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270586 wHiTE — ciTV CIERK COUIfCll �� P11F.K FINANCE `.� CANAR�DEPARTMENT GITY OF SAINT �AUL BLUE - MAVOR File NO. ncil Resolution Presented By � Referred To Committee: Date Out of Committee By Date WHEREAS, The Council of the City of Saint Paul has adopted a Redevelopment Plan for the Downtown Urban Renewal Area, Minn. R 20, by its Resolution C. F. 218124, on May 15, 19641 and WfiEREAS, The Council of the City of Saint Paul has adopted a Development District Progxam for the Downtown Development District No, l, by its Resolution C. F. 263751 on June 27, 1974j and WHEREAS, Pursuant to said Plan and said Program the City has designated "Block A", being the block bounded by Cedar, East Sixth, Minnesota, and East Seventh Streets in the City of Saint Paul, to be redeveloped by the construction of a public parking facility� and WSEREAS, The Pqrt Authority of the City of Baint Paul has agreed to finance the acquisi'�t;,on, ins�ailation, �.nd construction�v� of said public parking faci�ity in sait� Hlock R �hrough the use of industrial revenue bondsl and WSEREAS, The Council of the City of Saint Paul has approved the is�uance of said revenue bonds for said public improvement by i�s Reeolutioris C. F. 266996, adopted May 3, 1977, and C. F. 270076, adopted �Tovember 17, 1977f and WHEREAS, The Council of �he City of Saint Paul has by its Resolution C. F. 270078, adopted November 17, 1977, approved a sublease agreement by which the City of Saint Paul agxees to op- erate and maintain said public parking facility upon completion� and COUNCILMEN Yeas Nay�s Requested by Department of: Butler Hozza [n Favor Hunt - Levine __ Against BY � Roedler Sylvester Tedesco Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Appro��ed by :Vlayor: Date _ Approved by Mayor for Submission to Council By — BY WHITE - C�TV CLERK +/'��i/��{�g PI�tK �FINANCE CITY OF SAINT PALTL Council �*'� /� p CANARY- DEPARTMENT �"�� ! '_F�.��i�� BLUE - MAYOR � Flle NO• Council Resolution Presented By Referred To Committee: Date Out of Committee By Date 2. WI�REAS, Said public parking facility constitutea a public improvement undertaken by the City of Saint PaulJ and WHEREAS, The conatruction of said public improvement requires the removal and relocation of certain electric, gas, and steam utilities owned by Northern States Power Company and telephone utilities owned by Northwestern Bell Telephane Company located in the streets adjacent to s,aid Block Af and WHEREAS, Under the provisions of the Saint Paul Legislative Code, Sections 59.03, 502.03, 503.03 and 504.03, said companiea are required to remove and relocate said utilities without cost to the City of Saint PaulT l+TOW, THEREF�RE, BE IT RESOLVED BY THE CITY C4UNCIL OF THE CITY QF SAINT PAULs � That Northern States Power Company and Northwestern Bell Telephone Company are hereby ordered and directed to remove and/or relocate at their own expense their respective utilitx facilities from such portions of the streets adjacent to said Block A as required for the construction of said public parking facility. COUNCILMEN Yeas Na}•s Requested by Department of: Butler � Hozza In Favor Hunt � Levine _ __ Against BY _ Rnerlla,- S ylvester Tedesco 3�78 C�� '� Form Approved by City Attorney Adopted by Council: Date —�!- Certifie �s� d by� Counc Seccetar BY �` L��l B; +� App o d by Mayor: te � F� 2�4 1 Ap o ed by Mayor for S b is on to Council B — BY P�iQ!�:��:w� ',°A.�' " i97$ `�. ��.J�� pa � T -� �-� � AUTHORII' v OF 7HE CITY OF 5T. �AUL Memorondum 70: St. Paul City Council DATE: February 21 , 1978 FROM: E. A. t � , Si1B.tECT: REQUIRED UTILITIES RADISSON RAMP PROJECT � NORTHWESTERN BELL TELEPHONE Minnesota Street - North of Sixth Street n existing telephone duct and on8 cable must be temporarily rerouted to the east side of Minnesota during construction, and subsequently returned to a new conduit structure in Minnesota Street upon complet�on af construction. � This terrt�orary relocation work must be completed by March 27, 1978. - Seventh Street - Between Cedar and Minnesota Streets The existing seven duct structure on Seventh Street is to be permanently relocated in Fifth Street, from Cedar Street to Jackson Street. The vacating