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PC Minutes 3-21-06 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MARCH 21, 2006 Chairman Sacchet called the meeting to order at 7:00 p.m. and outlined the agenda and rules of procedure for the meeting. MEMBERS PRESENT: Debbie Larson, Uli Sacchet, Dan Keefe, Mark Undestad and Jerry McDonald MEMBERS ABSENT: Kurt Papke and Deborah Zorn STAFF PRESENT: Kate Aanenson, Community Development Director; Bob Generous, Senior Planner; Lori Haak, Water Resource Coordinator; Alyson Fauske, Assistant City Engineer; and Justin Miller, Assistant City Manager REVIEW OF SAND COMPANIES TIF PLANS TO ENSURE CONFORMANCE WITH COMPREHENSIVE PLAN. Miller: Thank you Mr. Chair, commissioners. Before you tonight is the draft tax increment financing plan for the proposed TIF District #9, which is being developed to support the Gateway Place affordable housing project. Just to refresh you memory we have a map here. This would be the new Highway 212. Relocated Highway 101. So this is the project, the Gateway Place project right there. Last year the developer, which is the Sand Companies, they were awarded tax credits through the Minnesota Housing Finance Agency. It's a competitive process. Part of their application indicated that the City, with our support, was willing to provide support for their project through the use of tax increment financing. Now state law requires that any new TIF plan be approved by the Planning Commission of the respective municipality to ensure that it complies with the city's comprehensive plan. Now the Planning Commission already approved this preliminary plat and site plan on February, 2006 and in doing so staff believes already affirmed that the proposal is in conformance with the city's comprehensive plan and I listed quite a few of the findings of fact in the staff report that we provided to you tonight. Just a brief little explanation of what tax increment financing is, in case those watching at home don't exactly understand. If you have a bear piece ofland, say it's paying right now $100 in taxes. Once a development is built, in this case it will be a 48 unit apartment building. Say it ends up paying $1,000 in taxes. The city in a TIF district can capture the increment, the $1,000 minus the $100. That's $900 and instead of dispersing that to the city, the county and a school district, the city can collect it all and use it to facilitate development that might not occur otherwise. In this case the purpose of collecting the money will be to facilitate affordable housing. It will be provided to the developer in the amount not to exceed $300,000 to help create 47 of the 48 units to be affordable for people at 60% or less of the median income in the Twin Cities. The EDA and the City Council will be hearing these and having a public hearing on these items at their April 10th meeting, but what we're looking for tonight is for the Planning Commission to pass a resolution which is attached in your packet stating that the proposed TIF plan is in conformance with the City of Chanhassen' s comprehensive plan. And with that I will be happy to answer any questions. Planning Commission Meeting - March 21, 2006 Sacchet: Thank you Justin. Questions. No questions here? No? No questions there? One thing that I want to know a little more about is the math with the numbers. You mentioned $300,000 would be provided, kind of to help basically putting those apartments in place. Miller: Right. Sacchet: And then that would be made up through the tax element over how many years? Miller: It will be a 7, well we're proposing to provide tax increment financing for 7 years. For 5 years the City will provide 90% of the increment that's produced by this property back to the developer. For the 2 years after that, the City will provide 65%, so a total of7 years increment will be provided. Sacchet: So the benefit to the developer is over those 7 years? It's not like they get something up front. Miller: No. It will be a pay as you go, which means they have to pay the taxes and as they pay those, then it will be reimbursed to the developer. Sacchet: Okay, okay. I didn't see the 300 in there. I mean I saw like some other numbers. Miller: Within the TIF plan, when you create a housing district it can be created for a maximum of 25 years, and so in doing these we try to create as much flexibility as possible. It is our intention right now, at the end of 7 years to decertify or end the TIF district. However, at the end of 7 years if there's another use that we want to provide money somewhere for affordable housing in the city, we can keep this TIF district open and that's probably the number that you saw. I think over the life of the district it's anticipated to create maybe $1.2 million dollars. Sacchet: Okay, so the idea, but the idea is that it's kept to 300 in this case? Miller: That's right. That's our goal. Sacchet: But this would be a foundation that the same instrument could be used beyond that with potentially another. Miller: That's right. Right, we would need to enter into a contract with another company, another developer