments. A preliminary assessment roll is also included in the appendices. Lake Drive West Street and Utility Improvements Feasibility Report Page 3 ANN LAKE SUSAN LAKEI DRIVE CHANHASc~'~x~o,_, 4, MjNNFSOTA, LAKE DRIVE WEST FIGURE 1, LOCATION FEBRUARY 1999 PLAN k: '~393",.,393~i O~FlOl II. Introduction This report is the result of petitions for a public improvement project submitted by the Eden Trace Corporation and Redmond Products, Inc. to construct Lake Drive West from Powers Boulevard to Audubon Road. Authorization for the preparation of the report was given by the City Council on December 14, 1998. The proposed improvements contained herein have been discussed conceptually by the City and the property owners for several years. The remaining necessary municipal improvements to serve the area will be completed with this project. Trunk sanitary sewer for the site was installed in 1992 as part of project 91-17. Provisions for street, trail, and water main extensions were made with previous projects on Audubon Road and Powers Boulevard. The project area is shown on Figure 1. The site is currently zoned Office/Industrial, Residential High Density, and Parks/Open Space. The site is bounded to the north by the TC&W railroad tracks, to the east by Powers Boulevard, to the south by the Lake Susan Hills neighborhood, and to the west by Audubon Road. The eastern portion of the site is currently vacant with no existing structures. The western portion of the site was used for agricultural cropland last year. This report examines the feasibility of completing street and utility improvements in the project area. Sewer and water service will be provided by extending utilities installed under previous projects. A summary of the proposed improvements with this project includes: 1. Extension of sanitary sewer services to the proposed lots from the Lake Drive West right-of-way. 2. Installation of 12-inch diameter trunk ~vater main to connect the water system in Powers Boulevard to Audubon Road. Lake Drive V?est Street and Utility Improvements Feasibility Report Page 5 o The construction of Lake Drive West (36-foot wide) between the existing street retums constructed at the touchdown points of Powers Boulevard and Audubon Road. Construction will include street lighting. Boulevard landscaping (tree planting) will be completed separately by the developers except along boulevards adjacent to City property. A retaining wall will be included at the west end of the project to minimize impacts to the Lake Susan Hills storm pond/wetland. 4. The construction of storm sewer within the project right-of-way and from the right-of- way to ponding areas provided by the developer. 5. The construction of an 8-foot wide bituminous trail along the north side of Lake Drive West. 6. The construction of an 18 to 20 stall parking area for Sunset Ridge Park. The site and street subgrade will be mass graded by the developer prior to construction of the street and public utility improvements. Assessments proposed herein are consistent with the previous feasibility report for the site, City policy, and the Comprehensive Sewer and Water Plans. The proposed project assessment area is shown on Figure 7. A preliminary Assessment Roll is presented in AplJendix C at the back of this report. The amounts shown in the preliminary Assessment Roll are based on the preliminary information and may be revised at the time of the final assessment hearing based on final costs, development agreements, and final development plans. Lake Drive West Street and UtilitY Improvements FeasibilitY Report Page 6 III. Proposed Improvements Sanitary Sewer Sanitary sewer improvements for the project area are in conformance with the City's Comprehensive Sewer Policy Plan and are shown on Figure 2. The project will extend sanitary sewer services from the trunk sewer installed under Improvement Project No. 91-17A. Sanitary sewer flow from the project area flows eastward through the Lake Ann and Lotus Lake Sewer Districts to the eastern border of Chanhassen and ultimately to the MCES Blue Lake wastewater treatment facility. A portion of the existing trunk sanitary sewer is proposed to be relocated due to conflicts with the lowered street grades proposed by the developer. The lower street grades are requested by the developer to service the site