of the telephone duct in Seventh Street must be completed by Aug�st 11 , 1978. NORTHERN STATES POWER COMPANY - ELECTRIC Sixth Street - Between Cedar and Minnesota The two existing network feeders must be pulled and reinstalled upon completion of the construction. These feeders must be pulled by March 13, 1978. Minnesota Street - North of Sixth Street Two major feeder cables must be relocated by March 27, 1978. Southeast Corner of Cedar and Seventh Streets e e ectr�ca man o e must e re ocate y une 20 , 1978. Seventh Street between Cedar and Minnesota he existing electrical equipment is to be removed from the manholes, vaults, ducts, etc. by May 8, 1978. NORTHERN STATES POWER COMPANY - GAS - Sixth Street between Cedar and Minnesota e �nc cast �ron gas ma�n is to e relocated to the south side of Sixth Street before March 27, 1978. EAK:jmo t �ITY OF .!'�y��F�'a R,.� s, C ITY�t'7 �i�'1�i�t�' PA U L o " OFFICE OF THE CITY ATTORNEY , '::::::.:: � �� ,.,� �c HARRIET LANSING, CITY ATTORNEY George Latimer City Hall,Saint Paul,Minnesota 55102 Mayor 612-298-5121 Februarx 13, 1978 Mayor George Latimer 347 City Hall Saint Paul, Niinnesota 55102 Mr. Eugene A. Kraut Assistant Executive Vice-President Port Authority of the City of Saint Paul 1130 Minnasata Building Saint Paul, Minnescata 55101 Re: Utilities Relocation Adjacent to Public Parking Facility �.n Block A Gentlemena On January 31, 1978, Mr. Kraut requested our legal opinion regard- ing the liability fo� the cost 4f relocating the gas, steam, eleetric, and telephone utilities in conjunetion with the con- struction of a public parking ramp and galleria on "Block A":, bounded by Cedar, East Sixth, Minnesota, and East Seventh Streets in downtown Saint Paul. The City of Saint Paul, with the cooperation of the Housing and Redevelapment Auth�rity of the City of Saint Paul, hereinafter called the "HRA", and Port Authority of the City of Saint Paul, hereinafter called the "Port Authority", is in the process of finalizing the program for redevelopment of Block A in the heart of the downtown commercial district. This redevelopment is pur- suant to the HRA' s Redevelopment Plan for the Downtown Urban . Renewal Area, Minn. R--20, adopted by the City C�uncil an May 15, 1964, and the City' s Downtown Development District Program, adapted by the City Council on June 27, 1974. The latter Pr4gram, financed i.n part by tax-increment bonds, identified Block A as one of three blocks to be developed by the City as an underground parking facility, w�.th the air rights to be simultaneously O Mayor George Latimer Mr. Eugene A. Kraut February 13, 1978 Page Two developed by private entities. That Program also identified Seventh Street as the general area for construction of a public mall and people place. The present plan for redevelopmant of Block A call� for the Port Authority to acquire fee title to the ground rights from the HRA for construction of the underground public parking facility, for the St. Paul Joint Venture, owners of the Radisson St. Paul Hotel, to acquire a portion of the air rights for construction of a hotel and commercial space, and for Oxford Development USA, Ltd. , to ac-- quire th� balance of the air rights for construetion of additional comm�rcial space, The City would be using part of the Oxford air rights for construction of part of a public mall and people place called the "Galleria" . Various easements and covenants would pass between the owners for structural support, access, utilities ser- vice, etc. The financing arrangement is for the Port Authority to enter into an agreement with TMD, Inc. , a corporation owned solely by the Joint Venture, whereby the Port Authority would issue revenue bonds in the amount of approximately �.5 million dollars under the authority of Minn. Stat. Chapters 458 and 474. The proceeds of the bonds would be used to acquire title to the real estate and construct the public parking facility. The �rt Authority would lease the public parking facility to TNID for the term of the bond issue, and TMD would construct the facility pursuant to Minn. Stat. � 474.03, clause (6) . This arrangement is required to allow the public parking facility to be constructed in con�unction with the hotel using "fast-track" construction methods. Contemporaneously with the ex�cution of the agreement between the P�rt Authority and TNID and the issuance of the revenue bonds, TNID will enter into a sublease with the City whereby the City will sublease the public parking facility pursuant to Minn. Stat. � 459.14. The City will pay all proceeds to the Port Authority to pay off the bonds, and no rent will be paid by the City to TNID or by TNID to the Port Authority. As a result, neither TNID nor the Joint Venture will receive any direct pecuniary benefit for con- structing the public parking facility. �.f�� s.: . �� e ..,, Mayor George Latimer Mr. Eugene A. Kraut February 13, 1178 Page Three The Galleria will extend from Block A across East Seventh St�eet as an enclosed public mall and people place. East Seventh Street is scheduled to be vacated between Cedar and Minnesota Streets to allow construction of this public facility. The Galleria may be financed through tax-increment general obligation bonds or with federal aid. The proposed issuance of revenue bonds by the Port Authority for construction of a public parking facility has been approved by the City Council by its resolutions C. F. 268996, adopted May 3, 1977, and C. F. 270076, adopted November 17, 1977. The proposed sublease for operation of the public parking facility by the City has been approved by the City Council by its resolution C. F. 270078, adopted November 17, 1977, The final negotiations regard- ing the Galleria have not yet been completed, and City Council approval on that aspect of the project awaits such completion. In the course of constructing the public parking facility, Block A will be excavated to a depth of approximately 25 feet. Because of soil conditions in the area, this may result in disturbance of the gas, steam, electric and telephone utilities under adjacent streets and may require that such utilities be temporarily relo- cated during construction. The vacation of East Seventh Street for the canstruction of a public Galleria will require permanent relocation of these utilities from East Seventh Street. At issue is who is liable for the cost of relocating such utilities, In granting franchises allowing the use of public streets by util� ity companies, the City Council has retained the power and authority to order the removal or relocation of the utilities ' property from the ptzblic rights of way at the expense of the utility companies in the event that the City Council should deter- mine that the utilities ' facilities unreasonably interfere with the safety and convenience of ordinary travel along and over streets and public property, that such uses interfere with other uses to which the places may be put by the City of Saint Paul or because of any public improvement to be undertaken by the City. See Saint Paul Legislative Code, Sections 59.03, 502.03, 503.03, and 504.0 3, ��'�'^� ,�, Mayor George Latimer Mr. Eugene A, Kraut February 13, 1978 Page Four It is our opinion that the construction of a parking facility to be owned by the Port Authority and operated by the City and the construction of a public Galleria by the City, both pursuant to a Redevelopment Plan and Development District Program, are public improvements undertaken by the City and that the liab ility for the cost of relocating any utilities necessitated by the construc-- tion of such improvements must be borne by the utilities if so ordered by the City Council under the franchise provisions. A similar question was addressed in a previous opinion of this office, dated June 17, 1976, a copy of which is attached. That situation involved the relocation of utilities caused by the va- cation of streets as part of a redevelopment project of the HRA. Despite the fact that the vacation was necessitated because of the proposed construction af new housing by a private corporation, we found that the public improvement involved was the entire renewal project and that the City Council could, therefore, order the re- location of the utilities at no expense to the City or the HRA. In this case, the public improvement is even more clear. This type of public undertaking and redevelopment has been determined to constitute a public purpose and public benefit. The