HomeMy WebLinkAbout[05] TIF Extension •
crr�°OF Kr.J[ M vH EDA Agenda Item 6
MEETING DATE: December 14,2016
AGENDA ITEM: EDA Director Reports—TIF 2-3
Timeline Extension
SUBMITTED BY: EDA Director
PREVIOUS BOARD ACTION: The City approved the execution of TIF District 203 on
November 10,2014 and was certified on June 1,2015. The TIF Plan allowed for the construction of a
three story mixed use building located adjacent to College Ave North and the east/west alley between 1st
Ave SE and College Avenue. The development also anticipated the construction of a four unit
condominium.
BACKGROUND INFORMATION: The following is a summary of a conference call with the
Finance Director,Lori Bartlett,the TIF Consultant and myself. The purpose of the conference call was to
determine the steps need to amend the development agreement which required the project in TIF 2-3 be
completed by December 2016.
1. TIF 2-3 is a redevelopment district established on 11/10/2014 and certified on 6/1/2015.
2. 5-year rule date is 6/10/2020.
3. City entered into a development agreement on 11/10/2014 within the 5-year period.
4. Agreement provides the City will reimburse the developer for up to$642,000 of project
costs,including land acquisition and site improvements.
a. 2015 Annual TIF Reporting Form to the State Auditor reports$8,000 of pay-go
land acquisition costs to be reimbursed. The reporting form needs to be amended
with the filing in 2017(for the FYE2016 report)to remove this cost. The$8,000
was funded from a city grant and there was no use of tax increment.
5. Section 2.2 item 8 of the Development Agreement(dated 11/10/14)will need to be
amended to modify the dates. The City and the Developer will need to reach agreement
on new dates for commencement and completion of the project.
6. No modification to the TIF Plan is required at this time.
a. The adopted budget for TIF 2-3 is significantly greater than the$642,000 of
Developer project costs and projected admin costs.
b. Following receipt of the Developer's costs for reimbursement from TIF,the City
may need to approve a resolution amending the individual line items within the
total original approved budget of$1,480,506. This can be done without notice to
the County and School and without a public hearing.
7. City will need to affirm to the County whether a qualifying activity has occurred on each
parcel within the TIF District by 6/10/2019 compliance with the 4-year rule. Qualifying
activities include demolition,rehabilitation,or renovation of property or other site
preparation,including qualified improvement of a street adjacent to a parcel but not
installation of utility service including sewer or water systems. If a qualifying activity
has occurred on the parcel(s),I would recommend that you notify the County at this time
rather than waiting.
BUDGET/FISCAL IMPACT: Since the development has not occurred,the increment is not
available.
ATTACHMENTS: Request for action
Development Agreement
REQUESTED BOARD ACTION: Determine the date for when the project construction must be
complete.
FP
CITY OF ST.JOSEPH EDA Agenda Item 7
MEETING DATE: December 14,2016
AGENDA ITEM: Cory Ehlert,Discussion on development
29 MN St E
SUBMITTED BY: EDA Director
PREVIOUS BOARD ACTION:
BACKGROUND INFORMATION: Cory Ehlert will be approaching the Board to discuss his concept
for converting the property at 29 MN Street E to a Bed and Breakfast. A Bed and Breakfast is not a
permitted use in the General Business district. For your information I have included the information that
was presented to the Planning Commission for the public hearing to amend the Ordinance.
When reviewing an Ordinance Amendment it is important to remember that if added as a use or a
conditional use,it could be placed anywhere in that zoning district. It cannot be limited to one property.
BUDGET/FISCAL IMPACT:
ATTACHMENTS: Request for action
Planning Commission Material
REQUESTED BOARD ACTION: Information
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CITY OF T.JOSEPH Council Agenda Item [06]
MEETING DATE: December 5,2016
AGENDA ITEM: Request for Zoning Ordinance 520 Text Amendments
SUBMITTED BY: Community Development
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
Planning Commission: (4/1)recommends denying the request to add a Bed and Breakfast as a Permitted
Use within the B-1 District and recommends approving amending the Zoning Ordinance to add a Bed
and Breakfast(B&B)as a Conditional Use within the B-1 District and to allow owner and non-owner
occupied in the B-1 District.
Economic Development Authority(EDA):Initiated discussion on the proposed amendment at their
meeting on November 16t. They had concerns with how allowing a B&B would affect redevelopment
and that this was similar to"spot zoning"for the benefit of one property owner. They questioned this
being inconsistent with the City's Comprehensive Plan. The EDA(4/0)recommends the City Council
analyze and base their decision on consistency with the Comprehensive Plan and how this will impact the
surrounding properties and block.
PREVIOUS COUNCIL ACTION:
• 2010,the City Council upon a recommendation by the Planning Commission issued a three year
interim use permit(IUP)to allow a non-owner occupied rental in an existing single family home
located in a B1 Central Business District without a commercial component as required for the
property located at 29 Minnesota Street East.