north of Lake Drive West. Water Main Water main improvements proposed herein are consistent with the City's Water Supply and Distribution Plan and are shown on Figure 3. A 12-inch diameter trunk main will be constructed in Lake Drive West easterly from Audubon Road to Powers Boulevard. ~ Water main stubs will be provided to the adjacent developments where necessary. Fire hydrants will be included with the adjacent developments to provide adequate fire coverage. Fire hydrants on the trunk main in Lake Drive West will be installed in accordance with the City's Fire Marshall. Street and Storm Sewer Lake Drive West is designated as a Collector roadway in the City's Comprehensive Transportation Plan and is a Municipal State Aid Route. Lake Drive West is also identified as a 1999 project in the City's Capital Investment Plan. Lake Drive V~est Street and Utility Improvements Feasibility Report Page 7 The street typical section will be similar to the existing Lake Drive section east of Powers Boulevard. Street construction for the project includes a standard 9 Ton, 36 foot wide commercial street as shown on Figures 4 and 5. The roadway section consists of 24-inches of select granular borrow, 12-inches of Class 5 aggregate, 2.5-inches bituminous base, 2.0-inches bituminous binder and 2.0-inches of bituminous wear course with B618 curb and gutter. Street lighting in accordance with standard City practice for collector streets is also included. Boulevard trees with this project are only included adjacent to City property. All other boulevard tree planting will be included with the developers landscaping plans. Storm sewer will be constructed within the roadway to convey runoff from the right-of-way and to facilitate site drainage. It is assumed that storm water ponding for the majority of Lake Drive West will be included with the site ponding provided by the Eden Trace developer. Drainage from the west end of Lake Drive West is to be directed to the pond located north of proposed Lot 3. Drainage from the east end of the project is to be directed to a new pond located near the west end of Outlot E. An existing pipe from Audobon Road will be extended eastward and then into the Lake Susan Hills pond on the south side of Lake Drive West. State Aid design standards will be followed and the construction documents will go through the State Aid review and approval process. Retaining Wall A modular block retaining wall will be required on the south side of the proposed Lake Drive West at the far west end. The wall is schematically shown on Figure 6 at the back of this report. The proposed wall will be located within the street fight-of-way, approximately 20 feet from the south curb line. The wall will be approximately 5 to 8 feet tall and will be approximately 670 feet long. A guard rail is proposed behind the curb parallel with the wall. Landscaping is proposed on the slope between the street and the wall as well as in front of the wall. Parking Area A previous concept plan for Sunset Ridge Park included an 18 to 20 stall parking area. It is proposed to include the parking area as part of this project. The parking area will be located Lake Drive West Street and Utility Improvements Feasibility Report Page 8 along the edge of the right-of-way with the entrance located across from a proposed driveway on the other side of Lake Drive West (see Figure 4), A pedestrian crossing will be striped and signed at the parking area entrance. Bituminous Trail An 8-foot wide bituminous trail is proposed along the north side of Lake Drive. This portion of trail will connect the existing trail system along Powers Boulevard to Aububon Road. North- south trails are presently inplace on both Audubon Road and Powers Boulevard. The trail is proposed on the north side of the road to facilitate the existing trail and underpass at Powers Boulevard. This trail section will also provide additional pedestrian access to the park property (Sunset Ridge Park) within the project site. Site Grading Site grading for Outlot D, Chanhassen Business Park will be completed by the developer. The street subgrade will be graded to acceptable tolerances during mass grading of the site. It is anticipated that all storm water ponds and wetland mitigation work will also be completed by the developer. Lake Drive West Street and