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IDC Agenda 08-20-1998
~~ • AGENDA MONTICELLO INDUSTRIAL DEVELOPMENT COMMITTEE Thursday, August 20, 1998 - 7:00 a.m. City Hall MEMBERS: Chair Dick Van Allen, Vice Chair Tom Lindquist, Secretary Tom Ollig, Shelly Johnson, Don Smith, Ken Maus, Kevin Doty, Bill Tapper, Bob Mosford, and Bob Grabinski. COUNCIL LIAISON: Mayor Bill Fair. STAFF: Rick Wolfsteller, Jeff O'Neill, Fred Patch, and Ollie Koropchak. 1. CALL TO ORDER. 2. CONSIDERATION TO APPROVE THE JULY 16, 1998 IDC MINUTES. 3. COT a) b) c) d) • e) TSIDERATION OF ACTIVITY REPORTS: Mayor's report. Industrial Banquet -Bob Grabinski. Ground Breaking Reception -Blue ChipB & B Metal Stamping Marketing Subcommittee -Don Smith. Prospects -Ollie 4. CONSIDERATION TO HEAR AND ENDORSE STANDARD IRON'S PROPOSAL TO MN JOB SKILLS PARTNERSHIl' GRANT. Ollie 5. CONSIDERATION TO REVIEW THE COMPARATIVE CITY FEE STUDY FOR C/I DEVELOPMENT AND APPROVED CHANGES. Fred Patch or Jeff O'Neill. 6. OTHER BUSINESS. 7. ADJOURNMENT. • Minutes from July, 1998 IDC Meeting 07/16/98 Members Present: Dick Van Allen, Tom Ollig, Don Smith, Bill Tapper, Bob Mosford, Bob Grabinski, Mayor Bill Fair, City Staff Jeff O'Neill, Ollie Koropchak. Members Absent: Tom Lindquist, Shelly Johnson, Ken Maus, Kevin Doty 1. Meeting was called to order by chairman Dick Van Allen. 2. Motion by Tapper, seconded by Grabinski to approve minutes from June IDC meeting. 3. CONSIDERATION OF ACTIVITY REPOSTS: a. 3M Visit - Mayro Fair and Ollie talked about their visit to 3M and what they as a company look for when selecting a site to build an office or plant. See attachment "A" b. Prospects -Ollie, Midwest Graphics will hold a ground breaking and reception some time in August all IDC members will be informed. B&B was thought to be going to Albertville and it looks as though they will be building in Monticello east of Vector Tool with a 12,000 sq., ft. Building employing 5 people. Paul Edder of Allied is interested in the property next to Fulf-Ilment Systems, will meet with City Staff to discuss his concept. c. IDC Banquet is October 27`" at the Monti Club, tickets will be distributed to IDC members in September. 4. Bob Grabinski reported on various Chamber activities, IDC Banquet, School to Work program, Job Fair, Joint Industry Tour, and the new Monticello map. See attachment "B" 5. CONSIDERATION TO REVIEW SCHEDULE AND PLAN FOR DEVELOPMENT AND MAINTENANCE OF INDUSTRIAL MARKETING PLAN Don Smith and Tom Ollig reported on the progress to date the IDC sub committee has achieved in regard to this matter. Jeff O'Neill of City staff after reviewing the plan stated that he and Ollie will determine who will be responsible for the different areas as mentioned in the plan. At this point the Marketing Plan will be presented to the HRA for approval and then on to the City Council. Motion by Smith, seconded by Ollig that the proposed Marketing Plan move onto the HRA and City Council for discussion and approval. Unanimously approved. 6. Status of SW Corridor Utility Feasibility Study. Mayor Fair reported that there has been no action yet in regard to the study. There is still on-going discussion with the City and business owners as to the location of Chelsea Road. He also reported that the Hwy. 25 project will not start until the spring of 1999. 7. Motioned by Grabinski, seconded by Mosford to adjourn, unanimously approved. ~~// ~~ A /I NIINNESOTA MINING & MANUFACTURING June 26, 1998 Mark Beattie, Manager, Real Estate Department "A community with a vision for the future" SITE DEVELOPMENT 1. SPEED -Protects business market shaze and delivery of product. (A business has defined its mazket) 2. PROTECTED ZONING -Industrial (no residential) a) Community owned b) Improved or ability to deliver. (Business willing to pay if assured it can be up and ready) c) Developed partnership with builders. Built to suite to lease Less than six months. 3. SIZE AND FLEXIBILITY MOST Il~IPORTANT. a) 3M not less than 200-acre site. 200 to 500 acres. b) 130,000 to 800,000 sq ft -Industrial campus with supplies azound. c) 1 % land needed for buffer. d) Can sub-divide in future. e) Environmental issues. ' Necessary infrastructure. What's going to be azound you. Need for 500 acres. Two major company anchors - 1,000 acres. Transportation. Vibration. Flow of winds. Selective -quality and way company operates. 3M -perhaps new sites in future. (Colorado high tech and Arkansas light industrial) 1. SITE SELECTION. I-94. Traffic flow for suppliers and customer distribution. Interechange Trucking noise and signaling. Impact azound them. 2. QUALITY OF LIFE. a) High percentage of technicaUprofessional employment. b) Ability of employment for spouse. Also professional. ~~1~1I Cb~~. o~ (Provide retention of employment) c) Education - % of high school graduates going on to college/university. 80% or better for consideration. Accessibility of colleges and university for continued training and spouse's education. 3. BUSINESS CLIMATE. a) Incentives through legislation. b) Lobby for interchanage/ highway, etc. c) Vision for residential development. d) Managemerrt of your City. 4. WORKFORCE. a) Availability of education. b) Quality workers c) Cost (wages) ,~ ~- . 