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HomeMy WebLinkAboutCity Council Packet 01-03-2017 SpecialCity Council/EDA Joint Meeting 1 of 1 January 3, 2017 CITY OF PLYMOUTH JOINT CITY COUNCIL/EDA AGENDA JANUARY 3, 2017, 5:30 p.m. MEDICINE LAKE CONFERENCE ROOM (Joint City Council/EDA Meetings are comprised of the same members and allow either the City Council or EDA to act on items. Items needing action by a specific body are noted below.) 1. CALL TO ORDER 2. ROLL CALL 3. APPROVE AGENDA 4. CONSENT AGENDA 4.01 Approve December 13, 2016 EDA Minutes (EDA Action Item) 4.02 Accept Jim Davis Resignation and Appoint Bryan Oakley to Planning Commission (City Council Action Item) 5. GENERAL BUSINESS 5.01 Environmental Assessment Worksheet for Four Seasons Mall Redevelopment (Agora) (City Council Action Item) 5.02 Agora Senior Housing and Affordable Housing Options 5.03 Lodging Tax Discussion 6. OTHER TOPICS 7. ADJOURN Proposed Minutes 1 of 3 EDA Meeting of December 13, 2016 Proposed Minutes Economic Development Authority Meeting December 13, 2016 President Slavik called an Economic Development Authority Meeting to order at 5:30 p.m. in the Medicine Lake Room, 3400 Plymouth Boulevard, on December 13, 2016. BOARD MEMBERS PRESENT: President Slavik, Commissioners Beard, Johnson, Prom, Wosje, Willis, and Carroll, and Assistant Treasurer Callister. ABSENT: None. STAFF PRESENT: Community Development Director Juetten, Administrative Services Director Fischer, Park and Recreation Director Evans, Public Works Director Cote, City Attorney Knutson, Economic Development Manager Parr, and Office Support Representative Gottschalk. OTHERS PRESENT: Rock Hill Management Group Representative Apurva Patel, KW Commercial Representative Lowell Lankford, Best and Flanagan Tax Attorney Dan Nelson, Midwest Management Representative Adam Pagh, and Ehlers Financial Advisor Consultant Stacie Kvilvang. Consent Agenda Motion was made by Commissioner Johnson, and seconded by Commissioner Prom, to approve the Consent Agenda that included the following item: (4.01) Minutes from EDA meeting held on September 27, 2016 and November 1, 2016. With all members voting in favor, the motion carried. Motion was made by Commissioner Carroll, and seconded by Commissioner Wosje, to approve the minutes. With all members voting in favor, the motion carried. 4.01 Page 1 Proposed Minutes 2 of 3 EDA Meeting of December 13, 2016 General Business (5.01) Agora Project Background Assistant Treasurer Callister opened the discussion by stating this was a check in meeting and no action would be taken at this meeting. Assistant Treasurer Callister asked the President and Commissioners to add a resolution calling for a public hearing on the proposed modification of the Development Program for Development District No. 7 and the proposed establishment of Tax Increment Financing District no. 7-9 and the proposed adoption of the Tax Increment Financing Plan. The meeting will be held on January 24, 2017. It was agreed to add it to the consent agenda at the council meeting later this evening. Process Economic Development Manager Parr discussed the project schedule and referenced a calendar given to all showing important dates in December 2016 and January 2017. The TIF final consideration is set for January 24, 2017. Site Plan/Parking Community Development Director Juetten referenced the updated site plan and discussed changes to buildings three and four. He stated that the two buildings would be a combined total of 18,000 sq. feet. Community Development Director Juetten also talked about additional parking where the coffee shop was going to be built. Commissioners had some questions/concerns about removing the coffee shop and if there would be covered parking. Community Development Director Juetten explained that there is limited covered parking (70-85 stalls) due to the water table at the building site. Administrative Services Director Fischer talked about monitoring the spaces by using signs. The retail spaces would be marked with “Four hour limit parking.” Other signs would be posted stating “No overnight parking Thursday-Sunday.” Park and Ride Administrative Services Director Fischer talked about the amount of money in the transit fund in order to help fund the development. The transit fund has ten million dollars. Three million is from RTC and can be used on capital type projects and seven million is from local transit reserves. A commissioner asked if the funds used for the project would take away from the fleet reserves. Administrative Director Fischer stated that it is two different types of funding sources so the fleet reserves would not be affected. There will be 339 stalls in the parking structure and 200 of those stalls will be designated for Park and Ride. The MET council regulates how the city can use the funding and the number of stalls designated for Park and Ride was part of that regulation. Some of the Commissioners had questions on how the funding works from the MET council. Administrative Services Director Fischer stated that the funding sources varies throughout the MET council and he could not give a definite answer. Page 2 Proposed Minutes 3 of 3 EDA Meeting of December 13, 2016 TIF Consultant Stacie Kvilvang from Ehlers gave an updated review of the TIF request. Consultant Kvilvang went over the amount of taxes the site would bring in yearly and also discussed interest rates and the payoff to the AGORA group at the completion of the project. Consultant Kvilvang went over the TIF district boundaries and there was discussion on how to make the district spread over the entire city. At the end of the presentation a question was asked about offering affordable senior housing in the senior apartments . Representative Patel stated that it was not in the agreement, but he could talk to the management group in charge of the senior housing to see if that is a possibility and how that would affect the TIF funding. A request was made to City Staff to touch base with the HRA Manager and discuss affordable senior housing. The strict timeline was brought up and members of the EDA did not feel comfortable moving forward until more of their questions were answered. An additional meeting on December 27, 2017 was discussed to come back and get some questions answered. No additional meeting dates were set. Other Topics No other topics were discussed. Adjournment President Slavik adjourned the meeting at 6:53 p.m. Amy Gottschalk, Office Support Representative Page 3 JOINT COUNCIL/EDA MEETING January 3, 2017 Agenda Number: 4.02 To: Dave Callister, City Manager Prepared by: Luke Fischer, Administrative Services Director Reviewed by: Item: Accept Planning Commission Resignation from Jim Davis and Appoint Bryan Oakley 1.ACTION REQUESTED: Accept Jim Davis’ resignation from the Planning Commission and appoint Bryan Oakley to fill the vacancy. 2.BACKGROUND: On January 3, 2017, Jim Davis will take his City Council oath of office and assume those responsibilities. We expect to receive his resignation to the Planning Commission. Bryan Oakley was slated to represent Ward 3 on the Commission in February – taking the seat previously held by Mr. Davis. In light of the resignation, staff recommends appointing Mr. Oakley effectively immediately. 3.BUDGET IMPACT: None applicable. 4.ATTACHMENTS: Resolution Page 1 CITY OF PLYMOUTH RESOLUTION NO. 2017-___ RESOLUTION ACCEPTING PLANNING COMMISSION RESIGNATION FROM JIM DAVIS AND APPOINTING BRYAN OAKLEY TO REPRESENT WARD 3 WHEREAS, Jim Davis has submitted his resignation to the Planning Commission effective January 3, 2017 following his election to City Council; and WHEREAS, the City Council has appointed Bryan Oakley to fill the vacancy created by Jim Davis’ election to the City Council, effective February 2017; and WHEREAS, the Planning Commission meets on January 4, 2017 and the Council has determined it must be fully seated. NOW, THEREFORE BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA that Jim Davis’ resignation is accepted. BE IT FURTHER RESOLVED that Bryan Oakley is hereby appointed, effective immediately, to the Ward 3 seat on the Planning Commission. APPROVED by the City Council on this 3rd day of January, 2017. Page 2 JOINT COUNCIL/EDA MEETING January 3, 2017 Agenda Number: 5.01 To: Dave Callister, City Manager Prepared by: Barbara Thomson, Planning Manager and Shawn Drill, Senior Planner Reviewed by: Steve Juetten, Community Development Director Item: Environmental Assessment Worksheet for the Four Seasons Mall Redevelopment Project (2016086) 1. ACTION REQUESTED: Adopt the attached resolution declaring a finding of “no need” for an Environmental Impact Statement (EIS), based on review of the Environmental Assessment Worksheet (EAW) for the Four Seasons Mall Redevelopment Project, as recommended by the Planning Commission. Approval requires a 4/7 vote of the City Council. 2. BACKGROUND: On December 7, 2016, the Planning Commission reviewed the EAW and subsequently voted unanimously to recommend that no further investigation was needed on the EAW, and to recommend “no need” for an EIS. A copy of the Planning Commission minutes and report is attached. Notice of the Planning Commission’s public meeting was mailed to all property owners within 750 feet of the site. 3. PUBLIC COMMENT ON THE EAW: The Minnesota Environmental Review Program rules state that comments submitted on an EAW shall address the accuracy and completeness of the material, potential environmental impacts that may warrant further investigation before the project is commenced, and the need for an EIS on the proposed project. The staff memorandum attached to the Record of Decision (Appendix B) responds to the questions raised by agencies and the public, including members of the Planning Commission and City Council. 4. BUDGET IMPACT: Not applicable. 