Utility Improvements Feasibility Report Page 9 IV. Cost Analysis / Financing .Cost Estimate The estimated project cost to complete the street and utility improvements proposed herein are presented below in Table 1. These costs include legal, administrative, engineering, bonding, and interest costs estimated to be 30% of the construction costs. The estimated 30% indirect costs are reviewed at the time of the final assessment hearing. The estimate is based on previous similar projects and includes the following: en~neering, geotechn/.cal testing, bonding, legal, permits, and City administration. It is assumed that all required site grading and easements will be ~anted by the adjacent property owners at no cost to the project. A detailed cost estimate is included in Appendix A. Table 1, Project 98-16 Estimated Project Cost Summary Item Sanitary Sewer Water Main Storm Sewer Parking Area for Sunset Ridge Street and Trail Improvements Total Total Cost 558,5.00.00 180,600.00 126,200.00 28,000.00 1,062,800.00 $1,456,100.00 With the exception of retaining wall costs, the above costs {and the sanitary sewer costs from Project 91-17) are within 3% of the original estimated costs for Project 90-01. Assessments Assessments are proposed to be levied against the benefited properties as shown on Figure 7 and 8. A Preliminary assessment Roll is presented in Appendix C. The proposed assessments herein are consistent with City policies and past practice. Some trunk sewer and water charges have Lake Drive West Street and Utility Improvements Feasibility Report Page 10 previously been assessed to some properties in the project area (see Appendix D). Additional trunk charges as established in the Comprehensive Sewer and Water Plans will be assessed as part of this project. Street assessments are based on the following criteria: · Abutting property owners are assessed for a standard 36-foot wide, 9-ton desig'n commercial/industrial roadway. · Trail, Street Lighting, Restoration, and Storm Sewer costs are included with the street assessments. · Grading costs for street and storm water ponding within the development will be completed by the Eden Trace developer. · Costs for the parking area for Sunset Ridge Park will not be assessed. A summary of the proposed Assessment Rates is presented in Table 2 below. Table 2 Project 98-16 Proposed Assessment Rates Item Sanitary Sewer (Lateral Benefit) Water System (12" Lateral Benefit) Sanitary Sewer (Trunk) Water Main (Trunk) Street, Trail, and Storm Server Rate Actual costs $21.00/front foot $1,252 per REU $1,632 per REU $192.08/front foot Assessable equivalent units for sewer and water trunk charges are determined by multiplying the net assessable acreage for each parcel by number of residential equivalent units (REUs) for the planned use. The REUs for various land use types are shown below in Table 3. Net assessable acreage is gross acreage less wetlands and kno~vn major road fight-of-way. The assessable equivalent units shown in the preliminary assessment roll are minimum numbers based on existing zoning and land use guideline conditions. Calculations for final assessment purposes will be based on actual development information at the time of the assessment hearing and will be adjusted if actual development intensifies. Lake Drive West Street and Utility Improvements Feasibility Report Page 11 Table 3 Residential Equivalent Units (REUs) Land Use Type Minimum REUs Per New Assessable Acre Single Family 2 Medium Density 3 High Density 6 Commercial/Industrial 4 Public 2 The above REUs are the minimum number recommended to be charged at the time that trunk utility service is provided. If a property develops at a greater number of REUs, additional unit charges will be charged at the time of development based on Metropolitan Council Environmental Services (MCES) Sewer Availability charges (SAC) unit calculations. Street assessment rates are calculated by dividing the total street, trail, lighting, and storm sewer cost by the assessable front footage. Calculations are presented in Appendix B. Assessment Revenue It is proposed to assess the project costs to the adjacent properties (except for the parking area for Sunset Ridge Park). The City will be responsible for costs assessed to City-owned property. Table 4 below summarizes the estimated revenue from