3 R ~on~ 3M Site Selection Methodology Overview The process utilized at 3M for site selection of new facilities generally takes three steps: The first step addresses the anticipated business need, provides definition of the search objectives and outlines the projected time the new facility will be needed by the specific business Division or Group. This information is compiled by the requesting Divison/Group Manufacturing management and shared with other 3M internal manufacturing and corporate management to clearly communicate and define the need. The second step is to compare the need with existing 3M operations (existing manufacturing plant suitability) to better determine possible opportunities to consolidate or expand existing operations to accommodate requirement, where possible. If it is determined existing 3M manufacturing sites are not suitable for this requirement, a review of all 3M surplus sites, i.e., "brown field" (sites projected for disposal or actively being marketed for sale) and "green field" generic land banked sites (sites currently held by the corporation for future manufacturing use) is conducted. The third step (if necessary) is to conduct a search for a new site. This process is managed by an internal 3M site selection committee consisting of representatives from the Division/Group Manufacturing team having the need, Upper Management, Real Estate, Tax, Finance, Human Resources, Logistics, Environmental Technology 8c Safety and those corporate committees involved with global quality and manufacturing utilization. The team may also be supplemented by the selection of consultants in the prescreening of communities and the final site evaluation, selection and acquisition. Throughout this three step process, 3M employs a site selection criteria to evaluate those communities and sites we currently have operations in as well as any future US or Global regions, communities and sites under consideration. The critical criteria to be considered are as follows: 1. Supply Chain: Provide the desired total delivered cost and cycle time for products produced at a site. The key elements/considerations being proper alignment of distribution network between suppliers, manufacturing site(s) and 3M customer(s)/distributors. 2. Quality Of Life: Those regions/communities which provide a high quality of life for our employees and their families, e.g., factors such as: housing, low crime, education, cultural and spouse employment opportunities. 3. Business Climate: Those regions/communities which are pro-business, e.g., right-to-work, low taxes, incentive programs, etc., and can advance 3M's strategic business interests. 4. Quality Of Workforce: Availability, quality and cost of workforce. 5. Safety, Health and Environmental: Regions and communities that provide environmental regulations that support 3M business operations and align with 3M's operating policies and initiatives regarding Safety, Health and Environmental matters. 6. Infrastructure: Those regions, communities and specific sites which best support a specific 3M business need, e.g., zoning, site size, roadways, utilities, airports, etc. • 7. Growth Potential: Those regions, communities and specific sites which can accommodate anticipated growth needs of a specific 3M business, e.g., land, infrastructure, workforce, etc. 8. Risk: Assess the financial and operational risks associated with site (existing vs. new) options. ~2ch~»Qn~ rJ ~ // Information for the IDC IDC Banquet Tuesday, October 27 , i' Monte Club '•- Ticket price last year: $75/person with second person $25 -Arn e Do you recommend keeping the price the same? SJ SCllool t0 Work: Kitty Baltos, Joanne Forbord (Standard Iron), Ellen Bjornlie (Maus Foods), Lois Posusta (Bondhus) other business people and Teachers are on a School to Work Committee. We are in the process of determining what different area Businesses and organizations are doing currently for Career exploration. We would value input from the IDC and would also like to keep The committee apprised of what they are doing. The information May be something that could be a part of the marketing plan. Job Fair: We have set a date, time and location for the joint job fair with the Rogers Chamber. Friday, October 9°i 3:00 p.m. to 8:00 p. m. Saturday, October 10~' 9:00 a.m. to 2:00 pm • Rogers Middle School More information will be available at the end of July with registrations going out in early August. Cost at this time is unknown. We will be inviting the`entire Northwest area businesses to join us. Joint Industry Tour: The date is Tuesday, October. 13°i, during manufacturers week We will tour Monticello businesses in the afternoon. The two businesses on the tour are: Remmele Engineering Standard Iron We have not decided on a lunch program yet, so if you have Suggestions, please pass them on to Bob or me. Monticello Map: The Chamber Monticello Map is out. If any of you would like Some copies available, let me know. • ~~ ~ i/ l~~ ~~ SCHEDULE AND PLAN FOR DEVELOPMENT AND MAINTENANCE OF A CITY OF MONTICELLO INDUSTRIAL MARKETING PLAN July 1998 GOAL: To unveil the industrial brochure and prospect list at IDC Banquet on October 27, 1998. Items I and II. I. Development or update of an industrial brochure. Content: Business climate (speed, zoning, and flexibility) Available sites -size and contact person. Infrastructure Transportation/Location Utilities Labor Force Financial Assistance Maps A. Gather and update information. 1. Maps and data Who? HRA/IDC/staff Time: 10 hours. B. Hire for development of concept and design of brochure. Cost? Who writes? Firm. 1. Quantity and type (small or large, with or without inserts) Time - 3 months (Hire to production) Time: 8 hours C. Review and maintain brochure data. Who? Ollie " Time: Every six months 2 hours. 