EDA Agenda 12-09-2009 (EDA/City Council)JOINT EDA/CITY COUNCIL AGENDA
Wednesday, December 9, 2009
6:30 p.m.
Mississippi Room - 505 Walnut Street, Monticello, MN
Staff: City Administrator Jeff O'Neill, Executive Director Megan Barnett, Finance Director Tom Kelly,
Community Development Director Angela Schumann, and City Engineer Bruce Westby
Call to Order
2. TIF Management Plan: Proposed follow -up steps
Adjournment
Consideration of identifying TIF eligible projects within TIF Districts 1 -2, 1 -5, 1 -6
utilizing available TIF funds. (JO /TK/MB)
A. REFERENCE AND BACKGROUND:
The City Council and EDA recently adopted the TIF Analysis and Management
Plan prepared by Northland Securities. Within the Management Plan several
follow up items were identified. One of the recommended action items was to
decertify districts 1 -26, 1 -28, and 1 -33, which was completed by the EDA in
August of 2009.
Due to existing fund balances and flexible pooling opportunities staff would like
to discuss follow up steps for TIT Districts 1 -2, 1 -5, and 1 -6. It should be noted
that District 1 -22 will also need to be addressed in the near future. This district is
complex and requires the Finance Director and Kennedy and Graven to further
analyze appropriate next steps. This is anticipated to occur by early Spring of
2010.
District 1 -2
This district was created for the purpose of the Metcalf/Larson redevelopment and
site improvements. The current fund balance is $138,434.
District 1 -5
This district was originally created for the construction of 72 units of apartment
housing. The district was modified to include land acquisition, site improvements,
and public utilities. The current fund balance is $302,286.
District 1 -6
This district was established for the construction of a 33,000 square foot retail
center and later modified for public improvements and other associated project
costs. The current fund balance is $331,426.
Summary:
It is estimated that between the three districts there is approximately $772,146
dollars available for TIF eligible expenses /projects. These districts are not subject
to pooling restrictions, which allows the EDA and City Council to authorize
projects outside of the physical district boundaries as long as they meet TIF laws
and district budgets. District 1 -2 is set to decertify on December 31, 2010. Due to
this time constraint it is important to begin identifying ways to utilize the
available TIF funds before the decertification date arrives. Once the district is
required to decertify, any remaining funds must go back to the County and re-
disbursed at a 40% rate of return. Districts 1 -5 and 1 -6 are set to decertify in 2012
and 2013 respectfully. Same decertification rules apply.
It would seem appropriate to utilize this opportunity to fund projects that are TIF
eligible prior to the on -set of decertification. City Staff, Rusty Fifield, and Steve
Bubal meet to discuss potential TIF eligible projects within the established
budgets for districts 2, 5, and 6. Based on this meeting and preliminary comments
from the Attorney; Staff prepared a short list of potential projects for the EDA and
City Council to consider funding through TIF dollars.
Please note other projects could be considered TIF eligible. However, for the
purpose of this meeting staff reviewed various projects within the downtown area
that have been included in the proposed CIP document. If the EDA and City
Council would like to add other potential projects, staff would be happy to
research whether or not the proposed project would be considered TIF eligible.
Proposed potential TIF eligible projects:
1. P Street Parking Lot Improvements. Staff is proposing two options for this
project. Redevelopment is likely to occur at some point in the future, however
there does appear to be a need to improve the existing parking lot to encourage
parking in this area. If the EDA and City Council believe redevelopment could
occur within a 5 -10 year time frame a "shorter -tern" parking lot improvement
project could be completed at a cost estimate of $36,000.
If it is believed that redevelopment of this area will occur outside of 10 years or
even if it does occur within 5 years but a majority of the parking lot could still be
used, a "longer- term" parking lot improvement project could be implemented at
an approximate cost of $89,500.
2. Walnut Street Parking Lot. Improvements to Walnut Street parking lot are
being proposed as part of the 2010 W River Street reconstruction project. Staff is
proposing to pay for the parking lot portion of this street reconstruction project
through TIF funds. It is anticipated improvements to the parking lot will be
$ . (dollar amount will be available at meeting)
3. Fallon Avenue Overpass Study. Due to the fact that implementation of the
Fallon Avenue Overpass Bridge will affect the downtown, it is believed TIF fiords
could be utilized to complete a Fallon Avenue Overpass Study. The study is
anticipated to cost $20,000 and will include the final alignment, property impacts,
and clarify right -of -way needs.
4. Downtown Community Sign . A nice site improvement to the downtown
would be to incorporate attractive consistent community directional signs. Several
cities have incorporated nicely designed signs within their city denoting where
city hall, police, fire, etc. (community center, FiberNet) facilities are located. Cost
estimates could range from 50,000 to 75,000.
5. Downtown Redevelopment Study. The Comprehensive Plan calls for the 1997
Redevelopment Plan to be updated. It is staffs understanding dollars could be
utilized from the above TIP districts to complete a Downtown Redevelopment
Study. RFP's would need to be solicited in order to fully understand what this
project would cost. Prior to completing this staff would like to get further
direction from the EDA and City Council.
B. ALTERNATIVE ACTIONS
1. Review the list of proposed TIF eligible projects.
2. Identify whether or not the proposed projects are a priority in the next 1 -3 years.
3. Propose other high priority site improvement projects or studies that staff can research
whether or not they qualify as TIF eligible.
