HomeMy WebLinkAbout[06] Fortitude Senior Housing, Devleopment Program & TIF +ill ' Planning Commission Agenda Item 6
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MEETING DATE: June 13, 2016
AGENDA ITEM: Fortitude Senior Housing
TIF Plan—Review for consistency with Comp Plan
SUBMITTED BY: EDA Director/Administrator
PREVIOUS PLANNING COMMISSION ACTION: On May 23, 2016 Tom Opatz appeared before
the Planning Commission to present a concept plan to develop a senior complex entitled Fortitude Senior
Housing. The proposed project will be constructed in the Graceview Estates Development. The project
will require platting and will come back to the Planning Commission when the formal plans are
submitted. It is anticipated that the project will be ready for the Planning Commission sometime in July.
BACKGROUND INFORMATION: Tom Opatz is requesting the utilization of Tax Increment
Financing (TIF) for his senior project. Both the City Council and EDA have reviewed the preliminary
application and have approved the use including the terms for the TIF. Part of the TIF process is the
creation of a TIF District. The Districts typically encompass more that the project site as once the district
is established properties that qualify with the district can submit a TIF Plan. The attached map illustrates
the Development District and it will be referred to as Development District No. 4.
The process to create a Development District includes the Planning Commission reviewing the TIF Plan
and the Development Program to determine the conformity with the general plans for the development
and redevelopment of the City as described in the Comprehensive Plan. The TIF district is considered a
housing district and is being created to facilitate the construction of a 47 unit senior housing unit
(Fortitude Housing).
The proposed Development District is located in the Land Use Planning Districts 12— 14 with the Plan
(Fortitude Housing) located in Planning District 12. The districts include residential and commercial,
both of which are applicable for financial assistance. Fortitude Housing is constructing the facility in the
Graceview Estates Development, which is guided for residential. The approved preliminary plat includes
54 housing units on the property purchased by Opatz with a development consisting of 47 units.
Therefore the project is within the approved density of a previously approved preliminary plat. When a
PUD is developed, leniency in the Ordinance provisions are provided and typically the development
allowed is based on density rather than typical lot sizes. Therefore the lots in Graceview are not the
standard lot sizes for the single family homes, but the entire development does not exceed the amount of
dwelling units if they all met the requirement. The difference is the amount of green space that is
provided with the development.
Consistency with the Comprehensive Plan
In reviewing the St. Joseph Comprehensive Plan—Land Use Section, the proposed Development District
is consistent with the following goals:
GOAL#2: FAVORABLE CHOICE OF HOUSING OPTIONS AND EMPLOYMENT OPPORTUNITIES
Objective A: Provide for a diverse array of housing types and housing locations so as to prevent the
polarization of the community into one age or income group.
Policy/Recommendations:
1. The city should pursue the development of safe, healthy and attractive residential
environments which offer a broad choice of housing options including sufficient
life-cycle housing options, sizes and values contributing to a diverse population
and various income levels.
2. The city should make a conscious decision to provide land appropriate for a
variety of affordable and life-cycle housing options.
3. The city should approve and permit proposed housing developments in light of
population forecasts, existing housing stock and current and future community
and regional needs, as appropriate.
4. The city should work with local social service and healthcare providers to gauge
the continued adequacy of local housing and services conducive to retaining
aging adults in the City and responding to changes in demographics.
5. The city should consider allowing higher density residential land uses adjacent to
arterial roadways, near community services, between commercial nodes (in
conjunction with open space preservation) and/or as tiered transitional land uses
(higher intensity to lower intensity).
In reviewing the St. Joseph Comprehensive Plan—Housing Section, the proposed Development District is
consistent with the following goals:
GOAL#11:SUSTAINABLE,WELL-BALANCED SUPPLY OF LIFE CYCLE HOUSING
Objective A: Promote a balance of housing types, sizes and values.
Policy/Recommendations:
1. Support zoning and subdivision regulations allowing for the construction of a variety
of housing types and price ranges.
2. Provide for and consider well-designed planned unit developments that provide a
mixture of housing types.
3. Provide for and encourage mixed use structures within the downtown.
4. Support the redevelopment/re-use of detached single-family student rental units.
5. Actively review and promote potential areas of residential redevelopment and infill
as a means of sustaining neighborhoods.