5. ATTACHMENTS: Planning Commission Minutes Planning Commission Report EAW for Four Seasons Mall Redevelopment Project Record of Decision Resolution Page 1 Proposed Minutes Planning Commission Meeting December 7, 2016 7. NEW BUSINESS A. CITY OF PLYMOUTH (2016086) Chair Davis introduced the request by the City of Plymouth for review of an environmental assessment worksheet for a mixed use project to be called Agora on the former Four Seasons Mall site located at 4200 Lancaster Lane. Senior Planner Drill gave an overview of the staff report. Commissioner Anderson stated that it was said that the developer is working with agencies to develop solutions or alternatives in order to proceed on the water distribution. He asked how the EAW could be considered complete if that information is not included. Senior Planner Drill replied that this project could stand alone and is not contingent upon those agreements. He noted that if the alternatives could be agreed upon that would be a benefit to everyone, but this application is not contingent upon them. Commissioner Anderson referenced the wetland and the disturbance that would occur. He asked where the mitigation would occur. Senior Planner Drill replied that the applicant would buy wetland credits, and the profits from the credits would be used to create wetlands elsewhere. Commissioner Anderson referenced the use of the foundation mentioned and asked if the applicant would be building upon the existing foundation. Senior Planner Drill replied that the applicant would be building upon some of the existing foundation structure because of the poor soil conditions. Commissioner Anderson stated that his recollection is that some of the area is sponge-like and asked if additional piles would be needed and the environmental impact of that action in terms of noise and vibration as that was not addressed in the EAW. Senior Planner Drill stated that he would accept that comment but would not respond to it tonight. He thought there was a mention of the noise from the pilings within the EAW but noted that if it is not, he will ensure that it is included. Commissioner Anderson asked if the sanitary lift station is a new station or an existing station. Page 2 Senior Planner Drill replied that there is an existing lift station on a city parcel, which he identified on the map, and noted that will not be part of the plat. He stated that there is a well house on the site and the portion of land on which the well house sits will be dedicated to the City as part of the plat. Planning Manager Thomson identified the portion of the EAW that addresses the noise from the pilings. Commissioner Anderson stated that historically Plymouth has avoided lift stations and stated that he has a hard time believing that an existing retail building generates the same amount of water that a hotel, office building and second hotel generate. He said he did not believe the lift station capacity is correct and asked if there is an alternate to a lift station. Senior Planner Drill stated that staff will look into that and address the item when it moves forward to the council. Commissioner Goldetsky stated that he lives closest to this location and is delighted that the plan looks very nice and will be a vast improvement from the dilapidated building that exists today. He stated that from an environmental impact perspective, he does not see much difference between the activity that occurred when it was a shopping center and the new use. Senior Planner Drill confirmed that the impact from the activity would be similar. Commissioner Saba stated that there is a fair amount of data on the traffic in this area, and it appears that the infrastructure and proposed improvements can easily handle the amount of traffic proposed. Chair Davis opened the public meeting. Chair Davis introduced Jody Shands, 10800 40th Avenue North, who asked if the amount of permeable surface will be similar under the new development to what currently exists. She asked if there will be additional sound and light pollution. Planning Manager Thomson replied that those issues are included in the EAW and the comments will be forwarded to the City Council. Chair Davis closed the public meeting. MOTION by Commissioner Kovach, seconded by Commissioner Anderson, to recommend to the City Council that they review the environmental assessment worksheet for a mixed use project to be called Agora on the former Four Seasons Mall site located at 4200 Lancaster Lane, including the questions raised at this meeting, and that there is no need for further investigation regarding environment impacts, and there is no need for an environmental impact statement on the proposed project. Vote. 7 Ayes. MOTION approved. Page 3 Agenda Number 7A File 2016 086 PLYMOUTH COMMUNITY DEVELOPMENT DEPARTMENT PLANNING AND ZONING STAFF REPORT TO: Plymouth Planning Commission FROM: Shawn Drill, Senior Planner (509-5456) and Barbara Thomson, Planning Manager (509-5452) MEETING DATE: December 7, 2016 APPLICANT: City of Plymouth PROPOSAL: Consideration of Environmental Assessment Worksheet for the Four Seasons Mall Redevelopment Project LOCATION: 4200 Lancaster Lane GUIDING: C (Commercial) CURRENT ZONING: C-2 (Neighborhood Commercial) REVIEW DEADLINE: January 13, 2017 DESCRIPTION OF REQUEST: The Environmental Assessment Worksheet (EAW) is for a proposed redevelopment of the 17-acre Four Seasons Mall site. The development, to be called Agora, would be located south of County Road 9 and west of Highway 169 and would include the following:  two hotels (one with 95 rooms and one with 100 rooms);  a senior housing building with 139 units (65 independent living apartments, 50 assisted living apartments and 24 memory care units);  commercial uses (roughly 78,000 square feet of retail space and roughly 20,000 square feet of office space); and  a parking ramp containing 339 parking spaces. Page 4 The development is also planned to incorporate walking paths, infiltration basins, a water quality treatment pond, native plantings, tree trenches, and a central plaza. Notice of this public meeting was mailed to all property owners within 750 feet. LEVEL OF CITY DISCRETION IN DECISION-MAKING: Under the Minnesota Environmental Review Program rules, the City is the governmental unit responsible for preparing this EAW and determining whether the project has the potential for significant environmental effects. The purpose of the environmental review process is to provide usable information to the project proposer, governmental decision-makers, and the public concerning the primary environmental effects of a proposed project. The EAW should identify measures to protect the environment that can later be imposed as conditions of approval in future development applications. If the EAW identifies significant environmental effects that cannot be mitigated or minimized, the City Council would order the preparation of an Environmental Impact Statement (EIS). An EIS does not necessarily disclose more information about potential impacts; but rather, its main purpose is to examine project alternatives and additional mitigation measures to lessen significant impacts identified in the EAW. Furthermore, an EIS is not a means to approve or deny a project, but is an additional source of information to guide decisions. Very few projects move to the EIS stage, because in most cases the EAW adequately describes the potential impacts and identifies mitigation measures. The statutory standard for requiring an EIS is whether the project has the potential for significant environmental effects—not whether the EAW has adequately disclosed information about potential impacts. Accordingly, if the Planning Commission determines that the EAW does not disclose sufficient information about potential impacts, the Planning Commission would recommend that the City Council request additional information before making a decision on the need for an EIS. In deciding whether a project has the potential for significant environmental effects that would warrant the preparation of an EIS, the City Council must consider the following factors, pursuant to Section 4410.1700, Subp. 7 of Minnesota Environmental Review Program Rules: a. type, extent, and reversibility of environmental effects; b. cumulative potential effects of related or anticipated future projects; c. the extent to which the environmental effects are subject to mitigation by ongoing public regulatory authority; and d. the extent to which environmental effects can be anticipated and controlled as a result of other available environmental studies undertaken by public agencies or the project proposer, including other EISs. Page 5 The City Council has three courses of action when reviewing an EAW. These actions include: 1) requiring additional information to address possible environmental effects not adequately discussed in the EAW; 2) making a finding of “no need” for an EIS; or 3) ordering an EIS. PUBLIC COMMENT PERIOD: After the City initially determines that the EAW document is complete and accurate, the Minnesota Environmental Quality Board advertises the availability of the document and the City transmits the EAW to a standard list of regional and state agencies for comment. The comment period for an EAW is 30 days. During this time period, the agencies and any member of the general public may comment on the EAW. The Plymouth Zoning Ordinance requires the Planning Commission to hold a public meeting to review the EAW during the 30-day comment period. The 30-day comment period for this request ends on December 14, 2016. The purpose of the public meeting is to give the public an opportunity to learn more about the proposed project and provide comments on the EAW. Comments submitted during the 30-day period, including comments provided at the public meeting, should address the accuracy and completeness of the material contained in the EAW, potential impacts that may warrant further investigation before the project commences, and the need for an EIS on the proposed project. After the close of the comment period, staff and the