4 hours II. Define target market for development of prospect list. A. Define specific SIC Who? Small group -Brad, Dick, Tom, Don, Darrin, and Ollie Time: 2 hours: B. Acquire list by identified SIC Who? Ollie, DIED, MTI, etc. Time : 4 hours C. Filter list by location (NW corridor). Who? Time: 4 hours. D. Filter list by size. Determine appropriate measure i.e. number of employee, wages, tax value etc. Who? Small group Time: 4 hours. E. Develop a list of existing industry referrals i.e. supplies, service, etc. • 1. Via survey developed by Ollie Time: 4 hours ~` 2. Survey implementation by IDC Time: 2 weeks. 80 hours rl~ r~ Con7~~ III. Implementation of targeted marketing plan (pro-active). A. Mail 10 brochures per month. ($30 per month) $360 1. Who stuff and mail? Staff B. Develop personalized introductory letter from Mayor. 1. Who? Ollie C. Follow-up call in one week. Who? Ollie Time: 14 hours per month 168 hours D. Follow-up prospect team appointment. $50 per event Who? Team: Mayor, Administrator, Ollie, HRA and IDC representative. When appropriate, financial consultant. E. Optional: Host community visit/tour. $100 per event Time: 4 hours per appointment. N. Response to industrial inquiries (re-active). $50 per event Who? Ollie A. Set up appointment. B. Contact Prospect Team C. Site visit and bring market pieces D. Optional: Host community visit/tour. $100 per event Time: 4 hours per appointment. OR • A. Mail brochure/introduction letter. B. Follow-up within one week -set appointment. C. Contact Prospect Team. , $50 per event D. Site visit and bring market pieces. E. Optional: Host community visit/tour. $100 per event Time: 4 hours per appointment. V. Development of an industrial web site. $7,000 1. Ollie currently developing with city framework, much data gathered via marketing exercise Estimated Time: August 1, 1998 2. Maintaut/update. Who? Time: 40 hours per year. VI. Develop a-mail capabilities for use. 1. Ollie currently developing with city framework. Estimated time: July 15, 1998 VII. Develop Public Relations Campaign. A. Press releases. 1. Photos -Wanda 2. Write articles -Intimate Patty 3. Identify distribution list 4. Distribute -Wanda ~ ., ~ o~,,~. 3 Time: 2 hours per month. ? 24 hours B. City Newsletter. 1. Photos -Wanda 2. Write articles -Ollie 3. Assemble -Wanda and Karen. 4. Distribute -staff. Time: 2 hours per month. ? 24 hours C. IDC Banquet. 1. Coordinate event - Chamber/IDC -Kitty/Ollie 2. Ticket sales -IDC members 3. Speaker selection -IDC members Time: 16 hours Event: 4 hours D. Annual City Event (Bus tour, golf, etc.) $2,000 1. Coordinate event -Ollie Time: 10 hours. Event: 8 hours. E. Industrial Ground-breaking Reception $50 per event 1. Coordinate - Ollie/staff Time: 2 hours Event: 2.5 hours F. Industrial Open House Tour. $30 per event 1. Coordinate -Ollie/staff Time: 2 hours Event: 2.5 hours G. Mayor/Ollie Industrial V sits , 1. Coordinate -Ollie Time: 20 per year = 50 hours per year. TOTALS Time: 475 hours Budget: $10,500 VIII. Participation at Trade Show promoting industrial development (2 to 3 per year) A. Design/create booth B. Identify which trade shows C. Develop plan for staffing booth D. Identify and order freebies (mugs, etc) $1,000 Time: ? Budget : ? IX. Erect industrial sign along freeway. A. Research cost and site B. Determine length of time C. Design sign Time: ? Budget ? r~ /, C., C p ~7 ~ . Public relations campaign, Industrial development-City of Monticello Photos and news stories about industrial development will be processed by city hall and mailed to: Monticello Times Minneapolis Star Tribune St. Paul Pioneer Press City Business Twin Cities Business Monthly Real Estate Journal St. Cloud Times Wright County Journal-Press, Buffalo KRWC-Radio, Buffalo WCCO-Radio-Minneapolis Minnesota Public Radio, St. Paul 5 Twin Cities TV stations-2, 4, 5, 9. 11 Letterhead will have city hall contact person (normally Ollie Koropchak)...plus name of industrial manager/owner (if appropriate...a.nd with approval). Types of stories: • Business relocations • Business expansions (existing firms) • City IDC/HRA events~olf, breakfast, IDC banquet (speaker, etc.)' • New industrial plats/offerings • Newsmakers within industrial community • New financing program (or economic assistance) (I believe 2 hours per month is an accurate time estimate) 1997 Comparable Development Fees Studv A developer/builder/owner has come to your office to determine all necessary approvals, permits, licenses and fees required to develop land and to build buildings areas that are currently zoned for agricultural use. Each land parcel is 50 acres in size and is planned to be subdivided into lots. The residential land is to be divided to provide the maximum number of lots, and the industrial are is to be divided into five (5) industrial lots 10 acres in size: 1. 100,000 SQUARE FOOT OFFICE/WAREHOUSE Lot Area 10 acres to be divided from a 50 acre parcel, undeveloped land, trunk utilities unpaid, park dedication fees unpaid. ($65,000/acre land value) Building Use 30% office and 70% warehouse. Parking 50 employees on maximum shift Construction Type II 1-hour fire rated, 24 feet in height, fully fire sprinklered, fire alarm system monitored by a central station. No high piled storage. (Concrete plank exterior, steel frame, ballasted single-ply roof; glazed curtain wall office) For building permit costs use one of the following, whichever is normal to your operation: Estimated construction value -- I.C.B.O./State Valuation is $3,139,860 Additional Building Data: Utilities A11200' to right of way (ROW) 6" sanitary sewer service pipe to sanitary sewer main in ROW 8" water connection, ductile iron pipe to 12" water main in ROW (2) 2" water meters (one for irrigation, one for domestic water supply) 24" storm sewer connection, reinf. conc. pipe to storm sewer main in ROW 1000 amp electrical connection to power in ROW Plumbing (20 fixtures) 5 toilets ......................................... Job Value $15,000 1 urinal 2 drinking fountains 5 sinks 5 floor drains 2 water heaters HVAC (15 fixtures 10 rooftop units ................................... Job Value $45,000 5 unit heaters 15 natural gas pipe openings Fire 200 sprinkler heads ................................ Job Value $21,500 Sprinkler • Fire Alarm 500 devices (smoke & heat detectors, etc.) ..................Job Value $12,500 C: \FRED\FEE S TUDY\FEE-STUD. FM r~ 2. SINGLE FAMILY RESIDENCE WITH ATTACHED GARAGE Lot Area Based on minimum lot size allowed, undeveloped land, trunk utilities unpaid, park dedication fees unpaid. Construction Two story with full basement, 1,500 sq. ft. per floor; type V-N; average construction; 450 sq. ft. attached garage. For building permit costs use one of the following, whichever is normal to your operation: Contractors estimated construction valuation is $125,000. I.C.B.O./State Valuation is $139,275. Additional building data: Utilities A1135' to right of way (ROW) • 4" sanitary sewer service pipe to sanitary sewer main in ROW 1"water connection, Type L copper tubing to corporate connection to 12" water main in ROW (1) 5/8" water meter No storm sewer connection 150 amp electrical connection to power in ROW Plumbing (10 fixtures) (2) full baths (1) 3/4 bath (1) kitchen sink (1) dishwasher (1) clothes washer (3) floor drains (1) gas water heater HVAC (3 fixtures) (1) 120,000 BTU Furnace with air conditioning (1) clothes drier (4) gas pipe openings C: \FRED\FEESTUDY\FEE-STUD.FM _____ ~ STANDARD ~ IRON & WIRE • __ -- WORKS, INC. QUALITY FABRICATIONS SINC~1930 • 207 DUNDAS ROAD MONTICELLO, MINNESOTA 55362-8916 612-295-8700 • FAX 612-295-8701 August 14, 1998 U '~ '~© b ~~~~~~ Ollie Koropchak Economic Development Director City of Monticello 250 E. Broadway P.O. Box 1147 Monticello, MN 55362-9245 Dear Ms. Koropchak: Standard Iron is in the process of developing a proposal to the Minnesota Job Skills Partnership grant program. The proposal was initiated in response to the company's need to provide training to increase the skill levels of employees throughout their three locations in Monticello, Sauk Centre and Alexandria. Training needs assessments have been conducted and curriculum is being identified with the assistance of St. Cloud Technical College and Minnesota Technology Inc.'s St. Cloud regional office. Your support for this project will be crucial to successful funding of the proposal. In an effort to inform you about this project, Standard Iron invites you to attend an informal open house at 9:30 a.m. on October 1, 1998. The event will include an overview of the proposal and a tour of the Monticello manufacturing facility. The Minnesota Job Skills Partnership Board of Directors will require Standard Iron to demonstrate local participation in the project. Therefore, we will be requesting a letter of support from you which will be attached to the final proposal. A sample letter is attached. Please call Bobbi Huikko at (612) 295-8735 to confirm your participation on October 1st at Standard Iron in Monticello. A map has been included for your convenience. We look forward to seeing you on October l~. Rich Demeules CEO Enclosures • SAMPLE LETTER • Board of Directors Minnesota Job Skills Partnersliip 500 Metro Square Building 121 Seventh Place East St. Paul, MN 55101-2146 Dear Members of the Board: I hereby request your support for the St. Cloud Technical College application to train approximately 250 current and new workers at Standard Iron's three central Minnesota locations in Monticello, Alexandria and Sauk Centre. In order to provide Minnesota workers with the knowledge and skills for good paying jobs, as well as, to retain and attract growing businesses, we must continue to offer a workforce that, along with the traditional work ethic of Minnesotans, has the technical skills necessary to enhance the competitive position of our business in the expanding global marketplace. St. Cloud Technical College is uniquely positioned *_o assist in these • efforts in central Minnesota, and I believe we would see an impressive return on our investment in this project. I urge your favorable consideration of St. Cloud Technical College's regsaest and Dope you will feel free to contact me if I can provide fi~rther information. (The letter may refer to the October l ~` i:our....."After visiting the Monticello plant of Standard Iron and learning more about this project, I urge yo,1 to consider tl.e ~rot?osal m partnership with St. Cloui3 Technical College. Training curriculum in the plan ranges from traditional ("basic skills) to very sophisticated (paperless factory) courses.) • ~ X r~ W ,_»: ~ `"'' I ~ is ava3~ ' ~ ~ ~ !i ~~~~,~ill~il K ~Ilili~l~'lll!II~I IIIIIIIIIIIIIIIIIIIIIIIII ~~~ ?Oa ?zv. -a v ..n~~~oN ~N W o~ ~N~'Z t~ ~ N ~ N~~~C N0° `~rno ~~.,o~'rr-D o ~ U) V T o ~ O zD 0 Council Agenda - 8/10/98 12. Consideration of a stud~and modification of fees and charges for development in the city of Monticello. (FP/NAC) A. REFERENCE AND BACKGROUND: Eazlier this year, the City Council asked City staff for a comprehensive study of fees and charges as related to new development. The study was to ensure that the City of Monticello fees and charges are: ^ Competitive to those of neighboring cities in the same market area, and ^ Commensurate to the actual costs incurred by the City in providing municipal services. In cooperation with the City of Hanover, we have