Minnesota Supreme Court has �requently upheld the determinations of public undertakings by Housing and Redevelopment Authorities. See, e.g., Housincr and Redevelopment Authoritv of the Citv of Minneapolis v. Minneapolis Metropolitan Companv, 259 Minn. 1, 104 N.W,2d 864 (1960) . The legislature has stated in Law� of Minnesota 1973, Chapter 764, the statute which authorizes tha craation of develop- ment programs and tax increment financing, in relevant parts "It is hereby declared by the legislature of the state of Minnesota that the actions required to assist the implementation of such development pro- grams are a public purpose and that the execution and financing of such programs are a public purpose." Revenue bond financing has been found by the Minnesota Supreme Court to be for a public purpose. See, e.g., Port AuthoritY of the Mayor George Latimer Mr. Eugene A. Kraut February 13, 1978 Page Five City of St. Paul v. Fisher, 275 NLinn. 157, 145 N.W.2d 560 (1966) f City of Pipestone v. Madsen, 287 Minn. 357, 178 N.W.2d 594 (1970) . Operation of a public parking facility by a City is expressly authorized by Minn. Stat. § 459.14. The publie i.mprovement is part of the City` s program for develop- ment of the downtown district. Although HRA and Port Authority are separate public entities, they are inextricably tied to the City. Prior to 1976 the HRA board was appointed by the Mayar with the approval of the City Council, and since then the HRA board has been the members of the City Council, and the staff has been under the direction, supervision, and control of the Mayor. The PortAuthority board is appointed by the Mayor with the approval of the City Council. As required by law, all actions of the HRA and Port Authority in this matter have been approved by the City Council. Their involvement is part of the general plan of the City for implementing its program. The City will operate the public parking facility and Galleria, and there will be no direct pecuniary benefit to any private party. It is therefore; clear that the proposed public parking facility and Galleria is a public im-- provement undertaken by the City. We have prepared and transmit with this letter the appropriate resolution whereby the City Council would oxder and direct the utility companies to relocate thair facilities from the public rights-of-way at their cost and expense fQr construction of the public parking garage. An additional r�solution may be required fo�: certain relocatians from East Seventh Street necessitated by the vacation thereof, and such resolution can be made part of the vacation action. R pectfully mitted, / ` � $ARRIET LANSING City Attorney �� ROBERT O, STRAUGHN Assistant City Attorney HL:ROSser ccsCity Council Members n Atts. } • T Y . i , , :.. _� 1�_ r--�..a `� ' � c� �.�� . �:;�y r„�J.;✓t i 4�1t ,� , �,~� _ ,� �� J� ~ � .._.....-�---.,r.. ._� . ., c� .�t._.. „j _...' o ..�.:. �.., . g •u�...�,r,... �:ii }�, Lq ` '�i_'�� b S _ .1`.ti`�� . �s - hr �:_'.'�� ,�f� CITY OF SAINT PAUL b... JUL 11976 � 1D � FFICE � � THE CITY ATTORNEY ' HC��)SiNG DEPT. 11 .. ---- _ _..__._. . C �O� - r_. _. � ... -r�:^_..�. . .� r.t!s►^�_-.,,.i !� ` Zo �i-- 3 r r�SM.•.-a.:-"Jri��.4-�;��+-'� :_r..:` t'/ .,� *� �� o� -..- ^.a� '•St„�, .3..� � !` fIA Zti��`��.\� �'�"r`Sw��l � � June 17, I976 � `'- -' �` � �" �� NARR�ET LANS1►�� ,�`� `c �!� � • '� „ � • ,,. y' ) ' i ' . )' � �J�t,ca,� . . . . ��-� ; � �� A ` • � �.v . . � - - ' ' ' ��`�� E r`. . . z.. �, ; �.,� � ��. � .��, r� � . • . . • �/' n � � � • . . �. � . � � �,�%r�<,., � Counci1woman Ruby Hunt, �Chairman � �+�',Q� ` �,�,,S,Cc.?�-�� ' � Council Public Works Committee � � �'� S y f v,� � Seventh Floor Court House �" � \ ' � ��' � � � Re: Petition of HRA to Vacate Portions '',�;�, ; �� of Clinton, Greenwood and Colorado . ,,�• ' . Streets � �°'' Dear Mrs. Hunt: . � . � The Fiousing and �'.edevelopment l�uthority has submi�+..