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268597 NHI7E - CITV CLERK � , (�I �� .,� � PINK - FINANCE G I TY SA I PALT L COUIICll �� - CANARY -DEPARTME T . � File NO. BLUE � _jv1AYOR. `_�� o cil lu ' n Presented By � Referred To m i ee: Date Out of Committee By Date RESOLUTION APPROVING REDEVELOPMENT PLAN FOR SHEPARD PARK WEST AND DETERMINING NECESSITY TO GRANT PARTIAL TAX EXEMPTION WHEREAS, Shepard Park Plaza, a partnership formed for the purpose of qualifying as a redevelopment company under Minnesota Statutes Section 462.591, has submitted to the Aousing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA) a project plan for a 3.28 acre tract located in the West Seventh Street area of Saint Paul, County of Ramsey, Sta�e of Minnesota, and bounded by Stewart Avenue on the North, Madison Street on the East, Youngman Avenue on the �outh, and Alton Street on the West, described as Lots° Four (4) through Thirty-two �:�2J inclusive, Block , Four (4J , Youngman and Lamm's Addition, according to the plat thereof recorded in the office of the Register of Deeds, Ramsey County, Minnesota, hereafter referred to as the Project Area, for dev�lopment of a five story, 101 unit apartment structure; and WIiEREAS, pursuant to provision of Minnesota Stat�tes Sections 462.515 and 462. 645, HRA has prepared and submitted �to the Saint Paul Planning Commission, and after receipt af the written opinion and r�port of said Commission dated January 28, 1977, approved for subm�:�s�an to the Council a redevelopment plan identified as the "Redevelopment F1an: For Shepard Park West" by Resolution No. 77-2/9-l. adopted February 9,� 1977; and WHEREAS, pursuant to resolution, Council File No. 268g31, approved February 10, 1977, the Council established a date €or public hearing upon the proposed Redevelopment Plan, pro��ct proposed thereby, and request for partial tax exemption to the project, and caused a notice o€ the time, . place and purpose of said hearing to be published in the 5aint Paul Dispatch/ Pioneer Press on February 11, 1977, fixing the said public hearing in the Council Chambers, City Ha11, Sai�tt Paul, Minnesota, on the 22nd day of February, 1977, at 10 o'c�.ock a.m. , all in accordance with the requirements of Minnesota Statutes Section 452.521, Subdivision l; and ^� COUIVCILMEN Yeas Nays Requested by Department of: � � � l':�itrisi�f�.e:t . Hozza [n Favor __ Levine Rcedler A gai n s t BY Sylvester Tedesco ��.t Hunt Adopted by Council: Date Form Approved by City Attorney Certified.Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council By By WHITE - CITV CLERK �� PINK - FINANCE GITY OF SAINT PAZTL Council ,._, � � CANAR�'- DEPARTMENT ; �i �BLUE -�MAVOR. File NO. �� Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -2- WHEREAS, pursuant to the aforesaid notice, the Council conducted a public hearing at which testimony was received from all persons interested in the project proposed by Shepard Park Plaza, the Redevelopment Plan For Shepard Park West, and the proposal for partial tax exemption for the project pursuant to Minnesota Statutes Section 462. 651, and received other evidence on the issues of (1) whether the land in the Project Area would be . developed without the partial tax exemption, (2) whether the Redevelopment Plan For Shepard Park West and project proposed thereby will afford maximum opportunity, consistent with the sound needs of the community as a whole, for the redevelopment of the Project Area by private enterprise, and (3) whether the Redevelopment Plan conforms to the Comprehensive Plan For Saint Paul, the general plan for the development of the community as a whole. NOW THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: ' 1. That the Project Area is open and undeveloped land with bedrock formations at or near ground level requ�ring trenching or tunneling for placement of sewer and other utility lines at costs considerably in excess of customary costs in the community for utility connections. 2. That this unusual and difficult physical characteristic of the ground and consequent high costs for provision of utilities have prevented normal private development of the land resulting in the stagnation and unproductive condition in the land which is otherwise potentially useful and valuable for contributing to the public health, safety and welfare through redevelopment of privately constructed and owned high density above market rental housing which would provide additional housing to meet need in the community, would provide an economic mix in new housing being built in the community, would provide incentive for development of other COUIVCILMEN Requested by Department of: Yeas Butler Nays E��is.t�3een Hozza In Favor Levine Rcedler Against BY pr2Sldglt Sylvester Tedesco Aee�eat Hunt Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council By BY � WHITE - CITY CLERK PINK - FINANCE COUIICIl �1 CANARV - DEP�ARTMENT GITY OF SAINT PALTL ��'+, �� BLUE . -'MAVOFi. File NO. ��`'�Rt s � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -3- unproductive land in the vicinity of the Project Area, and would enhance the tax base of tlze community. 3. That the Project Area is blighted by virtue of the conditions hereinbefore recited and determined and that the project proposed by Shepard Park Plaza and the Redevelopment Plan For Shepard Park West, with public assistance through partial tax exemption pursuant to Minnesota Statutes Section 462. 651, wi11 permit private redevelopment of the land in the Project Area eliminating the present unproductive condition of this land and making the land useful and valuable for contributing to the public health, safety and welfare. 4. That the Project Area presently produces $4,834 in real estate taxes, and after redevelopment in accordance with the project proposal and Redevelopment Plan, with partial tax exemption will provide a minimum of $�3,765 in real estate taxes annually, and that without this partial tax exemption, mortgage financing would not be made available to accomplish the construction of the project and redevelopment of the Project Area. 5. That the project proposal and Redevelopment Plan comply with the recommendations of the Saint Paul Migration Committee contained in its report entitled, "Saint Paul Population Change: Challenge And Opportunity" by providing housing options to mi.ddle and upper income families to reside in Saint Paul and an opportunity to achieve an economically balanced and diverse population, by restoring confidence in Saint Paul neighborhoocls as sound and desirable residential areas with a sound future through private development of new housing, and by involvement and commitment by public effort towards achieving non-subsidized housing development of a kind previously and presently being devoted to provision of new housing development to meet the needs of laver income persons, and that by imple- mentation of these recommendations take positive steps by public action to reverse the trend of migration of middle and upper income families COUIVCILMEN Yeas Na s Requested by Department of: �ll ler Y Hozza In Favor Levine Rcedler Against BY P�'P51C�TtSylvester Tedesco Afee�i�t Hunt Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By _" Approved by Mayor: Date Approved by Mayor for Submission to Council By �s "`� BY ..�� WH17E - CITV CLERK �'�;�� PINK - FINANCE GITY OF SAINT PALTL �Council �•-�� . CANARV - DEPARTMENT �LUE �+� MAYOfi File NO. �� s Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -4- from the City and the adverse effects upon the community and its tax base that a continuation of this trend will produce. 6. That the land in the Project Area would not be redeveloped without the grant of partial tax exemption as authorized under Minnesota Statutes Section 462. 651, that part of "the increased assessed valuation of the property, both land and improvements , resulting from redevelopment in accordance with the project proposal and Redevelopment Plan necessary to fix real property taxes at 12.5$ of assessor's fair market valuation of land and improvements, or the sum of $45,765 per annum, whichever is the lessor figure. 7. That the project proposal and Redevelopment Plan For Shepard Park West which through land use and building controls imposed upon the property in the Project Area by contractual agreement with the redevelopment company and covenant running with the land, will permit redevelopment of the redevelopment Project Area without public acquisition of said property, and will afford maximum opportunity, consistent with the sound needs of the community as a whole, for redevelopment of the Project Area by private enterprise. 8. That the project proposal and Redevelopment Plan For Shepard Park West conforms to the Comprehensive Plan For Saint Paul, the general plan for development of the community as a whole. 9. That the undertaking of the project proposal and Redevelopment Plan will be financed with conventional mortgage and redeveloper equity financing with grant of partial tax exemption, and that said undertaking will not result in displacement of any persons or business . COUNCILMEN Yeas ��er Nays Requested by Department of: �°" Hozza [n Favor Levine Rcedler Against BY Pi�2SidH1't Sy lves te r Tedesco PEesicbat Hunt Adopted by Council: Date Form Approved by City Attorney Certified Passed by Council Secretary BY By Approved by Mayor: Date Approved by Mayor for Submission to Council By By WHITE - CITV CLERK � ��,.