275183 2`�5�.�3
CITY OF ST.PAUL COUN F E N .
FINAL ORDER
File N 18113
In the Matter of operating and maintaining the City—owned "Town Square" public
spaces located within the following streets: Cedar Street, Eighth Street,
Minnesota Street, and Sixth Street and "Capital Centre Plaza."
The costs for operating and maintaining the Town Square public spaces include:
security, janitor wages day and night, janitor supplies, contract cleaning,
` electrical maintenance and supply, HVAC, electricity, plumbing expense, elevator
expense, landscaping maintenance, programming, water treatment, insurancejproj—
ect expenses, and management fee.
The costs for operating and maintaining the Capital Centre Plaza include: snow
melting equipment, electricity, steam water, grounds maintenance, flags and shrubs.
The costs of operating and maintaining the "Town Square" public spaces shall be
assessed for a period from August 1, 1980 to July 31, 1981 and "Capital Centre
Plaza" for a period from January 1, 1981 to December 31, 1981, against the bene—
fited property owners of the downtown area as designated in the Town Square and
Capital Centre P1aza Assessment Policy formulated by the City of St. Paul.
under Administrative Order approved
under Preliminary Order 2�4�4� approved April 15, 1980
The Council of the City of Saint Paul has conducted a public hearing upon the above improvement, due notice
thereof having been given as prescribed by the City Charter; and
WHEREAS, The Council has heard all persons, objections and recommendations pertaining to said proposed improve-
ment and has fully considered the same; now, therefore, be it �
RESOLVED, That the Council of the City of Saint Paul does hereby order that the above-described improvement
be made, and the proper City officers are hereby directed and authorized to proceed with the improvement; and be it
FURTHER RESOLVED, That upon the completion of said improvement, the proper City officers shall calculate
all expenses incurred therein and shall report the same to the City Council in accordance with Chapter 14 of the City Charter.
COLJNCILMEN Adopted ie Co cil: Date
�. � �
Yeas Nays
� �d�Z� ertified P d by Co cil Secretary � 7 �g80
� Hunt -�- - ��__-°'� �
In Favor B -
��PVEtI� �
- � �''VIBddOX Against
�MCM3ho� Mayor
� Schowalter �� ,�UL 12 i980
�Tedesca
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TOWN SQUARE ASSESSMErIT DE'I'AIL �����,�
$556, 292 Assessment Budget - Total
40, 000 Capitol Center
$516, 000 Town Square Budget Portion
$516, 000 Town Square Portion
LOFT ONLY
Landscaping $ 75, 000
Programming 65, 000
Security 37, 000
Replacement 38, 000
Windows 10, 000
Management 20, 000
$245, 000 Loft Only - Assessed
�271, 000 Basic Budciet Adiustments to City
58% Space to City Fountain Maintenance $10, 000
HVAC Extra 4, 000 j ;
42/o Space to Oxford Janitorial 15, 000
Loft Insurance 8, 000 !
Elevator 8, 000 � :;
Miscellaneous 5, 000 � �
$50, 000 �
i�
$221, 000 Remaininq B�idqet - Assessed bv Square Footaqe
Assess By $92, 300 Oxford 42/0 of Area
Square Footage $128, 700 City 58/0 of Area �
,: .
May 20, 1980
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" MY NAME IS BILL BUTH, EXECUTIVE DIRECTOR OF THE ST. PAUL ASSOCIATION OF
BUILDING OWNERS & MANAGERS. OUR OFFICES ARE LOCATED AT 330 NORTHERN FEDERAL
BUILDING.
MY PRESENCE HERE TODAY IS IN RESPONSE TO THE NOTICE OF PUBLIC HEARING DATED
MAY 2, 1980 RELATIVE TO .THE PROPOSED ASSESSMENT FOR Tf� OPERATION AND 1�dAINTENANCE
OF TOWN SQUARE PUBLIC SPACES AND THE CITY OWNED CAPITOL CENTRE PLA.ZA.
ON WEDNESDAY AND THURSDAY OF THE PAST WEEK YOU WERE EACH GNEN AN ADVANCE
COPY AND A SIGNED COPY OF A POSITION REPORT PREPARED BY THE ST. PAUL ASSOCIA.TION
OF BUILDING OWNERS & MANAGERS. THIS REPORT ADDRESSED THE TOPIC OF OPERATIldG
COSTS FOR TOWN SQUARE.
I WILL NOT TAKE TIME TO REVIEW WITH YOU EACH AND EVERY POINT COVERED IN THE
REPORT, HOWEVER I WOULD LIKE TO RE—EXAMINE THE MA.JOR POINTS CONTAINED IN Tf�
SUNMARY OF OUR POSITION.
IN 1977, CITY STAFF UNDERTOOK AN EVALUATION OF HOW TO FINANCE THE CONSTRUCTION,
OPERATION, AND MAINTENANCE OF THE TOWN SQUAftE PROJECT. AT THAT T1ME, STAFF
EVALUATED SEVII?AL ALTERNATIVE5 SUCH AS TAX INCRENIENT FINANCING, PRIVATE FUNDING,
AND SPECIAL ASSESSMENTS. THE USE OF SPECIAL ASSESSMENTS FOR CONSTRUCTION COSTS
WAS REJECTED. THE QUESTION OF HOW TO FINANCE AN ESTIMATED �200,000 OF ANNUAL
OPERATING COSTS WAS LEFT OPEN FOR FUTURE RESOLUTION. Ta DATE, Tf� CITY COUNCIL
HA.S NOT DEA.LT WITH THE PROCEDURES FOR MANAGING TOWN SQUARE� THE ACTUAL COSTS OF
OPERATION, OR THE SOURCES FOR PAYMENT.
RECENTLY, STAFF PROPOSED ANNUAL SPECIAL ASSFSSMENTS ON DOWNTOWN PRAPERTIES
TO PAY A REVISED ESTIMATE OF $516,000 ANNUAL OPERATING COSTS FOR TOWN SQUARE,
AND AN ADDITIONAL �L,D,000 FOR CAPITOL CENTR.E PLA.ZA. ALTHOUGH BOI� REGAR.DS TOWN
SQUARE AS A TRITJMPH FOR ST. PAUL, AND APPLAUDS THE HARD WORK AND IMAGINATION OF
ALL THOSE WHO CONTRIBUTED TO ITS CONSTRUCTION, BOMA STR�DNGLY OPPOSES SUCH USE
OF SPEC?AL ASSESSMENTS. SEVER,AL REA.SONS SUPPORT OUR POSITION:
1) IT APPEA.RS THAT ONLY THE FUURTH FLOOR LOFT OF TDWN SQUARE IS TRULY PUBLIC
PARK SPACE AS DISTINGUISHED FROM COMMON ARF,A.S IN OTHER BUILDINGS;
2) THE PROPOSED SPECIAL ASSE5SMENTS FAR EXCEED THE SPECIA.L BENEFIT, IF ANY,
TO DOWNTOWN PROPERTIES;
3) COMMON AREAS IN DOWNTOWN BUILDINGS HAVE TRADITIONALLY BEEN PA ID FOR BY
THE BUILDING OWNERS THEMSELVES;
4) THE COST OF OPERATING AND MAINTAINING PUBLIC PAR.KS IS PAID OUT OF
GENERAL REVENUES;
5) AN ANNUAL ASSESSMENT PROCEDURE FOR OPERATING COSTS WOULD BE ADMINISTRATIVELY
BURDENSOME AND EXPENSIVE FOR THE CITY;
6) THERE ARE NO SPECIFIC CONTROLS ON THE EXTENT, COST, AND NATURE OF THE
OPERATION AND N�INTENANCE; AND
7) PROJECTS WHICH ARE TO BE FUNDED BY SPECIAL A SSFSSMENTS REQUIRE COMPETITIVE
BIDDING, NEGATING THE PRESENT PROPOSAL TO ALLOW MA.NAGEMENT BY OXFORD FOR
THE BEGINNING PERIOD.
THE DRAWBACKS AND IMPROPRIETIES OF USING SPECIAL ASSESSMENT5 ARE OBVIOUS.
IT IS DIFFICULT TO LOCATE ALTERNATIVE FUNDING, BUT BOI�i SUBMITS THAT THE
FOLLOWING ALTERNATIVE SOURCES SHOULD BE CONSIDERED:
1) ALLOCATE A SUBSTANTIAL PART OF THE OPERATION AND N�.INTENANCE COSTS AMONG
THE BUSINESS AND USERS OF TOWN SQUARE;
2) GENERAL CITY REVENUES;
3) THE EIGHT PERCENT NSP GROSS EARNINGS FRANCHISE FEE;
4) SPECIA.L EVENT USER FEES; AND
5) PRNATE DONORS.
k - . .