ATTACHMENTS: Request for Planning Commission Action
Tax Increment Financing Plan/District Plan
Resolution 2016-001
Findings of Fact—Compliance with Comprehensive Plan
REQUESTED PLANNING COMMISSION ACTION: Authorize the Chair and Secretary to
execute Resolution 2016-001Finding that a development for Development District No. 4 and a
Tax Increment Financing District 4-1 (Fortitude Housing) conforms to the general plans for the
development and redevelopment of the City based on the Findings of Fact.
As of June 6, 2016
Draft for Planning Commission
Development Program
for the establishment of
Development District No. 4
City of St. Joseph
Stearns County
State of Minnesota
Public Hearing: June 20, 2016
Adopted:
EHLERS3060 Centre Pointe Drive, Roseville, Minnesota ASSOC1ATES5 113-11 5
(651)697-8500 fax: (651)697-8555 www.ehlers-inc.com
Table of Contents
(for reference purposes only)
Municipal Action Taken . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i
Section 1 - Development Program
for Development District No. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1
Subsection 1-1. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1
Subsection 1-2. Statutory Authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-2
Subsection 1-3. Statement of and Finding of Public Purpose . . . . . . . . . . . . . . . . . . . . 1-2
Subsection 1-4. Statement of Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-3
Subsection 1-5. Statement of Public Facilities and Costs to Be Financed . . . . . . . . . . 1-4
Subsection 1-6. Funding of Developments and Redevelopments . . . . . . . . . . . . . . . . 1-4
Subsection 1-7. Environmental Controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4
Subsection 1-8. Proposed Reuse of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4
Subsection 1-9. Open Space to Be Created . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
Subsection 1-10. Administration and Maintenance of Development District No. 4 . . . . . 1-5
Subsection 1-11. Rehabilitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
Subsection 1-12. Relocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
Subsection 1-13. Property Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
Subsection 1-14. Modification of the Development Program and/or Development District No.
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-5
Subsection 1-15. Description of Boundaries of Development District No. 4 . . . . . . . . . . 1-6
Appendix A
Boundary Map of Development District No. 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
Municipal Action Taken
(This Municipal Action is only for convenience of reference.)
Based upon the statutory authority described in the Development Program attached hereto,the public purpose
findings by the City Council and for the purpose of fulfilling the City's development objectives as set forth
in the Development Program,the City Council has created,established and designated Development District
No. 4 pursuant to and in accordance with the requirements of the Municipal Development District Act and
the TIF Act as defined in the definitions of this document.
Tax Increment Financing District No.4-1 (Fortitude Senior Housing), a housing tax increment financing
district,was established at the same time that the Development District No.4 was established.
The following municipal action was taken in connection therewith:
Development District No.4:
June 20.2016: The Development Program for Development District No.4 was adopted by the City in and
for the City of St. Joseph.
Tax Increment Financing District No.4-1 (Fortitude Senior Housing):
June 20, 2016: The Tax Increment Financing Plan for Tax Increment Financing District No.4-1 (Fortitude
Senior Housing)was adopted by the City in and for the City of St. Joseph.
i
Section 1 - Development Program
for Development District No. 4
Subsection 1-1. Definitions
The terms defined below shall, for purposes of this Development Program, have the meanings herein
specified,unless the context otherwise specifically requires.
"City" means the City of St. Joseph.
"City Council" means the City Council of the City of St. Joseph.
"Comprehensive Plan" means the documents which contain the objectives, policies, standards and
programs to guide public and private land use,development,redevelopment and preservation for all lands
and water within the City.
"County" means the County of Stearns County,Minnesota.
"Enabling Act"means Minnesota Statues,469.124 to 469.133,as amended and supplemented from time
to time.
"Development District" means the real property within the City constituting the Development District
No.4, as described in the Development Program.
"Development Program"means this Development Program for Development District No. 4, as initially
proposed,and as it shall be modified.
"Land Use Regulations"means all federal,state and local laws,rules,regulations,ordinances,and plans
relating to or governing the use of development of land in the City, including but not limited to
environmental,zoning and building code laws and regulations.
"Municipal Development District Act" means Minnesota Statutes, 469.124 to 469.134, inclusive, as
amended.
"Public Costs"means the costs set forth in the Tax Increment Financing Plan,and any other costs eligible
to be financed by Tax Increments under the TIF Act or the Municipal Development District Act.
"Public Improvements"means the public improvements described in the Development Program and Tax
Increment Financing Plan.
"State" means the State of Minnesota.
"Tax Increment Bonds"means any tax increment bonds or notes issued by the City to finance the Public
Costs as stated in the Development Program for Development District No. 4 and in the Tax Increment
Financing Plans, and any obligations issued to refund such bonds.