�� PINK - FINANCE G I TY OF SA I NT PALT L Council � �CANAR�- DEP.�RTMENT � 6LUE !MAVOR File NO. `�- " Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -5- 10. That the removal of blight in the Shepard Park West Project Area and the provision of decent, safe and sanitary housing in said Project Area through the project proposal and Redevelop- ment Plan are public purposes for which public financial assistance through partial tax exemption ma.y be granted and that the said project proposal and Redevelopment Plan for Shepard Park West are hereby approved. 11. That the partial tax exemption set forth in paragraph 6 hereof is hereby approved and granted for a period of 25 years and that subject to the (a) qualification of Shepard Park Plaza as a redevelopment company and approval by the Minnesota Planning Agency acting as the State Housing Commission of the partnership articles of said company structure, (b) th'e execution of the Redevelopment Company Development Contract between Shepard Park Plaza and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota in form containing the substance of the Contract provisions submitted to and considered by the Council, and (c) the obtaining of all necessary approvals of the capital and debt structure of the said redevelopment company, the closing of construction mortgages, and commencement of construction of the project, all as certified to by HRA, the partial tax exemption hereby granted, shall be transmitted to the Ramsey County Tax Department. COUNC[LMEN Yeas Nays Requested by Department of: —�atkr- Hozza , [n Favor u,.� t Levine J _ Against BY ---�eec�er Sylvester -. Tedesco t�'R � 7 �qr/ Form r ed by Cit� Attomey Adopted by Councii: /� Date � � � Certified P s y C ncil Secretary y Approv y Mayor. Dat � , Approved by Mayor for Submission to Council By BY Pu6usHEO MAR 12 1977 � . WHITE — CITV CLERK R(l�r%'�� P�NK — FIN NCE COUIICII �6� +��i Cn.N�RV — OEi�nRTME T �•i' GITY SAI PALTL �� BLUE � - MAY'dR File NO. i� - o cil lu ' n , Presented By � Referred To m i ee: Date Out of Committee By Date RESOLUTION APPROVING REDEVELOPMENT PLAN FOR SHEPAR.D PARK WEST AND DETERMINING NECESSITY TO GRANT PARTIAL TAX EXEMPTION WHEREAS, Shepard Park Plaza, a partnership formed for the purpose of qualifying as a redevelopment company under Minnesota Statutes Section 462. 591, has submitted to the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (HRA) a project plan for a 3.28 acre tract located in the West Seventh Street area of Saint Paul, County of Ramsey, State of Minnesota, and bounded by Stewart Avenue on the North, Madison Street on the East, Youngman Avenue on the South, and Alton Street on the West, described as Lots Four (4) through Thirty-two �.3E2) inclusive, Block Four (4� , Youngman and Lamm's Addition, according to the plat thereof recorded in the office of the Register of Deeds, Ramsey County, Minnesota, hereafter referred to as the Project Area, for development of a five story, 101 unit apartment structure; and WHEREAS, pursuant to provision of Minnesota Statutes Sections 462.515 and 462. 645, HRA has prepared and submitted •to the Saint Paul Planning Commission, and after receipt of the written opinion and r�port of said Commission dated January 28, 1977, approved for submission to the Council a redevelopment plan identified as the "Redevelopment Plan For Shepard Park West" by Resolution No. 77-2/9-1. adopted February 9,'1977; and WHEREAS, pursuant to resolution, Council File No. 268S31, approved February 10, 1977, the Council established a date for public hearing upon the proposed Redevelopment Plan, project proposed thereby, and request for partial tax exemption� to the project, and caused a notice of the time, place and purpose of said hearing to be published in the Saint Paul Dispatch/ Pioneer Press on February 11, 1977, fixing the said publ.ic hearing in the Council Chambers, City Hall, Saint Paul, Minnesota, on the 22nd day of February, 1977, at 10 o`elock a.m. , all in accordance with the requirements of Minnesota Statutes Section 462.521, Subdivision l; and COUNCILMEN � Requested by Department of: Yeas Nays Cbcis�vci Hozza [n Favor Levine Rcedler B Sylvester Against y Tedesco ��p�t Hunt Form Approved by City Attorney Adopted by Council: Date Certified Passed by Council Secretary BY By Approved by 1�la�or. Date Approved by Mayor Eor Submission to Council BY _-- — BY - -- ��J ( ��'�� . y ,. . � - f�� u y �� ;I Y r,;y '�O i �. �._-� �'�M � � u� e; '� ' 't . . . ! . rt .i.�, � �a� 3 ��;�_ ,; � _: ,, • x� � �, .. � � " :��. �.e �''��lf�l'ue�fiY"�, � �`f �.�� ,' • ; / i_. �� 1 � ' Z �1_7� �C��se�n ra�or��ag� � �ar��c�� cor�s�ra�aon rHOmas�. o�con►�v��. ;=-_ :. Vice President �`" �' Commercial Loan Department : ;; ,..:.,, � _ (612)371-3635 December 22, 1976 ��".�� Stu Nolan Stuart Corporation 790 Cleveland Avenue South St. Paul, rlinnesota 55116 Dear. Mr. Nolan, As per our several conversations regarding the financing of Shepard Park Apartments in St. Pau1, I am addressing myself to the problem of expenses as they relate to the size of the mortgage loan attainable. As per our calculations, I have shown where expenses of 40 to 45% oi your projected gross operating revenues will �limit tl:e size of a first mortgage loan to 2.5 Million dollars or less. Due to your estimate of construction costs, that would make the project not feasible. Should we be able to reduce thp expenses samehow and maintain the competitive rentals, it would have a direct relationship Co the amount of a :�ortgage that could be attained. Our conversations have touched on assistance - � avail.able through reduction of property taxes. The property tax itself is a maj or item, and if it were reduced substantially it would have a substantial effect on the amount of net income available for capitalizatien and therefore the result value of the project. I do hope that yo�i urderst-:rd this posi:i�n and ;ai11 ka::r me advis�d oi any progress regarding the real estate property tax. Thank you very much for your cooperation. Sincerely, KNUTSON rIORTGAGE AND FINANCIAL CORPORATION .� � ,�� . %��(�.:��=�� ,��i��/ Thomas A. 0'Connell Vice President ' ,. Commercial Loans lh/W-1 -. � . , s2vent��n �a3�ingt4n av�r��e nort�f . �innea�,a�is, min». 354t11/592-379-35�30 nnl 1 G � 1.� �1 ILtKR . ` .. � - � ' . -(�)(/�1 f PINK - FINANCE � COUOCII !��■ CANARV - DEPARTMENT G I TY OF SA I NT PA U L �r�v BIUE - MAVOR File �O. Counci� Resolution � Presented By Referred To Committee: ' Date � Out of Committee By Date �� RESOLUiIOH ESTABLIS'3I2iG DATB FOR PUBLIC . ' H£.r�RING OY REDEVELOPMSI�T PLA:� FOR SHEPARD PARR €rTEST R�SOLVED, that pursuant to l�iinn�sota Statutes Se�tioa 4G2.521, Subdivision 1, a pnblic hearing be hald in the Council Chr��bers. City Hall, 15 j7est Kelloqg Boulevard, Saint Paul, :�iinnesota, on iuesd�y, February 22, 1977, at 10 o'clock a.m. , Central S�andard Tir�e, upon the Red�velopment Plan For Shepard Park idest Redevelopr�ent Froject and the project and financinq �Ian propo$ed thereby, and that the City Clerk cause notice of the tine, place a�id purpose of this public hearing in a news�aper oE qeneral circulation in the cora�unity at least ten (10) days prior to date of oublie hearing. COUNCILMEN Requested by Department of: Yeas �li,ltl@t Nays �"sK�t�tr3�'GY Hozza In Favor Levine Rcedler �� Against BY — — Sylvester�PY'@S. � Tedesco � ��}i�D2 Hunt Adopted by Council: Date �EB $ �977 Form Approved by City Attorney Certified Passed by Council Secretary . BY By Approved by Mayor: Date Approved by.Mayor Eor Submission to Council By BY 55 East Fifth Street, Saint Paul, Minnesota 551 01. Donald W. Cosgrove, executive director. phone 298 52 18 DATE February 15, 1977 �5;� ,�=;� . � ..�,�.>� HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA TQ Mike Sieran - City Clerk ' s Office 7 FROM LaVerne Nelson - HRA Legal Department�;�� SUBJECT Shepard Park West Application Attached find copy of the above referenced matter for inspection by public as referred to in the published notice for public hearing. Any questions should be directed to Mr. Len Champer, HRA, 601 Northwestern Bank Building, 55 East Fifth Street in St. Paul, 298-4949. O � �� O ��'./%ff �-��e�- � ., - -- ; • . ��ITY OF SAIt�lT PAUL OFFICE OF THE MAYOR � CITY PLANN! {�!G ' DONALD L SPAID AIP PLANNING COORDINATOR � � ��C_j�Q� s s � vED �° , � R�cE FEB � 1977 �� January 31 , 1977. �� '� CentralOff�� w � �,, Councilman Robert Sylvester � � Chairman, St. Paul. Housing and _ Redevelopment Authority Room 719, City Nall St. Paul , MN 55102 Dear Members of the Housing and Redevelopment Authority: The St. Paul Planning Commission reviewed the Shepard Park West Redevelopment Plan at the January 28, 1977 meeting. � Attached is the resolution which was approved at that meeting along with a written opinion reviewing the proposal. Sincerely, � � � . �onal�i i_. Spzid � DLS:cbc . ,/ cc: Allan J. Block � Acting Executive Director . - St. Paui Housing and Redevelopment Authority Attachments . 