developer will prepare responses to the comments for review and consideration by the City Council. OVERVIEW: The primary environmental concerns associated with the redevelopment of the Four Seasons Mall site are the impacts on traffic and water resources. Traffic The EAW used the findings from a 2016 traffic study to determine the impacts resulting from traffic associated with the proposed project. The study was an update of the following two previous studies that were undertaken in 2011: 1) an existing conditions analysis; and 2) an analysis of the traffic impacts associated with four conceptual redevelopment plans for the mall site. The 2016 study indicated that existing daily trips would increase from 125 to a projected 6,845 trips. The study included an operational analysis that examined the existing intersections that would be most affected by the project. The capacity analysis indicated that key intersections near the mall site would operate similar to current conditions in the morning and evening peak hours with a slight decrease in level of service (LOS) at one location in the morning peak hour and two locations in the evening peak hour. Page 6 In order to minimize project-related traffic impacts during the morning and evening peak hours, signal timing at County Road 9, which runs along the northern border of the mall site, would be reviewed and adjusted, and the westbound left-turn lane on County Road 9 would be extended by a minimum of 75 feet to reduce potential impacts to turning queues. With these improvements, traffic operations would continue to function at acceptable levels. The traffic study reviewed a right-in/right-out access on Lancaster south of the County Road 9 intersection that is being considered for the project. The study concluded that this access would reduce the number of vehicles circulating the site internally, which in turn would reduce pedestrian/vehicular conflicts in the parking lot. In addition, the volume and location would not be expected to result in significant impacts on existing turn lanes on Lancaster Lane, cause traffic operational issues, or impact sight distances and safety. Water Resources The project site contains one wetland complex and one Minnesota DNR Public Waters Watercourse that flows through a portion of the wetland complex. Water quality improvements would occur in the southern portion of the wetland. The project would include the construction of stormwater retention ponds within the wetland to treat impervious surface on the site following construction. Constructing the ponds would require excavation of the wetland to increase the amount of storage for stormwater treatment. Any wetland impact would require DNR approval and would be mitigated based on requirements outlined in the permit. DEVELOPMENT REVIEW PROCESS: Upon completion of the environmental review process, the developer would request consideration of the development application (rezoning, PUD general plan, and preliminary plat) that would be scheduled for a public hearing at the Planning Commission, with subsequent City Council action. As required by the zoning ordinance, the City would publish notification of the public hearing in the newspaper, and would mail notice of the public hearing to all property owners within 750 feet of the property. The City would also place development signs on the property to notify passersby. Upon approval of the rezoning, PUD general plan, and preliminary plat but prior to issuance of any building permits, the applicant would be required to submit a PUD final plan application for review and approval by city staff, and a final plat application for review and approval by the City Council. The final plat review would include preparation of a site improvement performance agreement to address public and private improvements. In addition to the City’s permitting process, the developer would be required to obtain permits from Hennepin County and several state agencies, as well as approval from the Bassett Creek Watershed Management Commission. Page 7 RECOMMENDATION: Community Development Department staff recommends that the Planning Commission review the Environmental Assessment Worksheet (EAW) and make recommendations to the City Council regarding potential environmental impacts that may warrant further investigation. In addition, the Planning Commission may wish to comment on the need for an Environmental Impact Statement (EIS) on the proposed project. The Planning Commission may also recommend conditions of approval to mitigate or lessen any environmental impacts identified during the review of this project. The conditions of approval would apply to future development approvals associated with the proposed project. ATTACHMENTS: 1. Location Map 2. Aerial Photo 3. EAW for Four Seasons Mall Redevelopment Project Page 8 SITE CO. RD. 9 HWY. 169LANCASTERLNP IL G R IM L NNATHAN LNC CO CO LA-4 LA-1 LA-1 C COCCOC LA-1 LA-1 LA-4 LA-4 LA-1 Location Map - 2016086 City of Plymouth Four Seasons Mall Redevelopment Environmental Assessement Worksheet K 600 0 600 1,200 1,800300 Feet City of Plymouth, Minnesota Page 9 SITE CO . R D . 9 HWY. 169LANCASTERLNP IL G R IM L NNATHAN LNAerial Photograph - 2016086 K 440 0 440 880 1,320220 Feet City of Plymouth, Minnesota Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32 Page 33 Page 34 Page 35 Page 36 Page 37 Page 38 Page 39 Page 40 Page 41 Page 42 Page 43 Page 44 Page 45 Page 46 Page 47 Page 48 Page 49 Page 50 Page 51 Page 52 Page 53 Page 54 Page 55 Page 56 Page 57 Page 58 Page 59 Page 60 RECORD OF DECISION EAW – FOUR SEASONS MALL REDEVELOPMENT PROJECT January 3, 2017 1. Background The City of Plymouth is the responsible governmental unit for the Environmental Assessment Worksheet (EAW) for the Four Seasons Mall Redevelopment Project. Rock Hill Management, LLC is proposing a development to be called Agora on the roughly 17-acre former shopping mall site located south of County Road 9 and west of State Highway 169. An EAW was prepared for the proposed redevelopment project in accordance with the Environmental Review Program of the Minnesota Environmental Quality Board (EQB). The City of Plymouth filed the EAW with the Minnesota EQB and circulated it to the required distribution list. A “Notice of Availability” was published in the EQB Monitor on November 14, 2016. The City also issued a news release to the Plymouth Sun Sailor and Lakeshore Weekly News (local newspapers), Channel 12 (local television studio), and the Star Tribune. The notice and news release provided a brief description of the project, information on where copies of the EAW are available for review, and invited the public to provide comments that would be used in determining the need for an Environmental Impact Statement (EIS) for the proposed project. The EAW was made available for public review on the City of Plymouth website, at the City of Plymouth Community Development office, and at three libraries: Plymouth Branch of Hennepin County Libraries, the Minneapolis Public Library, and the Environmental Conservation Library. On December 7, 2016, the Plymouth Planning Commission held a public meeting to review the EAW document, as well as to provide an opportunity for the public to submit comments on the project. Notice of this meeting was mailed to all property owners within 750 feet of the project site. The 30-day comment period ended on December 14, 2016. All comments received were considered in determining the potential for significant environmental effects. Written comments received are included in Appendix A to this Record of Decision. Responses to the written comments received, as well as to the oral comments submitted at the Planning Commission meeting, are included in Appendix B to this Record of Decision. On January 3, 2017, the Plymouth City Council adopted a resolution which includes a Negative Declaration regarding the proposed Fours Seasons Mall Redevelopment Project by Rock Hill Management, LLC. The City Council concluded in the Negative Declaration that the proposed project would not require the preparation of an EIS. Page 61 2. Project Description The proposed development includes two hotels, a 139-unit senior housing building, retail and office uses, and a 339-space parking ramp. The project phasing would include demolition, site preparation, infrastructure installation, and building construction. The project would commence in spring 2017, and is estimated to take roughly one-two years, with full build-out and project completion in 2018. Prior to commencement of the project, the developer would be required to obtain approval of all required permits related to site grading, stormwater runoff management, and erosion control. 3. Findings of Fact The following are findings of the EAW relating to potential environmental impacts as of result of the proposed project: Physical Impacts on Water Resources The project site contains one wetland and one Minnesota DNR Public Waters Watercourse that flows through a portion of the wetland. The developer proposes to use a portion of the wetland for storm water retention and water-quality ponding. Any wetland impact would require DNR approval and would be mitigated based on requirements outlined in the permit. The developer would incorporate measures to reduce the impacts on water-related resources on or near the site, including water-quality ponds and filtration basins that would collect, retain, and treat stormwater runoff. These measures would reduce potential impacts to water resources. The developer would be required to demonstrate how the proposed project would comply with the City’s adopted water quality goals. Erosion and Sedimentation Erosion and sedimentation rates during construction are typically greater than during the built conditions. Exposed soil is susceptible to erosion and unpredictable storm events. To reduce potential for erosion and sedimentation, the developer proposes to utilize Best Management Practices (BMPs) including use of temporary erosion control measures, including but not limited to, silt fence, rock construction entrances, and riprap. Periodic cleaning of streets near construction site entrance areas would be performed. The developer would be required to comply with the City’s erosion/sedimentation standards. The erosion and sediment control plan would require review and approval by the Minnesota Pollution Control Agency and City of Plymouth. Page 62 Traffic A traffic study was conducted to determine the impacts resulting from traffic associated with the proposed development. The traffic study included an operational analysis which examined the existing intersections that would be most affected by the project. With the recommended traffic improvements outlined in the traffic study, all nearby intersections are expected to function at an acceptable level of service. 