-ed � � a petition to the City Council for the vacation of � portions of Clinton Street, Greenwood Avenue, Colorado Street and a portion of the alley in Block 20, West St.. Paul Proper Addition. The petition ��as heard at a . public hearing by the City Council on March 11, 1976. � . The question arose at that time as to whether the City ' . Council had the authority to dzrec� Northern States � '� Power and North�aest.ern Bell Telephone Company to remove ' their utility lines and instrumentalities from the por- � tions of street and alley to be vacated at the expense � _ of the utility companies and at no expense to either the City or its Housing and Redeveiopment Authority. . �� The matter was then referred to the Council Public Z,Torks � � Committee and was considered by the committee at a sub- • sequent meeting. The utility companies in question � appeared and again questioned whether the proposed re- . development of the property adjacent to the streets to - be vacated constituted such a public improvement �ohich would require the utility companies to relocate their facilities, from the vacated public streets at the utilities' expense: The committee had requested advice of the City '� � � � �-3� � � .. � �''})�`.'��'•�' AtY' rJ CV ! � • . . . � !"'F.. LJ 11 '�s P -...f AAi.'�.-�e�ent�+ �j�'I,Q7 . � � � . \..li�' � itZ11� �Ui1�1. �uu�� r�e�uiw..v�u ,/ � (��` ' 61 Z 298-5121 . � _. _ _ _. .__._ _ . _ _ . .____.. . ____ _ _. _.__ _ _ . ,,_ . ._.., .__ . ... ._. __ - .. _ . ° � • . `, . . . } , . . . . , . � . � J ; . . ' � ° • � �, �� . , .� . � � . . . Ruby Hunt ' . . � . Page Two � ,; . � � . June 17, 1976 ``�� . . . __ � . . - . � . � • • y . • • • • 'Attorney as to whether the Council had the necessary � power to grant the request of the Housing �Authority. . � The streets �and alleys sought to be vacated are located � � � �� in the Concord Terrace �enewal Pro j ect. This renecaal � . � project has been developed by the Saint Paui Housing � Authority and approved by the Saint Paul City Council . . � . by its resolution, C. F. 237700. A copy of this reso- � lution is attached for your inform.a.tion. The renewal � project in the Concord Terrace area is established • � . _ � pursuant to Minn. Stat. Ch. 462�. Pursuant to Section _ .462.421' and other statutes; the Housing Authority is ' � authorized to undertake a redevelopment project which ': redevelopment project is defined by the state legislature . " � as acquiring blighted areas� and other real property for the. purpose of removing, preventing or reducing blight, 'blight�ng factors or the causes of blight; to acquire open or undeveloped land �ahich is determir� d to be _ . blighted by virtue of unusual and difficult physical characteristics of the ground or the existence of faulty ' planning characterized by the subdivision or sale of lots laid out in disregard of the contours or irregular form and shape or inadequate size of the lots; to clear . areas acquired and install, cor�struct, reconstruct : streets, utilities and site improvements essential to . � . - the preparation of sites in accordance with the re- � � � develvpment plan; to sell or lease the land so acquired. Z'he ia��' r�quir�s zna� sucn a retieveio�tttznt p'tU j��i:, : � . � prior to being undertaken, shall be first submitted to - _ . . and approved by the City Council and that the City � - Council in° approving the project is required to make -_ � a determination by resolution that the land in the . project area would not be made availabl� for redevelop- ' : . . ment without the financial aid to be sought; that the . � � redevelopment plans for the redevelopment areas in the locality �•�ill afford maximum opportunity consistent . with the sound neecis of the locality as a whole for '' the redevelopment of such areas by private enterprise; � . _:_ ._._.____ __.__ . � . , __ _ __. . . __ __-. _ . � e _ _ _._ _ ._._ . � . �� ' ':� • . �; • i . . � . _ .. • \.. . � . ' 1 - � . Ruby Hunt� � � � Page Three � . • , June 17, 1976 . � - . � and further that the redevelopment plan conforms to . . �the general plan for �the developrnent of the locality . � � as a whole. • The Concord Terrace Urb�.n Renewal Project and redeveiop- � .