"TIF Act" means Minnesota Statutes, Sections 479.174 through 479.1794,inclusive, as amended.
City of St.Joseph
Development Program for Development District No.4 1-1
"Tax Increment Financing District" means any tax increment financing district presently established or
to be established in the future in Development District No.4.
"Tax Increment Financing Plan" or"Plan" means the Plans adopted by the City for any Tax Increment
Financing District.
Subsection 1-2. Statutory Authority
The City established Development District No.4 pursuant to the Municipal Development District Act. It is
authorized that the City will administer the Development District No. 4 and any tax increment financing
districts.
Within the Development District No.4,the City plans to create one or more tax increment financing districts
established pursuant to the Tax Increment Act to finance the public improvements proposed for the
Development District. The public improvements maybe initially financed from other City sources,including,
but not limited to the use of improvement bonds issued pursuant to Minnesota Statutes,Chapter 429,which
sources the City may reimburse from tax increment proceeds derived from tax increment districts to be
created with the Development District No. 4.
The tax increment district or districts will be created at such time as will enable the City to capture the
increase in taxable value of private improvements to be constructed within the Development District No.4.
Subsection 1-3. Statement of and Finding of Public Purpose
In recent months,the City has been reviewing the future development of the community. This review has
defined several important roles for the City of St. Joseph.
• Facilitating development activities that are compatible with overall community development objectives
of the City.
• Removing the physical and economic barriers to development.
• Providing the infrastructure needed to support development.
• Providing sites for future development.
The City intends to use the powers allowed under the Enabling Act to fill these roles,to promote development
and redevelopment throughout the City, and to pool resources in order to reduce financial barriers to
providing decent housing and development and redevelopment opportunities.
The City has found that there is a need for development and redevelopment within the Development District
based upon the following conditions:
I. The Development District contains numerous parcels containing buildings or improvements
which,by reason of dilapidation,obsolescence,overcrowding,faulty arrangement or design,lack
of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or
obsolete layout,and a combination of these and other factors is detrimental to the safety,health,
morals or welfare of the community.
City of St.Joseph
Development Program for Development District No.4 1-2
2. The Development District suffers from a lack ofnecessary streets,utilities and site improvements
essential to preparing and making sites available for meaningful development.
3. The Development District requires active promotion,attraction,encouragement and development
of economically sound commerce through government action for the purpose of preventing
mergence and continuation of blight and the occurrence of conditions requiring redevelopment
4. The Development District contains vacant,unused,underused and inappropriately used land.
Therefore, the City has determined to exercise its authority to develop a program for improving the
Development District to provide impetus for private development and redevelopment, to provide decent
housing to residents, to maintain and increase employment,to provide infrastructure to serve citizens and
employees of the City,to utilize existing land for potential redevelopment and to provide other facilities as
are outlined in the Development Program.
The City has also determined that proposed developments to be assisted by the City would not occur solely
through private investment in the foreseeable future. The City finds that the welfare of the City, as well as
the State of Minnesota, requires active promotion, attraction, encouragement and development of
economically sound industry and commerce to carry out its stated public purpose objectives.
The City has also determined that any tax increment financing plans to be proposed herein will be consistent
with the Development Program,and that the tax increment financing plans will afford maximum opportunity,
consistent with the sound needs of the City as a whole, for the development or redevelopment of the
Development District by private enterprise.
Subsection 1-4. Statement of Objectives
The City determines that it is necessary,desirable and in the public interest to establish,designate,develop
and administer the Development District. The City determines that the establishment of Development District
No. 4 will provide the City with the ability to achieve certain public purpose objectives not otherwise
obtainable in the foreseeable future without City intervention in the normal development process. The City
seeks to achieve the following program objectives:
I. Promoting and securing the prompt development of property in the Development District in a
manner consistent with the City's planning and with a minimal adverse impact on the
environment,which property is less productive because of the lack of proper utilization and lack
of investment, and thereby promoting and securing the development of other land in the City;
2. Promoting and securing additional employment opportunities within the Development District
and the City for residents of the City and the surrounding area, thereby improving living
standards and preventing unemployment and the loss of skilled and unskilled labor and other
human resources in the City;
3. Securing the increase in value of property subject to taxation by the City,St.Cloud Independent
School District 742 and Stearns County, and any other taxing jurisdictions in order to better
enable such entities to pay for public improvements and governmental services and programs
required to be provided by them;
City of St.Joseph
Development Program for Development District No.4 1-3
4. Securing the construction and providing of moneys for the payment of the cost of public
improvements in the Development District,which are necessary for the orderly and beneficial
development of the Development District; and
5. Providing and securing the development of increased opportunities for families to reside in
quality owner-occupied housing,for senior citizens to choose from housing options which offer
a wide array of services without regard to income,and for residents looking for a wide range of
multi-family units.