C. STAFF RECOMMENDATION:
The purpose of tonight is to make the EDA and City Council aware of available TIF
dollars and begin identifying how the dollars should be used within the next 1 — 2 years.
Staff is requesting the EDA and City Council identify a few priority projects (site
improvements and /or studies) to begin working on in 2010 through 2013. Please note
final numbers will be determined once the EDA and City Council authorizes a project.
Further Consideration and Timeline:
1. The list of potential projects staff is requesting the EDA and City Council to review
and either identify as a "YES, high priority ", or "NO, proposed project wait" (in this case
staff would request additional feedback regarding other projects considered important to
accomplish in the next 1 -3 years that are TIF eligible); is not inclusive of every project
that could be completed with these TIF dollars. However, it could be stated the proposed
projects would enhance the general area where these districts were created and thus meet
the TIF budget regulations.
2. There is a time frame to consider. District 1 -2 is set to decertify on December 31,
2009. It is important that the City identify how the $138,434 dollars of excess TIF should
be utilized in 2010. However, it may make sense to lump 2, 5, and 6 into one category in
order to accomplish a wider array of projects due to the fact that these districts decertify
in the short term.
3. After the EDA and City Council identify priority projects for the next 1 -3 years and the
associated costs; staff will request further discussion regarding the pros and cons of
decertifying Districts 1 -5 and 1 -6 early or letting them run their course.
4. Please keep in mind that by early next year staff will begin discussing with the EDA
and City Council how they would like to address available TIF fiends in District 1 -22.
D. SUPPORTING DATA:
1. District Stnnmary's for 1 -2, 1 -5, and 1 -6.
OvDrrww� invr v� vi i( yp� pr �nr W �yN v
w y o m g• 3, >> a a d' °—, m= m ° m m 3 M, W a x• x•
d c m
o d
rt , m „ v v v O mc N H O
N h e1
N N O 3 C r G n N .N+ 'O C. d d �, n O N
�. o =• m iO v m m m °�„ '` m g �- a d = a
C o >? m 3 o �" m c m Ea
6 H C 3 m 0 j d^
vi 'J
~ rt
m
7 n o O
6 E b G G
c N N N
� N N
N
0
T
a
W,
W V
o in
O
o A
0
N W
rn
U1 W
A N w
w OJ 4 N
W to W W
mw W
V ui O V
O O O O
0 Ao W o
w m rn w o
...C,.g
Vii
V V .W.pp
.N.p
CO
Q�
�P
O� V
.t.ppo
.l.ppA
A
N N A
P
M
W A
N UOi V Wp .gyp
W N O Aa A
N
N
a.
UOi
W
A
W
N
Ul
P
A
W
D\
N
o A c
A �
ow-•
W k
A N v
N � 4
CIA
V 0
a d
w
w tG i
n T
T 3 n
w n 3
C m C
a a M
O ~ N
� T
o a
� � o
� 4
o a
N
O
V
N
O
W
N
0
b
N
O
O
v
H
!T
O '}
v N
d
A v,
C -n
o < m N ^
m m O o < a a a F a v a n D m m m a
5 N
a a
� N
L H
� N N
N
0
T
Q
:2 p
OVNi O w 00 O N O tNii G C E
rw
O O IJ Ipn O LU O O O � 10
A N A C. 3
O
O V�i O O W O O O b to ip O� C N
O O In O In 6 D. M
O O O N 'tn O O IN O O O O
O O O O O O O O O O O O n T T
i
0 o b rn N
�o o W� o rn ,.gyp O
A O W l N III v Np� P in o V
N� O W A W A A lD O
O� W W N O� � pAi Vvi W O V
I
N N N p . N O
m
A
N
� N O
T W
V vNi �
o0
LWJ
N H
O 1F
Z
N A
IMF
N C
O
W
r
O
W
N
VAi
W V �
P
N
to
01 T
W N
tpn
A
�
A
b A
p
m
A
N
� N O
T W
V vNi �
o0
LWJ
N H
O 1F
Z
N A
IMF
N C
O
W
r
iV
D0 3 v r� >wo. > m a g0 = . a m vgd _vi mOd r � RLt n 0 3 0 o m m o p . 3x. z1_ m n O
� s
a o v N m v m ❑ `° 'n_, '° G x- 'o. ic- .°} ° a `�° o. v '" N ° °^ ? w m
a v
v m
N n > > a
o. ^ e
- = C
c u N u^m
� N
N
O
T
C
W A
O
O W
O O
N
A m
o in
g o
iu
w w
o
N
w w uAi
°� -• to J
N _N
j W W
-• w v
D` N
W N
W J VI
V A
O� • w P
W W
0o w to
m �
ao A AO �n
N N A
w
w rn rn
w oo in v�
W N O P
W
O l/�
O w V
iq IN 01 In
0 N b iP�
Ut W
to O
to
b O
W
pp
Q H
H
V
rn
b
a
W
A
N
N
e
W
W
w
W
T
0
H
a
9 Q
3 p�
vNi C c d
O » T
� 3 n
v o c
o a 3
u W 7t G
o y $ d
o Y
n
m �
a v m
A ° a
90 O
� o
N V
N �
w W
N
� O
w b
V
� O
iu O
V
� O
N v
N
1+
Z
N r+
tA
O
W
0 3