� ment plan �vas established for the purposes set forth in � � . Minn. Stat. Ch. 462 and the City Council has previously . � . . found and determined that this public action was necessary for the purpose of reclaiming the blighted : lands and establishino a more appropriate reuse of the _ property. This type of pubiic undertaking and redevelop- : ' , ment has been determined by the riinnesota S�ate Legislature .. as constituting a public purpose and public benefit. The . . City Council by its actions taken in 1968 by resolution, � � ' C. F. 237;0� has four�d and determined that the proposed redevelopment of the Concord Terrace area does constitute a public purpose and public improvement. The Minnesota Supreme Court has upheld the determinations of public . .� undertaking in previous cases determined by the courts, including the decisions of Thomas v. Housina an� Redevelo�- . ment Authorzty of I}uluth, 2 i� inn. L , � �lLd � S }� - : Asc v. ous:.n� an tte evelo :nent Authorit of the Citv o aint Yau!, L� Tiinn. , � / tjW' ousin�- an Re �ve on;nent Authorit of the City of riinneaoo i-T s� � � . v. inn�apo is ti etro o itan Cor� an , inn. 1 2d � . . . � - . ' . . . In �rartfi.l.P_g fr_a_n��?i �ps �i i_n�.,;,;�- t'�'1P �iCP �� ,,, }, r_ �s . --�, r_L_�-1r ct� aPt-. . by utility companies, the City Council~has retained the power and authority to order the removal or relocation ' - �of the u�ilities' property from the public rights of tvay at the expense of the utility companies in the event � , that the City Council should determine that the utilities' � faci�ities unreasonably interfere with the safety and � convenience of ordinary travel aZong a.nd over streets - and public property, that such uses interfere with other 'uses to cahich the places may be put by the City of Saint Paul or bec�use of any public improvement to be under-- � taken by the City. It is this provision of the franchise . � � . . . - • � • . . . . , i . . Ruby Hunt . < . Page Four . ��`�•� ,.June 17, 1976 . . - � . � • - � . . . _ . - � � . . . which zs under question before the Public Zsorks � " � . Committee and, ultimatel.y, the City Council. The � � City Council in this ma.tter is requested by the . Housing Authority to order the relocation �oi� the _ � utility facilities from� the vacated streets and alley . because the proposed redevelopment and renewal of . . this portion of the Concord Terrace Redeveiopment Area is and constitutes such a public use and improve- � ment. - � � The utilitS� companies ob j ected that the reason f or . relocatiorz of facilities ��as necessitated because ,of the proposed construction of new housing by a . - � . private corporation and that this did not constitute . � . . . such a public improvement as contefnplated by the . - � franchises. It is our opinion that the public improvement involved in this matter is the entire Concord Terrace Rene:�al Project as origi=nally approved by the City Council in ' 1968, and as the project may have been amended from � time to time to the present date. It is also our � opinion that the City Council may rightfully deternine that the vacation of public streets and alleys is a . � -. .necessary requirement for the ultimate accomplishr,tent . of such public purpose and the redevelopment vf the Concord Terrace area and that the relocation of exist- ing pubiic atYu priva�e ui.iiici.�� v:i.cni�r� su�a vaca�eu . ' streets and alleys is further required to accomplish - - . the ultimate public objective and, therefore, the City � - Council ma.y in granting the Housing Authority' s petition order the removal or relocation of the private utility . � facilities from the public streets and public rights - of way �under the .franchise provisions at no expense to the City or to the City' s Housing Authority because • � � � � . � � � . . . . , . . � � . :: : : : � t � : � i , . . ; - � - -, . . `�`��:�� ,� � Ruby Hunt , . � Page Five � . June 17, 1976 such removal and relocation is necessary to accamplish . � the public improvements contemplated in the Concord _ _ • Terrace Renewal Project. . � - � I have prepared and transmit with this Ietter the � - appropriate resolution t•Jhereby the City Council� would grant the vacation petition of the Housing Authority � . and further order and direct the utility companies to � - . remove and/or relocate their facilities from such ' � � public rights of way at their own cost and eacpense. if the committee concurs that vacation of these streets and alley does constitute the furtherance of the public � � improvem.ents contecnplated in the Concord Terrace � RedeveTopment Project, it may then recomraend this reso- lution and findings set forth therein for adoption by .' . the full City Gouncil. Section 13.05 of the Charter � � requi�es five affirma.ci.ve votes to approve the vacation � of ��reets and other public grounds. � urs very truly, , � 1•: - �� . � . � "' " � HA�RSET LANSING � � . ity Attorney . � ,� iy�y' "r�� ' _ F.