surveyed 12 neighboring communities in the same economic development market as Monticello. The fees and charges for each city surveyed have been installed in the first attached chart (See Exhibit A). We have made acity-to-city comparison of estimated fees and charges likely to be incurred in two development examples. The first is single family residential (See Exhibit B) and the second is fora 100,000 square foot industrial office/manufacturing/wazehouse • building (See Exhibit C). Subtotals have been provided and ranked on the case studies. A low ranking equates to low fees and a high ranking equates to high fees. The ranking is based only upon the fees and charges applicable to the particular case study. Both examples assume that the development would occur on bare land within the city limits. Costs that may be related to annexation, extension of utilities and roadways, and private "soft costs" such as engineering and private planning fees are not considered by this study. Subtotals are provided to indicate how fees and charges are distributed by category of city service provided. After making comparison between fees and charges, it is important to also make comparison between utility rates and chazges. Indirectly charged development fees such as utility rate charges, and expendable development escrows and cash bonds are difficult to compare from city to city but must be considered when comparing development related fees. For example, note that the cities of Buffalo, Big Lake, and Maple Grove charge substantially more for water and sewer than Monticello (Buffalo 60/ more, Big Lake 40% more, Maple Grove 2~% more). In those communities, utility revenues drawn from the entire community appear to be subsidizing the cost of new development. NAC has prepared a more specific study of park dedication fees and has provided the attached report (See exhibit D). 32 Council Agenda - 8/10/98 At its last two meetings, the Planning Commission considered the results of the fee study and made a recommendation to change the Park Dedication Fee for new residential development to $750 per lot. The Planning Commission considered other fees and charges; however, the Commission is not responsible for making other fee recommendations and made none. If the Council chooses to make changes to fees or charges, it is highly suggested that those changes be effective in 4 to 6 months time in order to provide sufficient notice time to the developers and builders. Note that SAC charges have already been scheduled by City Council fora $500 increase effective January 1 for the next two years. That will make the SAC charge $2500/unit effective January 1, 1999, and $3000 effective January 1, 2000. B. ALTERNATIVE ACTIONS: Motion to change fees and charges as follows: a. Adopt the 1994 Uniform Building Code Fee Schedule. b. Increase the Park Dedication Fee on residential development to $750 per lot and make Park Dedication Fees applicable only to residential development. c. Increase the Utility Connection Permit to $50 for Sewer Connection, $50.00 for Water Connection, and $80 for Combination Sewer and Water Connection. 2. Motion to modify fees and charges [in some manner deemed necessary by Council]. 3. Motion to make no changes to fees and charges. C. STAFF RECOMMENDATION: Staff recommends alternative #1. D. SUPPORTING DATA: Exhibit A - Survey of Fees for 12 Communities. Exhibit B - Residential Fee Estimate Example. E.Yhibit C - Industrial Fee Estimate Example. 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C Q ~ ~ s 3 C S i . ~ 0 ~ v Q 4~ ~ _ U ~ ~ N I L ~ LL cc ~ ~ G ~ ~ O ° ° r' ~ N v U o 0 r a 2 r ~ ~ R° Y lil w n r a Y 0 !~!~~ . .9 m TV Y Y yq m N V . w Q U N Y~ `Y~YO ~, L Y • pN Y ' Q P V ~ • ~ F NORTHWEST ASSOCIATED CONSULTANTS INC COMMUNIT7 PLANNING - DESIGN - MARKET RESEARCH .MEMORANDUM T0: Michael Sobota Steve Michaud `~ ~n~ FROM: Elizabeth Stockman /Alan Brixius DATE: 19 August 1997 RE: Lakeville -Park and Trail Dedication Requirements FILE: 336.00 - 97.11 Sincs the decision of the U.S. Supreme Court on the Dolan vs. Tigard case, many cities have chosen to have a detailed evaluation done of their existing park and trail dedication requirements. Specifically, it is critical to determine whether the amounts of cash andlor land required from the developer are proportional to the development's impact on the recreational system. At the direction of Mike Sobota, we have prepared an explanation and summary of the methodology which has been used by our office in evaluating park and trail dedication requirements. 1. Quantify the Improvement Casts of the City's Ultimate Park and Trail System In order to determine what a city's proportional parkltraii dedication fee should be per residential .. unit, the total value of existing improvements and total estimated cost of planned improvements must be calculated. At least part of this data can be taken from the city's Park and Trail Plan which shows the locations and approximate sizes of existing and planned parks and trails. The service areas of parks must also be available to determine whether a portion of existing parks will service areas net yet developed. An itemization of recreational elements desired in each new park, trail widths and materials, as well as planned improvements to existing parks must be determined to the extent possible. Example line items might read as follows: City Park Acquisition of (and, 6 acres at 520,000/ac 5 120,000 Two baseball flelds, Includes rough and fine grading, crushed red rock, backstop, lighting, 3 row fiberglass bleachers and 15 foot benches S 200,000 Upgrade