assessments. Th[ table sh6ws a positive revenue due to trunk area sanitary sewer and water main assessments. Positive tnmk sanitary sewer and water main revenue should be directed to sewer and water funds to fund future mmic facilities (wells, lit~ stations, trunk main, etc.). Lake Drive West Street and Utility Improvements Feasibility Report Page 12 Table 4 (Revised March 8, 1999) Project 98-16 Revenue Summary Item Estimated Cost Assessments Net Revenue Sanitary Sewer $58,500 $58,500 (Lateral) ' $1,252 (Trunk) $1,252 $59,752 (Total) Water Main $180,600 116,340 (Lateral) 326,400 (Trunk) 442,740 (Total) $262,140 Street and Storm $1,189,000 $1,188,975.20 ($124.80) Parking Area $28,000 0 ($28,000) Total $1,456,100 * $1,691,467.20 $235,267.20 * Note: The total assessment amounts of $1,691,467.20 includes $323,769.60 for City property. The City's share will include an additional $28,000 for the Sunset Ridge Park parking area which is not included in the assessments. Area to be Included The area to be assessed for this project is shown on Figure 7 and listed below in Table 5. Ail owners of properties to be assessed should be notified of the project's public hearing and eventual assessment hearing. Properties with multiple owner interests should have all interested parties notified. In addition, owners of adjacent properties (within 500 feet), that may be affected by the project but are not in the area to be assessed, should also be notified. Table 5. Area to be Included · Project 98-16 Assessable Properties 25.1900350 25.0140200 25.4030560 25.1900360 Owner Redmond Products Inc. Lake Susan Hills Chanhassen (Sunset Ridge Park) Chanhassen (Outlot E) Lake Drive West Street and Utility Improvements Feasibility Report Page 13 V. Project Schedule The improvements described in this report should be constructed in conjunction with the proposed development. The schedule shown below meets the needs of the proposed development and assumes that the mass site grading will be completed by mid-June. The City will require that the developers enter into a development contract with a final plat or that assessment waivers be obtained from the underlying fee holders to the property. Authorization for preparation of plans and specifications will be contingent on receipt of an assessment waiver fi.om the developer. The schedule is based on completing construction in 1999 for building occupancy in the late fall. The project schedule can be modified and/or delayed if the City or adjacent developments request it. Authorize Feasibility Report December 14, 1998 Developer Deposit for Report Received January 20, 1999 Staff Review Draft Feasibility Report February 8, 1999 Council Receive & Review Feasibility Report March 8, i 999 Public Hearing March 22, 1999 Order Plans and Specifications April 12, 1999 Approve Plans and Specifications May 10, 1999 MnDOT Approval May 28, 1999 Open Bids / Award Contract June 14, 1999 Begin Construction June 28, 1999 Substantial Completion October 1999 Assessment Hearing First Assessment Payments Due Final Paving / Project Completion October25,1999 Spring 2000 June, 2000 Lake Drive West Street and Utility Improvements Feasibility Report Page 14 VI. Easements and Permits Easements for proposed construction will be required from the adjacent developers. As part of the site and street grading, the Eden Trace Developer will be required to work with the Lake Susan Partnership property to obtain any necessary grading agreement. It is assumed in this report that all required easements from the developers will be granted at no cost. Right-of Way for Lake Drive West will be dedicated through the platting process. Right of Entry Agreements for the retaining wall construction will be required from Lots 8, 18, and 19, Block 1, Lake Susan Hills 3rd Addition. Platted drainage and utility easements currently exist on these three lots. Permits and approvals will be required from the following:- - Minnesota Pollution Control Agency Metropolitan Council Environmental Services Minnesota Department of Health Minnesota Department of Natural Resources Board of Water and Soil Resources Watershed District City of Chanhassen The proposed street and utility improvements with this project do not m~et the mandatory EAW (Environmental Assessment Worksheet) thresholds as defined in Part 4410.4300 of