��rF: �T, �ErA�. , - - . . � ��'tant City Attorney � . . - = ' JJS• 'r � . cc: , riayor George Latimer . - , _ � . Members of the Council . � Thomas J. Kelley - . - � Roger A. Mattson _� � J, jdm. Donovan . - • James Hart - o Bill Pearson . � Thomas Stearns - . . . HOUSING AND REDEVELOPMcNT AUTHORITY OF THE GlTY OF SAINT PAUL, MINNESOTA �'� � 4 , Ms. Harriet Lansing February 15, 1978 City Attorney 647 City IIall ' St. Paul, Minnesota 55102 �. � Re: Utilities Relocatio�z - Seventh Place Project Dear Ms . Lansing: ; ; Under dat� of February 13, 1978, you issued an opinion respecting liability , of the utility companies for cost of relocation of utilities in conjunction with the construction of a public parking ramp and galleria on Block A bounded by Cedar, East Sixth, Minnesota and East Seventh Streets in Downtown Saint Paul. ; The public parking ramp and public galleria constitute but a part of the public project undertaken by the City and its Housing and Redevelonment and Port Authorities designated at the Seventh Place Project. The Seventh Place Project Area includes as �aell as to be vacated Seventh Street between Minnesota and Cedar Streets and Block 27 bounded by Seventh and Eighth Streets and Cedar and Minnesota Streets. f The parking ramp, hotel and retail commercial redevelopment in air rights � above the ra:np in Block A; the galleria in Block A, Parcel A-3, air rights , vacated Seventh Street and part of Block 27; and office and xetail commercial redevelopment in tYie balance of Block 27; are interrelated and interdependent public redeveI.opment undertakings in cooperation with private enterprise. The private development which will occur, would not have occurred without public acquisition of Blocks A and 27, and sale at land write-down prices, public provision of the ramp, galleria and pedestrian skyway systems in public easements through the private portions of the project area, and public vaeation of Seventh Street. These public under- takings are conditions to the contract obligations of the private developers to redevelop in accordance with the public redevelopment plans. The public actions are dependent upon these private developMent commitMents. This ` interdependence extends to the new public and private structures to be � built. These structures will be physically integrated. � Seventh Place Project is a very specific cornerstone development culminati.ng from the Downtown lirban Renewal Area Project and Plan, Central Core PJeighbor- hood Development Program and Plan, Downtown Development District Program, and Community Developr.lent Program and Plan. Its accomplishment is essential to the accomplishment of further private redevelopment in these project areas . � Loral public funding for the Seventh Place Project is or will be from City � Urban Renewal and Development District general obligation bonds , as well as ; Community Development Block Grant funds used for public acquisition of ' Block 27, Port Authority revenue bonds and FIRA tax levy. City CIB bond � funds are additionally involved for the improvement of Eighth and Ninth Streets necessitated generally by the several recited public projects, � 1 • ' i . . .. . . . . .. ...� � ..�.. .,� . __ ..... �..�...�.... ._.�-._-.. . ...._.... . :.__.. , . . .. . . .. . " _ .�... �_..f .��,��...� � Z� ._ .. _ _ _..... ... . .�.��..�� . �.i .....��. ' �. r � • . .