PC 2000-01CITY OF CHANHASSEN, MINNESOTA
PLANNING COMMISSION
STATE OF MINNESOTA )
COUNTIES OF CARVER )
AND HENNEPIN )
CITY OF CHANHASSEN )
RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF CHANHASSEN
MINNESOTA, CONCERNING THE ECONOMIC DEVELOPMENT AUTHORITY OF THE
CHANHASSEN, MINNESOTA'S REDEVELOPMENT PROJECT AREA PROPOSAL
WHEREAS, the proposal by the Economic Development Authority of the City of
Chanhassen, Minnesota, to establish a Redevelopment Project Area in connection with
constructing and equipping a municipal building for the City of Chanhassen, Minnesota (the
"City"), and adopt the Redevelopment Plan for Downtown Chanhassen Redevelopment Area,
Modification No. 14 (the "Plan"), all pursuant to and in conformity with applicable law,
including Minnesota Statutes, Sections 469.001 through 469.047 and 469.090 through 469.1081,
have been submitted to the Planning Commission of the City (the "Commission"); and
WHEREAS, the Commission has reviewed the Plan to determine the consistency of the
Plan with the Comprehensive Plan of the City:
NOW, THEREFORE, BE IT RESOLVED by the Commission that the Plan is consistent
with the Chanhassen Comprehensive Plan and the Commission recommends approval of the Plan
to the City Council.
Adopted by the Planning Commission of the City of Chanhassen, Carver and Hennepin
Counties, Minnesota, this 14th day of November, 2000.
Its Acting Chairperson
1225075.2
REDEVELOPMENT PLAN
FOR
DOWNTOWN CHANHASSEN REDEVELOPMENT AREA,
MODIFICATION NO. 14
December 4, 2000
ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF CHANHASSEN, MINNESOTA
1225075.2
TABLE OF CONTENTS
Page
A. Intent ............................................................... 1
B. Project Area ......................................................... 1
C. Project Area Redevelopment Objectives ................................... 1
D. Proposed Project Area Redevelopment Activities ............................ 3
E. Project Area Plan ..................................................... 3
F. Financing Plan ....................................................... 5
Exhibit A - Budget
1225075.2
Ao
Intent
The Economic Development Authority of the City of Chanhassen, Minnesota (the
"EDA") proposes to cause to be constructed and equipped in the Project Area (herein
described) which has been previously established by the City of Chanhassen,
Minnesota (the "City") and the Housing and Redevelopment Authority in and for the
City of Chanhassen, Minnesota (the "HRA") an approximate 9,760 square foot
municipal building to be used as for municipal purposes (the "Municipal Building").
The City will lease all or a portion of the Municipal Building from the EDA with an
option to purchase pursuant to a lease with option to purchase agreement. Public
project revenue bonds in the principal amount not to exceed approximately $930,000.
are proposed to be sold by the EDA to finance a portion of the costs of the Municipal
Building. The public project revenue bonds will be secured by the payments to be
made by the City under the lease with option to purchase agreement.
B. Project Area
The HRA has previously transferred the jurisdiction of the Project Area to the EDA.
Prior to 1994 the Chanhassen Downtown Redevelopment Project Area (the "Project
Area") contained approximately 2, 200 acres of land. One hundred seventy-five acres
are located north of T.H. 5 and comprise what is generally recognized as downtown
Chanhassen. The remainder of the Project Area is south of T.H. 5 in the Chanhassen
Lakes business park and other areas. Approximately 1,519 acres were added to the
Project Area on March 14, 1994 in order to accommodate the Chanhassen/Carver
County road construction projects.
The Project Area is generally described as being bounded by Audubon Road on the
west, and then follow T.H. 5 west to Galpin Boulevard, then north approximately five
hundred (500) feet, then the line is extended due east to Laredo Drive, then south to
West 78m Street, then east to T.H. 101 which is the T.H. 5, also including lands west
of T.H. 101, then south of T.H. 5 to the Lake Drive East and Dakota Avenue
intersection, then east to the old and current alignment of T.H. 101 south, but also
including lands east of T.H. 101 and Lyman Boulevard on the south.