4. Agency Comments and Responses Written comments were received from Hennepin County and from five agencies on the EAW distribution list. Copies of the comment letters are attached (see Appendix A). The comments did not identify any environmental impacts or issues that would have irreversible environmental effects or potential impacts that would warrant further investigation before the project commences. 5. Decision on Need for Environmental Impact Statement An Environmental Impact Statement is not considered necessary for this project based on the following criteria: a. Type, extent and reversibility of impacts The EAW and the Findings of Fact (Section 3 above) summarize the type and extent of environmental impacts that are anticipated as a result of the proposed project. The proposed development is consistent with the City of Plymouth Comprehensive Plan. The City’s development review process would ensure that the project is built in compliance with City Code requirements. b. Cumulative potential effects of related or anticipated future projects The cumulative potential effect of related or anticipated future development has been considered. c. Extent to which the environmental effects are subject to mitigation be ongoing regulatory authority The mitigation of environmental effects would be designed and implemented in coordination with regulatory agencies and would be subject to plan approval and permitting processes. The developer would need to obtain the permits as outlined in the EAW. Page 63 d. Extent to which environmental effects can be anticipated and controlled as a result of other environmental studies The proposed project is similar to other developments completed throughout Hennepin County and the Twin Cities metropolitan area. Although each site is unique, the anticipated environmental effects are common for this type of project. They are considered relatively predictable and do not pose significant concerns in terms of regulating long-tern effects of the project. 6. Conclusion Based on the findings contained herein, the City of Plymouth has determined that the environmental review requirements have been met by the Environmental Assessment Worksheet prepared for this project and that the potential environmental effects are not considered significant. Therefore, an Environmental Impact Statement is not needed for the proposed Four Seasons Mall Redevelopment Project. Page 64 Page 65 Page 66 Page 67 Page 68 Page 69 Page 70 Page 71 Page 72 Page 73 Page 74 Page 75 Page 76 Page 77 Page 78 Page 79 Page 80 The 30-day comment period for the above-referenced Environmental Assessment Worksheet (EAW) ended on December 14, 2016. The City received written comments from Hennepin County, Michael Madson, Brian Magnuson, the Metropolitan Council, Minnesota Historical Society, Department of Natural Resources, Pollution Control Agency, and the Department of Transportation. Pursuant to the City’s requirements, responses to comments made at the Planning Commission meeting and by the City Council are also included in this memorandum. Comments from Hennepin County Comment 1: All vehicular access will continue to be directed onto Lancaster Lane; no direct access to County Road 9 will be granted. Response: No vehicular access to County Road 9 is contemplated or proposed, nor would it be allowed. Comment 2: The proposed sidewalk on the north side of the development appears to encroach on the County Road 9 right-of-way and needs to be contained on private, not public property. The developer is encouraged to dedicate to the City Outlot A, the sidewalk on the south side of Outlot A, and Lots 1 and 2 to contain them within the public realm. Response: The developer has since revised the site plan to eliminate the encroachment and will dedicate Outlot A to the City as it contains a city well house. As a condition of project approval, the City will require trails and sidewalks throughout the project area. Comment 3: The traffic study is incomplete and in order to gain a more complete understanding of potential impacts should also address: 1) 20-year forecasted conditions under the build and no build scenarios; 2) analysis of the coordination/interaction between the County Road 9/Lancaster Lane/Nathan Lane signal and Nathan Lane/Frontage Road signal; and 3) microsimulation analysis between the two closely placed signals. Response: The traffic study has since been revised to add these elements. The updated study has been distributed to Hennepin County and is available on request. Memorandum To: James Grube, Hennepin County Michael Madson, Plymouth resident Brian Magnuson, Plymouth resident LisaBeth Barajas, Metropolitan Council Sarah Beimers, Minnesota Historical Society Rebecca Horton, Department of Natural Resources Karen Kromar, Pollution Control Agency Michael Corbett, Department of Transportation From: Barbara Thomson, Planning Manager Date: December 20, 2016 Item: Environmental Assessment Worksheet – Responses to Comments Four Seasons Mall Redevelopment Project Page 81 Comment 4: Further geometric revisions will need to be made to the extension of the westbound left- turn lane at County Road 9 due to the necessary median narrowing. Drainage needs to be maintained as well. Response: As part of project approval, the City will require the developer to make these revisions. Comment 5: Given that the development will be a popular destination, the county, city and developer shall work together to enhance bicycle and pedestrian connections between the internal sidewalk system and future county trail. Response: The City values these connections as well and will require internal and external pedestrian systems as part of project approval. Comment 6: Ditches along County Road 9 and the Highway 169 ramp need to be maintained. Response: The City concurs. Comment 7: The developer will need permits from the County for any work done in the county right-of- way. Response: As part of project approval, the City will require the developer to obtain all required permits from county and state agencies. Comment from Michael Madson Comment 1: Although there are pedestrian facilities on the 36th Avenue bridge over Highway 169, it would be helpful for walkers and bikers if there was a pedestrian/bike bridge that would span Highway 169 just south of the Four Seasons site between County Road 9 and 36th Avenue. Response: As noted, there are facilities for pedestrians on the 36th Avenue bridge. Hennepin County is looking at improvements to the County Road 9 bridge over Highway 169 that do not include pedestrian facilities at this time. Given both financial considerations and site limitations (existing noise wall), constructing an additional pedestrian bridge over Highway 169 south of the Four Seasons site and north of 36th Avenue would not appear feasible. Comment from Brian Magnuson Comment 1: The EAW did not include any estimates of traffic on Pilgrim Lane. The neighborhood will be impacted with product deliveries and vehicles shortcutting to the mall via Pilgrim Lane. Without stop signs on Pilgrim Lane, drivers think they can go as fast as they want. The police cited various speeders this past summer. At least one stop sign should be replaced by Pilgrim Lane Elementary School. Response: Stop signs are generally installed to assign right-of-way. When Pilgrim Lane Elementary School reopens, the City will evaluate whether an all way stop on Pilgrim Lane would meet the criteria determined by the State. Page 82 Comments from the Metropolitan Council Comment 1: Table 4 on pages 7 and 8 does not include MCES’s required involvement in the PCA’s sanitary sewer construction permit process. MCES staff will need to review, comment, and recommend issuance of the PCA permit before connection can be made to the City’s wastewater disposal system. Response: The City recognizes this oversight in the EAW. However, one of the City’s standard conditions of development approval is the requirement that the project developer obtain all necessary reviews and permits. Approval of the Four Seasons Mall redevelopment project will be no exception. Comment 2: The EAW states that the City’s Comprehensive Plan guides the subject site as Commercial and discusses the site as one that could undergo a land use change, and that it is a good candidate for mixed use. Consequently, the proposed development would require a comprehensive plan amendment that must be submitted to the Metropolitan Council for review. Response: The proposed development, with a PUD zoning, could be located on a property guided Commercial or Mixed Use. The City recognizes that the Comprehensive Plan states that “this site is a good candidate for mixed use when it redevelops.” However, it does not state that it would be re-guided to Mixed Use. Mixed use is a term that connotes more than one type of use but does not necessarily translate into the need for a Mixed Use guiding. The City’s plan (Appendix 3C, Section J, Guidelines and Criteria) also states that for commercially-guided properties there are a number of appropriate commercial zoning districts, plus “other zoning districts as may be appropriate.” PUD is clearly another appropriate district in this instance; and a mix of use is allowed in a PUD with a Commercial guiding classification. Comment 3: The EAW proposes significant impacts to the portion of the large wetland complex that extends onto the project site, without inclusion of a delineation of the entire wetland to be impacted, provision of a complete description of the stormwater basin design proposed to be excavated within the wetland or a discussion of potential impacts of the proposed excavation on the stream channel that meanders through the wetland. Consequently, the level of detail provided in the EAW is inadequate to determine the potential environmental impacts that construction of the proposed stormwater storage facilities would have on the wetland complex, the North Branch of Bassett Creek and Northwood Lake in New Hope. Response: As part of the project, the developer may not restore the wetland, but will provide mitigation as necessary, and the approval process will include all the necessary agencies and permits. The overall intent of the wetland changes and stormwater improvements is to not only provide for the necessary stormwater protection for the project site, but to improve the overall water quality in the area (off-site). Comment 4: The EAW is silent on whether any impacts to the current Bassett Creek North Branch channel are planned. Northwood Lake is currently listed on the MPCA’s 303(d) impaired waters list for both excessive nutrients (phosphorus) and excessive chloride. Construction of a “20-foot deep stormwater storage” basin in the wetland complex as vaguely proposed in the EAW would likely result in long-term net water quality degradation in stormwater runoff quality entering Northwood Lake, as Page 83 opposed to a desired improvement in runoff water quality. Consequently, the proposed stormwater management component needs to undergo a redesign. Response: The portion of the “North Branch of Bassett Creek” impacted from the stormwater basin will be reconstructed within the property limits of the project site. The stormwater pond will allow some low flow events to provide treatment through the improvements with the development. Additionally, the floodplain of the creek will be reviewed to ensure flood storage is provided at or above the volume that currently exists. The stormwater basin at the southeast portion of the project is currently designed with a 4.5- foot deep pool of permanent water and 5.5-foot depth for water bounce/storage during rain events. The total depth of water could potentially be 10 feet deep and would be for a short period of time. This will not be a lake or a degradation to the ecology of the region as it meets Minnesota Stormwater Manual guidelines. Comment 5: The EAW does not present any justification that would support why impact to the wetland complex cannot be avoided by site redevelopment. Response: When the project moves forward, the developer will be required to appropriately address sequencing in the wetland mitigation plan. Comment 6: The project proposes to include deepening by approximately 20 feet, existing wetlands for compensatory storage on the southern and eastern sides of the project site. There is no indication in the EAW regarding what the proposed site impact this compensatory storage would mitigate. Any excavation deeper than 2 meters or roughly 6.6 feet will result in the basin no longer meeting the definition of or providing the requisite functions and values of a wetland, but rather will be characterized as a lake. Additionally, pools deeper than 8 to 10 feet will likely thermally stratify in Minnesota’s climate. Stratification can be expected to result in the periodic release of phosphorus from bottom sediment that become anoxic as opposed to the desired function of a water quality basin of capturing and retaining phosphorus in the bottom sediments to improve downstream water quality and habitat. The MPCA Minnesota Stormwater Manual recommends that stormwater treatment basins be constructed no deeper than 8 feet. Provision of compensatory storage at the expense of both a loss of site wetland area and failure to provide nutrient-reducing stormwater runoff treatment is not recommended. Response: Refer to the response to Comment 4 above. Comment 7: Traffic analysis zone (TAZ) forecasts are not discussed in the document, but this would be helpful information. Forecasted households and population should be added to TAZ #1057, which includes the mall site. The City can make balancing adjustments elsewhere in the city and update the TAZ table through correspondence with the Metropolitan Council. The expected development fits within the community total forecast prepared by the Metropolitan Council; no change is needed to the community total forecast. Response: The City of Plymouth is currently updating its comprehensive plan. Review and update of the City’s TAZ forecasts will be a part of this effort and will reflect any and all changes in development in the city. Page 84 Comment from Minnesota Historical Society Comment 1: There are no properties listed in the National or State Registers of Historic Places, and no known or suspected archaeological properties in the area that will be affected by this project. Response: No response is needed. Comment from Department of Natural Resources Comment 1: The project proposes to excavate within an existing NWI (National Wetland Inventory) wetland to construct a stormwater pond. Alternative stormwater management locations and techniques need to be considered for this project. Response: Refer to the response for Comment 4 to the Metropolitan Council. Comments from Pollution Control Agency Comment 1: If in-water work is required during the course of this one to two-year project, in-water best management practices such as silt curtain, work during low flow periods, and cofferdams must be included in the final plans to reduce or eliminate possible total suspended solids from being conveyed to Northwood Lake. Response: If the project moves forward, the City will require the developer to follow best management practices in order to properly and appropriately protect on- and off-site water resources. The City will also require the developer to obtain all necessary permits. Comment 2: The EAW indicates that a drycleaner is/was located on or adjacent to the project site, and it appears a Phase II Environmental Site Assessment that includes soil and groundwater sampling was not conducted. Therefore, it is not known if the soil and groundwater at the property are contaminated due to past uses. State law requires that persons properly manage contaminated soil and water they uncover or disturb – even if they are not the party responsible for the contamination. Developers considering construction on or near contaminated properties should begin working early in the planning process with the MPCA’s Petroleum Brownfields and/or Voluntary Investigation and Cleanup (VIC) Program to receive necessary technical assistance in managing contamination. Response: The City is in communication with the developer and will encourage them to begin working with the appropriate staff at the MPCA to address any contamination issues. Comment 3: The MPCA advocates for the use of Low Impact Design (LID) practices to aid in the minimization of stormwater impacts. Response: The site will incorporate some LID practices, specifically ditches, vegetated filter strips along pavement edges, porous pavement, bio-infiltration (rain garden) features, and narrower streets than City of Plymouth’s standards (24 feet in lieu of 26 feet). Page 85 Comments from Department of Transportation Comment 1: The silt fence location is on MnDOT property along the entire length of the Highway 169 property line. Construction limits must be kept within the private property. Light duty pavement must also be kept off MnDOT right-of-way. Many contour lines meet and some cross into MnDOT property. All grading must remain on private property. Response: The City will require all construction activity to occur entirely on the project site. Comment 2: The proposed pond is fairly deep and close to the MnDOT right-of-way. As this presents a hazard, the pond should be moved to another location. Response: The developer has adjusted the location of the pond and added a berm on the highway side. However, if the project moves forward, the City will work with MnDOT and the developer to ensure that the final plan does not result in any hazards to MnDOT right-of-way. Comment 3: Any modification to the proposed drainage system will require review from MnDOT’s Water Resources Engineering Section. Response: As the proposed project is adjacent to MnDOT right-of-way, the City will require the developer to submit their plans to MnDOT for review. Comment 4: In addition to the drainage permit, any use of or work within or affecting MnDOT right-of- way requires a permit. Response: As the proposed project is adjacent to MnDOT right-of-way, the City will require the developer to submit their plans to MnDOT for review. Comments Received at Plymouth Planning Commission Meeting Comment 1 (Jody Shands, Plymouth resident): In the new development, what changes from existing conditions will occur with respect to permeable surface and additional sound and light pollution. Response: With the proposed project, the permeable surface area is expected to increase 1.6 acres in area. The City will require the developer to: 1) be in conformance with the City’s noise ordinance both during and following construction; and 2) meet the City’s lighting regulations in the LZ-2 lighting zone. Comment 2 (Planning Commission): As the developer is working with agencies to develop solutions or alternatives for water distribution in the area, the EAW cannot be considered complete. Response: The developer will be required to obtain all required permits from all necessary agencies