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EDA Agenda 12-11-2013 (Special Meeting)W:4 m [01 z PO SUB -COMMITTEE III Illy 11 ,. Chapter 3: Land Use `Three Main Land Uses, Places to Live, Work, Shop Downtown specifically addressed under Places to Shop "Downtown is a Unique Commercial District that is a Part of Monticello's Heritage and Identity" *No longer feasible for Downtown to be a central business district Downtown needs a unique identity formed by a wide range of high density mixed uses, inter related and mutually supportive *Borders were set to keep focus on redevelopment of the existing downtown area and to maintain residential integrity. Starting Point40 : Comprehensive Plan Chapter 4, Economic Development *"Certain development needs cannot be achieved without public intervention" Downtown is mentioned in this narrative because of "the likelihood that city actions and investments will be needed to achieve community objectives for Downtown" ''This may include: *1. Public Improvements to provide services or enhance downtown environment *2. Provision of adequate parking supply *3. Acquisition of Land *4. Preparation of Sites for Development *5. Removal of Physical or Economic barriers to achieve community objectives Starting Point: Adoption of Embracing Downtown Plan, 2011 *End of Chapter 1: Building Conditions -'-A number of buildings along the Broadway corridor fall into the following category. "Aging structures in poor physical condition do occur in the CCD, and in many cases, structural condition has continued to deteriorate due to business loss and low rental income for property owners in the older downtown area." "In addition to structures in poor physical condition, there are issues with obsolescence in the downtown area, especially in the older segment along Broadway that is hampered by a lack of well-placed convenient parking for tenants and their customers. Even structures in reasonably good condition along the Broadway corridor are difficult to lease and operate a business from due to lack of parking. In many cases the form of the older buildings is also inconsistent with the desires of contemporary retail tenants." Embracing Qqwptown, 2011 Beginning Chapter 2: Community Goals and Guiding Principles *Diversify land use in the downtown; supplement retail and service uses with other activities that generate traffic. *Encourage redevelopment of old and obsolete structures; encourage consolidation of small parcels with multiple ownerships. 7 Balance parking and land use to ensure availability of adequate parking at all times. *Encourage mixed use but don't make it a requirement or prerequisite for development or redevelopment. Discourage residential as a free-standing land use within the core downtown area. *Establish physical connections between the core downtown area and the riverfront and park. "Encourage land uses that serve as evening and weekend attractions to the downtown area. `Expand facilities and parking adjacent to West Bridge Park to help create an anchor attraction at the north end of Walnut Street. Embracing Downtown, 2011 *EDA adopts a management plan for TIF 1-22 Leaves all parcels in district to maximize pooling opportunities over life of the district 'VEDA appoints a sub -committee in June of 2013 to develop a strategy for property acquisition Achievement of Comprehensive Plan Goals Achievement of Embracing Downtown plan Background for development of a spending plan for TIF 1-22 *Priority uses for TI F 1-6 *Acknowledgment that assets are limited *Sub -committee drafts purpose framework *Specifically, early objectives focused on effective means of gaining site control without incurring substantial relocation costs Implementing the Pl Site Control can mean many things other than the City physically owning property `Originally, group considered the use of option agreements in order to lock in land owners at a particular price for a duration of years *The idea can be taken further to more abstract concepts such as an agreement to work with a group of land owners to promote property at an established price or packaged in a particular way to potential developers Site Control To gain site control of one or more blocks of land in the downtown district which are big enough to entice a developer to develop the land in accordance with the Embracing Downtown Plan. *To optimize the value of the land owners holdings. Maximize the use of limited EDA resources to accomplish redevelopment 'Sub -Com Mittee Objectives *The EDA should be a catalyst for the redevelopment. *The EDA needs to take steps that signal to potential developers an interest in particular kinds of development and a willingness to work with them on projects through completion (our actions are not in a bubble, they are viewed as a whole) *The land owners should be the driving force and actively participate in identifying a developer. *we should recognize that individual property owners may not have the contacts to accomplish this and