421 Wabasha Street, Sain� Paul, (�6nnesota 55102 (5121-�98-��# . . . . d��. � . . . - r ..' city o� sai►�� p�ui �lar��ir�g cor�missior� r�sol��io� . fi�� num�er »-4 � � �� anuary 28, 1977 . • . � . . . . . �� • � WHEREAS, pursuant to Minnesota Statute § 462.515 (�974) , a redeve]opment authority must transmit a redevelopment plan to the planning agency for its study and written opinion prior to approval of such redevelopment plan by the redevelopment authority; and WHEREAS, the Saint Paul Housing and Red�velopment Authority has transmitted a proposed redevelopment plan to the Saint Paul Planning Commission for its study and written opinion in accordar��ce with Minneso�a Statute � 462..515 (1974); and � bINEREAS, the Saint Paul Planning Commission has reviewed the proposed Shepard Park West Redevelopment P]an and prepared a written opinion thereon; . � NOW, THEREFORE, BE IT RESOLVED that the Saint Paul Planning Conunission approves the attached written opinion and authorizes its transmittal to the Saint Paul Hausing and - Redevelopment Authority. . � , . .. . .<: .. . . • �O��U h�/ Joseph Panqal �>��(� b� Catherine Piccolo � �� '�'��' unanimous �-''-��1� .�,,,��'_..,..,...._._.,� . . : . . . � 1 . . i: . . .. . . .. _ . . . .._...� ._ _ ._m �.. ._ .,. . _. _ _ .. __.. . . _., _ �; _�.___- „. \� ._: . .m . ... �n .` � • ` , ". ; � � " _ ...� .�✓��I!� __ . .� ,'�`�'{�' — . . . . � . . . . . :�� Yy ... .: ..':-..... ' -. • � . , . . .. .. � � . _ . . . . . " ° ' '� �7. ".A.'s ��ti _ }�Cyt.y/'� : . . . . • ' - . . ..♦ .�.f1Y.��....�_ - �� . - . � . � •:�� _ . STAFF RE4'IEW OF � � SHEPARD PARK WEST _ � � ` REDEVELOPMENT PROPOSAL . - January 21 , 1977 = '�� Planning Conmission has been requested to render its opinion on a proposed redeveiopment plan for an undeveloped parcel of land on Youngman Avenue between j,� `�n a�d Madison Streets in the �ower southwest area of the City. The Plan, known as Shepard Park lJest, is proposed by the Housing and P.edevelopment rluthori�y which has adopted the plan on January 7, 1977. ' . • -.�t.:� �lar,ning sta�Ff recam;rends that ihe Planning Corirission approve the project. ^_"!"017osed P1an - A five-story luxury apartment building with 101 apartment units is proposed for the sit�. The unique aspect of the proposal is that the City would grant the �r•cject an annual 50% t�x exemption for a period of 25 years. This proposal states that �his tax exerription is necessary in order to make the project fina�ciaily viable. The Planr:ing Commission must make a finding that the plan serves a public purpose and corsenuently that the tax exemption is apprapriate in view of the public �znerit�. One of the potential public benefits is ar increase af approximately S4G,C00 a year to the tax base by development of a parcel of land previously - �orsicizred undesir�able for development largely because of the high bedrock conditions. :�: �:.�.;it�on, it heips retain an economical7y balanced �opulation in the City by pr•eviding housing alt�rnatives for middle and high ir�ome qroups. ' Summary or Previous Plannin Commission Action ^: �roNOSai fc� u 33.5 aere rezani^5 of the area bounded by Youngman and Benson :i��s�«es and hlton and Ranlcin Streets, which includes the site now being reviewed, ;;as ccnsidered by the P7anning Commission in 1973. Both the Zoning Board and ±he P?an�ing Commission held s�veral meetinGs io reviev� the proposal. Special staff studies were done look;ng at the impact of the proposal on the neighborhood. 1"he Planning Commission subsequzntly voted to rezone the property to permit high �ens?�y r•esiC�r,tial develc;�„�ent. �h� City �ouncil a�so vo�ed to rezone the pro�erty. �r.;s rezoning decisi�n was later contested in c�urt. The Ramsey County District �o�art ru]ed against the rezoning. IJpon appeal , the Supreme Court ruled in favor of the rezoning. Additional signatures were r�quired on a petition and obtained by ti�e dzveloper. Based upon the Supreme .Court ruling, the City Council adopted the near zoning code in conformance with the Supreme Court decision. The site is �hus currer:tl;� zoned multi-famiiy residential . � - STA�F RE1,'IEW . ASSESSMENT OF PR�JECT RISKS � _.;:°t �*renGth and Reliabil� . - The projec� assumes there is a market for 101 apartment units located in this area selling for � price range of $3fi0 for a one-bedroom apartment to �640 for a three- b�:croom apartment. The propased mix is as follows: 36 one-bedroom apartments, 2ti two-bedroom apartments, and 39 three-bedroom apartrr.ents. These are luxury �.anits which will have a swimmirrg pool , sauna and underground parking within the b.�i iding. _. .. . _ ___. _._ _ ._ �...� .. _.. ... . v.._.. ..._ .. . _ ., . ;�.�. • _ ...... , ,� � \� ' \,/ Similar luxury type units located along the Mississippi River have recently been developed. The project sponsors believe that they can market a similar type of F:�. ii�;ng on this site. A market analysis which clearly shows that a market ex.i�is for this particular development or one substantially like it is not available. 7he project rlevelopers and the Nousing and Redevelopment Authority staff, however, feel tl-�at the experience of other projects has been sufficiently �o�it�ve to warrant gi>>ing a go-ahead on this one. The extent to which the market may be satura�ed at this point has not been assessed. iax Return Potential � � - T�he amount of ta�:�-�ir,come which the City receives from the devel�pment of the land is partially dependent upon the income-producing ability of the apartment building. kpartment buildings of this type are valued using three approaches to determining v�:�u� for tax purposes: 1 ) the income approach; 21 the cost of construction approach; and 3) the market value approach. The assessor determines which of the methods of appraisal is appropriate for each building. Therefore in evaluating the public bereTits, the Planning Commission shouid be concerned about the income producing � capabiiity of the project. The tax benefits may be�iess than the �40,000 expected i� the pro�ect is not successful in marketing the apartment units as expected. The zxp�erience ofc�other a�artrrent complexes, however, has� shown that it is possibie ��a achi..ve the 95;0 occupancy objective, but there are risks. The overall apartment � ��::cupancy rate in St. Paul is currently 953�. r?��r.t;al for Neipin�rse h1iqration Trends 'i y�� roject is successful in marketing the units at that approximate cost, it i:: i � also be successfui in providing acceptable hausing choices in the City for r�i cic�?e and hi gh i ncome groups. A mi grati on s tudy recently compi eted �ocuments ihe� �act that larqe nurr�bers o� these people have moved out of the City, This trend threatens the sources of public revenue, diminishes the economic strength oP �n� �;arket upon r�►hich the city's businesses depend for survival , ard places grea�2 r• ecun��mi c�bur�'ens c;� remai n;ng mi ddT e and upper i ncor�e resi dents to pay for a greater portion of necessary city services. providing acceptable housing rltarratives for ti;�se people in the city helps to achieve an economically cc?anced poau]ation. This is one of St. Paul 's major objectives. �n the past St. Paul has used economic incentives to encourage the development of lcw incor�e housing. This proposal� is an example of using economic incentives to en�our�ige the development of higher income housing. "+eichbcrnood Character ��s� project is situated in an area which is composed of mostly single family hor�es �r.yG:�rsoersed with a fe:� dupiexes. The five-story b�ilding pr.oposed would be �ituate� �rithin very close proximity of single family homes, some .cf whach the dev�loper does not own. It could be argued that the uses are incompatible for an establiSyed singie-fami�y environment. However, the Planning Commission, the � ;,it.y Council and the Supreme Court have already decided that such uses are cam�:atib]e in this area. � �:u�•�-ently the Departrrent of Housing and Urban Development is doing an environmental irrpact statement on a much larger project proposal by the same developer for this area. The proposal includes the building the Planning Commission is now reviewing. . � ,� _ A n;ap of that entire propusal is attached. The map indicates that there are sirqle family homes in the area t��hich ti�ill continue to exist regardless of develepment plans now being reviewed. These sinyle family homes should be protected even if the neighborhood character changes. Physical buffering in the form of landscapin� to protect homeowners should be provided. The unde- vE��o�ed site already contains many mature trees and substantial veyetatTOn. '•lainte►lance of the n�ore valuable veyetation supplemented with plantings where necess:ary rray serve to soften the adverse impact on the neighborhood. � Ifi the development proposa�s for the other buildings are undertaken, this too, � wili have an effect on the neighborhood during the construction process. Tha apartment units may be har•der to se.11 in view of the intense construction which may develop around the site. There would be added noise, dust, drainage problems , and other side effects of large-scale construction. The construction a�tivity needed to develop� the entire five-b]ock area .;nay affect the �marketability of the initial building during construction phases , thul endangering the income floyv which the praject assumes. �c�nic