for either the project as proposed or in the event a wider water distribution alternative is developed. In the latter instance, such an alternative would be a benefit to all properties in the area. Page 86 Comment 3 (Planning Commission): The EAW discusses disturbance to the wetland in the south portion of the site, but does indicate where mitigation would occur. Response: The applicant would purchase wetland credits if required, which would be used to create wetlands elsewhere. Comment 4 (Planning Commission): The EAW references the use of the existing foundation. Response: The developer would be building upon some of the existing foundation because of the poor soil conditions on the site. Again, based on poor soil conditions, the developer would also need to place a number of pilings for many other buildings, utilities and surface structures on the site. Comment 5 (Planning Commission): Based on the fact that the soils on the site are sponge-like, pilings will be needed and therefore, the impact of noise and vibration needs to be addressed in the EAW. Response: The EAW addresses this issue in Question 17 on page 27 of the EAW. Comment 6 (Planning Commission): The former retail building on the site could not have generated the same amount of water as this much larger project, which in turn raises a question about the capacity of the existing lift station serving the area and any alternatives to a lift station. Response: The Lancaster lift station, originally constructed in the 1960s to serve a smaller development, has been twice upgraded. It has a design capacity of 8.6 MGD (million gallons per day), which is more than sufficient to handle effluent generated by the redevelopment of the Four Seasons Mall site. Comment from Plymouth City Council Comment 1: The EAW should add a figure similar to Figure 4 (Existing Land Cover), but based on the proposed site plan and which includes a separate designation/color on the map and legend for the proposed permeable pavement areas, as well as proposed acreage (or square footage) calculations for the various cover types, including the permeable pavement. Response: The requested figure is attached showing the proposed impervious and pervious cover types and areas, as follows:  Light Duty Bituminous Pavement – 72,990 SF  Heavy Duty Bituminous Pavement – 170,730 SF  Concrete Sidewalk/Pattern A – 29,600 SF  Concrete Sidewalk/Pattern B – 9,430 SF  Metal Grating/Bridge – 820 SF  Concrete Pavement/Heavy Duty – 26,820 SF  Permeable Concrete Pavers with Underdrain – 7,610 SF  Concrete Pavers – 4,350 SF  Landscape Green Space – 197,680 SF  Open Stormwater BMPs – 24,690 SF  Building Area – 197,980 SF Page 87 LANCASTER LANE HENNEPIN COUNTY STATE AID HIGHWAY NO. 18. PLAT 32 HEN N E P I N C O UN T Y S T A T E A I D H IGHW A Y N O . 1 8 , P L A T 3 2 (H I G HW A Y NO . 1 6 9 ) (ROCKFORD ROAD) 10 11 1 2 3 4 6 7 9 5 5 CIVIL SITE LEGEND: GENERAL GEOMETRIC AND PAVING NOTES: SIGNAGE AND MARKING NOTES: SBI N Know what's R ( IN FEET ) DRAWING SCALE C3.0 OVERALL CIVIL SITE PLAN I hereby certify that this plan, specification, or report was prepared by me or under my direct supervision and that I am a duly licensed professional engineer under the laws of the State of Minnesota Signature Typed or Printed Name License # Date PROJECT NUMBER DRAWN BY CHECKED BY ORIGINAL ISSUE: REVISIONS KEY PLANNOT F OR CONST RUCTI O N Steven E. Gebauer, PE 47514 10/20/16 160301 SEG JH/RAT 8/15/2016 "AGORA" "AGORA" PLYMOUTH MN PUD RE-SUBMISSION-3 12/08/2016 No.Description Date A PUD SUBMISSION 8/15/2016 B PUD RE-SUBMISSION 9/13/2016 C PUD RE-SUBMISSION-2 10/20/2016 D BCWMC SUBMITTAL 11/28/2016 E PUD RE-SUBMISSION-3 12/08/2016 ROCK HILL MANAGEMENT LANDSCAPE GREEN SPACE 7 OPEN WATER STORMWATER BMP 65 84 941 AREA COVERAGE = 72,990 SF AREA COVERAGE = 170,730 SF AREA COVERAGE = 29,600 SF AREA COVERAGE = 9,430 SF AREA COVERAGE = 820 SF AREA COVERAGE = 26,820 SF AREA COVERAGE = 7,610 SF 1% AREA COVERAGE = 4,350 SF AREA COVERAGE = 197,680 SF 26.6% AREA COVERAGE = 24,690 SF BUILDING AREA COVERAGE = 197,980 SF TOTAL SITE = 17.05 ACRES / 742,700 SF IMPERVIOUS = 72.4% / PERVIOUS = 27.6% Page 88 CITY OF PLYMOUTH RESOLUTION 2017- RESOLUTION DECLARING FINDING OF “NO NEED” FOR AN ENVIRONMENTAL IMPACT STATEMENT (EIS) BASED UPON REVIEW OF THE ENVIRONMENTAL ASSESSMENT WORKSHEET (EAW) FOR THE FOUR SEASONS MALL REDEVELOPMENT PROJECT (2016 086) WHEREAS, the City Council has reviewed an Environmental Assessment Worksheet (EAW) for the Four Seasons Mall Redevelopment Project for Rock Hill Management, LLC for a mixed-used development to be called Agora; and, WHEREAS, pursuant to Minnesota Environmental Review Program rules, the City of Plymouth, acting as the responsible governmental unit, prepared and distributed the Environmental Assessment Worksheet (EAW) on November 2, 2016; and, WHEREAS, the EAW was published in the Environmental Quality Board (EQB) Monitor on November 14, 2016; and WHEREAS, the 30-day review period expired on December 14, 2016, and all comments and recommendations received from reviewing agencies and other interested parties have been considered; and, WHEREAS, it has been determined that the proposed project does not present a potential for environmental impacts of such significance that an Environmental Impact Statement would be required. NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF PLYMOUTH, MINNESOTA, that it should and hereby does make a Negative Declaration on the need for an Environmental Impact Statement (EIS) for the Four Seasons Mall Redevelopment Project to be called Agora by Rock Hill Management, LLC, based on the Record of Decision and subject to the following conditions: 1. Compliance with the statements in the attached Record of Decision. 2. Wetland mitigation shall occur if required by the appropriate permitting agencies. 3. Strict adherence to the City’s Erosion Control Ordinance shall be met during construction and until the site is re-vegetated. 4. The proposed development shall meet the National Urban Runoff Program (NURP) water quality guidelines, as well as the MPCA’s Best Management Practices Manual and City of Plymouth’s water quality requirements. Page 89 5. The development of the site shall comply with the City’s landscaping requirements. 6. The developer shall be responsible for transportation improvements needed to ensure safe and convenient traffic flow and access for the development, as identified in the traffic study. 7. Connections to a possible future trail corridor along the north side of the property would be addressed by the developer, City, and County as the project proceeds. ADOPTED by the City Council this 3rd day of January, 2017. STATE OF MINNESOTA) COUNTY OF HENNEPIN) SS. The undersigned, being the duly qualified and appointed City Clerk of the City of Plymouth, Minnesota, certifies that I compared the foregoing resolution adopted at a meeting of the Plymouth City Council on January 3, 2017, with the original thereof on file in my office, and the same is a correct transcription thereof. WITNESS my hand officially as such City Clerk and the Corporate seal of the City this ________ day of ____________________________. ________________________________ City Clerk Page 90 1 At the December 10, 2016, City Council/EDA joint meeting, staff was directed to investigate the potential for some of the units in the proposed Agora senior living facility to be made affordable. Staff met with Mr. Patel, the developer of the proposed Agora project, and Michael Pagh, the owner/operator of the proposed senior facility on the Agora site. Resources Available Currently the City Council, EDA and HRA have a number of funding sources available to assist the development of affordable housing, be it senior or general population affordable housing.  TIF District 7-6 (Berkshire). This district allows for up 25% of the increment received to be pooled and used for affordable housing. The Plan limits the total amount for housing purposes to $525,000. The account currently has about $500,000 available for affordable housing  TIF District 1-1 (Shops at Plymouth Creek). This district allows for up to 25% of the increment received to be pooled for affordable housing. The Plan limits the total amount for housing purposes to $625,000. The account currently has about $200,000 available for affordable housing. It should be noted that the pooled housing funds in this district have been pledged to assist Vicksburg Crossing if needed, but that could be changed.  TIHAP (Tax Increment Housing Assistance Program). This fund has older pooled TIF dollars that are specifically for affordable housing. The account has approximately $70,000 for affordable housing purposes and, other than interest earnings, has had no recent activity.  HRA Reserves. The HRA general reserves have over $1.5 million available for affordable housing. Although, to date we have not needed general reserve funds for the senior buildings, the reserves serve as a funding source for large maintenance projects at the senior buildings. This fund is also a backup source of funding for the housing rehabilitation program. Even after pledging a portion of reserve funds for these two purposes, there remains significant funds that could be used towards affordable housing.  TIF District 7-9 (Agora). The City Council/EDA could stipulate that 10% of the increment generated by the Agora development be allocated for affordable housing. This would most likely result in the need to extend the length of the district to 26 years. The funds generated Memorandum 5.02 To: Dave Callister, City Manager From: Steve Juetten, Community Development Director and Jim Barnes, HRA Manager Date: December 28, 2016 Item: Agora Senior Housing and Affordable Housing Options Page 1 2 from this project could be used at the site or at another project in the redevelopment district (generally, anywhere in the City).  