►
' IN SUNMARY, THE 5T. PAUL ASSOCIATION OF BUII,DING OWNERS & MANAGERS
STR:ONGLY OPPOSE THE USE OF SPECIAL ASSESSMENTS FOR THE OPERATION AND
MAINTENANCE OF TOWN SQUARE PUBLIC SPACE. �t� ���
v'l�cl�u b1 S ,�ZE .Gu%�.�, ���TS . (���.c,.�
;�
IN THE AUDIEI�TCE ARE MEMBERB OF OUR ASSOCIATION WHO SUPPORT THIS
POSITION AND I WOULD LIKE TO ASK THEM TO STAND.
�� ��,�� �.1�,�,�. ����-
WITH YOUR. PERMISSION„ I WOULD LIKE TO ASK THE FOLLOWING — JOHN
MANNII,LO — JOHN BLOMQUIST — GARY TANKENOFF — AND JIM MILLER — TO
ADDRESS THE COUNCIL REI,ATIVE TO OTHER AREAS OF CONCERN.
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Address of �+ ���t� `�
John E. Mannillo
Before the St. Paul City Council
May 20, 1980
Good morning.
My name is John Mannillo and I office at 310 Pioneer
Building. I am one of the principal owners of the
Pioneer, Endicott and Midwest Buildings as well as the
Jackson Ramp and other properties in Lowertown. I 've
been an owner for two years now, dating from April, 1978 .
I 'm a progressive businessman who looks and invests in
the future of St. Paul on a long term basis.
��� s�
I have serious reservations and objections to the
proposed practice of special assessments for operating
costs, and I would like to share some of these with
you. I am offering, in effect, one building owner ' s
1'ha
"impact statement" on the effects ofjTown Square assessment
as well as related problems .
( more ) v /,
�7�-----
Mannillo - 2
You know my general position regarding the Town Square
project is a positive one. I welcome its addition to
St. Paul and have supported its development. Like
many other downtown business people, I want Oxford,
and other developers, to be encouraged and made to feel
welcome.
/
I would like to address my remarks primarily toward
the special assessments to be levied against our
buildings and other buildings, for the Town Square and
other projects.
Let me say, at the outset, that I have no general
objection to paying for benefits, in the same manner
as any other property assessment. But a special
assessment for the Town Square project, will not
benefit our buildings to the thousands of dollars
that would be assessed.
I have some specific reasons why. It is argued that
the project would provide some overall benefits to
nearby businesses. Yet our main building complex
is f�_locks away, certainly not in the immediate
proximity of Town Square. I know that I cannot use
any public park there to attract tenants to our buildings.
( more )
Mannillo - 3
So the benefit to us is at best, minor, although it
certainly will benefit St. Paul generally.
Secondly, we have already lost a key tenant to the new ��a�c
� �. P �
�.c�,, which formerly rented nearly 9 ,000 square
feet, representing a sizable monthly rental and there-
fore a sizable loss. To gain a new tenant simply to
refill this space will involve additional expenses of
about $50 ,000 .
The new project, for which we are about to be assessed,
has already cost us greatly. But to make matters still
more coznplex, the new project begins th� inevitable game
� of musical chairs among tenants, which major new
I '��
� buildings always generate. I will now compete directly
�
with other buildings for tenants. As you know some
tenants will be moving about, some going directly to
the Oxford project. Therefore the market value of
my company's properties may actually decrease.
I accept competition as a part of the market forces
at work and part of the ' consequence of
progress. Yet I find it difficult to finance the
forces that basically attract tenants away from me.
( more )
Mannillo - 4
Some of my feelings about the special assessment
are shared by my tenants. It is obvious that a Town
Square assessment�will not affect only myself, but
5 +--�
{� every tenant in every building. Extra costs inevitably
� .�J U
� � are assed on to others. The
t p question that continually
� \ .�
is raised by them is this: Will the assessment costs,
wh�n they finally filter down, truly benefit them?
I have made an informal survey of many of my tenants,
meeting them in the hallways, in the coffee shop, in
my office, or on the phone. This is not, by any
means a scientific cross section, but the results
nevertlieless surprised me:
N �V ---- Not one tenant was in favor of the
j� � �
� special assessment
---- Al1 say the ToLVn Square project is too
._.--__
�� n� far away to be of any direct benefit
H �l
1 to their business.
`4 and . . .
---- Many question the use of a special
assessment, citing that only a small
portion of the project is truly public.
( more )
Mannillo - 4
Some of my feelings about the special assessment
are shared by my tenants. It is obvious that a Town
R
Square assessmentrwill not affect only myself, but
5 `�
{� every tenant in every building. Extra costs inevitably
� � u
!� are passed on to others. The question that continually
\ \ �
is raised by them is this: Will the assessment costs,
when they finally filter down, truly benefit them?
I have made an informal survey of many of my tenants,
meeting them in the hallways, in the coffee shop, in
my office, or on the phone. This is not, by any
means a scientific cross section, but the results
nevertheless surprised me:
N�V ---- Not one tenant was in favor of the
�� � �
'[ special assessment
y
---- All say the Town Square project is too
._.__.--
�� n 5 far away to be of any direct benefit
H �' �
� to their business.
`'� and . . .
---- Many question the use of a special
assessment, citing that only a small
portion of the project is truly public.
( more )
Mannillo - 5
I would say that most of the downtown population is
against this assessment. Especially in question
are the costs of maintenance of common areas on
� C three of the project's four floors, around which
J
� �� are clusters of businesses or services. ' Like other
i__r
' owners downtown, we bear the cost of maintaining our
�—
��/ own common areas, our shopping arcades, and our own
skyways.
Another concern that I specifically have is that the
proposed costs are not a one-time assessment, but an
every year assessTnent. There is no quarantee whatever
on what these costs will be this year or any year. It
is quite possible that the costs will be much more than
is currently projected, a point which is not disputed
either by Oxford or by city planners.
Overall, the special assessment sets a bad precedent
for not only the downtown area, but all of St. Paul.
It a new project is brought into existance which is
described as benefiting existing nearby propertys and
requires ongoing maintenance, should the burden be on
the current property owners to disprove the new
project's benefit? This seems a lot like being assumed
( more )
+ • � •
Mannillo - 6
guilty until proven innocent.
I hope I have shared with you some of my concerns
� and specific disagreements concerning the proposed
,�� � special assessment. �These have been my own
� �
�� � viewpoints, yet I 'm sure that they represent a wide
—`
cross section of downtown business people.
Like other people who believe in a revitalized
downtown, I appreciate Oxford' s efforts and I am
confident that the Town Square project will benefit
all of St. Paul.
But I don't think the costs should be met by special
assessment to building owners, such as ourselves. �
Thank you for this opportunity to be heard.
�......._.... �i
LOWERTOWN COMMUNITY COUNCIL
506 ENDICOTT BUILDING ����r��
ST. PAUL, MINN. 55102 '
221-0488
LCC POSITION REPORT
T0: CITY COUNCIL MEMBERS, PUBLIC HEARING 10:30A.M. MAY 20, 1980
RE: TOWN SQUARE ASSESSMENT POLYCY
Good morning,
N(y name is Thomas Harens, Executive Director of the Lowertown Community
Council . I am here representing the LOWERTOWN COMMUNITY COUNCIL (LCC) . The LCC
represents many growing business interests in Lowertown, a revitalized part of
downtown St. Paul . Our membership numbers over 100 and it's approximate break-
down is as follows.
30% Retai 1
30� Service/Professional
10% Manufacturing/Tndustrial firms
15% Building owners and managers
10°6 Residential
5% Associate
The LCC's board of directors and many of it's members have studied the
matter of the special assessment for Town Square as well as the Building Owners
and Managers Association's (BOMA's) position report of May 14, 1980, which was
sent to us for our discussion. We are responding to the assessment policy becauuse
of it's direct affect upon our membership and the entire Lowertown community.
While we app7aud the deve7opment of Town Square and are excited about
it's completion and potential for all of St. Paul , we are unaminously opposed
to the use of special a�sessments to fund the operating costs of this facility.
The LCC was not a part, to tr�y knowledge, of any earlier negotiations or discussions
of committment regarding the Town Square assessment. We are responding only to the
present assessment proposal . However, our position against this proposal is similar
to that stated in the BOMA report. Seven reasons were given by BOMA as supporting
their opposition and we agree on those seven points. T will refer to them if they
have not been presented atready or I will repeat them if you like.
We might add that as a general principle, we feel this special assessment
would set a bad government precedent for similar assessment in the future. We are
well aware of the City's desire to attract development and negotiating tool that
special assessment practives would provide. However, the special subsidization of
one business or business complex at the expense of other businesses is not in the
long term, business or government's best interests.