C. Project Area Redevelopment Objectives
The HRA has previously identified the following objectives for the Project Area:
Diversify the tax base of the City by encouraging commercial and industrial
development which in turn will enhance employment opportunities, create
stability in the tax base and increase and protect property values;
1225075.2
o
o
o
9.
10.
11.
12.
13.
14.
15.
16.
Encourage redevelopment of commercial and service-oriented businesses to
better serve the consumer needs of the community;
Remove structurally substandard buildings which cannot be rehabilitated;
Acquire and remove buildings that are economically or functionally obsolete or
under utilized and acquire land that is vacant or under utilized to facilitate
redevelopment;
Eliminate blighting influences which impede potential development in the area;
Provide redevelopment sites of the size and character necessary to assure
development of the area and strengthen the overall economy and improve the
sources of public revenues;
Promote industrial development, provide increased employment opportunities
and supplement the financial base of the community;
Provide land for publicly assisted housing;
Provide land for needed expansion of existing businesses in the area;
Provide adequate street, utility and other public improvements and facilities to
enhance the area for both new and existing development;
Achieve rehabilitation of buildings when economically feasible;
Accomplish the applicable goals of the City's Comprehensive Plan;
Provide maximum opportunity, consistent with sound needs of the City as a
whole, for redevelopment by private enterprise;
Provide general design guidance in conjunction with suitable development
controls in order to enhance the physical environment of the area;
Encourage and facilitate involvement of the community in resolving
neighborhood problems related to business, physical structures and land use;
and
Provide financial incentives as appropriate to stimulate growth and private
sector redevelopment efforts within the Project Area.
1225075.2 2
D. Proposed Project Area Redevelopment Activities
The following stated objectives of the Redevelopment Plan have been previously
adopted by the HRA and are intended to be accomplished:
1. Clearance and redevelopment;
2. Relocation of buildings .and the inhabitants of buildings;
3. The provision of building sites for new and expanding businesses;
4. Vacation of rights-of-way;
5. Dedication of new rights-of-way;
6. Land acquisition and leasing;
7. Soils corrections and land preparation;
8. A Special Assessment Reduction Program designed to stimulate development
within the Project Area;
9. New construction, or improvement of public streets and parking lots;
10. Installation or replacement of public facilities and utilities;
11. Financial subsidies to induce businesses to locate within the Project Area; and
12. Landscaping and streetscape improvements.
E. Project Area Plan
Figure 2 of Modification No. I 1, dated April 17, 1992 previously adopted by the
HRA portrayed the overall plans for the Project Area. Plan highlights included the
following:
1. The Chanhassen Lakes business park comprising 450 acres, fully served by
sewer, water and landscaped streets;
2. The downtown redevelopment area which is intended to be redeveloped for a
multiplicity of uses including convenience and specialty retail, services,
entertainment, recreational, cultural, office, institutional and multi-family
residential and including public parking to adequately serve new developments;
1225075.2 3
A linear open space system within the business park and including parks on
Lake Susan and in downtown Chanhassen;
o
The relocation of T.H. 101 to intersect with T.H. 5 at Dakota Avenue and
remove traffic from the downtown area by routing it directly to T.H. 5 and new
Market Boulevard;
o
The extension of L, oke Drive from County Road 17 to T.H. 101 to accommodate
local traffic demands;
The realignment of West 78th Street at County Road 17 to provide adequate
stacking distance between West 78~h Street and T.H. 5;
o
The widening of County Road 17 from Lake Drive to the northerly line of the
tax increment financing district and the creation of an urban section in this
Project Area;
o
The construction or reconstruction of public utilities within the downtown
redevelopment area to accommodate new develoPment including the acquisition
and construction of a major ponding area with over a million cubic feet of
storage to serve all of the downtown area;
The construction of Market Boulevard from West 78th Street to the southerly
line of the tax increment financing district;
10. The construction of Lake Drive from Audubon to existing T.H. 101 and the
upgrading of Audubon within the tax increment financing district; and
11. Redevelopment of the area north of T.H. 5 extending from Great Plains
Boulevard easterly to realigned T.H. 101;
12. The development of a new park and the expansion of an existing park;
13. Heritage preservation enhancements;
14. The meeting of public facility needs; and
15. Aesthetic. improvements to Highway 5 to enhance the downtown area's image
and identity.
