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Home My WebLink About2021-09-27 PACKET 06.4.STAFF REPORT CASE: M2021-065 ITEM: 6.4 PUBLIC MEETING DATE: 9/27/21 TENTATIVE COUNCIL REVIEW DATE: 10/20/21 APPLICATION APPLICANT: City of Cottage Grove REQUEST: A development district boundary expansion to include the corporate boundaries of the City. SITE DATA LOCATION: Within Municipal Boundaries of Cottage Grove ZONING: N/A GUIDED LAND USE: N/A LAND USE OF ADJACENT PROPERTIES: CURRENT NORTH: EAST: N/A SOUTH: WEST: SIZE: N/A DENSITY: N/A RECOMMENDATION Approval. GUIDED Cottage Grove COTTAGE GROVE PLANNING DIVISION � here Pride and,Ospellty Meet Planning Staff Contact: Christine Costello, Comm. Dev. Director; 651-458-2824; ccostelloa_cottagegrovemn.gov Application Accepted:. N/A 60-Day Review Deadline: N/A City of Cottage Grove Planning Division • 12800 Ravine Parkway South • Cottage Grove, MN 55016 Planning Staff Report TIF Development District Boundary Expansion Planning Case No. M2021-065 September 27, 2021 Introduction The City of Cottage Grove has positioned the community for growth and as part of that strategy there is sometimes a need to provide finainical assistance in order to see a development project move forward. A tool that the City may use for financial assistance is Tax Increment Finanicing (TIF). TIF is one of the most commonly used tools for communities to assist development efforts. TIF provides the ability to capture and use most of the increased local property tax reve- nues from a new development within a defined geographic area for a defined period of time. Pursuant to Minnesota Statutes 469.126, cities are allowed to create development districts within the boundaries of their city. These development districts provide the authority for cities to complete development and redevelopment within their community, develop and implement redevelopment programs, and create TIF Districts. In order for the City or the Economic Development Authority (EDA) to provide financing pro- grams, loans, tax increment, or grants for projects, they (the City or EDA) have to create a project area or development district and corresponding plan under their specific statutory author- ity. The plan defines the public purpose for promoting development and redevelopment within the City and defines the boundaries of the project area or development district. Background On January 7, 1985, the City established De- velopment District No. 1 (the "District"), which only covered a small portion of the City, and on December 17, 1986, they modified the boundaries of the District as shown in yellow at right. The City has grown and developed significantly since 1986, and there are areas outside of the District that the City and EDA may like to pro- vide financing programs to in order to spur reinvestment or new development in the future. In consultation with the City's municipal finan- cial advisor, Ehlers, it was recommended that expanding the boundaries of the District to be coterminous with the corporate boundaries of the City. This would provide the City and EDA the most flexibility to provide financing moving forward. District Boundary 1986 Planning Staff Report — TIF Boundary Expansion Planning Case M2021-065 September 27, 2021 Page 2 of 3 u. i 1 I rP #I o L7 r. Nev. Develornent D!;tract Boundary r PrevI-_-i_ Development Distract No.1 Boundary New District Boundary — Entire City (in blue) Discussion The role of the Planning Commission in this process is to provide a recommendation to the City Council that expanding the boundaries would be consistent with the development plans of the City, which are guided by the City's Comprehensive Plan. The Comprehensive Plan shows development has occurred and will continue to occur outside the current boundaries of the District (examples in- clude East Ravine and North Ravine Areas, Business Park expansion in the southern portion, etc.) and therefore expanding the boundaries would be consistent with the City's Comprehensive Plan. Planning Staff Report — TIF Boundary Expansion Planning Case M2021-065 September 27, 2021 Page 3 of 3 rix� E:i�iia 2Q40 Future lend Use i. _rCRY En ndary ..., Major Future Roadways AJaricultum Preserve O Rural Raddonlial Low Density Rasidentiol _ Medium Density Residential _ Flgh Density Residenliol _ CorrlmerCal - Nixed use Nixed Ilse within 3W' of Adanol Roadways Indushid - Public/S—W.blic Agricultural - %FWOpen Space - C sR Courses Trarmifienal Planning Area open Water n Streel and Railroad Right-ot-Way 7 1- 1 OClober2019 6 4,500 9,000 Feet ► .�� M1f ws,l9]dlocme�i99B[A55u�[:+ c_ s. nv u e o se.m + 2040 Future Land Use After the City Council receives the recommendation from the Planning Commission, they will hold a public hearing, as required by State statute, on the expansion of the development district boundary. Recommendation The Planning Commission recommends that the City Council modify the development district boundary to be coterminous with the corporate boundary of the City of Cottage Grove. Prepared by: Christie Costello Community Development Director Attachment: Planning Commission Resolution Member COTTAGE GROVE PLANNING COMMISSION WASHINGTON COUNTY STATE OF MINNESOTA introduced the following resolution and moved its adoption: RESOLUTION NO. PC2021-001 RESOLUTION APPROVING A MODIFICATION TO THE DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO. 1 WHEREAS, the Board of Commissioners of the Cottage Grove Economic Development Authority (the "EDA") has heretofore established Development District No. 1 and adopted the Development Program therefor. It has been proposed by the EDA and the City Council of the City of Cottage Grove (the "City") that they adopt a Modification to the Development Program (the "Development Program Modification") for Development District No. 1 (the "Project Area") to expand the boundaries of the Project Area to be co -terminus with the City; and WHEREAS, Minnesota Statutes, section 469.126, subd. 1 requires that the EDA and the City consult with the City's planning agency prior to taking such action; and WHEREAS, the Planning Commission of the City of Cottage Grove has this day reviewed the proposed Development Program Modification. NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of Cottage Grove approves the proposed Development Program Modification of Development District No. 1. The motion for the adoption of the foregoing resolution was duly seconded by member , and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Dated: September 27, 2021 Tony Khambata, Chair ATTEST: Derek Rasmussen, Secretary