To date, the market value of assessed property has not veen increased as
must be established by the city before any assessment can be imposed. Futhermore,
this market value must increase by an amount equal to the assessment as a result of
any improvement. As a specific example of this inequity of the assessment pro-..
posal we would like to present a letter sent to us and to the members of city
council and mayor's office, from Straus Knitting Mills. Inc. Vice President and
� General Manager, Tony Straus. Extra copies are attached and I will read from the
underlined sections.
In conclusion let me reiterate our support of this project. Many of
our members have toured the development. T for one was markedly impressed and
expect tot do what I can to promote it. We suggest some alternative methods of
financing the operating costs such as the principal users and tenants of Town
Square bearing the burden of costs, and user fees for the park use.
i
1�R�U.�; Int�N�l�ll;�(1GII;�t�:C�; M�Ilil���►, �l►N�;�':�, '
� � �' --- _ _ ______.
-'"� " ` � � DESIGNfO BY THE HOUSE OF STRAUS -. �_—_ .
350 516,1E,Y ST;kE:E�T., SAINTI P��U.��, MINN�SQ:7/� 6.4.)ali 22a.43a1
Areo Code 612
CERTIFIEU MAIL - RETURN RECEIPT REgUESTED ___. _._
��.,� 14, 1980 � � �
Mr. J. William Donovan
�����
Valuation & Assessn�ent Engineer
Ci ty of St. Paul
Department of Finance and Management Ser '
Assessii�ent Division
218 City Hall
St. Paul , Minnesota 55102
• Dear Mr. Donovan:
We are in rc:ceipt of your niemorandurn, file 18113, which deals with the cost
of operatir�y and maintaining the City owned Downtown Square project and the
capital Centre Plaza project. Our views an this subject are as follows :
' 1 . IJe feel the assPSSn�ent to those other than Oxford Development Corporation
� are too high. In other words, Oxford Development should bear a greater per-
centage of the cost of these assessments,
� 2. ,Straus Knittiny Mills is a manufacturing concern and we do not have any
walk-in bu�s.
�
� 3. VJe do not feel we will want or will ever be hooked up to the skyway system.
4. Our building use and• location is mohe identifiable to those buildings in
� assessmen zone n ii e . ou ave us ocated in assessment zOr�e�1uniGer 3".- '
.
r '�. ��e ;believe a iu�re fiair wa,y of_assessment would be to evaluate and assess
�� � ���r��n r. rates wi thi ng _a qi ven zone for offi ce, retai 1 , whol esale and manu-
� ��c.�ur��i�y faci�it�es.
�. For our couipany to remain competitive and remain in our present location,
�' we feel we are�`�`yohfrr�-o-t5e:assessed unfai rly. One of our major competi tors
and sonie o uur custoii�ers are in assessment zone nuniber;��4 �an�d they would be
___�______.._----- -- - __
assessed �t approximatelv 7. 7�Q�f_.�ur--assessed rate. We be]ieve our location
��
in t�e duwntown area has no impact on our�lPVal��nf huci�r��c.
/. 7. ApNroxiniately 70� of our land area is manufacturiny, warehouse and
�� turaye space, We belic�ve t{�is area should be assessed at a lower rate than
our tinished office space.
�8. We believe these pr•ojects are uf benefit to the total city and we should
i` participate to son�e extent. We do di'sagree with the methodology used to
� � determine the assessn�ent structure an� believe the proposed assessment rate i�s
unfair based on the occupancy and u�of our facility.
"tending to our knitting for over haif a century"
. . ,.. ,. -
. __ _._�__....... ....... .. .... . . . , . _ , .. .....,.. . , . . _ ._..�._....... _ .. ...._
Mr. J. William ponovan
Page Two
May 14� 1980
��. We differ with your ground level square footage figure. Our Loyd-
Ihon�as appraisal shows the following description:
Building 1—Office and Shipping 63.5' x 119.5'= 7,016.75
13uilding 2--Shipping, Display, Lunch 23.5' x 110.5'= 2,596.75
Quilding 3—Storag� 30.58' x 110.5'= 3,379.00
Quilding 4—Storage 29' x 95' = 2,755.00
f�uilding 5—Al1ey over Head Bldg.—No Ground Level
TOTAL SQUARE FOOTAGE OF LAND AREA 15,747.59
i��� tax records show 15,882 square feet. You have us down for 18,057
syuare feet. '
We realize this assessment is only a beginning and it is meant to be
, an onyoing process. Therefore, we voice our strong views for fairness
and consideration to our above concerns.
We may not be represented at the 10:00 ineetiny on May 20th because of
convnitn�ents of no less importance to this iriatter. Our absence and
lack oi' verbal protest at the C�uncil mc:etiny will n�t diuiinish our
1u��liny a�oui; this ivai;Ler.
Siiicere�ly yours �
STRA �'(TING MILLS, ING�
i '
�
Anth ny M. S a ' �� �
Vice Presid and General y +
Manager
AMS/dcg �
cc: Mayor George Latimer '
Leonard Levine •
David Hozza
Bill Wilson
Ruby Hunt .
Ron Maddox ,
George McMahon
Joanne Showalter �
Victor Tedesco
SPECIAL ASSESSMENTS FOR TOWN SQUARE o �„�� ��
�� -�'�.�.,. �,
ST. RAUL CITY COUNCIL
MAY 20, 1980
C�.---,
� � v ��+n��s o� -n�� ������---��
I. GOOD MORNING � MR��N�� � � �
,��±�'��r-r�,�
MY NAME IS JIM MILLER
_ ;�� ;r%. � .., � � ..
I AM ADDRESSING YOU TODAY AS:
a) AN OFFICER AND BOARD MEMBER OF ST. PAUL �OMA
b) THE MANAGER AND REPRESENTATIVE OF THE OWNERSHIP INTERESTS OF THE AMERICAN
NATIONAL BANK BUILDING, FIFTH AND MINNESOTA STREETS, DOWNTOWN ST. PAUL
c) THE OWNER OF ST. PAUL PROPERTY ADMIN'I�TRATION, A PROPERTY MANAGEMENT FIRM
WI�TH ASPERATIONS OF GROWTH IN ST. PAUL
d) AND AS A RESIDEfVT AND HOMEOWNER IN ST. PAUL
U��
I SHARE THE CON6ERNS EXPRESSED BY THE PRECEEDING�SPEAKERS AND WOULD LIKE TO REGISTER
MY OPPOSITION TO THE PROPOSED USE OF SPECIAL ASSESSMENTS FOR THE OPERATION AND MAINTENANCE
OF TOWN SQUARE. I STRONGLY SUPPORT THE POSITION REPORT PREPARED BY BON1A. IN ADDITION,
TO THE REPORT, IbOULD LIKE TO HIGHLIGHT SEVERAL AREAS OF CONCERf�,
II. I HAVE ONLY RECENTLY LEARNED OF THIS PROPOSAL� IN ITS PRESENT FORM, MANY OF THE OTHERS
HERE ARE IN THE SAME POSITION. THIS IS THE FIRST TIME THE CITY COUNCIL HAS FORMALLY
CONSIDERED THIS MATTER. I HOPE WE MAY PURSUE THE RESOLUTION OF THIS PROBLEM WITH A
SPIRIT OF COOPERATION.
2 .
III . ONE ISSUE I FEEL SHOULD BE ADDRESSED IS THE INCLUSTON OF CAPITAL CENTER PLAZA IN THE
DELIBERATION CONCERNING TAWN SQUARE. THE INCLUSION OF CAPITAL CENTER PLAZA MIGFiT
WELL REPRESENT AN EFFORT TO IMPROVE THE CONSISTENCY OF THIS PROPOSAL BY TREATING
ANOTHER DOWNTOWN PARK IN THE SAME MANNER AS TOWN SQUARE. HOWEVER, TO BE ENTIRELY
CONSISTENT, THE REMAINING DOWNTOWN PARKS SUCH AS THE AMERICAN PLAZA, KELLOGG PARKy
RICE PARK�AND NIEARS PARK SHOULD ALSO BE INCLUDED. FURTHER EXTENDING THIS LINE OF
REASONING, THE OPERATION AND MAINTENANCE OF ALL THE PARKS IN ST. PAUL SHOULD BE PAID
FOR BY PROPERTY OWNERS IN PROXIMITY OF THOSE PARKS. THE ADMINISTRATION OF LAYERS
OF SPECIAL ASSESSMENT'�DISTRICTS SURROUNDING EACH PARK OR PUBLIC IMPROVEMENT IN THE
CITY WOULD REQUIRE A BUREAUCRACY THAT IS UNWEILDLY, UNWORKABLE AND UNNECESSARY'.