HRA Levy. The HRA levy for 2017 is set at $571,379. The City Council has the ability at any time to increase the levy and allocate funds for affordable housing. The maximum HRA levy is set by law at .0185% of a cities market value. In 2017, the maximum HRA levy could have been $1,857,000 which means that the Council has the capacity to increase the HRA levy by $1,285,621. If the City desires to further discuss its role in affordable housing development, either for senior or general occupancy, staff can: 1. Continue to discuss possibilities with Mr. Pagh for the Agora site. Based on the high, site specific development cost, early indications are preliminary one bedroom rents for the independent units will range from $1,550 to $1,700 and preliminary two bedroom rents for independent units will range from $2,250 to $2,500. To make any of these units affordable, the estimated subsidy would need to be between $750 and $1,000 per month per unit ($9,000 to $12,000 annually per unit). 2. Investigate new partnerships with private development. Recently, the City subsidized two developments creating affordable options for seniors. The City provided $600,000 in assistance for the creation of 67 affordable units (the entire building is affordable at some level) at Westview Estates (Vicksburg Lane and County Road 47). In addition, the City provided approximately $2.5 million in tax increment assistance to cover redevelopment costs (poor soils, removal of blighted buildings, etc.) for the development of the Axis, a 157 unit apartment with 16 affordable units (Highway 55 and Highway 169). 3. Identify a third site for a new City/HRA owned senior building. Another option is investigate sites for the possible construction of a third senior apartment building. Both senior buildings currently owned by the City/HRA have some affordability. Plymouth Town Square has 99 affordable units (the entire building) and Vicksburg Crossing has 34 affordable units (one third of the building). After analyzing the options above, staff does not recommend any public subsidy at the Agora site. At a high level, the site economics would require an over investment of available funds – particularly when the resources could be better leveraged to provide more units on another project. If the City Council desires to establish more affordable housing options, staff recommends the Council first establish its priorities – either for senior or general affordability units. Once identified, staff would then investigate the best mechanism to meet those targets – through partnership with a private developer or through an additional publically owned building. Attachment Great Lakes Management Company 12/20/16 letter Page 2 Page 3 Page 4 JOINT COUNCIL/EDA MEETING January 3, 2017 Agenda Number: 5.03 To: Dave Callister, City Manager Prepared by: Danette Parr, Economic Development Manager Item: Lodging Tax Discussion 1. ACTION REQUESTED: Discuss the topic of a lodging tax and how it could be utilized to provide for a dependable stream of revenue for marketing and promotion, economic development, and public recreational facilities. 2. BACKGROUND: State Statute 469.190 (attached) allows cities to impose a lodging tax of up to three percent with 95 percent of the proceeds to be used to fund a local convention or tourism bureau for the purpose of marketing and promoting the city as a tourist or convention center. Currently, 110 Minnesota cities utilize a lodging tax (list attached), with 26 of them located in the metro (map attached). The majority of the 110 communities utilize a three percent lodging tax, with the exception of the following:  Bloomington collects 7%  Rochester collects 7%  St. Paul collects 6%  Minneapolis collects 5.6%  Duluth collects 5.5%  St. Cloud collects 5% The City of Plymouth has venues that draw people from outside our community and benefit our local hotels, restaurants, and supporting businesses. However, these venues are not traditional “tourist” venues and for that reason, the current statutory language may limit its benefit to the City of Plymouth. Some cities have opted for special legislation (examples attached) to allow for greater flexibility and use of the available funds. The City of Plymouth could benefit from special legislation with a focus on three areas:  Marketing and promoting the city (i.e.: promoting PIC to hockey tournaments, etc);  Economic development efforts (i.e.: Music In Plymouth donation, sponsorships); and  Public recreational facilities (i.e.: Improvements at Plymouth Ice Center). The above three areas would have a direct nexus with out of town visitors staying at Plymouth’s seven hotels. Nonetheless, it’s unclear how local hotels would view the tax. In 2010 the idea was briefly discussed (minutes attached), but not acted on by the City Council. As the Council is likely aware, our public recreational facilities play a significant role in attracting out of town patrons, which support our hotels, restaurants, and other businesses. If special legislation was created, the lodging tax could assist these facilities, some of which include the following: Page 1  Plymouth Creek Center – provides space for corporate and private meetings, conferences, events, and weddings  Plymouth Fieldhouse – provides space for athletic tournaments and special events  Millennium Garden – outdoor garden venue for corporate and private events  Plymouth Ice Center – draws 500,000 people annually, serves as venue for many large tournaments, scouting events and games  Hilde Performance Center – outdoor venue with amphitheater which hosts many large scale events and concerts including Music in Plymouth  Northwest Greenway –outdoor recreation corridor which will provide space for large scale events including walking/running races  Athletic Fields – outdoor venues that provide space for baseball, softball, soccer, and lacrosse games and tournaments 3. BUDGET IMPACT: Generally speaking, the estimated budget impacts fall in two areas: 1. Since it’s based on occupancy at any given time within the 986 hotel rooms in Plymouth, the lodging tax revenue stream will somewhat vary. It’s noteworthy that there is a likelihood that three additional hotels will be constructed in Plymouth in the next year, which would add additional revenue. 2. The lodging tax could allow for certain city functions to be funded by this new revenue stream and no longer require these expenses to be funded by the general fund budget. If the Council wishes to proceed with further consideration of a lodging tax, staff will reach out to our local hotels to seek their feedback. 4. ATTACHMENTS: State Statue 469.190 Map of MN lodging tax communities List of MN lodging tax communities Examples of special legislative language from other communities January 12, 2010 minutes Page 2 469.190 LOCAL LODGING TAX. Subdivision 1. Authorization. Notwithstanding section 477A.016 or any other law, a statutory or home rule charter city may by ordinance, and a town may by the affirmative vote of the electors at the annual town meeting, or at a special town meeting, impose a tax of up to three percent on the gross receipts from the furnishing for consideration of lodging at a hotel, motel, rooming house, tourist court, or resort, other than the renting or leasing of it for a continuous period of 30 days or more. A statutory or home rule charter city may by ordinance impose the tax authorized under this subdivision on the camping site receipts of a municipal campground. Subd. 2. Existing taxes. No statutory or home rule charter city or town may impose a tax under this section upon transient lodging that, when combined with any tax authorized by special law or enacted prior to 1972, exceeds a rate of three percent. Subd. 3. Disposition of proceeds. Ninety-five percent of the gross proceeds from any tax imposed under subdivision 1 shall be used by the statutory or home rule charter city or town to fund a local convention or tourism bureau for the purpose of marketing and promoting the city or town as a tourist or convention center. This subdivision shall not apply to any statutory or home rule charter city or town that has a lodging tax authorized by special law or enacted prior to 1972 at the time of enactment of this section. Subd. 4. Unorganized territories. A county board acting as a town board with respect to an unorganized territory may impose a lodging tax within the unorganized territory according to this section if it determines by resolution that imposition of the tax is in the public interest. Subd. 5. Reverse referendum. If the county board passes a resolution under subdivision 4 to impose the tax, the resolution must be published for two successive weeks in a newspaper of general circulation within the unorganized territory, together with a notice fixing a date for a public hearing on the proposed tax. The hearing must be held not less than two weeks nor more than four weeks after the first publication of the notice. After the public hearing, the county board may determine to take no further action, or may adopt a resolution authorizing the tax as originally proposed or approving a lesser rate of tax. The resolution must be published in a newspaper of general circulation within the unorganized territory. The voters of the unorganized territory may request a referendum on the proposed tax by filing a petition with the county auditor within 30 days after the resolution is published. The petition must be signed by voters who reside in the unorganized territory. The number of signatures must equal at least five percent of the number of persons voting in the unorganized territory in the last general election. If such a petition is timely filed, the resolution is not effective until it has been submitted to the voters residing in the unorganized territory at a general or special election and a majority of votes cast on the question of approving the resolution are in the affirmative. The commissioner of revenue shall prepare a suggested form of question to be presented at the referendum. Subd. 