The Project Area Plan is modified to include the construction and equipPing of the
Municipal Building as an additional activity within the Project Area.
1225075.2 4
F. Financing Plan
Attached hereto as Exhibit A is a budget which details estimated development costs
associated with the Municipal Building. The items of cost and the costs thereof
shown in the budget are estimated to be necessary based upon information now
available. It is anticipated that the items of cost and the costs thereof shown in each
category in the budget may decrease or increase, but that the total project cost will not
exceed the amount shown above.
1225075.2 5
EXHIBIT A
Budget
Construction Costs
Discount Factor
Estimated 'Capitalized Interest
Estimated Costs of Issuance
Miscellaneous Costs and Rounding
TOTAL
$828,000
15,810
63,495
18,000
4,695
$930,000
1225075.2 A-1
CREDIT PROFILE
November 2, 2000
Murphy, New York
212-43 8-2065
James Wiemken, Chicago
312-669-9170
Chanhassen, Minnesota
AFFIRMED
$2.19 mil taxable GO tax incre rfdg bnds ser 1998G
$35.93 mil bnds -
$4.97 mil bnds ser 1998A
$1.72 GO tax incre bnds ser 1998E due Feb 1, 2001-2004
OUTLOOK: POSITIVE
A-
A- (SPUR)
A- (SPUR}
Rationale
The rating on Chanhassen, Minn.'s bonds reflects:
· A rapidly growing tax base that benefits from its location within the Minneapolis-St. Paul
metropolitan area,
· Above-average wealth and income indicators, and
· Significant financial reserve levels.
These strengths are offset by a high overall debt burden, evidenced by fixed costs exceeding
40% of operating expenditures.
The outlook was changed to positive as the continued growth and development in the city
provides the resources to reduce debt ratios. The.city has established a comprehensive growth
management plan under metropolitan council guideli.-.es. With continued sound ~nanagement of
growth and reduced levels of debt, the rating could' be raised in the next several years.
Chanhassen is primarily residential and continues to experkence rapid population and tax base
growth. Estimated market value has increased by an average of 10% annually the past four years
to $1.37 billion for fiscal 2000. The 10 leading taxpayers account for 17% of total net tax
capacity, reflecting steady reduction of concentration. Unemployment levels are very low,
consistent with the region. Several midsize employers are located within the city in a variety of
sectors including high-technology, manufacturing and engineering, business services, and food
production. Per capita income levels exceed the state's average by one-third. Per capita market
valuation is high at more than $66,000.
Financial management and liquidity is good, despite high fixed costs. Revenue growth has
accelerated in the past few years, resulting in consistent positive operating results. The general
fund balance at Dec. 31, 1999, of $3.9 million represents 70% of annual general fund
expenditures and reflects a sizable $650,000 million surplus for the year. The fiscal 2000 budget
anticipates a slight reduction in fund balance reserves.
Overall net debt is very high at $4,455 per capita and 6.7% of true value. Most of the city's
direct debt burden is supported by tax increment, special assessments, and enterprise revcnues.
The city's five-year capital plan totals about $35 million and is to be funded primarily from
special assessments, enterprise funds, and tax increment.
Standard & Poor's ~
A Division o[The l~C. raw.Hill ~
Published bi Standar(/& Poor's, a Oivis/on of The Mcgraw-Hill Cornpaeies, lng. Executive offices: 12;~1 Avenue of the Americas. New York, N.Y. 10020. Editorial offices: 55 Water Street.
New York, N.Y. 10041. Subscriber services: {2f2) 43E1-~280. Copyright 1999 by The Mcgraw-Hill Companies. Inc. Reproduction in whole or in part prohibited except by permission.
Standard 84 Poor's PUBLIC FINANCE
Outlook
The positive outlook reflects the expectation that successful management of infrastructure needs
as the city develops will lead to reduced debt levels and improved credit quality.
CREDIT PROFILE · November 2, 2000