Subsection 1-5. Statement of Public Facilities and Costs to Be Financed
The preceding objectives will be promoted by providing improvements and opportunities within the
Development District which may include various types of site improvements, land acquisition,
redevelopment,demolition,parking, street, sewer,water and other public improvements. A description of
the items of expenditure and the estimated costs can be found in the Tax Increment Financing Plans for the
Tax Increment Financing Districts created within this Development District.
Subsection 1-6. Funding of Developments and Redevelopments
To implement the established objectives,the City plans to utilize a number of public and private financing
tools. Funding of the necessary activities and improvements in the Development District is expected to be
accomplished through,and is not limited to,tax increment financing,special assessments,state aid for road
construction,proceeds from the sale of property, and federal and state grants.
Any public facilities within the Development District will be financially feasible and compatible with longer
range development plans. Any acquisition of property for the public improvements will be done to provide
the impetus for private development within the Development District.
Subsection 1-7. Environmental Controls
All municipal actions, public improvements and private development shall be carried out in a manner
consistent with existing environmental controls and all applicable Land Use regulations.
Subsection 1-8. Proposed Reuse of Property
The Development Program contemplates that the City may acquire property and reconvey the same to another
entity. Prior to formal consideration of the acquisition of any property,the City will require the execution
of a binding development agreement with respect thereto and evidence that Tax Increments or other funds
will be available to repay the Public Costs associated with the proposed acquisition. It is the intent of the City
to negotiate the acquisition of property whenever possible. Appropriate restrictions regarding the reuse and
redevelopment ofproperty shall be incorporated into any development agreement to which the City is aparty.
Subsection 1-9. Open Space to Be Created
Any open space within the Development District will be created in accordance with the zoning and
ordinances of the City.
City of St.Joseph
Development Program for Development District No.4 1-4
Subsection 1-10. Administration and Maintenance of Development District No. 4
Maintenance and operation of the Development District will be the responsibility of the . Each year, the
administrator of the Development District will submit to the City Council the maintenance and operation
budget for the following year.
The administrator of the Development District will administer the Development District pursuant to the
provision of the Enabling Act;provided,however,that such powers may only be exercised at the direction
of the City. No action taken by the administrator of the Development District pursuant to the above-
mentioned powers shall be effective without authorization by the City.
Subsection 1-11. Rehabilitation
Owners of properties within the Development District may be encouraged to rehabilitate their properties to
conform with the applicable state and local codes and ordinances,as well as any design standards. Persons
who purchase property within the Development District from the City may be required to rehabilitate their
properties as a condition of sale of land. The City may provide such rehabilitation assistance as may be
available from federal, state or local sources.
Subsection 1-12. Relocation
Any person or business that is displaced as a result of the Development Program will be relocated in
accordance with Minnesota Statutes, Section 117.50 to 117.56. The City accepts its responsibility for
providing for relocation assistance pursuant to the Enabling Act.
Subsection 1-13. Property Acquisition
The City intends to acquire such property, or appropriate interest therein,within the Development District
as the Authority may deem to be necessary or desirable to assist in the implementation of the Development
Program.
Subsection 1-14. Modification of the Development Program and/or Development District
No. 4
The City reserves the right to alter and amend the Development Program and the Tax Increment Financing
Plans, subject to the provisions of state law regulating such action. The City specifically reserves the right
to enlarge or reduce the size of the Development District and the Tax Increment Financing District, the
Development Program,the Public Costs and the amount of Tax Increment Bonds to be issued to finance such
cost by following the procedures specified in Minnesota Statutes, Section 469.175, subdivision 4.
City of St.Joseph
Development Program for Development District No.4 1-5
Subsection 1-15. Description of Boundaries of Development District No. 4
The boundaries of the Development District are outlined in the map included in Appendix A.