-• . . . . . I�iss. Harriet Lansing Page 2 February 15, 1978 programs and plans, and specifical].y by the vacation of Seventh Street and cons�quent re-routing of vehicular traffic to Eighth and Ninth Streets. � � One public objective of the several programs and plans is the revitalization � of the Central Business District by public undertakings serving as an t inducement to private development and redevelopment. This objective is � served by the recited private rede�:elopments in Blocks A and 27, and by i additional private developrtent which will occur in blocks adjacent to the Seventh Place Project but within the development and redevelopment project areas. Your opinion recognizes the �ublic character of these programs and the significant participation of the City, but is susceptible of being E interpreted as limited to the instance of a specific public improvement by ' the City resulting in the need to remove or relocate util.ities ' property from the right of way to the exclusion of improvenents of a private character notwithstanding that the private activity is an integral part of the larger � � public project and improvement. ` The utilit com anies a � Y P h ve consistently accepted responsibility for utility relocation costs necessitated by FiRA redevelopment project activities in• the several projects undertaken by HRA in Saint Paul, with two exceptions in the Riverview Industrial Project and Concord Terrace Renewal Project. These exceptions were resolved adversely to the utilities by opinions of your ; office under date or. August 16, 1968 and June 17, 1976. Significantly, the companies absorbed the costs of extensive utility removals and relocations � in connection with the public acquisition, blighted structure clearance, ` land assembly and resale for private redevelopment for uses in accordance with the Redevelopr�,ent Plan in the twelve block Downtown Urban Renewal Project. � There the public improvement was perceived to be the HRA redevelopment � project, its removal of conditions of blight and resultant private redevel- ' opment and enhancement of the tax base with City undertaking by var�us � actions including financing from Urban Renewal general obligation bond funds. � The redevelopment project undertaking is for a public purpose permitting the ' taking of private property and expenditure of public funds notwithstanding � that the property acquired itself may not be blighted or that the property � after acquisition is to be sold for private redevelopment. Housina and � Redevelopment �uthority of the Citv of Saint Paul v Coleman' s Service , Tnc ' (1968) 281 rlinn. 63, 160 YJ.W. (2a) 266 (Downtown P.enewal Project) , Fiousin and � Redevelo ment Authoritv of the City of Saint Paul v. Shapiro, (1973 2 Minn. ` 103, 210 N.W. (2d) 211 (Central Core NDP Project) . This reasoning is in uccord ;aith that of your Februaiy 13, 1978 opinion, in citing the June 17, 1976 opinion holding that the public improuement involved � was the entire renewal project and that the City Council could, therefore, � order the relocation of the utilities at no expense to the City or the HP.A. 8owever, the February 13th opinion appe�rs to more narrowly relate the � parking ramp and galleria as the public improvement necessitating the utility relocation or removal. , � � . � . _. ..___:_. __._. . . _ .. • __. _ . _ .. , .__ __ __....,..__ _.__ , . . . . --- - - . �, Ms. Lansing � Page 3 February 15, 1978 '"" `` �� This may be the result of the narrow question raised by the Port Authority fn its opinion request, but may also reflect oversight of the perameters of the public project underta}:ing relating to the Downtown Development District, Community Development District 17, and Central Core NDP Project, as well as the Downto��n Urban Renewal Project. Seventh Place Project directly relates to each of these public irnprovement projects overlapping the Downtown Renewal and Central Core where Seventh Street is the dividing line, but being entirely within the boundaries of the Development District and CD District 17. An HRA petition for vacation of Seventh Street is imminent as is the March 2, 1978 closing with O�ford as developer of Parcel A-3 and Block 27. If there is any problem respecting Seventh Place Project redevelopment activities, particularly those relating to Seventh Street or Block 27 being a public improvement by the City within the meaning and powers reserved under the franchise ordinances to require the utilities to remove or relocate utilities at company expense, please advise. - , Yours very truly, � �. < _ James T. Hart General Counsel _ 298-5695 cc: Robert Straughn • � Gary Stout � . ., . . : ' _. _ . ----. . .._. . . . . . , . � � _ -�_ .,,._. _ _, _� t