IV. ALTHOUGH THE SPECIAL ASSESSMENTS WILL BE LEVIED AGAINST THE PROPERTY OWNERS UNDER
THIS PROPOSAL, THE TENANTS OF THE AFFECTED BUILDINGS OR LOTS WILL IN REALITY SHOULDER
THE BURDEN OF PAYING THIS TAX. EITHER IMMEDIATELY THROUGH LEASE ESCALATION PROVISIONS,
OR EVENTUALLY WHEN LEASES ARE RENEGOTIATED, THIS COST WILL BE PASSED ON,T�I THE TENANTS.
IN CONVERSATIONS I HAVE HAD WITH TENAPJTS, THEY ALSO HAVE INDICATED THEIR OPPOSITION
TO THIS PROPOSAL. THEY HAVE CONVEYED TO ME THEIR CONCERN OVER THE NEGATIVE IMPACT
TFiIS PROPOSAL WILL HAVE OIV THE HEALTH OF DOWNTOWN ST. PAUL'S BUSINESS CLIi+1ATE.
�I�aO�
V. TO GENERALLY SUMMAR3�.ZE THE�ISSUES REGARDING THE PROPOSED USE OF SPEC3AL ASSESSP�ENTS
FOR TOWN SQ�lARE, I FEEL THAT:
� ,
1. THIS PROPOSAL WILL ESTABLISH A DANGEROUS P�ECEDENT THAT MIGHT HAVE A DIVISIVE
AND DETREMENTAL IMPACT ON DOWNTOWN ST. PAUL:
2. IT APPEARS THAT THE FIRST THREE LEVELS IN TOWN SQUARE ARE NO DIFFERENT THAN
THE COMMON AREAS OF OTHER DOWINTOWN BUILDINGS THAT PAY FOR THEIR OWN OPERATION
AND MAINTENANCE. THE BENEFIT OF THESE THREE LEVELS TO THE CITY IS ACCORDINGLY
QUESTIONABLE.
3. THE USE OF SPECIAL ASSESSMENTS FOR THE OPERATION AND MAINTENANCE OF THE 4th
LEVEL OF TOWN SQUARE, OR WHAT APPEARS TO BE THE PARK PORTION OF THE PROJECT,
IS INAPPROPRI��E.
VI . I AM THEREFORE REQUESTING THAT YOU DO NOT APPROVE THE PROPOSAL AT HAND BUT RATHER
REFER THIS MATTER TO COMMITTEE FOR FURTHER STUDY AND THE GENERATION OF VIABLE
ALTERNATIVES. IN A SPIRIT OF COOPERATION, I IN PARTICULAR AND BOMA IN GENERAL OFFER
OUR ASSISTANCE TO THE COUNCIL AND COMMITTEE.
THANK YOU.
., . .
?- '`• � �
« � ` -
. �,�����
�u 1 �.�� � ;,..
,' , �, �
, �� , ;� 1 . � .
�� ,
PLANNIN(i/TAAN3PORTATION/ENiDI�ERNO/�
January 17; 1978 '
.
MEMORANDUM ,, �
' .. �
To: Robert Van Hoef �
From: Richard Wolsfeld �
Re: Issues About 7th Place Implementation
7th Place will be implemented in two phases:
� . Phase I - The closure of 7th Street and constructit�n of activity
' areas with different themes. The elements used in construction
will be reusable.
� Phase II - The permanent construction of the Ga1l,eria, Qowntown
People Mover, and 7th Place elements. �
i
. Capi�al Financinq and Implementation Responsibility �
Phase I
The initial concept for funding the Phase I implementation of 7th Place was to use
$400,000 of Community Development Year IV funds. This request was not approved. '
As a back-up it appears that $200,Q00 of the .series 1974 bonds of the Downtown
Development District No. 1 Bond Fund can be made� available. Planning and Economic
Development staff are currently gaining the required approvals� to secure this
funding.
enn�a.aNCFlOSe.w�o�s.�.,wav�s.canROr�.MC, rxn,�owc a�sa►rF+ ►,�►��.�ss�s P►+o►�s,xiaa,-xi o
. . �
, , +. . .
.� ,
r , , � '
RNhe��� VAr� M�ef
.lnn�ar•y 17, 1978
� Page 2 ' �
� Phase II
The City intends to commit $6,000,000 for the Galleria be�ween Cedar and Minnesota
on 7th Street. Skidmore, ;Owings and Plerrill is currently working on the design. No
other financial commitment has been made at this time for �Phase II implementation.
The City is currently requesting proposals from consultants to develop the details
of tax increment funding of the Galleria �between Cedar and Minnesota) . As part of
the analysis the consultant will provide strategies for financing construction
costs and operation costs for the rest of 7th Place. If the. Downtown People �iover
project is implemented, some of the costs of construc�ing Phase II of 7th Place
will be� paid for by the DPM. ., � . ,
Refinement of Conceptual Desi n
Phase I '
BRW has submitted a proposal to the City of St. Paul for design services to . �
prepare plans and specifications for Phase I implementation of 7th Place. This
contract should be approved by February lst, 1978. The work will include four
phases:
, .
Refinement of the 7th Place Program ''` �
Development of preliminary sketches for cost estimating a"
� (schematic design)
� . Development of plans and specificatibns for construction
(cont�act documents) .
. Construction supervision
Phase II
The work by SOM will result in a clear definition of the ualleria. The DPM work
will define the basic elements 9f the rest of 7th Place. Issues addressed will .
include the cover of the. street, energy considerations of climate control , �
vehicular service access, fire access. utilities, etc.
, . ,
. ` .
.
� , .
. .. .
� . .
.• �
Robert Van Hoef . .
January 11� 1978
, Page 3 ' � .
Schedule
Phase I
The key elements of the Phase I schedule include� �
. February, 1978 - May, 1978 - Design and award of construction contract
� . June, 1978 - July 15, 1978 - Off-site construction �
. . Ju1y 15, 1978 - Traffic removed from 7th Street
� . July 15, 1978 - August, 1978 - On-site construction �
. September l, 1978 - Phase I opens
- Phase II �
Galleria construction could be started as early as the fall of 1978. The rest of
Phase II of 7th Place could be implemented with the DPM construction. � The best �
estimate at this .time is construction during .19B2 and 1983.
. Maintenance
•:�
.
� The maintenance issue was discussed with Bob Peterson of Public Works. The table
below outlines for Phases I and II the responsibility for each of the expected
elements. The formation of the 'new entity' needs to be discussed.
Element Phase I ' Phase II
Street Furniture— � New Entity New Entity
Landscaping—' . New Entity New Entity
Lighting . `� ' City of St. Paul City of St. Paul
Trash Containers City of St. Paul City of St. Paul �
Restrooms - ' New Entity New Entity
Bus Shelters MTC MTC �
Activity Areas� New Entity New Entity
Mall Walk Areas City of St. Paul City of St. Paul
Surfaces of Enclosed Mall P�.A. New Entity
Electrical/Mechanical �•I.A. New Entity
` .
� � � t. • . . ' ,
'' ,
�
Robert V.an Hoef
January 17, 1978 . '
Page 4 ' . .
Management, Administration, and Operation �
The key to the success of 7th Place is the programing and �staging of activities.
An entity must be created with� this responsibility. The functions which this
. entity will have responsibility for includes: � � •
. Activities on 7th Place
, ,
- Programing Events � .
- Allocation of S�ace
- Advertising of Activities
- r1anage Implementation of Events . . •
. Public Relations �
� ' - General Promotion
- Coordinate Qwners and Tenants
- Public/Private Interface
. Evaluation and Updating of Physical Facilities
- Evaluation of 7th Place '
- Program New Facilities �
- Implement Plew Facilities �
• . �
. Operating Cost/Revenue '�M
- Security
- Charging of Fees and Rentals
. - Operating Costs
- Allocation of Deficit �
. Public/Private Framework for 7th Place
- Management of the Use of Public Space
The concept discussed to date is that the private sector would finance the opera- .
tion of this entity. Whether this entity and the entity required for maintenance
are the same or different groups is an open question. The City has indicated
they have no interest in contracting for complete ma�intenance service and then'
assessing or chargin�g for the cost of services. The Downtown Council has
indicated that they have no interest in funding or becoming the maintenance or
the operating entity. �
� . , � �
�
�_ � �� Nr�n,� nr��►-�� � , � ._� .
. . . 7y ,�� , .
q-//- 7� • , `'�`� �( w
� �
'Ze' � yC�e� �-�-a.o-,,J /�
�C�o-�
, 0 � ���
Z�� .
SUGGESTED OPERATING AUDGET �iQ �
Administrntion :
' Director (salary & fringes) $ 30 ,000. 00
,
� ,' Secretgry (salgry & fringes) 10 ,000. 00 -
,
Office rent 7�800. 00
�. Supplies 4Q0. 00 .