Views lhe State Historical Society qtiestioned the impact of the tJatergate Development Proposal for Davern Avenue and Shepard Road several years ago because it blocked th� view of the river valiey to the northeast from Fort Snelling. This building ' svould be in the same yeneral area. However, since this building would not be located on the river side of Shepard Road, this 1QCatian should no� be objectionable. ��oi se � Tne pro,�ect -i� lacated in the path of airplane flights. �t is in a noise sensi- tivity zone wi�h respect to Shepard Road tra-ffic and railroad traffic. However, n�;se measure;r;ents taken in the area indicate thai this is not a m�j or problem. ihe•re are about four train movements at night. They rnay be loud enough to wake tenants but the noise doe� r,ot last long `nough to vic'at2 State nuisE s�andards. � The additional traffic generated by apartments would not substantially increase �oise levels. A luxury apartr�ent building wouid probably have an internal air circulatian system an,yway and would not be seriously affected by outside noise. Tmpact on Critical Areas � The project is not located within the critical areas designation. Furthermore, since the �roject is not located on the river side of Shepard Roac�, there is littie reason to believe that the increased density will. result in an overload• Gn the capacity of t'he Crosby Lake �Jature Center across the road. . .;�r,<:� us i on and Recomrr;endati ons ' - :r� re��;2tving the potential pub3ic benefits derived from the project, the staff fe�3s there are tradeoffs being made and potential risks. The land now only generates about �5,000 in taxes and v�ill not iikely be developed except as a hi9h-intensity use because of tlie high bedrock condition in the area. In return for the developer assuming the rys s o evelopment in t e central cities and the high construction costs involved in this site, the City agrees to a 50% tax reduction for 25 years. Development of the building would generate higher taxes then now are being generated by the property. If successful , it will even attract higher income groups into the City that might otherwise go elsewhere for high amenity apartment living. � �, � . . .� • . .. r��,� r. 3 � � • • The overall tax benerits may be more or less than anticipated, but, in any case tne project ti•�ill generate more tax income than at present. � The design of the structure, and the management of the building �re critical variables affecting the success of the project. Furthermore, the staging of potential future construction in the area could affect the success level of the project: If the gress income of the project increases over time however, there �vi11 be a nroportior,ate increase in tax bene`its from the project. - ` The siaff fee�s that the project should be approved by the Planning Commission - provi�e� there is an internal air circulation system to Iceep out some of the �toise in the ar�e� and arovided much of the more valuable trees and vegetation are retained and additional buffering provided to protect the single-family homes in the a;ea. Staff `eeis the potential benefits� outweigh the risks. . . i � . , . ___� � •. � ' 'r . --. -.-w - - .�___. _ � .��, _�_. . .. .. Q�. .- -- . - .� . _ ...:_ _�,��g►� - t � t� q �� K t�T � x C� Z ..��• .. i �,.�,. � o •�; .. C3 .� � !� z I�t �`�-�'�� - �.--�- � �+ r�; � �, �t L;.� t ,� �__ � :1s No�.."tb � �� 3 ... � . o b � � ni N � W � '� . � C1 � � i') .. � � �� j � N 3 CI �., .,� 1> 'U � x O (a `W � �n 1 � . • o� c rn � I O 0o x. -'• �n �`D„ � cn =• C I{ L7 � o, t° � O `" N N -� � •�� r � � y � � �� ,n N A .�..� �`C rn d � � 'a rn ,y �, o�; �l �''I � x �,.a "t O � � �o+ N v � a ,�- fT � fJ — � 5� �/ � � � � � � 7 � ^ J � I }�y . � . LJ � � :LS tyQSl�ibW m � ------ -- , ;r � r A � j� � . �� ,� � v � ' � � tt r ' � � � � y a a � � '!. 3 � 'I Z � �� .... �' E� O j o � � d . � � � � I3 0 "� w �° �. � � -t z a � �� o y t � � � c'e, , z d � c v' � � � �_ G'� O� I v► _+ � ' z �y. y � � � � � y v, �c I � t,, • � t�� v+ � N � � � j � 1D � .� �Q► � � � 7� -� A � T '7C' � p H � � .[ � - : N C"'-7- � �i is a;�i�9 Niads � r� m � . � � r, �1' � � � t; , � x � M b �� Cl � � I r . � G> � � � ;�, a q �� b ' � +� �'` a � � � . � Q � � � � � � � � � - t� c' �� b r �+ �y � G � � � . � � � � ° � a � - :LS tV!>t�►1yZJ �! - ` _ �Y ( 1 � � ' �^� �_.1 t � F � � . , �' . . . .....,___ '.._,.�„�.,,.,,.,�,�.` .._. • ,�� 4 � �� i:'E.-•,.>, ti~, ;,p, �: in m nt o!, r ., av �: �, 'ih� rs��'1 �H '� 1 ,. or� e, x�..�. cons' � ;g� • Pa� ��. ao�s�.� aro enr;}u� th��q� '.t �,. ,'�: ef�il: R 'z�,,.t; � iftl:110 tlii� M .� w►�ITE - C�rr CL.ERK PINK - FINqNCE � CANARY'- DEVAMTMENT GITY OF SAIYT PALTL CounCil �.i,.�� e�uE �-•r��ron File N0. ��-- �` Council Resolution Presented By Referred To Committee: Date � Out of Committee By Date -2- WHEREAS, pursuant to the aforesaid. notice, the Council conducted a public hearing at which testimony was received from all persons interested in the project proposed by Shepard Park Plaza, the Redevelopment Plan For Shepard Park West, and the proposal for partial tax exemption for the project pursuant to Minnesota Statutes Section 462. 651, and received other evidence on the issues of (1) whether the land in the Project Area would be developed without the partial tax exemption, (2) whether the Redevelopment Plan For Shepard Park West and project proposed thereby will afford maximum opportunity, consistent with the sound needs of the community as a whole, for the redevelopment of the Project Area by private enterprise, and (3) whether the Redevelopment Plan conforms to the Comprehensive Plan For Saint Paul, the general plan for the development of the community as a whole. NOW THEREFORE, BE IT RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: ' 1. That the Project Area is open and undeveloped land with bedrock formations at or near ground level requiring trenching or tunneling for placement of sewer and other utility lines at costs considerably in excess of customary costs in the community for utility connections. 2. That this unusual and difficult physical characteristic of the ground and consequent high costs for provision of utilities have prevented normal private development of the land resulting in the stagnation and unproductive condition in the land which is otherwise potentially useful and valuable for contributing to the public health, safety and welfare through redevelopment of privately constructed and owned high density above market rental housing which would provide additional housing to meet need in the community, would provide an economic mix in new housing being built in the community, would provide incentive for development of other COUKCILMEN Yeas Butler Nays Requested by Department of: Ei�irtoaeer, Hozza In Favor Levine Rcedler Against gY L"PS1dHlt Sylvester Tedesco Are�ai�e�t Hunt Adopted by Council: Date Form Approved by City Attorney Certified Passed by Council Secretary BY By _ Approved by Mayor: Date --. _ Approved by Mayor for Submission to Counci! BY ------- By _.. M�MITE - CI7V CLERK PINK - FINANCE GITY OF SAINT PAUL Council �� CAN�RV - DEPAR7MENT Q BLUE � -�'MAVOR l ♦ � , . File N0. �t ' ,L Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -3- unproductive land in the vicinity of the Project Area, and would enhance the tax base of the community. 3. That the Project Area is blighted by virtue of the conditions hereinbefore recited and determined and that the project proposed by Shepard Park Plaza and the Redevelopment Plan For Shepard Park West, with public assistance through partial tax exemption pursuant to Minnesota Statutes Section 462. 651, will permit private redevelopment of the land in the Project Area eliminating the present unproductive condition of this land and making the land useful and valuable for contributing to the public health, safety and welfare. 4. That the Project Area presently produces $4,834 in real estate taxes, and after redevelopment in accordance with the project proposal and Redevelopment Plan, with partial tax exemption will provide a minimum of $-45,765 in real estate taxes annually, and that without this partial tax exemption, mortgage financing would not be made available to accomplish the construction of the project and redevelopment of the Project Area. 5. That the project proposal and Redevelopment Plan comply with the recommendations of the Saint Paul Migration Committee contained in its report entitled, "Saint Paul Population Change: Challenge �nd Opportunity" by providing housing options to middle and upper income families to reside in Saint Paul and an opportunity to achieve an economically balanced and diverse population, by restoring confidence in Saint Paul neighborhoods as sound and desirable residential areas with a sound future through private development of new housing, and by involvement and commitment by public effort towards achieving non-subsidized housing development of a kind previously and presently being devoted to provision of new housing development to meet the needs of lower income persons, and that by imple- mentation of these recommendations take positive steps by public action to reverse the trend of migration of middle and upper income families COU(YCILMEIV Yeas Na s Requested by Department of: �u ler Y Hozza In Favor Lev ine Rcedler Against By 'Y'eS1C�P31tSy lvester Tedesco A+�eei�t Hunt Adopted by Council: Date Form Approved by City Attorney Certified Passed by Council Secretary BY By Approved by Mavor: Date Approved by Mayor Eor Submission to Council BY -- By — WHITE - CITV CI.ERK nlF�.1P.