existing poc:dng lot and expand, includes grading and surFacing, parlang for 30 $ 31,000 Landscaping, waste receptacles, and signage $ 18,000 Overland Trails 100,320 linear feet ~ $13/If , 8 feet wide, bituminous paved, includes grading and gravel base 51,304,1fi0 EXHIBIT E - NAC REPORT 5775 WAYZATA BOULEVARD, SUITE 555 ST. LOUIS PARK, MINNESOTA 554 1 6 PHONE 6 12-595-9636 FAX 6 1 2-595-9837 ~~ ~~ ~. For much of the existing facility data, we would rely on input from the parks department regarding past budget data the sources of funds used to implement existing recreational elements, whether • it be park dedication monies, bond referendum, grants, donations, tax levies, etc. 2. Evaluate Existing Paris and Trail Systems Against Current Community Park and Trail Demands The existing recreational system needs to be looked at in relation to ideal standards for park and trail development, such as acres of park per population, (inset feet of trails per population, etc. This will determine whether the City's current recreational system is either over built, under built, or right on target in relation to current demographic conditions. If underdeveloped, the existing population and/or sources of money other than park dedication should make up the difference so as to maintain the balance between new residents impact on the system and the amount of dedication money required of the developer. If over developed, the park dedication may be adjusted to reflect an equitable distribution of cost to new development. 3. Identify the Proportion of Park and Trail System Improvements Funded by Park and Trail Dedication In past studies results for various cities have shown that about forty to sixty percent (40-6Q%) of the total cost of improvements is implemented through park and trail dedication monies and the remaining portions are realized through other means such as grants, donations/volunteer work, tax levy's, bond referendums, etc. We must identify the level of funding that park and trail dedication fees offer Lakeville and define assumptions on their future use. 4. Allocating Park and Trail System Cost to Future Residential Growth The Comprehensive Plan provides forecasts for population and household growth. The City must identify future residential growth by housing type (multiple family vs. single family) if it wishes to maintain its sliding scale to assign a land dedication percentage which rises as the number of units per acre increases. The impacts of multiple family units/developments on the park and trail system wilt have to be evaluated to document the effect that household sizes, number of children, ages, and other demegraphic characteristics may have upon a city's park and trail system must also be proportional to the required dedication amount. The future impravement costs can be divided by future household counts to provide an average park improvement cost per unit. This can be compared with existing per unit park values to illustrate an equitable distribution of costs. 5. Commercial and Industrial Park Dedication The City also has a commercial and industrial dedication requirement, however, the Dolan vs. Tigard case showed that in order to collect panic dedication monies from such uses, the burden is on the City to identify what proportion of impacts on the park system come from these businesses and their employees. This could be done many different ways with varying levels of detail, so long as the City demonstrates that a reasonable effort has been made to make a 2 EXHIBIT E - NAC REPORT ~~ y determination on what percentage of the total improvements can come from commercial and ndustrial developments. ff the City opts to proceed with this type of analysis, once obtained the ~ata can be used with the acreage of undeveloped commercial and industrial parcels and cost of land per acre to estimate the contribution to the overall system. The residential park land dedcation requirements will be adjusted to reflect contributions received from commercial and industrial developments. 6. Recommendation for Park Dedication Standards Park and trail dedication requirements must be proportional to a development impact on the C its s recreational system. Upon completing and analysis of the aforementioned items, the City will be in the position to identifjr and define the appropriate park and trail dedication standards for various land uses (i.e., single family residential, multiple family, commercial and industrial}. pc: Roger Knutson Bob Erickson .~ • EXHIBIT E - NAC REPORT 3 ~~ /a -/0 PARK AND TRAIL FEE INVENTORY OF WESTERN METRO AREA AND WRiGHT COUNTY COMMUNITIES Northwest Associated Consultants, Inc. Jul 29, 1997 CITY SINGLE FAMILY REStDENTiAL COMMERCIAL OR INDUSTRIAL TRAIL PARK DEDICATION(a) PARK DE01CATlON oa er unit SIDEWALK DEDICATION Land Cash Land Cash Albertville 5% $500 5% 5% of fair None market value Buffalo 10% $800 None Sidewalks • along collector sheets Cokato None None None Delano 10% $300 7% $1,000/acre None Elk River As required by 5600 As required by $2,000/acre Trails as Plan, equal to Plan, equal to required by cash contribution cash contrbution Plan, deducted based on fair. based on fair from park foci market land value market land value Litchfield None None None Maple Grove 10% $1,060 7.5% Commercial: Trails as $3,600/acre required by Industrial: Plan, deducted $2,775/acre trom park teas Monticello 10% Equal to 10% of 10% 10% of fair On major raw land cost market value streets (See {2) below) (See (2}below) Otsego 10% $750 10% 10% of fair 5125 • market value Plymouth 10% $1,400 10% $4,200/acre See (3) below Rockford 10% $500 None Commercial: When required $250/acre within right-of• way~(sidewalk) Rogers 10% $560 (plan on 10% Commercial: None, but rais~lg to $2,000/acre currently $650 to 675) industriaL• pursuing 51,400/acre St. Michael 8% 5300 None, but City is considern~g None !instead None None None i ~-,~ r,....