Telephone 700. 00
. PosCage 600. 00
� , Printing . 400. 00
Meeting expenses : 500. 00
Travel expenses • 600. 00
• � Manager' s expense 1 ,000. 00
Miscellaneous ' , 1 ,500. 00 .
. � . �
. . . ,:�,. $ 48 ,000. 00
�O.peration: .
� . SecuriCy (1) 5 ,000. 00 �
, Maintenance • 10,000. 00
� Contract services (2) 7 ,000. 00
Promotions (3) , 25 ,000. 00
Miscellnneous 5 ,000. 00
' . $ 52 ,000.00 �
, , , � TOTAL . $100,000.00
. (1) A suppl2ment to no�rmal security by puf�lic to cover
. ' special equipment or, events.
� ,,
(2) Special Clean-up after events �- daily p3.ck-up and cleaning.
� (3) Does not it�clude seasonal decorations. � _
w � �.'"s . .
�'• . '
Saint Paul-Ramsey Arte and Science Counci130 East Tenth Street Saint Paul,Mn.SS10] (61�227 8241
February 10, � 1978 .
� Mr. Robert Van Hoef � .
Project 85
First National Bank Building
� 322 Minnesota Street � � '
Saint Paul , MN 55101 �
Dear Bob:
I have looked over your first draft budget for Galleria and have these � ,
initial� comnents and questions: .
1. Security and maintenance budgets will depend upon the following '
considerations: days and hours the space is open to the public;
relationship of the maintenance and security staff, equipment,
etc. to the maintenance and security program of the rest of the
� Seventh Place mall ; a more specific definition of the kinds of
• � programs the Galleria will house, e.g. , certa�in exhibits may
require special security requiring either personnel or.� equipment
such as locked cases, etc.
Z. Staff costs of $40,000 may be a realistic total but requiring
different distribution. Again, I am making certain assumptions
about the program the manager, would have to plan and implement. .
� If the person is basically a prograrr�ner of activities for the -
. Galleria and a liason with merchants ' associations, other activity
agencies like the Arts and Science Council , Parks and Recreation,
COMPAS, etc. , I think you can get good response to a salary in
' the $20,000 range. This person would have to be supported by
� another body, sharing the responsibilities of installing and
supervising activities since one body cannot be present six days
a week, 12 hours a day. This might be a $10,000 range person, .
similar to Dick McIntosh's assistant at Landmark Center. A
� ' secretary=scheduler would also be necessary, as you have noted.
3. I assume your "promotions" budget is to cover all program fees,
� set-up or installation costs and publicity ads, posters, and so
� on. Unless you see additional hard or soft donations from
� merchants, city, etc. , I think $25,000 of activity �is too low.
Consider �ust the cost of seasonal decorations.!
5chubert Club�Sdencr Mueeum of Minneeota�Sdnt I'aul Chamber Orcheetn�Minneeot�M�roeum d Art�Chimet�'fhedre Companr�COMPAS
An Irotllulfoml Sponwr of KSJN-PM Radb. . •
. . • \
---r----- - - -__, . _ . . .. ._ • . _r_, -�-
_ _._..__._ ... _....... .,.. , . . .__... .
__,__ . __ .�.�-
.,� , .
. . ,
M � • , • '
• ' • • . .
• i .
� Mr. Robert Van Hoef -
. Page 2 .. . .. , : ' .
February 10, 1978
4. I can't respond to. °contract services" at $7,000 - I fargot to
ask you what it covers.
I don't know, if this is a't all helpful . I am willing to pursue it with
you further, if you wish. �
Sin rely, � �
� ��1 . , .
�
� Susan Anderson � � �
. Director of Planning
SA/cac . .
, . ..
�
. \ ; .
�
r . �
�v,
�
. ,
• �Y�''� � ������_
op�ration '8� �. /,' . ,, ,
. ���,�,,� d- ,L'o-h c�.!L%�
M ,I N U T E S 9 ����� �. �;,y�,,.��
oC' �] ,
//�L�l�h.� �'y��
SEVENTH PLACE IMPLEMENTATION COMMITTEE MEETING Q,� _,/
June 16, 1978 7-�7- 7 � `�
----------------------- �!/Yi-�"�,y�')' �.��fLic.c.;�
� t�.�Y„�,�(,s�-�
J
The meeting wa� opened by Chairman Gary Tankenoff. • The Minutes of
the June 1 meeting of the SEVENTH PLAC� Implementation Committee� � Q �
were approved� as distributed. �-�`""�
��'Ywrk..o,e
The Chairman announced that the "parking street" proposal , as the �� �6�T
first phase of a Seventh Street mall, will be presented to the Finance f
Committee of the City Council on June 26 at ten o'clock A. M. at City � �QS
Hall. Any members who would like to be resemt are welcome. /D 6
The Chairman also emphasized that a meeting be held with the Downtown �Z��'
Community Development Committee prior to the presentation to the City
. Council. .Although a similar meeting with the Parking Commission would
be in order, it would be difficult to arrange because the next meeting �,
of the Commission is July 13.
Peter Jarvis of BRW consutting firm presented revised cost estimates �
indicating a total project cost of $125 ,300. This includes three
major items : (1) Island cost - $37 ,100; (2) Structure cost - $74 ,200;
(seven structures) (3) Street costs - $14 , 000. He again reviewed the .
project and some of the design changes which were suggested at the �
last meeting.
. qti
The discussion that followed produced these ideas : There is general
support for the idea of free parking in the 106 new stalls provided .
on the street. Such a parking program would permit a controlled
experiment for downtown free parking. There was considerable discussion
on the structures that woulcl be built on the newly created traffic •
island. The consultant agreed that the design is not final and that
it is in need of additional design work on construction.
Again,caution was expressed on providing benches or sitting areas as
a part of the structure. However, there was general agreement that ,
while such sitting might encourage activities which are detrimental
to shopping, that this, too, could be a new experiment and forerunner
of some of the many amenities which will be designed into the galleria
and Town Square project. There were several suggestions for considera-
tion in the design of the island structures.
There was general agreement with the design concept and that it should
. now be' presented to the City Council by way of the Finance Committee.
Robert Van Hoef, Secretar�
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STATEMENT OF
ERV A. TIMM, 6ROUP MANAGEI�
SAINT PAUL AREA CHAMBER OF CW�MERCE
BEFORE 7HE SAINT PAUL CITY COlN1CIL
ON TNE MATTER OF
SPECIAI ASSESShtENTS FOR OPERATIONS AWO MAINTENANCE OF TOWN SQUARE PARK
My name is Erv A. Timm. My appearance here today is on behaif of
the Saint Paul Area Chamber of Commerce, with principal offices at 300 Osborn
Building, Saint Paul , Minnesota.
The Chamber's Economic Action Group, for which I am Group Manager�
at the request of many af our members, is in the process of conducting a
through analysis of th� proposed special assessn�nt procedure for defraying
the costs of operation of the City-awned Tawn Square public facilitfes
bounded by Cedar Street, Eighth Street, Minnesota Street and Sixth Street,
and of the Capital Center Plaza.
Within the par�netara of our study and a�nalysis are such things
as th� need for realism and control , determination of who is a be�efited user
of the facilities, and establiahment of a fai� and equitable basis for
recovering the costa of aperatlon and malntenance.
Our first efforts turned to the Devonian Gardens in Calgary
after which our own Tavn Square Park was patterned. Devonian Gardens consist
of 2.5 acres of indoor vegetation in the heart of Calgary . . . . one mile of
pathways with special ramps for handicapped visitors, seating for 800 alongside
waterfalls, fountains and ponds . . . . a stage for regular entertainment and
varied exhibits (inc�uding TV shows} , a children's play araa, plus a reflecti�g
pool that serves as a skating �ink in the winte� . . . . ail of which is open
to the p�lic from 9:00 A.M. to 9:00 P.M. 365 days a year . . . . at no admission
charge. There are 138 different pl�t varietie� alone . . . . a total of 16,000
varying "tropical plants" that came from Florida but are all rapresentative of
- 2 - .
t
�
F
the native plants in the Calgary area or the northern clfmate. These are �
supplemented by �,000 hardy ground covers from the Calgary area as pa�t of the �
landscape. 'Forty-six feet above street level . the naturel terrace and cc.
of Uevonian Gardens ��e complemented by sparkling fountai�s, reflecting ponds,
f
crossed by wooden bridges and waterfalls. The steel , aluminium, bronze and ;
clear glass rise to 24 feet to house a unique park for recreation, relaxation
and enjoyment. A virtual paradise . . . . and where you would expect it least
. . . . amid the ice and snow. I am sure that this "word picture" of
Devonian Gardens that I have painted clearly shaws that it is a "show place"
that everyona in Calgary ts proud of an benefits from. While our Town Square �
Park may not rival Devoni�n Gardens, it wiil most assuredly be sn exciting place i
that wtil attract �ot only our oam residents but visitors as well.