6. Joint powers agreements. Any statutory or home rule charter city, town, or county when the county board is acting as a town board with respect to an unorganized territory, may enter into a joint exercise of powers agreement pursuant to section 471.59 for the purpose of imposing the tax and disposing of its proceeds pursuant to this section. Subd. 7. Collection. The statutory or home rule charter city may agree with the commissioner of revenue Page 3 that a tax imposed pursuant to this section shall be collected by the commissioner together with the tax im and other rules and that its proceeds, less the cost of collection, shall be remitted to the city. Page 4 55 169 52 694 494 94 35E 35 35W Plymouth Anoka Apple Valley Blaine Bloomington Brooklyn Center Brooklyn Park Burnsville Coon Rapids Eagan Edina Fridley Golden Valley Inver Grove Heights Jackson Lakeville Maple Grove Minneapolis Mounds View Richfield Roseville Saint Louis Park Saint Paul Shakopee Shoreview December, 2016 Communities with Local Option Lodging Tax Tax Rate Less than 3% 3% More than 3% Municipal Legislative Commission Communities Communities with Lodging Tax Data provided by Explore Minnesota THIS REPRESENTS A COMPILATION OF INFORMATION AND DATA FROM CITY, COUNTY, STATE AND OTHER SOURCES THAT HAS NOT BEEN FIELD VERIFIED. INFORMATION SHOULD BE FIELD VERIFIED AND COMPARED WITH ORIGINAL SOURCE DOCUMENTS. Page 5 2016 Explore Minnesota Local Option Lodging Tax spreadsheet 2016 MN Local Option Lodging Tax Communities & Rates by Region 2016 Lodging Tax Rate Northeast Region -18 communities Cloquet 3 Cook Cnty Event & Visitors Bureau new Dec. 2008 1 Crane Lk & Kabetogama 3 Duluth 6.5 Edge of the Wilderness Rsrts 3 Ely 3 Iron Range Communities/Eveleth/Giants Ridge 3 Grand Marais 3 Grand Rapids 3 Gunflint Trail 3 Hinckley 3 International Falls 3 Lk Vermilion Resort Assn 3 Lutsen-Tofte-Schroeder & vicinity 3 Orr Proctor 1 Two Harbors 3 Northwest Region -11 communities Baudette/ Lake Of The Woods 3 Bemidji 3 Crookston 3 Detroit Lakes 3 East Grand Forks 3 Minnesota Northwoods/Cass Lake vicinity 3 Moorhead 3 Park Rapids 3 Roseau 3 Thief River Falls 3 Warroad 3 Central Region -18 communities Aitkin (enacted 6-1-2015) 3 Alexandria 3 Baxter 3 Brainerd 3 Fergus Falls 3 Hill City 3 Hutchinson 3 Ideal Twnshp/Whitefish Comms: Cross Lk, Peq Lks, Pine Rvr 1 Little Falls 3 Mille Lacs Area Tourism Council 3 Morris 3 Osakis 3 Ottertail 3 Perham 3 St. Cloud 5 Wadena 3 Waite Park 3 Willmar 3 NOTE: Information is provided voluntarily by local officials on a quarterly basis to Explore Minnesota Tourism. Information is continuously updated, and subject to revision. Information may not be complete. 2010 Explore Minnesota Local Option Lodging Tax spreadsheet 2016 Minnesota Local Option Lodging Tax Communities by Region 2016 Lodging Tax Rate Metro Region -26 communities Anoka 3 Apple Valley 3 Blaine 3 Bloomington 7 Brooklyn Center 6 Brooklyn Park 3 Burnsville 3 Coon Rapids 3 Eagan 3 Edina (enacted 7-1-2014) 3 Fridley 3 Ham Lake 3 Hastings 3 Inver Grove Hgts 2 Lakeville 3 Page 6 Maple Grove 3 Minneapolis 5.625 Moundsview 3 Richfield 3 Roseville 3 St. Louis Park 3 St. Paul 6 Shakopee 3 Shoreview 3 Stillwater/Oakdale 3 Waconia 3 Southern Region -39 communities Albert Lea 3 Appleton 3 Austin 3 Benson 3 Blue Earth 3 Fairmont 3 Faribault 3 Granite Falls 3 Harmony 3 Historic Bluff Country-FillmoreCounty 3 Jackson 3 Lake Benton 3 Lake City 3 Lanesboro w/ Carolton & Holt 3 Luverne 3 Madelia 1.5 Mankato 3 Marshall 3 Montevideo 3 Morton 3 New Ulm 3 North Mankato 3 Northfield 3 Olivia 2 Ortonville 3 Owatonna 3 Pipestone 3 Preston 3 Red Wing 3 Redwood Falls 3 Rochester 7 Sleepy Eye 3 St.James 1 St. Peter 3 Wabasha 3 Waseca 3 Windom 3 Winona 4 Worthington 3 NOTE: Rates that vary from the standard 3% local option lodging tax rate are shown in red. Information is provided voluntarily by local officials. Information is continuously updated, and subject for revision. Information may not be complete. Page 7 House Research Department Local Lodging Taxes in Minnesota Local Lodging Taxes Authorized under Special Law or City Charter Taxing Jurisdiction/ Year First Authorized Rate Use of Revenues/Other Comments Bloomington -1970 3.0% General fund and advertising and promotion of business and industry. The allowed uses were expanded in the 2008 law. 2.0% Improvements around the former Metropolitan Stadium site, south of the airport. The law allowed an additional tax rate ofup to 5.0% but only 2.0% was imposed. The use was expanded in the 2008 law. 2.0% Bloomington Convention Bureau for tourism promotion. The original law allowed a rate of only 1.0% and required revenues to be used for the metropolitan sports area. The 1991 law changed the revenue dedication, and the 2002 law increased the rate to 2.0%. The allowed uses were expanded in the 2008 law. 1.0% (not Mall of America Phase II improvements. Applies only to lodging imposed) facilities in an area made up of tax increment finance districts No. 1-C and 1-G. The tax may be impose at any rate up to 1.0%. Not yet imposed. The 2008 law also allows the city to use revenues from the lodging taxes authorized in 1991 for this new purpose provided that (1) the revenue derives from lodging facilities constructed after 2008 that are located in tax increment finance districts No. 1-C and 1-G; and (2) the revenues are not contractually pledged to another purpose. Total imposed rate 7.0% Duluth -1970 3.0% Maintenance of the Duluth Arena-Auditorium 1.0% Tourism promotions and subsidize operating costs for the Duluth Arena-Auditorium and Spirit Mountain Recreation Area 1.5% Repay debt for the Duluth Entertaimnent and Convention Center (DECC) and then for tourism and convention center promotion Total imposed rate 5.5% August2012 Page 5 Authorizing Legislation and Later Amendments Approved by ordinance under the city charter in 1970 Laws 1986, ch. 391, § 4 Laws 1990, ch. 604, art. 6, § 9, amended by Laws 1991, ch. 291, art. 8, § 25, and Laws 2002 ch. 377, art. 3, § 20 Laws 2008, ch. 366, art. 5, § 28 Approved by ordinance under the city charter in 1970 Laws 1980, ch. 511, § 2 Laws 1998, ch. 389, art. 8, § 26 Page 8 Page 9 Page 10 Page 11 Adopted Minutes Specia[ Council Meeting January 12, 2010 Mayor Slavik called a Special Meeting of the Plymouth City Cot'u'icil to ordet at 5:42 p.m, in the Medicine Lake Conference Room, 3400 Plymouth Boulevard, on January 12, 2010. COUNCIL PRESENT: Ma70r SlaVik, COuncilmembetS JOhnSon, MurdOOk, 8tein, WilliS, BlaOk (5:47 p.m,), arid Bildsoe (5:50 p,m,). ABSENT: None, STAFF PRESENT: City ManagerAhrens, Park Director Blank, Adstrative Servjces Director Portner, Commumty Development Director Juetten, Housing Manager Baines, and City Clerk Engdahl. Discusston of Modifications to TIF Districts Mark, from Ehlers, discussed with the Council the Tax Increment Financing (TIF) District Management and ReviewAnalysis Report which was requested by the Council attheirNovember 24, 2009 Council meeting. Briefly, he stated that the City has seven outstanding districts with threeofthosehousingdistrrctsandtheremainderredevelopmentdistricts. Thelengthofthe districts is 26 yegs afterthefirstincrement is made, Councilmember Johiison asked what thei future holds for cities regarding the leigislature arid TIF dishicts, Mark stated that some cities are pushing to extend the terms of the TIF digtricts to spawn zedevelopment. He noted the oppoitunities for affordable housing and mininfflzing the use of general obligation bonds for TIF pro)ects, Councilmember Willis asked why TIF District 7-6 is providing pooling fiinds to TIF District 7-5. Mark replied that TIF Districts 7-6 and 101 are authonzed on an contingent basis to assist with TIF for semor housing, Councilmember Willis stated he's concerned about how TIF money flowing in the funds will be spent, The Council should give that careful thought before approving the extenmons. He noted the Council will need to think about the tax impact when the general operating levy is increased, which will be under contintnng pressure. Itwould be harder for the Council to increase the levy withthis issue, He also asked ifTIF District 7-6 could be paid off earlier which could reduce thei levy by $100,000, Mark replied yes. There being no further discussion, staff stated the proposed modifications of development program for Development District 7 and TIF District 7-6 and redevelop.ment plan for Adopted Minutes I of 2 Special Meetfng of January 12, 2010 Page 12 Redevelopment ProjectArea No. I and TIF District 1-1 would be on the January 26 Council agenda. Visit Minneapolis North David Looby, Executive Director of Visit Mimieapolis North, discussedwith the Council the possibuity of tlie City 3oimng Visit Minneapolis North, He explained that Visit Minneapolis North derives its funding from a local option lodging tax of 3% that would be coIlected from individual guests ofhotel/motel properties and administered by the local governments of the member cities. In return, Visit Minneapolis North would tnarket the hotels/motels and the Plymoutb ayea for conventtons, sporting events, trade shows, etc, Currently, the cities of Maple (}rove, Brooklyn Center, and Brooklyn Park are their member cities, Comcilmember Willis asked how many of the seven hotel facilities in Plyrnouth support this, Mr. Looby rephed they have met with the hotels and motels, but they are unsure how many support the tax. There were a few representatives from the hotels/motels in Plymouth, but those representatives were unsure ifthey supported the proposal, The Council thanked Mr, Looby for meeting with them, and they requested that if any of the hotels/motels are supporhve ofthis progratn, to please contact the City Manager or the Councilmembers, Set Future Study Sessions Mayor Slavik stated she would add this to the tegular agenda this evening. Adjournment Mayor Slavik adjourned the meeting at 7:03 p Adopted Minutes 2 0f 2 Specfal Meetfng of January 11, 2010 Page 13