(_�� P�NK - fINA_JCE COl1I1C11 g y C4NARV - DEPARTMENT GITY OF SAINT PAUL 1 BLUE q�. MAVOR . Flle �O. �� V Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -4- from the City and the adverse effects� upon the community and its tax base that a continuation of this trend will produce. 6. That the land in the Project Area would not be redeveloped without the grant of partial tax exemption as authorized under Minnesota Statutes Section 462. 651, that part of the increased assessed valuation of the property, both land and improvements , resulting from redevelopment in accordance with the project proposal and Redevelopment Plan necessary to fix real property taxes at 12. 5$ of assessor's fair market valuation of land and improvements, or the sum of $45,765 per annum, whichever is the lessor figure. 7. That the project proposal and Redevelopment Plan For Shepard Park West which through land use and .building controls imposed upon the property in the Project Area by contractual agreement with the redevelopment company and covenant running with the land, will permit redevelopment of the redevelopment Project Area without public acquisition of said property, and will afford maximum opportunity, consistent with the sound needs of the community as a whole, for redevelopment of the Project Area by private enterprise. 8. That the project proposal and Redevelopment Plan �'or Shepard Park West conforms to the Comprehensive Plan For Saint Paul, the general plan for development of the community as a whole. 9. That the undertaking of the project proposal and Redevelopment Plan will be financed with conventional mortgage and redeveloper equity financing with grant of partial tax exemption, and that said undertaking will not result in displacement of any persons or business . COU�iCILMEN Yeas utler Nays Requested by Department of: Hozza [n Favor Levine Rcedler Against BY Y'E'S1de31tSylvester Tedesco Pras.idaat Hunt Adopted by Council: Date Form Approved by City Attorney Certified Passed by Council Secretary BY By Approved by �Vlayor: Date Approved by Mayor for Submission to Council BY — By ---- — wHITE - Ci7v CLERK � /�(�?�� / COU4C11 -" ^�" � PiNK - FIN4NCE GITY OF SAINT PAUL p CANAA�V -` DEPARTMENT 9lUE ��MAVOR {'IIe NO. � � � Council Resolution Presented By Referred To Committee: Date Out of Committee By Date -5- 10. That the removal of blight in the Shepard Park West Project Area and the provision of decent, safe and sanitary housing in said Project Area through the project proposal and Redevelop- ment Plan are public purposes for which public financial assistance through partial tax exemption ma.y be granted and that the said project proposal and Redevelopment Plan for Shepard Park West are hereby approved. 11. That the partial tax exemption set forth in paragraph 6 hereof is hereby approved and granted for a period of 25 years and that subject to the (a) qualification of Shepard Park Plaza as a redevelopment company and approval by the Minnesota Planning Agency acting as the State Housing Commission of the partnership articles of said company structure, (b) the execution of the Redevelopment Company Development Contract between Shepard Park � Plaza and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota in form containing the substance of the Contract provisions submitted to and considered by the Council, and (c) the obtaining of all necessary approvals of the capital and debt structure of the said redevelopment company, the closing of construction mortgages, and commencement of construction of the project, all as certified to by HRA, the partial tax exemption hereby granted, shall be transmitted to the Ramsey County Tax Department. COUNCILME[V Yeas Nays ,/ Requested by Department of: --$at�er- C.(� Hozza � [n Favor � `� J Levine Against BY —i�ve�kr• Sy(vester Tedesco Form A r ed by Citx Attorney Adopted by Council: Date — ��"� �� 9�� , Certified P�sc�d by C�cil_Secretar, j' • � � � I .-- :;9__—_ �� - . � ' — � � Approved by Mayor for Submission to Council Approve� hy Ylavor: Dat -- ,`�, —T�'-r±- �y. � -- -- ----- — BY ------- PIIRIICNF!1 �Ac1R 1 7 1Q77 .. _��`�.. � . . ` _ __ _ .._�_ ,__., _ . . �__ .__ _ _ . _ . ._ .. �_ ,_�..�..._,.�----,._ HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA ��r��;;.` ,�. REPORl" TO THE COMMISSiONERS DATE January 7, 1977 R E G A R D I N G REDEVELOPMENT PLAN FOR SHEPARD PARK WEST The 3.2 acre She pard park West site is an undeveloped parcel situated in the Highland area of Saint Paul. Its unique location overlooking the Mississippi River Corridor and its comrenient access to downtown Saint Paul suggest that the site is amenable for a quality residential development. The present owners of the parcel have proposed to construct a five-story luxury apartmeat building containing a mix of 101 units. HR.A staff concurs with the develop- ment proposal for the following reasons; 1. The parcel is app?-opxiately zoned (RM-2) � 2. The physical conditions of the site have hindered residential development. The cost of constructing any type of housing other than multi-family would be prohibitive. 3. No site assembly is necessary. 4. The market for the project is geared to the middle and upper income groups who have in recent years been leaving the city of Saint Paul for alternative housing sites. The developmenC of this pro3ect would provide these people with an acceptable alternative �vithin the city of Saint Paul. An independent appraisal by Sanski and Gibsan daCed July 30, 1976 determined that at full comp2etion of the project, its market value would be $3.8 million. Based upon this value, it could be expected that a normal maximum mortgage Ioan of 75% or $2,850,000 could be attained, However, a local lending institu- tion, Knutson Mortgage and Financial Corporatioa, has stated in a December 22, Y976 letter that, b�aed an thPSe £igux�s and their relationship, the project" woulc3 be � �� ^\ - _...�.. ... . .. . ...... ..:....` . .. ...,. ��....:_:....._.. .._ . . . . ._ .'_.... . ....... . ...._...�..� . . . ..... .. .,,. ... Redevelopment Plan for Shepard Park West 2, infeasible. An analysis by the HRA staff of the financial parameters o£ the project indicates the project would be infeasible at this point in time for the following two reasons: 1. The rent levels necessary to satisfy the mortgage loan require- ments would be too high in today's market. 2. An equity requiremeat of nearly $1,500,000 is also infeasible. The project, however, can proceed if the mortgage loan amount can be increased and the equity requirement decreased to a point where there is a sufficient return on equity .to make this pro3ect work. . � Most costs in development are fixed, such as the cost of construction, the cost of land, the cost of money; however, operating expenses which account for over 4d% of gross revenues can be adjusted. The real estate tax is a major item in operating expenses. Therefore, it is proposed that the SheQard Park West project receive an annual 50°!o tax exemption for a period of 25 years as pre- scribed under Minnesota State Statute 462.651. By reducing the real estate tax, this would in effect increase net income. As the Iocal financial institution states in their letter, "If the (real estate taxes) were reduced substantially, it would have a substantial effect on the amount of net income available for capita2ization, and therefore the result value of [he project." In other words, by reducing the annual tax obligation from $90,000 to $45,000, it is anticipated that the mortgage Ioan could be f��creased by approximately $500,OOb and the equity amount reduced by a like amount, consequently making the project feasible. In addition, as gross income increases over time, the real estate taxes will increase proportionately. ACtached is the Redevelopment Plan for Shepard Park West, clearly st�ating the public purpose and method of financing. Att. R�N:LC , �� :: ��°�?��.