But naw comes the ha�d part. Devonian Gardens was constructed by
Poole Construction under the supervision of J. H. Cook �►rchitects and Engineers
and it certainly wasn't a regular job. Unique eonside�ations and pro6lems were
involved. [3eneath the Devonlan Gardens are �etail stores and restaurants. Not
only do the floors car ryr substantial loads imposed by the various contou�s,
water courses and vegetation, but they are also waterproofed. Ventilation and
controlled humidity are essential as is the lighting designed to sustain
plant growth. All of this says it is a mighty expensive place to build and to
maintain.
There is no reason why Saint Paul should not be envious of Calgary
and want its ewn "show piece". There is� however. a substantial difference.
Devonisn Gardens, compieted in 1977, was gt,ve_n to the citizens of Calgary by '
the Devonian Group and C_alford Prope rties� and it is apera,ta_d and maintained
by the City of Calgary Parks and itecreation Depa�__
' Atl of which brings ma to the point of raalism a�d control. Just how
eliborate does Town Square have to be? To what extant do the "benefited users"
who are going to have to pay the costs of oQeration and maintenance have any
- _ 3 _ �
�
;
E
control over the+initial capital outlay which is di �-ectlLr transl�ted into the
annual costs of operatlon and maintenance. �
�
Tc� date we have been la�-gely providad with projected costs based heavily
on the experience of Oxford Development Group elsswhera in arriving at the
!
estimate of $516,000 annual operating costs for Town Square Park and the �
additional $40,000 for Capital Centre Plaza appears to hav�e "just gotten tossed
in" without a great deai of shawing of justificati�. It dces not appear that
the City Council has dealt with the important matters of establishing an
effective system for ma�agement of Town Square or estabitshing cost-effective
controls for its annual operating expenses. We simply nsad to have a better �
,
"game plan" for determini�g haw elaborate Tawn Square Park will be and how
�
much will it cost beforo we can realisticaliy be thinking about spreading �
costs over r
p operty owners. Is this figure too high, too low, or just right?
The next conside�ation is to determine who is a benefited user?
We have ever reason to believe it will be an exciting place, attra_ct_i_ny
residents and visito�s alike� and 1 have to believe everyone in Saint Paul
will benefit fram Tawn Squ�re Park. Calgary apparently cktormined that they
;
all benefited equally since Devonian Gardenare operated and malntained by the
City of Calgary Parks and Recreation Department. Como Park attracts residents
and visitors alike, however there is no special assessment procedure for F
adjacent property owners.
Evsn if we were to concede that there is a special class of corporate
citize�s who derriv� "special benefits" we are immediately confronted with
what is a fair �d equi�table basis for detdrminin9 spscial benefits? it may
be easier to determine what is not. How can it be square footage for land
when it might be a parking lot or the land under a awlti-m111ion dollar buiiding?
' How can it be proximity wh�n some buildings may be moe� closely tied to Tow�
Square Park through the Skyway system or Shuttle Transit and other buildings see
it as a competitive retalling area hurtiag their sa1�sY Sea�e office buildings
- 4 - ,
hous� corporate headquarters or general officos of a specific company a�d others
are open to.tenants, so that one depends on public access for its existence and
the oth�r wishes to be isolated from public access. How can it be square footage
of rental space when leases vary as much as $10 to �1Z.00 per sq. ft. for occupted
rental space depending on the building even though the buildings might be in the
same assessment area? Real estate taxes bear some coorelatia� to per sq.
ft. rental incomes by dete�mination of assessed valuation o� a capitalized
operating incort�e formula. Is there �ny fair and eQUitable basis for determining
special benefits?
_ _
As we looked for an anawer to that question ws took a curso ry look
on the impact of Der�m toam Saint Paul new construction � the local Government
Aid formula sinc� assessed valuation of downtewn buildings hss a substantia�l
impact on the amount of these funds which the school district would receive.
�nd which� in turn, has a substantial impact on property taxes. A great deal
more attention needs to be given to this factor so that we can accurately
measure the irt�act of Local Gowernment Aids to the City� County and School
District. This also raises a most serious concern that buildings in Davntown
Saint Paul might be put in "doubie jaopardy" by receiving increased assessed
valuations based on their proximity to Tavn Square Park while simuitaneously
being directly assess for its operation. One need also fear that an i�crease
in the sales ratio for commercial buitdings orde rod by the Minnesota Department
of T�xation emanating fram its annual sa�ling might resuit in Downtown Saint
Paul buldings getti�g "hit hard" and I believe it is worthy of City Council
Research to thoroughly expiore these factors befora "we take a flyer" on
special assessments.
• It became quite obvious that all of the new construction in Downtown
Saint Paul has generated mora tax revenue. Here, hcwever, we have the converse
situation. While the additional taxes o� new buildings i� Wards 3 and 4
. . - 5 - �
tend to reduce property taxes for ev�eryone in Saint Paul , the costs of
operating a park in Downtown Saint Paul Is to be assessed directly against
the prope rty owners in Downtown Saint Paut paying the additional taxes.
Pursuing this a litle further, 1 could not help but recall that it
seemed entirely appropriate to use the increased revenue generated from the
utility franchise tax on proposed new buildings in Downtown Saint Paul to
economically justify the Dawntewn People Mover. W'hy is it not now appropriate
to use the 8 percent surcharge on sales of electricity, gas and steam from
the new buildings within a several block proximity to Toam Square Park to
at least partially offset the annual ope�ati�g expense of this facility?
City Council Research Ce�ter did � �laborate study of Saint Paul'a Gross
Earnings Fr�nchise Fee o� February 26, 1979 with projections in g�owth through
1983. Thts �eds to be updated to include such new buildings as Minnesota
Mutual Life Insurance Company's headquarters which wasn't even known about at
the time of the original study. It might be possible to pay the costs of
ope ration of Town Square Park frem new rev�nue generated by the surcharge
on the conce�tration of new buildings which we cali Tmwrt Square Park ltself.
It seeans totally incongru��s for the City to "cream off" the additionai property
tax revenue and the addittonal 8 percent surcharge on energy bills from the
new buildings in �m tawn Saint Paul and i� the convorse pass on the costs
of operating Town Squars Park to them through special assessments.
We are a long way from completi�g our analysis. We have not even
made a recornmendatian to the Chamber's Ex�ecutive Cortmittee or Board of Directors
as to a position relative to the special assessment proposal. We know that the�e
is a great deal of disagreement in the coamunity relative to the assessment
pro�dure. On the other hand, th�re is almost caapleta unanimity that Town
Square Park will be of substantial benefit to Downta+n Saint Paui.
, . . �
_ 6 _ ,
We certai�ly do not advocate spending approximately $)0 million
dollars to build a new image for powntown Saint Paul and not fully realizing
its potential.
What we suggest is that si�ce there wiil be a second hearing in
mid-August that we use the time productively to approach the problem from
these perspectives . . . .
(1) develop a system of management of Town Square Park that includes
cost control
(2) develop canpetitive data for determining operations and
maintenance cost projects
(3) define a "benefited use�" for Town Square Park
(4) establish a fair and equitabie b�sis for dete�-ming how
speciai benefits, if any, should be spread
�5) fully explore the concept of dedicating the � perc�nt surcharge
on e�rgy to offset operations and maintenances expenses of Town Square Park.
While v� know that Downtawn Saint Paul is going to be a much more
exciting a�d beautiful place that will attract residents and vtsitors alike;
we have the responsibtlity to keep it cor�etitive.
Like other organizations interested in Downtown Saint Paul , the
Chamber wiil commit its resources to finding more constructive solutions
and we ask that the City Council withhold action on the special assessment
concept to give everyone more time to explore and develop alte rnatives.
���;�� �;�
DCDC
Motion passed on Thursday, April 16, 1980
Where as:
The Downtown Community Development Council (DCDC) was not asked to
review the recommendations of the city as to the�'own�$quare
�►ssessment7�listrict funding proposal .
and
Where as:
The Downtown Community Development Council is concerned with the
precident that will be created by the proposal special assessment
policy recommended by the city.
Therefore, be it resolved that the Downtown Corrrennunity Development
Council requests the Qity to reconsider the special assessment
concept as proposed; a -� }�r that the eity determine:m a more
equitable and constructiv method of determining the costs,�f
operation for Town Square�who should operate �e facility;�what
income can be generated through special events,
a fair method of funding the operating costs consistent with current
practices of maintaining oth �ubli are s such as skyways, side-
walks, parks and squares; an��urther, at the new plan be presented
to the membership vf DCDC at a pub1ic meeting.
.- .