City of St.Joseph
Development Program for Development District No.4 1-6
Appendix A
Boundary Map of Development District No. 4
City of St.Joseph
Development Program for Development District No.4 A-1
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G}TY OF 5T. (4SEPH
PLANNING COMMISSION
CITY OF ST.JOSEPH,MINNESOTA
RESOLUTION NO. 2016-001
RESOLUTION OF THE CITY OF ST. JOSEPH PLANNING COMMISSION
FINDING THAT A DEVELOPMENT PROGRAM FOR DEVELOPMENT
DISTRICT NO. 4 AND A TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 4-1 (FORTITUDE SENIOR
HOUSING) CONFORM TO THE GENERAL PLANS FOR THE
DEVELOPMENT AND REDEVELOPMENT OF THE CITY.
WHEREAS, the City of St. Joseph (the "City") has proposed to adopt a Development Program for
Development District No. 4 (the "Development Program") and a Tax Increment Financing Plan for Tax
Increment Financing District No. 4-1 (Fortitude Senior Housing) (a housing district) and has submitted
the Development Program and TIF Plan to the City Planning Commission (the "Commission") pursuant
to Minnesota Statutes, Section 469.175, Subd. 3,and
WHEREAS, the Commission has reviewed the Development Program and TIF Plan to determine
their conformity with the general plans for the development and redevelopment ofthe City as described in
the comprehensive plan for the City.
NOW, THEREFORE, BE IT RESOLVED by the Commission that the Development Program and
TIF Plan conform to the general plans for the development and redevelopment of the City as a whole.
Adopted this 13`h day of June, 2016.
Chair
ATTEST:
Secretary
City of St. Joseph
IN RE:
FINDINGS OF FACT
Fortitude Housing—TIF District
Compliance with St. Joseph Comprehensive Plan
FINDINGS OF FACT
The St. Joseph Economic Development Authority and St. Joseph City Council have been
requested to authorize the utilization of TIF for the development entitled Fortitude Senior Housing. Both
the EDA and City Council have approved the preliminary application of Fortitude Housing and the matter
has been referred to the Planning Commission to determine if the proposed development is consistent
with the St. Joseph Comprehensive Plan and St. Joseph Code of Ordinances. In reviewing the matter
before them, the Planning Commission hereby finds:
1. The City of St. Joseph encourages diversity in residential development. It is the intent to
provide housing for all ages and incomes.
2. Residents of St. Joseph have previously identified the lack of senior housing options in St.
Joseph and residents find themselves moving out of St. Joseph if they need assistance or wish
to be part of a senior complex.
3. The City has been approached by Tom Opatz,requesting to provide Senior Housing with
services brought to the residents as they need.
4. Additionally, the housing proposed by Opatz will allow residents to age in place and in the
event their assets are consumed with rent expenses, the facility proposed(Fortitude Senior
Housing)will have the ability to utilize senior waivers allowing them to stay in St. Joseph
and age in place.
5. Opatz has agreed to keep at least 20% of the facility for low to moderate income residents
and due to the cost of building and providing services, financial assistance is being requested
by the use of Tax Increment Financing.
6. One of the requirements in the TIF process is to identify a District Plan that encompasses the
property to be developed and the District Plan must be approved by the Planning Commission
and meet the St. Joseph Land Use Plan and St. Joseph Comprehensive Plan.
7. Tom Opatz has purchased Outlot A, Graceview Estates for the purpose of developing a senior
facility with approximately 47 units.
8. Graceview Estates a development that received PUD approval in 2002. The PUD is a mixed
residential development consisting of single family homes, townhomes,patio homes,
apartment facilities, duplexes, and quadplexes.
9. Outlot A, Gracview Estates was originally master planned with a density of 46 housing units
on approximately 8 acres. In 2007 the PUD was amended, increasing the density from 46
units to 54 units.
10. The proposed District Plan is consistent with the following goals outlined in the St. Joseph
Comprehensive Plan
a. Chapter 4, Land Use—Goal: Favorable Choice of Housing Options and Employment
Opportunities. Objective: Provide for a diverse array of housing types and housing
locations so as to prevent the polarization of the community into one age or income
group.
b. Chapter 5, Housing—Goal: Sustainable, Well-Balanced Supply of Life Cycle Housing.
Objective: Promote a balance of housing types, sizes and values.
NOW THEREFORE,BE IT RESOLVED BY THE PLANNING COMMISSION OF THE CITY
OF ST.JOSEPH, STEARNS COUNTY, STATE OF MINNESOTA,hereby adopts the foregoing
Findings of Fact.
Passed by Resolution of the St. Joseph Planning Commission on June 13, 2016.
CITY OF ST. JOSEPH
By
Rick Schultz, Chair
By
Judy Weyrens, EDA Director/Administrator