�� APPLICATION FOR APPROVAL REDEVELOPMENT PLAN FOR SHEPARD PARK WEST JANUARY 7, 1977 HOUSING AND REDEVELOPMENT AVTHORITY OF THE CITY OF SAINT PAUL, MIPINESOTA •` 1 TABLE OF CONTENTS SECTION I APPLICATION FOR REDEVELOPMENT PROJECT SECTION II THE REDEVELOPMENT PLAN SECTION III PROJECT REPORT SECTION IV METHOD OF FINANCING . � SECTION I APPLICATION FOR REDEVELOPMENT PROJECT HOUSING AND REDEVELOPMENT AUTHORZTY OF THE CITY OF SAINT PAUL, MINNESO'.CA . � APPLICATION FOR REDEVELOPMENT PROJECT TO THE CITY COUNCIL OF THE CITY OF SAINT PAUL, MINNESOTA: APPLICATION FOR APPROVAL OF A REDEVELOPMENT PROJECT KNOWN AS SHEPARD PARK WEST SUBMITTED BY THE HOUSING AND REDEVELOPMENT . AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA FOx THE PROJECT AREA GENERALLY BOUNDED BY: ALTON STREET ON THE WEST, MADISON STREET ON THE EAST, STEWART AVENUE ON THE NORTH, AND YOUNGMA.N AVENUE ON THE SOUTH. The Housing and Redevelopment Authority of the City of S�zint Pau3 req�:�sts app�oval ,o� *_he Redeveloper.e:�t Project described in the application together with the accompanying Redevelopment Plan and Method of Financing which are a part of the Application. The Housing and Redevelopment Authority further requests the execution by the City of such contracts and agreements necessary for carrying out this Redevelopment Project and said Method of Financingo �� SECTION II THE REDEVELOPMENT PLAN 'HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF SAINT PAUL, MINNESOTA I. PURPOSE OF THE PLAN The purpose of the Redevelopment Plan is to provide a multi-family residential development with city financial assistance without which the project could not be implemented. Specifically, this Redevelopment Plan addresses itself to providing Shepard Park WesC with a partial tax exemption. II. DELINEATION OF THE REDEVELOPMEBTT PROJECT A. Narrative Description of the Redevelopment Project Area The Shepard Park West Pxoject Area encompasses Lots 4 through 32 in Block 4 of Youngman and Lamm's Addition in the city of Saint Paul. B. Project Boundary Ma.p See Map 1 Attached III. STATEMENT OF OVERALL CITY OBJECTIVES The subject site has never been developed to its full residential potential. The primary reason for this is the poor soil condition. Platteville bed rock begins at 27 inches creating numerous construction problems. The cost of con- structing basements is excessive, and there are severe sewer and water hook-up problems. As a consequence, single family or duplex dwelling units were ttever built on site because of the unusual and clifficult physical characteristics of the ground. With the realization that the subject site would probably never be developed for si^�3e-family use, *.:t� Saint raul City C�uncil rezoned the land to multi- family in 1973. In 1976 the Minnesota Environmental Council approved the site for multi-family residential. It is a major city objective to create a climate for residential development on land that has historically been undeveloped and underutilized. Another major objective of the city of Saint Paul is the retention and strength- ening of an economically balanced population. A migration study recently cor►pleted by the city documents the fact that large numbers of middle and upper-income residents have moved out of Saint Paul over the past decade. At the same time, lower-income population groups have increased. This trend, if continued, would have increasingly serious consequences for the economic and social viability of the city. It threatens the sources of public revenue, -1- _ . . _ _ _,.,. . . �_ _ _ _ . ._ __. _.... , diminishes the economic strength of the market upon which the city's busi- nesses depend for survival, and places greater economic burdens on remaining middle- and upper-income residents and businesses to p ay for a greater portion of necessary city services. Saint Paul has recognized its responsibility to the increasing numbers of lower-income residents, concentrating on providing adequate, decent, safe, and sanitary housing opportunities for such residents through s2um clearance, consCruction of public housing, and the provision of subsidized housing opportunities £or moderate-income residents. In 1975, approximately 7d percent of a11 new housing units built in Saint Paul were public-owned or subsidized units for residents of low and moderate income. In addition, sub- stantial public efforts have been directed toward the preservation of the existing housing stock through rehabilitation loans and grants. This program has also primarily benefited low- and moderate-income persons because of esta- blished income limitations and interest schedules related to income. In summary, substantial public efforts have been directed toi�ard the pravi- sion of housing opportunities for residents of low and moderate incocae. There has been �little corresponding effort in the public or private sector to provide a comparable level of opportunities for residents of middle and upper income. The net effect, therefore, has been to discourage higher-income resideats from reWainir.g or locating ;a the city, 2n3 thus existing conditions are working contrary to the goaZ of an economicalZy diverse population, In recent years, private enterprise has not been constructing .housing for the middle- and upper-income graups. As the trend toward a lo�ver-income popula- tion continues, the private sector is at a greater disadvantage in its efforts to provide needed upper-income housing opportunities in the city. The eroding tax base means that potential developers would have to pay increasinglp higher portions of their revenues toward taxes, at times rendering a proposal finan- cially infeasible. And as more and more upper-income city residents flee to desirable locations in the suburbs, there is a smaller captive market which a potential developer can hope to attracte Given these imbalances, it has been determined that timely public action should be taken in order to arrest the undesirable incame trend and move toward the goal of an economically diverse population. .2_ _ _ __ __ . ___ -_,;: , . . , . . � �' � j i � �`• ,' �� - j ----V' t�, /// �.:\ ' � -�-- I 1 - - -- . , � / �i -r- /// // �i� i / `� 1 / � � � � ,v�,,, � � � �� D I : � - � _1_ � �. � i r ' / ,l � •� � ` � ,d ' r _ � /� ' -'' � ��' /� ,� `- ` \ .'� i � �C� � �\-- �'� �/ ' ��' �..-' •. ' . D �• , � ' , A` � . � � `v �� ' � - `;�� - C _ a ' ` ' rn i i � `, � --- , �/�/ i / \ \\ // -- /// ` � �i / / / � �� -� i / � � � � / �i � �i . // / / i / � �� i � , ,� . �� . , - � � . . � �� , . � �� . : � ', � � / ,i� �i � j i � /� /� ' � i� � ' ,� �: � ' � �\ . . i � i � / � � i ' i ' i � i , �- � � � �� ` � i � ♦ � �' � � � �� i i \7 � . � / � � � . � �`�` �� \� � �� i / :\. � / / / i � i � �/�` � (�r �j_ . / / / ` v O / ' // l,n . � / , �` / � VO � , � � �; / � � // , i .\` � / � � /� �` \ �ii/ . / / / ^^` \* / � 7J � i � �� \� �. . ' � y � Y i'`� : ' ��\ -\� � \ /��%/ . ' � � �� //�/'�O` ��/�. / / \y � / � O� � s� - -�� - �o� � � , . i � /�/ � // � � � � � Lj /�/ /� � / / / � � %� � � j/ . / � / � � i � . i � � /� ` /� / / / � i /" �� / �/ � / ,� � � / ` / / / / \\ �// \� / / �� i � �\ ` i � `` �� - �c`� i � � � � � / \ � � / �� ' �� i �� i�� "�/i� i � / . ` i i� � /�- � i �� \ / � �/ � //- / � . `�- r \ \�� ` \ . � � � � i � t / J� / � - � \ � � � � �� J � `` �� ^. \ \ � ` ... _...... . ... ... ... . . . ... .. ..�..�, \ . . ._ _. . _... ..... .i .. �.. . . /._/_J___.....`..___'__ _....... :.>;. N , o -�, �� = � �� R T 'Pr��e�t Boundary ■��■ � ��. 7.,A�,Q �j�; � 12/!O /7C0 _;� The following goals have been identified to accomplish the averall city objectives: A. Offer a wide ranoe of housing aZternatives in Iocation, size, price and design throughout the city. B. Assist in reversing the migration trend of middle- and upper-income people from the city. C. Treat the erosion of the tax base of the city which is associated with the migration of upper-income groups. D. Encourage controlled, planned, large-scale housing projects at appropri- ate locations in the city. E. Wisely use diminishing land resources. F. Control future inefficient and inappropriate land uses within the city. G. Stimulate residential development on land that has not been developed because of unusual and dif£icult physical conditions. H. Strengthen existing neighborhoods of the city. I. '�Grant partial tax exemptions to assist in obtaining adequate financing for sound redevelopment projects which may not be feasibly developed by the private se'ctor without such assistance. IV. OBJECTIVES QF THE REDEVELOPMENT PLAN Pursuant to the overall city objectives, it is tha purpose of this Redevelop- ment Plan to provide for the coordinated redevelopment of presentlq under- develope3 and underuti3.izecl land icito a residential project that is economi- cally, physical].y and socially sound for the community and for ths city as a whole. The city of Saint Paul and the Saint Paul Housing and Redevelopment Authority, throu;h the implementation of this Redevelopment Plan, seek to attain the following objectives: A. Accomplish redevelopment of open or underdeveloped land which .is blighted by reason of unusual and difficult physicat characteristics of the ground which have prevented normal development of the land by private enterprise and have resulted in a stagnant and unproductive condition of land poten- tially useful for contributing to the public health, safety and welfare. B. Provide for the development of new housing which will maximize housing ogtions for all citizens. C. Provide market-rate housing for the middle-and upper-income groups in order to improve the economic mix of the city. - ^3- . p. Encourage the development of housing which is well planned and economi- cally sound. E. Encourage development that will take advantage of the natural and manmade resources of the city and the region. F. Provide impetus for housing development so as to strengthen the financial base of the community. G. Provide increased employment opportunities so as to protect the sources of public income. H. Assure that land uses and design are compatible with the surrounding area by providing sound planning assistance and suitable development controls. I. Provide maximum opportunity consistent with the needs of the city for zedevelopment by the private sector. J. Provide financial assistance to a residential development which could not be implemented without such assistance. Following are the general tasks that are necessary to accomplish the Redevelopment Plan's objectives. A. Provision of appropriate controls on the scale and design of the development and the financial obligations of the developer. B. Pravision of any necessary financial tools or henefits to achieve redevelopment. C. Provision of any other redevelapment activities or administrative assistance needed for success of the project. V. LAND USE PLAN A. Permitted Use The permitted use for the Shepard Park West site sha11 be for multi- family residential development, subject to existing controls as provided for in the City Zoning Ordinance. The current zoning of the site is RM-2; any proposed redevelopment shall be compatible with the provisions of this category. , B. Proposad Land Usa Map See Map 2 attached. _4_ . _ . Y .. . � v � 1 � �• 4 � , �� .:i� � �'�� /� .._.