Title
Conceptual Economic Development Incentive Request/Presentation - Pryor Lakes Mixed-Use Development; Pryor Crossing, LLC, Applicant
Body
Issue/Request:
Conceptual Economic Development Incentive Request/Presentation - Pryor Lakes Mixed-Use Development; Pryor Crossing, LLC, Applicant
Key Issues:
In accordance with the City's adopted Economic Development Incentive Policy, Pryor Crossing, LLC is presenting a conceptual incentive request for a proposed mixed-use development within the Pryor Road corridor between Chipman Road and I-470. The proposed development includes retail, restaurant, multi-family and senior living uses on approximately 48 acres (some of which is undermined and not proposed for development at this time). The proposed development is being coordinated with the City initiated conceptual master plan and rezoning efforts which are currently in the development approval process and pending City Council consideration. Pryor Lakes, LLC is requesting incentives through the use of Tax Increment Financing (TIF), a Community Improvement District (CID) through sales tax and special assessments, and a Chapter 100 program.
The proposed development is located within the I-470/Colbern/Chipman Rd. Targeted Planning Area. This undeveloped area contains various impediments to development including topography, soil conditions, electric transmission lines, undermined areas and lack of available or adequate public infrastructure to name a few.
The total estimated project cost is $102.5 million and would include private development, public infrastructure improvements (transportation, water, sewer, stormwater), relocation of electric transmission lines, and improvements to Lowenstein Park.
The applicant and staff are seeking City Council's feedback and direction prior to committing additional resources necessary to formally prepare and present the plan for formal consideration by the TIF Commission and City Council.
Proposed City Council Motion:
I move to direct the applicant and staff to continue to prepare the economic development incentive request for formal consideration by the TIF Commission and City Council.
Background:
In October of 2015, the City accepted RFPs for the City-owned property located at 1000 NW Pryor Rd (I-470 and Pryor Rd). After considering the RFP's, the city Council chose not to accept any of the proposals. City Council then directed staff to prepare a conceptual master development plan for the west side of Pyror Road between I-470 and Chipman Rd. with guidance to incorporate a quality mixed-use development for the area.
On January 15, 2016, staff presented the City Council with two, "financially unrestricted" conceptual mixed-use plans for consideration. General feedback from the Council was they liked there was no big box retail incorporated within the plan, the desire to relocate the electrical transmission lines and envisioning a quality mixed-use development with density and walkability features within the plan. City Council directed staff to pursue a City initiated conceptual master development plan and rezoning working with affected property owners in the process.
As staff began working with the affected property owners, Pryor Lakes, LLC (Christie Development) approached the City with conceptual plans for the portion of the master plan area that they controlled or acquired. Working collaboratively with the affected property owners and Christie Development, the City prepared a conceptual master plan and rezoning and coordinated these efforts with the proposed Pryor Lakes preliminary development plan that is being pursued by Pryor Lakes, LLC.
At this time, the City's conceptual master development plan and rezoning has been considered by the Planning Commission and is scheduled to be considered in a public hearing by the City Council on March 9, 2017. The Pryor Lakes Preliminary Development Plan is currently scheduled for public hearing by the Planning Commission on February 28, 2017 and then City Council on March 9, 2017 along with the City initiated conceptual master development plan and rezoning.
Other Information/Unique Characteristics:
A significant portion of the acreage (northwest area of proposed development) is undermined. The Pryor Lakes preliminary development plan currently incorporates some City owned property within the plan, therefore prior to the preliminary development plan proceeding through public hearings, the City would need to consent to allow the plan to move forward which may be achieved by submitting a signed ownership affidavit. By signing the ownership affidavit, that does not commit the City to selling or conveying the property by any means, but allows the preliminary development plan to move forward through the approval process.
With the complexities associated with the project, the City and applicant propose to bring forward a "Development Structure Agreement" (similar to process utilized with Paragon Star project) to provide for the following: (1) to define the scope of the Project, (2) the Project schedule, (3) the financing plan for the Project, including development incentives, (4) the City’s execution of a Community Improvement District Petition to include the land area comprised of the City Property and the Developer Property to begin the process by which a CID may be created, and (5) the terms and conditions under which conveyance of City Property may occur for the Project. The Development Structure Agreement is envisioned to be presented for Council consideration and approval at the March 9, 2016 Council meeting along with the City initiated conceptual master development plan and rezoning and the Pryor Lakes preliminary development plan.
Presenter
Presenter:
Sandra Watts, White Goss Law Firm, Legal Counsel for Pryor Lakes, LLC
David Bushek, Gilmore & Bell - Economic Development Counsel for the City
City Staff