may need to partner with other property owners, agents or brokers in order to bring developers to the table *Principle5 'The EDA should keep properties on the tax rolls as long as possible. *The EDA should encourage businesses to stay and operate in downtown buildings until redevelopment occurs. *The EDA should only own property under certain circumstances. '`The land is owned by willing seller *The property is distressed and requires EDA intervention to clean up. *The land is needed for a road or other public improvement purposes. `The land is acquired by tax foreclosure. *Prin�iples The EDA should expect to financially participate in the future redevelopment project. *TIF (redevelopment), including demolition *Combination with adjacent land, parking areas, etc. *GMEF DEED grants/loans Environmental *Planning /engineering *Prin�iples 'Legal Definition: A right, which operates as a continuing offer, given in exchange for consideration—something of value-- to purchase or lease property at an agreed price and terms within a specified time Develop option agreements consistent with principles: Partnership with wilting sellers "Parties get best possible purchase terms "Secures land control Keeps properties on the tax rolls as long as possible. '`Allows businesses to stay and operate in downtown buildings until redevelopment occurs. Research and structure of agreement samples completed Issue: Recognition of limited financial resources which need to be spend as efficiently as possible "Purchasing options still obligates EDA to relocation costs when applicable "Option Agreements may still be used in the future in limited circumstances such as on a block with many owner occupied properties where they are willing to remain owner occupied Idea,: Purchase Options -Y -Private Side of the Partnership: Land Owners working together to meet objectives Embracing Downtown envisions a "development corporation" concept "Examples Referenced: St. Cloud Downtown Council, Lowertown St. Paul 'VEDA develops list of questions regarding structure and implementation for these organizations Economic Development Services (Janna King) provides insight on EDA's questions Private development corporations formed for purpose of specific redevelopment project (in our situation probably block by block) 'Property owners become active partners with each other in the success of the project "Partnership can achieve the same desired objectives: 'Partnership among willing sellers *Parties get best possible purchase terms "Secures land control Idea: Public/Private Partnership "Public Side of Partnership: Taking steps to encourage the Private Side "'STEP 1: Project Development EDA may play a role in initial concept and studies needed for the developing project area Project specific: market studies, traffic analysis, demographics, site design More than likely a general fund activity, broad-based support for Embracing Downtown accomplishment EDA needs to be cognizant of subsidy requirements and limitations *STEP 2: Property Assembly *Case-by-case role for EDA in property acquisition or negotiations *EDA may be a property owner on a block or development area *EDA may purchase an option when it meets outlined objectives *EDA may consider acquisition as part of facilitation of project when it meets outlined objectives -�' Relocation costs a consideration EDA Role Public Side of Partnership: Taking steps to encourage the Private Side STEP 3: Project Financing EDA involvement may be necessary for site improvements, gap financing through TIF redevelopment district, etc. May also require providing funding to the public entity so long as they meet our objectives Raises red flags regarding loss of control of some of our funds, however, it may be a cost saving in the long run to avoid relocation expenses There may be certain restrictions we place on how the money is spent upon donation to the entity, make it for a specific purpose Still maintain control on a case by case basis, this keeps the amounts small and trust can be built over time Can show overall commitment by the EDA to the downtown project and encourage other property owners to enter a group or groups representing land owners from particular blocks to form a group -X resTOREing Downtown's goal is to develop an organizational structure to supporting Embracing Downtown initiatives Could provide resource framework for these private development corporations *May act as a "petrie dish" for these developing partnerships EDA may consider membership, allowable under general fund *reSTOREing Downtown's Role *All parties must recognize that Embracing Downtown is a 20 -year vision requiring interest and investment over the long-term There will be give and take in project development; requires substantial resources and investment to realize the vision Requires partnerships and creative solutions *EDA has tools to support - TIF, land, etc. -"'- Proposal for Market Study T Options Group Recommendation *Long Term Interest and Investment