• 2013,the IUP was extended for an additional three years expiring in 2016,as allowed by the B1
Zoning District.
• 2016(August), a request to reissue the IUP was made by Cory Ehlert,the property owner, and the
City Council granted a one year IUP,which will expire on August 14,2017. [The Planning
Commission recommended issuance of a two year IUP]
BACKGROUND INFORMATION: Cory Ehlert has submitted a request to amend the zoning
ordinance to allow a non-owner occupied Bed and Breakfast as a Permitted Use in the B-1 Central
Business District. The Planning Commission held a public hearing on November 14, 2016 and a resident
spoke in support of the proposed amendment. The B1 Central Business District is the City's downtown
area and permitted uses include commercial,such as restaurants,retail shops,coffee shops,and
professional offices.Mixed use development is also permitted and would include street level businesses
with upper level residential. The intent of the Central Business District is to encourage the continuation of
a viable downtown by promoting uses dependent of high volumes of pedestrian traffic, to provide for
regulation of the high intensity commercial uses located within the original core of the City.
The City's downtown offers redevelopment opportunities. Mill Stream Shops and Lofts is an example of
a successful redevelopment. 24 North Lofts on College Ave is another mixed use development that has
been approved with street level business and upper level residential. The City's Comprehensive Plan
identifies the downtown as a redevelopment area. A Comprehensive Plan is a guide on how the city wants
to develop and redevelop so it is futuristic—forward thinking and land use decisions and zoning
ordinances are to be consistent with the Comprehensive Plan. Therefore, when reviewing this request
your decision should be based on future planning,including how it relates to the specific block and the
entire downtown area. Analyze how your decision may affect the surrounding properties.
Currently, City ordinance allows a Bed and Breakfast in the R-1 Single Family, R-2 Two Family, and R-4
Townhouse/Patio Home Residential Districts as a Conditional Use and a Bed and Breakfast is defined as
follows:
Bed and Breakfast: An owner occupied single family residence that provides overnight
accommodations to a limited number of visitors for a charge,not to exceed a stay of seven
consecutive nights.
The Planning Commission asked staff to research and define the difference between an Inn from a Bed
and Breakfast. Staff researched some 10 plus communities,the MN State Building Code and MN
Department of Health(MDH)on the definition of an Inn. We did not find any communities that define an
Inn. However, sources(Merriam-Webster, etc.)on the internet define an Inn as a small hotel and lodging
and food for travelers so it could include a hotel,guest house, and bed and breakfast. On the other hand,
most communities define a Bed and Breakfast. The MN State Building Code and MDH regulate a Bed
and Breakfast.
Staff has researched the following communities related to allowing B &B's in their downtown district.
Duluth does not allow B&B's in their downtown district. They allow owner&non-owner B &B's in
their neighborhood type business districts but otherwise it is allowed in residential. They initially
developed B&B regulations in the 1980's and it was quite controversial. B&B's were meant for large
lots with historic homes.
In Cold Spring they allow owner-occupied B &B's in their downtown district as a Special Use. The Pillar
Inn Bed&Breakfast is located in their downtown commercial district. The John Oster House and
Ferdinand Peter House are located in the downtown commercial district as well.These two homes are on
the National Register of Historic Places. They are not B &B's.
In Stillwater they do not allow B&B's in their downtown. B &B's must be owner occupied where
allowed and be an historic residential structure. They are currently reviewing short term rentals.They
anticipate adopting regulations allowing short term rentals but how that will be defined and where
allowed has yet to be determined.
In St. Cloud they do not allow B&B's in their downtown business district. They allow B&B's in their
residential districts as a conditional use. Riverside Guest Haus is a B&B in a residential district. Heritage
House, a 1904 Queen Anne Victorian and Victorian Oaks, a 1891 Second Empire are B&B's in St.
Cloud. They are on the National Register of Historic Places and located in a residential district.
In Sauk Rapids they do not address B&B's.
All of the communities allow mixed use developments with street level business and upper level
residential just as St. Joseph does.
ATTACHMENTS: Request for City Council Action
Resolution 2016-056 Amending Ordinance 520
Resolution 2016-057 Authorizing Summary Publication Ordinance 520
Comprehensive Plan, Chapter 4,Land Use,B. Redevelopment
Comprehensive Plan Map 4-2 and Map 4-6A
Downtown Area Maps
Historic Homes and Subject Property Pictures
REQUESTED COUNCIL ACTION:
1. Motion to Deny Amending Ordinance 520 as requested to allow an owner and non-owner
occupied Bed and Breakfast as a Permitted Use in the B-1 District and to Approve Resolution
2016-057 Amending Ordinance 520 to allow an owner and non-owner occupied Bed and
Breakfast as a Conditional Use in the B-1 District and Approve Resolution 2016-058 Authorizing
Summary Publication.
Or
2. Motion to Deny the Amending Ordinance 520 as requested to allow an owner and non-owner
occupied Bed and Breakfast as a Permitted Use in the B-1 District.
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