the Environmental Quality Board's rules. An EAW was prepared as part of the sanitary sewer improvements previously installed under Project 91-17. Review of the potential for significant environmental effects for the public improvements will be made through the permitting process from the agencies listed above. Therefore, the preparation of EAW specifically for the street and utility improvements for this project is not mandatory. However, the developer is required to complete an EAW due to building square footage as defined in 4410.4300, subp 14 of the EQB rules. We recommend that the proposed street and utility improvements contained herein be included as part of the EAW prepared by the developer. Lake Drive West Street and Utility Improvements Feasibility Report Page 15 VII. Summary and Recommendations This report presents an evaluation of the feasibility of constructing a municipal street and utilities necessary to serve the project area. The report provides estimated costs of the proposed improvements and presents a preliminary assessment roll for the construction. The total estimated cost for this project is $1,456,100.00, including both construction and indirect costs. Figures 2 and 3 in the next section of this report show the proposed sanitary sewer and water main construction. Figure 4 shows the street, storm sewer, and trail alignments. The proposed work is necessary, cost effective, and feasible from an engineering standpoint. Based on the results of our investigation for this report, the following recommendations are presented for the Chanhassen City Council: 1. This report be adopted .as the criteria for installation of the street and utility improvements contained herein. 2. The City review and adopt the proposed assessment and financing methods contained herein. A formal public hearing be held to discuss the proposed improvements and assessments. All properties that are proposed to be assessed and all properties within 500 feet of the project area will be notified of the public hearing. Lake Drive West Street and Utility Improvements Feasibility Report Page 16 APPENDIX A PRELIMINARY COST ESTIMATE LAKE DRIVE WEST, PROJECT 98-16 FEBRUARY '17, 1999 No. Item Units Qty Unit Price Total Price Part la - Sanitary Sewer - Eden Trace 1 Connect to existing manhole, core drill EA 6 $500.00 $3,000.00 2 124" RCP Sanitary sewer LF 581 $45.00 $26,145.00 3 :8" PVC sanitary sewer service LF 195 $18.00 $3,510.00 4 4' diameter sanitary manholes EA 3 $1,450.00 $4,350.00 5 4" Insulation SF 250 $3.00 $750.00 6 4 ft. dia. MH depth greater than 8 feet LF 5 $90.00 $450.00 !Total Construction $38,205.00 :Plus 30% - Legal, Administration & Engineering $11,495.00 !Total Part la - Sanitary Sewer $49,700.00 iPart lb - Sanitary Sewer- Lake Susan 7 '8" PVC sanitary sewer service LF 215 $18.00 $3,870.00 8 .4' diameter sanitary manholes EA 2 $1,450.00 $2,900.00 i Total Construction $6,770.00 i Plus 30% - Legal, Administration & Engineering . $2,030.00 'Total Part lb - Sanitary Sewer $8,800.00 i Part 2 - Water Main 9 !Connect to existing water main EA 2 $400.00 $800.00 10 12" water main LF 3610 $26.00 '- $93,860.00 11 8" ~vater main LF 390 $16.00 $6,240.00 12 '.6" water main LF 220 $14.00 $3,080.00 13 12" butterfly valve and box EA 2 $1,200.00 $2,400.00 14 8" gate valve and box EA 1 $700.00 $700.00 15 6" gate valve and box EA 10 $550.00 $5,500.00 16 !Hydrant w/marker sig-n in place EA 7 $1,600.00 $11,200.00 17 iWatermain fittings LB 7585 $2.00 $15,170.00 !Total Construction $138,950.00 , Plus 30% - Legal, Administration & Engineering $41,650.00 i Total Part 2 - Water Main $180,600.00 Part 3 - Storm Server 18 .Salvage 24" sanitary pipe LF 475 $5.00 $2,375.00 19 i12" RCP storm sewer, Class 5 LF 120 $21.00 $2,520.00 20 15" RCP storm sewer, Class 5 LF 450 $24.00 $10,800.00 21 18" RCP storm sewer, Class 5 LF 995 $26.00 $25,870.00 22 Install Salvaged 24" RCP storm sewer, Class 3 LF 400 $20.00 $8,000.00 Chanhassen, MN K:\393\393-98-810 A-1 APPENDIX A PRELIMINARY COST ESTIMATE LAKE DRIVE WEST, PROJECT 98-16 FEBRUARY 17, 1999 23 i36" RCP storm sewer, Class 3 LF 109 $50.00 $5,450.00 24 i4 ft. diameter storm MH (Plate 2101) EA 6 $1,500.00 $9,000.00 25 IStd. 2 ftx 3 ft CB w/cstg. (Plate 3101) EA 9 $1,100.00 $9,900.00 26 !4 ft. diameter storm CBMH (Plate 3102) EA 2 $1,400.00 $2,800.00 27 !6 ft. diameter