Minutes - Council - 07/26/1994 - Laserfiche WebLink

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Feldspar. The site plan proposes an additional access onto Riverdale. It doesn't appear that the existing access onto Riverdale will serve any particular function and Staff is recommending that it be eliminated. The Planning Commission felt that the two accesses onto Riverdale could be a benefit and recommended that Mr. Noard be allowed to retain the existing access onto Riverdale after the new one is constructed. The applicant has applied for a permit from the Lower Rum River Water Management Organization (LRRWMO) for the development. This permit is necessary as the facility discharges directly into the storm sewer which empties into the Mississippi River. City Administrator Schroeder explained that when the Rivenwick development was platted, the City determined that Feldspar Street N.W. should be realigned. The MSA street was not completed due to expense. He noted that the configuration of the Anoka Ramsey Sports Center parcel is changing. Mr. Ivan Schwartzman has deeded the remnant parcel created by abandoned Feldspar right-of-way to the City. The City is proposing to deed the property to Mr. Noard for the purpose of expanding his off-street parking and maneuvering area. As compensation for' the property received (approximately a $20,000 value) Mr. Noard will pave the new section of Feldspar Street N.W. from Rivenwick to Highway #10 N.W. Mr. Schroeder stated that the engineering estimate of this project, plus site work associated with it, is $39,134. Therefore, in addition to the land, tax increments, as opposed to MSA funds, are proposed to cover the $19,124 shortfall in the land exchange. Mr. Schroeder explai~cd that the Anoka Ramsey Sports Center was a tax increment development in 1988 with an estimated payback of City development expenses of apparently 10 years. In actuality, this return on investment was accelerated. This current expansion project proposes additional tax increment financing participation. Proposed is assistance in the amount of $ i .00/square foot of new construction upon project completion and each of the subsequent four years toward site improvements in the form of a loan granted to tile City from tile developer. This second phase of the project has about a 12- year payback, assuming no inflationary increase. The projects, including both phases, result in estimated annual revenues of $30,120, with total expenses of under $146,000 including the roadway alignment. This equates to roughly a seven to eight year return on investment averaged for' the two phases. Mr. Schroeder added that Staff feels this project sufficiently passes the "but for'" law - it would not be "but for" tax increment financing. Staff recommends site plan approval contingent upon entering into the development agreeme n t. John Nom'd, Anoka Ramscy Sports Center, 6760 Highway #10 N.W., Ramsey, stated that there is verbiage in thc development agreement that puts this project somewhat in jeopardy. There is mention of a TIF delinquency. He said he is delinquent $16,000. This is due to 2.5 years of debating this and waiting for answers, which he finally received. He stated that this has aothing to do with the present project. Mr. Schroeder explained that in 1989, the City implemented an SAS and lateral benefit charge to the ulility district; the City endeavored to put this charge in place in 1991. Mr. Noard received his first bill, which included a significant increase, and he wondered what this was for. With most developments, the charges were paid up front; in the special district, the ('.it3, amortizt:d the charges over 10 year's at 8 percent 'interest. There was two years between xvhen lhe City set it and when the charge happened. Since that time, Mr. Noard has been attempting to work with the City. Mr. Noard stated that it is his opinion that this should have been covered under TIF on the last project and suggested this does not have anything to do with this particular project. He stated he will pay it, bul he will fight it, and added that this puts the present project in jeopardy. Cily Council/July 26, 1994 Page 22 of 27