~.:.._x,....,i ~~.,.v~,.r, Al.e no::161a where such dedications an roquirod ____ ~~ ...,,,,.,,~ yaw... EXHIBIT E - NAC REPORT :~ 1~~-i • • Park & Trail Fee Inventory Page Two •ly 29, 1997 (1) Maple Grove has over 70 miles of paved trails and many are located along the side or rear lot lines of residential parcels. They require a~ 30 to 100 foot corridor within which an 8-10 foot trail is constructed according to the Plan. The dedicated land is part of the required 10% land area. In addition to this requirement, 5 foot sidewalks are required on both sides of the street in a(I new subdivisions. They have not had any problems with resident complaints. (2) Monticello requires cash dedications in an amount equal to 10% of the raw land. Monticello requires trails to be installed by developers as shown on their Plan. The Policy requires a trail on one or both sides of the street (depending upon the situation) along all roads which exceed 500-700 vehicle trips per day. Monticello has an established commercial and industrial dedication amount (10%}, but it has never been used. (3) Plymouth has over 75 miles of paved trails, with many located in rear and side yard areas of res~~'rntial lots. A minimum corridor size of 30 feet is required to be dedicated la~~d, so as not to lessen the required setback from property lines (an easement would allow the trail to be located closer to the home). The required trail width is 8 feet. They have had very few complaints, but recommend getting the trails installed before homes are built. However, in commercial and industrial areas the opposite method of trail establishment is used: easements are required to allow the owner to maximize use of his land. The cash dedication amount is $4,200/acre in commercial and industrial areas. EXHIBIT E - NAC REPORT la -ice i f .. .. " PIWC 5 will move to Monticello New facility -~ =-v~11-house several agencies By Steve Prinsen Annandale will lose another one of its key employers at the end of this month. Private Industry Workforce Council 5 (PIWC 5), located on Hwy. 55 E. is moving to Monticello. Earlier this month, Truk-Mate Conversions announced that it was merging with a Twin Cities compa- ny, and that company would move its headquarters to a new Twin Cities location later this fall. PIWC 5, anon-profit organiza. tion that provides employment and job training services to the unem- ployed, underemployed and youth in 11-county area in Central innesota, will move to new offices to Monticello at the end of this month. Truk-Mate Conversions and PIWCS account for between 70 and 90 jobs. They are listed as Annandale's eighth and seventh largest employers in information the city uses to attract prospective busi- nesses to the city. Changes in state and federal pro- grams, growing pains, and the cen- tralization of employment services to one center are the main reasons PIWCS is leaving Annandale, said its marketing and public relations coordinator Chris Schanus. "We can't say anything bad about Annandale. Everything we've ever needed has been here, " he said in a recent interview. Added Executive Director Diane Bublitz, "Annandale has been a great hometown for us the last nine years. It will be difficult leaving, but we will be better able to serve job seek- ers and employers as a partner in the Ivfinnesota WorkForce Center in Monticello. We thank the Annandale community for the support we've.. received through the years." PIWC 5 will be taking up quarters in the Minnesota Workforce Center site in Monticello. The center will combine five agencies -each with separate missions yet each distinct - PIWC 5, Job Service, Division of Rehabilitation Services, State Services for the Blind, and Green Thumb. The former site of the Marquette Bank, in downtown Monticello, will be the location. It is being remodeled right now, and an October grand opening is planned. Annandale vffices will be moved the last week of August. Beginning the first week of September, PIWC ~ will be located in Monticello, and already some work is being dune there, Schanus said. By centralizing services, PIWC ~ will be better able to serve its clients, Schanus said. "It will make it more convenient ... when you get laid off, you usually go to Job Service, and then tub Service will send them tv us. Monticello is an ideal location for the service area," he said. Even with a robust economy, PIWC 5 has been expanding its ser- vices. Last year, the agency worked with 4,000 clients from Wright, Sherburne. McLeod, Isan[i, Chisago, Meeker, Kandyohi, Renville, Mille Lacs, Pine and Kanabec counties. PIWC ~ primarily has three main focuses: Administering the Job 'Training Partnership Act, which assists low income people and dislo- cated workers in tinding employ- ment and obtaining training; admin- istering summer youth programs for at-risk youth; and administering employment services tier the Welfare Reform Art. "Even in this economy, we've had layoffs in the IOOs. Our caseloads have increased." Schanus said. lie also cited the Welfare Reform Act as being a large factor in increas- ing the workload. Move t~ page s Inside This Week I~ & Around the f- County cholesterol 2 Records Page ~~ ~ ~ ~' -<~ ~ . ~-i3~ ` °~ ' ,, r- , , ~ ,~ - ~.