before the end of the 7 years to try to find a use for the increment. Sacchet: Now this is kind of unusual for the Planning Commission to actually deal with more financial issue and so my understanding of our context is actually to look at this in a view of the comprehensive plan. Miller: That's right. The actual numbers and the financial part is really the role of the EDA and the City Council. The role of the Planning Commission tonight is to ensure that the 2 Planning Commission Meeting - March 21, 2006 improvements being made through the tax increment financing support is in conformance with the City's comprehensive plan. Sacchet: So our angle is to make sure it fits in with the overall planning. Miller: Exactly. Sacchet: And I think we've already decided that as such when we approved that type of a development to go into that place, correct? Miller: Right. An example would be say a developer wanted to put in apartments or some sort of development along current 212. That doesn't have sewer and water and we, staffwas proposing to provide TIF assistance to do that. Clearly that would not be in conformance with the comprehensive plan and that would be the role of the Planning Commission to say that. Sacchet: Okay. Any other comments? Questions. Alright, thank you Justin. Miller: Thank you. Sacchet: So there is a recommendation here that the Planning Commission adopt the attached resolution finding that a modification of the redevelopment plan for the downtown Chanhassen redevelopment project area and the tax increment financing plan for Tax Increment Financing District NO.9 conform to the general plans for development and redevelopment of the city. Must have been drafted by an attorney. Do we need to make a motion and vote on that? Kate Aanenson: That'd be correct. Sacchet: So anybody want to make a motion here please? McDonald: I'll make the motion that we adopt the attached resolution that you just read, resolution of the City of Chanhassen Planning Commission finding that a modification to the redevelopment plan for the downtown Chanhassen redevelopment project area and a tax increment financing plan for Tax Increment Financing District NO.9 conform to the general plans for the development and redevelopment of the city. Sacchet: We have a motion. Is there a second? Larson: Second. Sacchet: We have a motion. We have a second. Resolution #2006-01: McDonald moved, Larson seconded that the Planning Commission adopt the attached resolution that you just read, resolution of the City of Chanhassen Planning Commission finding that a modification to the redevelopment plan for the downtown Chanhassen redevelopment project area and a tax increment financing plan for Tax Increment Financing District No.9 conform to the general plans for the development 3 Planning Commission Meeting - March 21, 2006 and redevelopment of the city. All voted in favor and the motion carried unanimously with a vote of 5 to O. PUBLIC HEARING: LAKE RILEY /RICE MARSH LAKE WATER QUALITY IMPROVEMENT: REQUEST FOR A WETLAND AL TERA TION PERMIT FOR EXCA VA TION AND MAINTENANCE OF FIVE (5) STORM WATER PONDS FOR THE PURPOSE OF IMPROVING WATER QUALITY IN THE RICE MARSH LAKE AND LAKE RILEY WATERSHEDS. PLANNING CASE NO. 06-06. RILEY-PURGATORY-BLUFF CREEK WATERSHED DISTRICT. Public Present: Name Address Ken & Liz Nystrom Bob Myers Kathy Slavics 8501 Tigua Lane 8131 Dakota Lane 8140 Dakota Lane Lori Haak presented the staff report on this item. Sacchet: Thanks Lori. Questions, Dan. Keefe: I've got a couple questions. First one, can you list, how does expanding, it looks like most of these ponds are going to be expanded and enlarged, right so how does that then translate to clearer water in Rice Marsh Lake? Are we going deeper? Maybe you can just show me, give me an example. Runoff goes in. Sand gets trapped wherever then it goes out. Real simple. Haak: Yeah, that's exactly right. I don't have to say much more than that. Yeah, the primary functions of storm water ponds is to trap the sediment, the big particles so not only trash but also the sand from road salt applications and things like that. The other is for nutrient removal, and so when you have, especially when you have a larger pond with a little bit more residents time, the very find particles can settle out and in fact vegetation has a big part to play in removing some of those nutrients before the water goes on to the next part in the system, whether it's Rice Marsh Lake or Lake Riley. So really by getting a big pond, what we're doing is consolidating... The original proposal for, that the watershed district brought forth included a lot of storm water ponds. Actually some in rear yards off of places like Marsh Drive and Lake Drive, off of commercial pieces and things like that, and what they were able to do by having a little bit more wetland impact, they were able to leverage a bigger area so for maintenance purposes and just construction feasibility purposes, they could consolidate those. In addition there's some evidence that regional ponding is more effective than water quality treatment so, that's kind of. Keefe: Where does all the fill go? 4