� DR.AFT -- REtl�5ED BUDGBT 6-1-80 �t�'.�� ��,
� _4�._;.� �
REVISrD BUiIGET
Oxford Ci�Y
Security $ - � � $36,200
Security Car_tingency I8,400
,.T:?i�; �:•�Z T'i:i� ';i '"� 1 J3 ll..I � .�V �."�7 -
.a. .�C)�-3..,, y ,_ y .i
.Janitor Supp�ies �,458 2,0;2
Contrac� C3.eano �- 10,000
Electrical Maintenance 1�l�pp 1,900
HVAC 24,323 35,677
Electricity 39,304 229396
HVAC (Elect. Adjust.) (4,000) 4,000
�'�.umbin.g 400 2,600
Elav�*or " 9,20U �.S,I00
Genaral Building 5�000 _ 5,000
I�. S. . 509000 �
L. S. Conti_�g�.:�v 25,000
P;-agr.a�ning 65,000 .
�rla4�r 80d 1,800
Pro; . E�, 5,546 4,054
Mx�. Fee 10,000
�otals $123,062 $359,338
Contir�gency 33,sgz �
T�tal $123,Ob2 $393,Z30 $516,292
Public Ar�a (Levels 1-3) 25%
� 92,29f 30,760
Final Split $ 92,296 $423,996 $516,292
Oxford City
,,
• � M"p,..G.
f,�� �' `tir����
TO P1AYOR LATIMER AND MEMBERS OF THE CITY COUNCIL:
MY IdAME IS AMOS MARTIN. I AM EXECUTIVE VICE PRESIDENT OF THE
SAINT PAUL AREA CHAMBER OF COMMERCE, WITH OFFICES AT 3O'O OSBORN
BUILDING IN $AINT PAUL�
I AM HERE THIS MORNING TO DISCUSS THE ISSUE OF FINANCING THE
OPERATION AND MAINTENANCE OF THE SAINT PAUL TOWN SGIUARE PARK IN THE
OXFORD PROJECT IN DOWNTOWN SAINT PAUL. MY PURPOSE THIS MORNING IS
TO RELAY TO YOU A PLAN THAT WE HAVE BEEN ATTEMPTING TO PUT TOGETHER
OVER THE PAST SEVERAL WEEKS IN RESPONSE TO CONCERNS EXPRESSED BY
MEMBERS OF THE CHAMBER, DOWNTOWN PROPERTY OWNERS, MEMBERS OF THE
DOWNTOWN COUNCIL AND OF THE DOWNTOWN BUSINESS COMMUNITY.
LET ME SAY THAT OUR PRIMARY CONCERN -- THAT OF THE CHAMBER OF
COMMERCE AND OTHERS INVOLVED -- HAS BEEN TO SEE IF WE COULD FIND A
REASONABLE SOLUTION OR A COMPROMISE CONCERNING THE FUNDING FOR THE
OPERATION AND MAINTENANCE OF THE PARK -- A COMPROMISE OR SOLUTION THAT
WOULD HAVE THE DOWNTOWN BUSINESS COMMUNITY ASSUMING ITS FAIR SHARE OF
THIS COST.
OUR SECOND MAJOR CONCERN HAS BEEN THE CONTINUED HARMONY AND
WORKING TOGETHER OF BUSINESS, LABOR AND GOVERNMENT IN OUR COMMUNITY�
OUR ORGANIZATION HAS ENCOURAGED AND SUPPORTED THE OXFORD TOWN S�UARE
PROJECT AND OTHER DOWNTOWN DEVELOPMENT PROGRAMS � WE ARE DELIGHTED WITH
THE CURRENT STATUS OF DEVELOPMENT AND ACTIVITY IN OUR C0�IMUNITY� IT
HAS BEEN OUR CONCERN THAT WE SNOULD AVOID AT ALL COSTS ANY SEEMING
CONFLICT OR DISSATISFACTION THAT WOULD PROVE HARMFUL T0 THE GREAT SPIRIT
4
_A_.
1
OF COOPERATION AND WHICH MIGHT RESULT IN NEGATIVE PUBLICITY FOR OUR
COMMUNITY AS WELL AS HAVE A NEGATIVE IMPACT ON THIS GREAT DEVELOPMENT
PRaJ ECT�
OUR THIRD PREMISE WAS THAT WHATEVER WE DID SHOULD BE A COORDINATED
PROGRAM AND HAVE THE SUPPORT OF THE CHAMBER, BOMA, OPERATION HS, THE
DOWNTOWN COUWCIL, THE OXFORD CORPORATION AND A SUB�TANTIAL NUMBER OF
DOWNTOWN BUSINESS FIRMS AND PROPERTY OWNERS �
I
WE DID HAVE A SERIES OF MEETINGS WITH REPRESENTATIVES OF THESE
GROUPS AND IT WAS DETERMINED THAT THE CHAMBER OF COMMERCE, AS A BROAD-
BASED ORGANIZATION, SHOULD BE THE VEHICLE THROUGH WHICH ALL. GROUPS
WOULD WORK FOR THE PURPOSE OF A COMPROMISE PLAN. AS A RESULT, THE
PROBLEM WAS DISCUSSED AT A MEETING OF OUR EXECUTIVE COMMITTEE HELD
�UNE IO AND ALSO AT A MEETING OF THE BOARD OF DIRECTORS OF THE CHAMBER
OF COMMERCE HELD ON .JUNE 17, AT THAT MEETING, THE BOARD OF DIRECTORS
APPROVED A RESOLUTION AUTHORIZING TNE PRESIDENT AND EXEGUTIVE VICE
PRESIDENT OF THE CHAMBER TO PROPOSE A PLAN TO THE CITY OF SAINT PAUL
AS A COMPROMISE SOLUTION TO THE FUNDING OF THE OPERATION AND MAINTENANCE
OF THE PARK, BASED PRIMARILY ON A VOLUNTARY ASSESSMENT PROGRAM FOR
ONE YEAR. THE PROPOSAL ALSO WAS DISCUSSED AT A MEETI�JG TO WHICH
MAJOR LANDOWNERS AND MAJOR FIRMS DOWNTOWN WERE INVITED -- SOME 4O
INDIVIDUALS -- AND WHICH OVER 3O ATTENDED� FOLLOWING THE LATTER
MEETING, REPRESENTATIVES OF THAT GROUP MET WITH ��IAYOR GEORGE LATIMER
AND MEMBERS OF HIS STAFF TO OFFER OUR PROPOSAL�
THAT MEETING WAS HELD LAST WEDNESDAY, .JUNE 2S, AND THE MAYOR
INDICATED THAT HE WOULD. GET BACK TO US BEFORE THE WEEK WAS OVER WITH
. �
-�-
HIS REACTION TO THE PROPOSAL AND TO A FURTHER ASSESSMENT OF THE COSTS TO
THE CITY IN RELATION TO THE ENTIRE PROJECT�
WHILE MEMBERS OF THE COUNCIL ARE UNDOUBTEDLY AWARE OF SOME
OF fNE CONCERNS OF THE BUSINESS COMMUNITY, LET ME JUST BRIEFLY HIGHLIGHT
SOME OF THESE CONCERNS BEING EXPRESSED AND WHY WE GOT INVOLVED IN THE
PROJECT.
1� TNE PRECEDENT THAT IS BEING ESTABLISHED TO ASSESS ADJACENT
PROPERTY FOR OPERATION AND MAINTENANCE COSTS AS IT MIGHT RELATE TO
FUTURE ASSESSMENT PROGRAMS FOR OPERATION AND MAINTENANCE OF OTHER
DOWNTOWN PARKS AND�OR OTHER CITY PARKS THAT WOULD BE ASSESSED AGAINST A
PROPERTY OWNER IN THE VICINITY OF THE PARK, INCLUDING RESIDENTIAL AREAS �
Z. THE CONCERN OVER THE INE�UITIES OF AN ASSESSMENT DISTRICT
BASED ON LAND RATHER THAN ASSESSED VALUATION.
3, AN ASSESSMENT BEING MADE AGAINST COMPETING RETAIL OR
OFFICE STRUCTURES NOT WITHIN THE OXFORD PROJECT ITSELF.
4� THE SIZE OF THE PROPOSED BUDGET FOR THE FIRST YEAR AND,
OF MORE IMPOkTANCE, THE POTENTIAL INCREASE IN THE OPERATIONAL AND
MAINTENANCE BUpGET EACH YEAR IN THE FUTURE�
S� THE CONCERN AS TO WHETHER OR NOT THE PARK SHOULD BE
MAINTAINED BY THE PARKS DEPARTMENT VERSUS A PRIVATE OPERATOR WITH
EXPERIENCE IN THIS TYPE OF PARK IN A COMPLETELY CONTROLLED AIR
CONDITIONED ATMOSPHERE�
.