~r screening available ~~~ ~ ~~ ~,y~. '~ Wri~~ht C'nunty Puhlic Health is Private Industry WorkForce Council 5 will move to a new location in Monticello at the end of this month. A number of factors contributed to the move by the non-profit agency. LJ • o ~~oVe From page 1 "In the past, people didn't have to T, visit us. Now, they are required;' he said. With the move PIWC 5 is adopt- ing anew name to better describe its services. The new name will be Central Minnesota Jobs and Training Services. "Most of the Private Industry Workforce Councils throughout the state have already made the change," Schanus said. s There are 17 such councils in the state, designated by population. The agency is governed by a board of directors which reports to a joint powers board. The joint powers board is made up of county commis- sioners in the 11-county area. Wright f County Commissioner Ken Jude, n Maple Lake, is vice-chair of the board. Shelly .Jonas, M&M Bus _ Service, is a PIWC 5 Board of Director. ~ PIWC 5 came to Annandale in the . late 1980s from Clearwater. It has been located at its present locating on Hwy. 55 E. most of those years. "Annandale has been a great com- munity. Everyone has been accom- modating, and we will miss it," Schanus said. For sale or lease The building that PIWC 5 is located in is owned by Ron Yanish of Rochester. He also has a home oq Pleasant Lake. Yanish ,presently owns two Perkins restaurants, one in Buffalo and one in Winona: Last year he sold six others - three in St. Cloud, two in Rochester and one in Grand Rapids. ` "It's unfortunate that they're leav-. i g; it's unfortunate for Annandale," said. But Yanish, whose brother Chuck owns Yanish Motors, is also opti- mistic that the property can be sold - or leased. He presently has it listed with Steve Bruggeman of Oak Realty. ThQ building has almost 5,000 square feet of office space and a good amount of highway frontage. It is listed for $265,000. Yanish said he had no plans of putting a Perkins on the site. "I would sell it or lease it to a long-term tenant." He said that the Private Industry Workforce Council 5 Private Industry Workforce Council S (PIWC 5) is anon-profit . organization that provides employment and job training services co the unemployed, underemployed and youth in an I I county area in central Minnesota. PIWCS is a partner in the Minnesota Workforce Center System, which unifies local, state and federal employment and job training programs into a one stop resource center. PIWC S has ~ offices in Annandale, Cambridge, Elk River, Hutchinson, Litchfield, Milaca, Monticello, Mora, North Branch, Olivia, Pine City and Willmar. '•~ Among the programs that PIWC 5 administers: ^ Minnesota Family Investment Program (MFIP) -The MFIP pro- gram was created by the Minnesota Legislature in response to the federal Personal Responsibility and Work Opportunity Reconciliation Act of 1996, popularly known as the Welfare Reform Act Replacing the AFDC, Family General Assistance, STRIDE and Food Stamps pro- grams, MFIP requires most MFIP recipients to find work in order to continue receiving assistance: PIWC 5 administers the employment services component of the MFIP program in 10 central Minnesota counties, helping those on public assistance find jobs that wilt make them self-sufficient MFIP expecu, supports and rewards work. ^ Food Stamp Employment and Training Program (FSET) -The FSET Program serves people receiving food stamps, helping them to .• identify career interests and skills that leads to employment. ^ Dislocated Worker Program -The Dislocated Worker Program provide readjustment and retraining services to people who lose their jobs through no fault of their own and have limited re-employ- ment opportunities in their field. ^ Older Worker Program -The Older Worker Program helps low-income people age 55 and over to explore new career options, enhance skills through training and find part-time or full-time employ- !, ment ^ Summer Youth Program -The Summer Youth Program serves income eligible and at-risk youth ages 14-21.The program connecu work and learning opportunities to help youth make understand the ,~ relationship between school and work. • ^ Youth Program -TheYouth Program serves income eligible youth.ages 16-21 who are not in high school and are seeking post- secondary. education and studenu ages 14-21 who are in high school or dropouts returning to school.The program helps.participanu with classroom training, work experience and job seeking and keeping skills. ' ^ Adult. Program -The Adult Program assisu unemployed or underemployed people ages 22 and over who are income eligible and have barriers co employment. Services provided include assessment of skills and interests, classroom and on-the-job training, job search assistance and support services. ^ Non-traditional Worker Program -The Non-traditional Worker Program prepares women for job training and employment in skilled and technical jobs which employ fewer than 25 percent women. Fire Best lakE on Per: A fire ~ Peninsula dt early Saturda The fire oc of Charles Ave. NW. destroyed. According Wright Department. ened early S: ping noises. was on fire and all occuF The call Communicai "There w: Annandale I said. "It was time we got ~ posstbihnes for the stte are almost unlimited. planning to build a clinic next to the Interested parties should contact - ~The~•recent announcement that=,,,~Stt~„is,alsp,gAc~l news, Yanish said. Bruggeman at Oak .Realty .at 27A; r- AtSfihhd'att~'~Pamify,.'PN~sil'i91tS `tsn~ i'~~oA1Y,~tn~la[bGKS thd'(St~}~it~."•.:~r1! ~,f 5'p~'pr,~ • ~. ~~~~r.,.i ~ ~',.., l~ ~1a:. ~~,ruui~~ i~ , .,.,, , ,,,,,~.. .r• t.,~ ' A fire on the