storm CBMH (Plate 3102) EA 1 $2,800.00 $2,800.00 28 !18" RCP flared end section EA 2 $700.00 $1,400.00 29 [36" RCP flared end section EA 1 $1,500.00 $1,500.00 30 124" RCP storm sewer, Class 3 LF 290 $45.00 $13,050.00 31 iClass III Riprap, placed at flared end section CY 30 $55.00 $1,650.00 !Total Construction $97,115.00 i Plus 30% - Legal, Administration & Engineering $29,085.00 ~Total Part 3 - Storm Sewer $126,200.00 "Part 4 - Streets 32 i Mobilization LS 1 $4,000.00 $4 000.00 33 !Traffic control LS 1 $12,200.00 $12 200.00 34 I Landscaping LS 1 $25,000.00 $25 000.00 35 iExcavation and grading for trail LS 1 $1,500.00 $1 500.00 36 iTest rolling LF 3360 $1.00 $3 360,00 37 iSubgradepreparation LF 3360 $2.00 $6 720.00 38 Select Granular Borrow (CV) CY 10775 $11.00 $118,525.00 39 :Aggregate base, Class 5 TN 11655 $8.50 $99,067.50 40 !Bituminous Wear Course, Type 41 TN 2030 $29.00 $58,870.00 41 iBituminous Binder Course, Type 41 TN 1490 $27.00 $40,230.00 42 iBituminousBase Course, Type 31 TN 1865 ~ $27.00 - $50,355.00 43 !Prep of bit. surface for wear paving 2000 LS 1 $3,000.00 $3,000.00 44 iBimminous material for tack coat GAL 1355 $1.50 $2,032.50 45 ~4" Polyethylene drain tile LF 6725 $5.00 $33,625.00 46 i7-1/2" concrete driveway (Plate 5207) SF 215 $4.00 $860.00 47 B618 concrete curb andgutter LF 6900 $7.00 $48,300.00 48 ':Pedestrian curb ramp EA 2 $235.00 $470.00 49 I Modular Block Retaining Wall SF 7370 $25.00 $184,250.00 50 !Guard Rail LF 690 $10.00 $6,900.00 51 I Lighting unit, Type R3 EA 22 $2,200.00 $48,400.00 52 i2" NMC Conduit, Sch. 40 LF 6720 $3.75 $25,200.00 53 12" NMC Conduit, Sch. 80 LF 300 $4.50 $1,350.00 54 i#2 AWGWire LF 150 $1.75 $262.50 Chanhassen, MN K:~393~393-98-810 A-2 APPENDIX A PRELIMINARY COST ESTIMATE LAKE DRIVE WEST, PROJECT 98-16 FEBRUARY 17, 1999 55 '#6 AWG Wire LF 5000 S0.5(? 56 Spare luminaries and ballast (Plate 5240) EA 2 $450.(~ 57 i Sign panels, Type C SF 90 $30.¢ 58 '4" double solid line, yellow paint LF 3360 $1.2! 59 i12" stop line, white epoxy LF 36 $12. 60 :1-1/4" rock for entrance mat TN 200 S 12. 61 .Protection of catch basin in street EA 10 S50.( 62 ;Seeding w/mulch & fertilizer and 6" salv. topsoil AC 6.5 S 1,20~ 63 iSodding, lawntype SY 6175 $2.:~ 64 'Silt fence, regular LF 1200 52.5 65 Wood fiber blanket SY 1600 $2.0(. :Total Construction !Plus 30% - Legal, Admin. & Engineering :Total Part 4 - Streets Part 5 - Parking Area (Sunset Ridge Park) 66 Grading LS 1 $1.6~ 67 Restoration LS 1 $1. 68 Ag~egate base, Class 5 TN 970 69 :Bituminous Wear Course, Type 41 TN 120 S29 70 iBimminous Base Course, Type 31 TN 120 71 iB618 concrete curb and gutter LF 585 57. :Total Construction Plus 30% - Legal, Admin. & Engineering Total Part 5 - Parking Area Total Total Total Total Total Part la - Sanitary Sewer - Eden Trace Dev. Part lb - Sanitary Sewer - Lake Susan Part. Part 2 o Water Main Part 3 - Storm Sewer Part 4 - Streets Total Part 5 - Parking Area (Sunset Ridge Park) Total Estimated Project Cost Chanhassen. MN K:\393~393-98-810 ~0 0 _o ;ITY PROPE R£LOJ~.A.T~-6-~TRuN \ LAKE SUSAN S~R PARTNERSHIP __.._~ \ ... TRUNK \ SANITARY SEWEI ~T RIDGE PARK ~ '-L..._~ 0 2O0 400 AUDUBON RD. ~, ,ANHASSE_N, MINNi- SOTA ~_AKk DRIVE WEST FIGURE 2, 'SANITARY SEWER F:'3RUARY 1999 k: ~393~393810~FIG2 CONNECT TO EXI! NG WM :ITY PROPOSED 12" WATER MAIN LAKE SUSAN PARTNERSHIP ;T RIDGE PARK BY OTHERS 200 400 RD. CONNECT TO EXISTING WM CHANHASSEN, MINNESOTA LAKE DRIVE. WEST FIGURE 3, WATER FEBRUARY 1999 MAIN k: \393\39.t810\F'~G3 EXISTING TR AND UN[ ASS PROP -- TURN LANE .36' F- LAKE SUSAN PARTNERSHIP ;ET RIDGE UTURE TI STALL IDE BITUMINOUS (NORTH SIDE) ROPOSED ,N CROSSING , AUDUBON RD. CHANHASSEN, MINNESOTA LAKE DRIVE WEST FIGURE 4, STREET, TRAIL, AND STORM SEWER FEBRUARY 1999 k: \,:.'39,.3\59,.3810\FIC4 Z d~ Z Z (~CITY (~)LAKE SUSAN PARTNERSHIP PIN 25.0140200 ~ET RIDGE PIN 25. 4C TO BE ASSESSED )AVE STOCKDALE/ EDGEWORK BUILDER~. PIN 25.0740900 )UBON RD. CHANHASSEN, MINNESOTA LAKE DRIVE WEST, PROJECT 98-16 FIGURE 7, AREA TO BE ASSESSED FEBRUARY 1999 k: ~393X,393810\FIC6 (~ClTY PROP PIN 25, (~) LAKE SUSAN PARTNERSHIP PIN 25.0140200 Front footoge = 1840' ~ET RIDGE PIN fool ,DAVE STOCKDALE/ EOOEWO~ ,~,,oE~. F~ ] AUDUt~ON RD. =Street Assess e Foot CHANHASSEN, MINNESOTA LAKE DRIVE. WEST, PROJECT 98-16 FIGURE 8, ASSESSABLE FOOTAGE FEBRUARY 1999 k: \395\393810\FIG8