-4-
6� THE �UESTION AS TO WHETHER THE PROGRAMMING FOR THE CENTER
SHOULD BE DONE BY THE PARKS DEPARTMENT OR RATHER BY THE DOWNTOWN COUNCIL
AND OXFORD DEVELOPMENT PROMOTION DEPARTMENT OR OTHER GROUPS �
�. THE LEGALITY OF THE ASSESSMENT ITSELF�
HERE, THEN, IS THE PROPOSED COMPROMISE SUPPORTED BY TNE
CHAMBER, BOMA, OPERATION S5 AND OXFORD:
1. WE WOULD APPOINT A SPECIAL MANAGEMENT COMMITTEE, INDIVIDUALS
WITH EXPERTISE AND REPRESENTING DOWNTOWN GROUPS, TO WORK WITH THE CITY
AND OXFORD TO REVIEW AND ESTABLISH A FIRM BUDGET AND TO MONITOR
EXPENSES FOR OPERATiON AND MAINTENANCE OF THE PARK,
2� WE WOULD RAISE, THROUGH VOLUNTARY CONTRIBUTIONS OR ASSESS-
MENTS, IF YOU PREFER, PLEDGED TO THE CHAMBER OF COMMERCE, WHICH WOULD
BE FORMALIZED INTO AN AGREEMENT WITH THE CITY TO TURN OVER FUNDS PLEDGED
BY THE PRIVATE SECTOR, ESTIMATED AT �ZOO,O{}O�
3. ESTABLISH A USER FEE FOR THE PARK WHICH WOULD RETURN SOME
FUNDS FOR OPERATION AND MAINTENANCE, ALTHOUGH ADMITTEDLY RELATIVELY
SMALL.
4� UTILIZE THE ELECTRIC RATE FRANCHISE FEE OF $� �� PAID TO
THE CITY OF SAINT PAUL FROM THE ELECTRICITY GENERATED IN THE TWO-BLOCK ,
OXFORD DEVELOPMENT PROJECT, INCLUDING THE TWO OFFICE TOWERS, THE SHOPPING
AND RESTAURANT AREAS, AND THE RADISSON PLAZA HOTEL, ESTIMATED AT
APPROXIMATELY �IOO,OOO, ANY PORTION THEREOF NEEDED AND�OR OTHER SOURCES
OF FUNDS PAID TO THE CITY BY DOWNTOWN PROPERTY OWNERS�
i
-5-
S. THE ABOVE IS PROPOSED FOR A ONE-YEAR PROGRAM TO FINANCE
THE OPERATION AND MAINTENANCE OF THE PARK AND TO PROVIDE TIME TO
EXPLORE OTHER POTENTIAL SOURCES OF FUNDS AND TO ESTABLISH A PERMANENT
FINANCING PLAN ON OR BEFORE �ULY 1, 1981.
THE ADVANTAGES OF THE ABOVE PROPOSAL, AS WE SEE IT, ARE:
1� WILL ALLOW TIME TO EXPLORE OTHER SOURCES OF FUNDING ON A
PERMANENT BASIS, I � E. , FOUNDATION FUNDING, UTILIZATION OF NEW DOWNTOWN
TRANSPORTATION CORPORATION, ETC�
2� HAS THE SUPPORT OF THE CHAMBER, BOMA AND A MAJORITY OF
DOWNTOWN PROPERTY OWNERS AND MAJOR DOWNTOWN FIRMS�
3� AYOIDS THE POTENTIAL FOR COSTLY AND TIME CONSUMING
LITIGATION WHICH COULD HOLD UP THE PARK DEVELOPMENT AND PLACE THE CITY
IN A DILEMMA IF THE LAWSUITS WERE SUCCESSFUL, WHICH COULD THEN RESULT
IN THE COST BEING PLACED ON THE TAX ROLLS OF THE ENTIRE CITY.
�� ENABLE DOWNTOWN BUSINESS OWNERS AND FIRMS, THE CITY AND
ALL CITIZENS TO ASSESS THE IMPORTANCE OF THE PARK AND THE ENTIRE
PROJECT TO THE CITY AND TO ITS CITIZENS AND FIRMS.
S� Pr�GATES THE CITY�S NEED TO ASSESS ALL CITY PROPERTY
OWNERS TO COVER THE CITY�S SHARE OF ASSESSMENT FOR CITY LAND IN THE
ASSESSMENT DISTRICT� �
6� IT RESULTS IN THE PARK OPERATION AND MAINTENANCE COSTS
BEING BORNE BY THE DOWNTOWN OWNERS AND FIRMS THROUGH THEIR VOLUNTARY
CONTRIBUTIONS OR VOLUNTARY ASSESSMEN7S AND UTILIZATION OF THE FRANCHISE
t
t
-6-
FEE PAID BY THE FIRMS IN THE CENTER.
�� IT PROVIDES AN OPPORTUNITY FOR THOSE WHO WILL PAY THE
BILL TO BE INYOLVED IN DECISIONS RELATING TO TNE PARK�
H. IT AVOIDS A POTEWTIAL CONFRONTATION BETWEEN DOWNTOWN
BUSINESS FIRMS, THE MAYOR'S OFFICE� THE CITY COUNCIL AND RESULTING
BAD COMMUNITY PUBLICITY WHICH COULD BE HARMFUL TO THE FUTURE OF THE
CENTER AND DOWNTOWN SAINT PAUL.
THIS, THEN, IS THE PROPOSAL. THE PREFERRED WAY THAT THE
DOWNTOWN PROPERTY OWNERS AND BUSINESS FIRMS TO MEET THE COST S OF
OPERATING AND MAINTAINING THE PARK AS WELL AS THE CITY�S DESIRE
TO NOT HAVE THESE COSTS PLACED ON THE TAX ROLLS AND TO HAVE THE
COSTS COVERED BY DOWNTOWN BUSINESS FIRMS AND LAND OWNERS �
TIME AND LACK OF A FIRM AND AGREED-UPON BUDGET HAVE PREVENTED
US FROM HAVING A FIRM COiMMITMENT ON THE ENTIRE AMOUNT OF THE VOLUNTARY
_ .
ASSESSMENT, HOWEVER, WE HAVE RECEIVED A NUMBER OF PLEDGES AND ARE
CONFIDENT W� CAN REACH OUR GOAL�
WE ASK -- TNE CHAMBER, BOMA AND A GROUP OF DOWNTOWN PROPERTY
OWNERS AND FIRMS -- ASK THAT YOU PROVIDE US WITH THE TIME TO EXPLORE
THIS FINANCING METHOD BEFORE FIRMING UP THE PROPOSED ASSESSMENT PLAN.
IT IS A PLAN THAT WILL AVOID ANIMOSITY AND ENABLE ALL OF US
TO SUPPORT THIS. GREAT PROJECT AND TO GET ABOUT THE BUSINESS OF
INSURING ITS SUCCESS AND PROMOTING DOWNTOWN SAINT PAUL TO THE MUTUAL
. BENEFIT OF ALL OF US�
-7-
IT FURTHER ENABLES THE MAYOR AND CITY COUNCIL TO ACT RESPONSIBLY
AND UPON THE RECOMMENDATION OF THE DOWNTOWN NEIGHBORHOOD COUNCIL AND
THE DCDC.
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June 30, 1980
TOWN SQUARE
ASSESSMErTr FINANCIl� PROPOSAL
TOWN SQUEIRE (12 months) - $516,292
OXFORD DEVEIAPMENP - 92 297
TOTAL ASSESSMEl� - 3,995
ASSESSMENP RATE SCI�DULE
Assessment *Area. of Assessment Rate Total $ per Percentage of Tota.l
Zone Zone (sq. ft.) $/ per sq. ft. Assessment Zone Assessment per Zone
i. � 9�+9,880 .21�+2 5 203�517 �+�
2. 1,642,6g1 .09034 148,398 35�
3. 2,152,880 .0295�+ 63,599 15�
�. : � 3,461,55$ .00245 8,481 2�
*AREAS INCLUDE ALL TAX EXEMPT PROPER'TIES.
1r,. . . �1e^.1..���C�� ��LT�/ �Sb�Sa�,�'CS .
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June 30, 1980
TOWN SQUARE
ASSESSMEI� FINANCING PROPOSAL
ToWN SQUARE (12 months) - $516,292
OXFORD DEVEIAPMENP - 9e 297
TOTAL ASSESSMENr - 23,995
ASSESSMENr RATE SCHIDULE
Assessment *Area. of Assessment Rate Total $ per Percentage of Total
Zone Zone (sq. ft�) $� per sq. f`t. Assessment Zone Assessment per Zone
l. � 949,880 .2i425 203,517 4�
2. 1.,642,6g1 .09034 148,398 3��
3. 2,152,880 .02954 63,599 15�
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*AREAS INCLUDE ALL TAX F�MPr PROF'ERTIES.
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