__...__�� / � /�/ /� / '' / _ � � � __T�.� •}\ /�/ /� //J � � 1 — �/ ' / � � � ,� ,-. . , � �, ►- - D � � '`-'� �� ,-'�. ' �� -1.- � �� '� � ` ' � ,- r. �_� / .(� . ,-i � � � �� i i �V � ��' � \ \r' �--- / i \ j /� /i / O .��' �J' � . ��\ . i�� i i � � % � � �� .� ' � . y .,\ � � .� < --� , � � , . �, , rn --- �, , , � ,, ,, , , � �� . �.- -- � � � � _. i� ^ i �i �� \ �� i i � � �� i � �� ' � � � , � •� � � i � � � � � i � � � � \ / � � �i� � � ' � � �� ' ��' �� • � i � � �� i . '� � � i � • :CC�s�:r';:C:: ///// � / / � `` / �!::Y;;•::;:1;:::, / / / / \ % � .5;��:'::: .�':•::��•.. � \� `\ � / ;:�;:;'.."ii?';e�:r'•''.^'�•`,_:::�:. /� � � / ,��,�?�' • �:��::....::=' ` / / J7 'c:i?;;?Et;;;,;�.:. �:er:::� i // � \ \� �/ �/ / ^t::�.::�� " / / � � / /. 'ie�;eEtE=�'•;.':irSe';?��::F;, � � =�dr:if:''...:•...�;ir;•:•:: � � �� \ :t:%:::. ::e:e�f:a::'rci•;::' / \ � �i /� '// / ^ // \ ,�°ii;:...:;. , �,,_ , ��• :�':::::•-':.•;,:t=`, �i `:•:��,-.;�:::s;�`r:::;;�:::�.°:.. � � � � G„�` r' �('� _,�::re;�.�;�c'r.�;::�e:�i:i•'� � / ' �`O /� �/� �" ::.�.'-'r,',:: ,.. •. �� , n\ � ..l:'� '��•��:N;:'��':::�:�; j �/ ' O� /• ''::�,Z�JI'.�:;��::.t:�:., / .- \Y � �� , :�.lt;:�:...• ::•�" •S?;��•• �� % ��,,:...•� � / . /� �\` � % ::��'�•�:..:.r•��••• / � ` \ / °ti{ei: ��..'::?;•:.:•' i / �� O\ � :ee�:.:�i::.c9� . / � � \ .;'r.::� '• , � � � �e°r:ir�re:•�' � � i � � �� /i i ;;'3f�r:z.�� • !� i X � ' � � ` � /�/ '� r•ci;:::•• � � � �\ ` �� -' � :��,t. •� / � \� / // /� \ ✓//� �;y� :.� / �} i � �OO\ . . �\ �/ ] / / �� i / /'�r '� � �♦ �� i i V � / � � � i ^ � � i� � /� i / � � / i i � i"� / � / � � / � / i / � � � � � i / / � \ i / / / / � // \� / / / � � � / � / i \ - � ! � �� /� / �� /� ,i/ j"�\` / / � �� I � , %� �,� � � � �'�� - � � . ' / ' �' �; � ' � - ' i � �� ' �� i \ � / �. � �// )\` ',/ � /i /i \� �� // / � / � / . \ i' �; � \ / \ \ / . � � �- \`� �/ , ,, y� . . G -- � � . � - - , ��` � � � � , � . � ��\ � . �` °` _ ; ; � � , \ � ' �i �� ' �' _ �� \ `. � � ,! � _�_�_ �• �� .�� y � N „r � �� ;' R �� _ -�- ' � �'r�ject �oundary � s� �� i-family 6�esidentiai ..................... � � � �� oi� _ _ _ � _ _ _.� , ��1��,��,� � C. Additional RegulaC�,ons and Controls All new development on land requiring financial assistance from the city of Saint Paul or the Saint Paul Housing and Redevelopment Authority shall conform to all applicable state and local codes and ordinances, including the provision of the Saint Paul Zoning Ordinance for such items as; 1. Setbacks and sidewalks 2. Parking 3. Landscaping 4. Density 5. Height 6. Buffers All new development on land requiring public financial assistance shall be required to receive Saint Paul Housing and Redevelopment Authority approval for such items as architectural design, building layout and landscaping. D. Duration of Controls The regulations and controls incorporated in the agreements designating the re@eveloper shall be maintained and continued in effect for a period of thirty (30) years from the date of original approval of this Redevelop- men*_ Pian by t.ie Sa•�nt Paul City Gouncil. E. Project Implementation Because of the nature of the project, the degree of direct pub2ic involve- tnent required is limited. 1. Land Acquisition No land acquisition is necessary. 2. Rehahilitation No existing structures are to be rehabilitatede 3. Relocation No families or businesses are to be relocated. 4. Financial Assistance The city will grant the project a partial tax exemption. No bond issues are necessary. -5- 5. Redevelopment Redevelopment will be carried out in accordance with the ob�ectives and controls of this Redevelopment Plan and the Contract Building Requirements. F. Redevelopment Obligations The redeveloper will be subject to the following general obligations, as stated; 1. To redevelop the land in accordance with the Redevelopment Plan and Contract Building Requirements. , 2. To commence and complete the building of improvements on the land within a reasonable period of time as determined by the Saint Paul Aousing and Redevelopment Authority, 3. Not to resell the land befvre improvements are completed without the prior consent of the Saint Paul Housing and Redevelopment Authority. 4. Not to discriminate on t`ne basis of race, color, sex, creed, national origfn, age or handicap in the sale, lease, transfer, or occupancy of the land ar improvements thereon. 5. To devote the property only to the uses percnitted under this plan for a period of thirty (30) years from the date of designation of a qualified redeveloper. 6. To place underground all public and private utility services, such as water, sewer, gas, electric and telephone servicing the parcel of land subject to control under this Redevelopment Plan. 7. Enter Contract with the Saint Paul Housing and Redevelopment Authority in accordance with the provisions of the MunicipaZ Housino and Redevelopment Act of the State of Minnesota, Section 462.6�5. VI. OFFICIAL ACTION TO CARRY OUT THE REDEVELOPMENT PLAN Minnesota law requires that the Planning Commission of the City review the Redevelopment Plan and that its written opinion, if any, accompany the Itedevelopment Plan when it is officially submitted to the Saint paul Ci.ty Council for approval. In approving the Redevelopment Plan, the City Council accepts responsibility for carrying out the elements of the Plan. -6- VII. PROCEDURES FOR CHANGING THE Ak'PROVED REDE�IELOPMENT PLAN This Redevelopment Plan may be modifi.ed upon adoption of the modificat,ion by the Saint Paul City Council, under provisions of the Municipal Housing ar.d Redevelopment Act of the State of Minnesota, Section 462.55, Subdivision 6. , -7- SECTZON III ' PROJECT REPORT HOUSING AND REDEVELOPMENP AUTHORITY � OF THE CITY OF SAINT PAUL, MINNESOTA I. SELECTION OF THE REDEVELOPMENT PROJECT The boundaries of Che Shepard Park West Redevelopment Project are illustrated on Map I, attached. The subject site encompasses approximately 143,000 square feet, or 3.28 acres. The entire parcel is vacant and undeveloped. The following factors contribute to the parcel�s eligibility as a RedeveZop- ment Project; A. The severe soil conditions have hindered development of the land. B. The underutilized land is a blighting influence on the surrounding neigh- borhood and stability of the city overall. C. Its unique location overlooking the Mississippi River and proximity Co shopping and employment centers contribute taward a potentially attractive . residential development. D. A new residential development on this site will satisfy the dual city objectives of developing underutilized land and attracting middle- and high-income groups to Saint Paul locations. E. A new development will produce significant economic spin-of£s, such as contributing to the tax base of the city and utilizing the businesses in Saic�t Paul. F. No direct city i.nvolvement such as acquisition, relocation and utilities is needed. G. The private development of the land has been infeasible. Public sector cooperation and assistance will implement a sound development proposal. II. CONDITIONS OF T:iE NEIvIiBORH00D AND TI� CO1�L*iUNITY The developed neighborhood surrounding the Shepard Park West site is a m�x- ture of single-family and multi-family residential as well as commercial and industrial land uses. The most significant feature is the Mississippi River and its adjacent public open space areas, Fort Snelling State park and Crosby Lake Park. These parks have, for the most part, been left in their natural state. Visitors use them for hiking, bicycling, or cross-country skiing. The combination of this large urban open space area, the river, and the steep bluffs framingit make the Shepard Park West site an unusually beautiful one. -7- . . • �� },d }'4� � Other important features include the two major roads that cut through the area and, to a large extent, form the boundaries of the immediate neighbor- hood. Shepard Road is a four-lane limited access hig hway with controlled intersections that run nearly adjacent to the site on the south side. Seventh Street is a four-lane city street that is designated as a state highway. It runs three blocks north of the site. A. Housin� and Community Conditions Data from three census tracts was used to assess the pertinent housing conditions in the area (see Map 3). Tract 376.02 represents the immediate neighborhood; together with data from Tracts 375 and 376.01, one can assess the character of the Highland Park community of which the Shepard Park West site is a part. Data fram other census tracts to the east was not used because of the physical, land use, and social barriers that define the community. The following three tables illustrate pertinent conditions within the neighborhood and the community. Table I, entitledYear Structure Bui1t, indicates that the great majority of the housing in both the neighborhood and the community was built after 1940. Over 50 percent in each of the three tracts was built after 1950, mastly in the decade of the Fifties. This indicates that very few of the housiag structures in the area have advanced in age to the point where they are ].ikely to be obsolete or require major repairs. A visual survey of the area confirms that the Highland Park area is not only an area of predaminately sound housing, but one of the most desirable communities in Saint Paulo . Table II entitled Units in Structures, shows that there is a sharp difference between the housiag in the immediate neighborhood around the site and the surrounding community. Eighty percent of the housing in Tract 376,02 is in raulti-family (five units or more) structures, , while more than two-thirds of the units in the other tracts are single- family homes, The existence of these two types of neighborhoods within -8- ��■ •/ ��-�1■�� 'o��r�'�'� '�� _.�ir�i� . �� '��°��: � _ _ __ ��■��i - � =t..�..■:��' ...�.s� � ��.��■��r■� �F - '� �.� 'i�'.�' �"'�..� /� ....�..r.�. _ _ �� .�.■T.. ��4■�f�� • ��'� �� '�� r� � � � �,�, ., ,.� �..�i�'.R � .:�.� — ..�...,.� �, - -_.--�.�.�- � = r :.::.-:-_� -_., � � --� :-_. --- � �� 4 , • � 1 � ..... �. _ - - �- I �� :�.... '�..� -_ . _ � �� ''� � ---. --- ��o � _ "�� -- � --�- ' ,, _ - .:: 1 f�l I�""�' �` .�. . ��.��.� - 1 1 1--� - - 1 � �..�� .�.,..� �. t __` f�� , � . � —��S �"�� ' ��'�'�� — =/ . � � � "��' ��' � _� ' � t , � _=%� ■ ' ■��' ��' —- � �rj .�.�i ��; ..--, �� '"�� d ��' �� i♦ �� I ' � � ,,.�"�-,�,,,� ��•��I �� ,,,,,,�...,_ �..- �"'"�..� / -- - ..��... - _ . � _ ..`1 �F��,�II��i�� ' �RR��r�� 6�/ .. . , ■�■��/ � . ; �� ' _.. ,_ - �__ _ _ . —�� .—.-- _ . ..-'Z� � �*�.��.�=�..'�: ��.,....°��' � , � � ��.�,�. ' , �. � �� a � � � � - �� as�� - ��:��"��."'�� 1 "�,�. � � �`�.•�',,.�'�: C.�. �S' � •;�� :.�\ � �]��I ,�q , �� ``��- � �� 7 ..'t.c � �,� •♦ � .- � � �Q Y � � � � � /s�� x r,�' 4 �`� � r � .� �I :j� ,,' ' '� � �, C � , �� — � � 1� � � ��s�! �' *� � � ; � � a ,, �,�; �' � � � - �� .�,�"� . �� .. _ � ,;�.: � �... .-- .. �' , �. �r� ; •, ��j T� , � � � '��. �t. •�.�� , • I � ■�� ::. ��F' � � � 'er`� �� _ •� — r' � � .,��r'. �� `~ �� •�� :� ,�� i'� �� ..+2� ��z � r�� / ' �t r'�°� �.. ''__-�� '1 �r�/ % � / ,..-.+^.. /, �"' l * � •f �,r �'�`�` !�� l S� `•/ 5H'•` ✓�Rt �� i+�� ``� !�'�rs y s � Y�..�. �-�.� ,,�.:, �� . ( � I �i �"t/�' kI � a,._.� �/ //. 1 "� ��r d �.' ��• � " '�� / .le�N � � y,� �,/ r '% 't...s - .� �i .•� G �f��%� •- �' � , ` •� � � . : � t � . � � . the same comrnunity appears to be comQatible and tends to complement each other in terms of neighborhood stability and the degree of public and private services required to adequately service the population, Table III, entiCled Family Income, further illustrates the variation within the community. Median family income is lower than the city-wide average of $11,956,in the neighborhood, but significantly higher in the surrounding area, In f act, the average income in Tract 375 is higher than any other tract in the city. Two points should be further noted with regard to the relatively low family income in Tract 376.Q2a First, the total number of families (and the total population) is much smaller in this tract than in the other two. It is therefore less significant as an indicator of predominating conditions. Second, most of the families in this tract are not in the lowest income category, but in a moderate range, TABLE I. YEAR STRUCTURE BUILT 1970 Census Tracts 376.02 373 376.01 1939 or earlier 102 3Q6 347 1940-1949 200 726 366 1950-1959 489 885 941 1960-MARCH 1970 392 192 233 Total Housing Units 1183 2109 1887 Source; 1970 U. S. Census of Housing _g_ . . .. _ _ . . ...-�.. ..._. . . . . . .. .. . . . .. . . . .._ .. . .. . . .:........ . .a,..:,. _ • ," . . . . . . . G��\ 9�y�^,�,� `, Y' TABLE II ITiVITS IN STRUCTURE 1970 Census Tracts 376,02 375 376.01 1 169 1597 11I4 2 44 95 48 3 and 4 17 5 23 5-49 944 412 540 50 and over 9 -- 162 Total Housing Units 1183 2I09 1887 Source: 1970 U.S. Census of Housing TABLE III FAMILY INCOME 1970 Census Tracts 376.02 375 376v01 All Fami].ies 720 1687 1265 Under $5,000 81 88 133 $5,000 - $9,999 321 244 285 $lO,QC�O - $I4,999 210 367 405 � $15,000 - $24,999 108 502 370 $25,000 and Over -- 486 72 Median Income $9,236 $17,878 $12,732 Source: 1970 U.S. Census of Population -10- _ . . In summary, several pertinent conclusions can be made about the com- munity and its people. 1. The majority of the hots ing in the area is sound. Properly developed new housing will stabilize and reinforce a desirable area. 2. Most of the housing in the immediate neigh�orhood is multi-family developments of the last twenty years. A new multi-family develop- ment will thereby complement existing housing patterns and will not be incompatible with a neighborhood of either predominately single- family or older housing. 3. There is a sizeable population of the middle- to upper-income people that this type of development would likely attract. A ready market exists as people often wish to change their housing but remain in the same general area. The preponderance of developments of a similar scale in the river corridor in Saint Paul �nd Mendota Heights indicates a strong desire for rental housing in this location. 4. The development of new housing opportunities has positive effects on a far larger population than the people that occupy the new units. As people transfer fram other housing in the conununity, opportunities open up for a different group of people. This process continues as other families move until, in a normal urban housing systern, a development of sufficient scale can eventually have positive effects on an entire community. B. Communit ►�Facilities There is a wide variety of desirable econornic, social and recreational feaCures within the Highland Park cammunity and its surrounding areas. Access to major employment centers is excellent via Shepard Road to down- town Saint paul, approximately a ten-mi nute drive, or via Shepard and Highways 5 and 494 to Bloomington, again about ten minutes away. The Univac Division of Sperry Rand Corporation has o£fices less than a half- mile from Shepard Park West. A variety of new offices and industries in Dakota County are easily accessible. -11- . Within the immediate community, the Sibley Plaza Shopping Center is a , , . neighborhood convenience center located only four blocks from the site. The prestigious Highland Shopping Center is a ma,jor diversified node located within a mile and a halfo Highland Park is less than a mile from the site; it contains a golf course, tennis courts, an ice arena, a swimming pool, picnic grounds; and wooded open space. C. Underutilization of Land Land developed significantly below the level of development within its neighborhood and environs has a retardant economic, social and physical effect on the city as a whole. For a variety of reasons, the subject site has never been developed. This Redevelopment Plan presents the opportunity to develop the land into an exceptional residential pro,ject with only a limited amount of city itrvolvement. III. REDEVELOPMENT TREATMENT The redevelopment proposal calls for a mid-rise apartment complex designed for rental to middle- and upper-income groups. The complex will use no more than five stories, so as not to be incompatible with the surrounding environ- ment, but is high enough to tiake advantage of the spectacular views of the river corridor. There caiXl be a variety of un�t sizes and rent scheuules ic� order to attract a healthy diversity of people. All the amenities usually associated with luxury apartment developments will be provided. Densities for the development are about 30 units per acre. Any necessary controls supplementing the City Zoning Ordinance wiZl be provided to ensure orderly and logical development, -12- . . , �� sECTZON zv METHOD OF FINANCING HOUSING AND REDEVELOPMENP AUTHORITY OF THE CITY OF SAINr PAUL, MINNESOTA . Z. CREATION OF A REDEVELOPMENT COMPAI3X The legislature of the State of Minnesota, in Section 462.591 of the State Statutes, authorizes the establishment of a Redevel�pment Company ta serve certain public purposes. The purposes for which it is to be found are as follows: "to acquire ore or more areas under a plan or plans and to construct, own, maintain, operate, sell, and convey pro- jects. ..." The primary reason for authorizing the creation of a Redevelopment Company is to allow projects with an established public purpose but which otherwise would be financially infeasible to proceed with direct or indirect aid from the public sector. Such assistance may be in the form of a special bond issue to cover costs of public acquisi- tion, a reduction in the resale price of the land, a tax abaternent, or other forms. The law is flexible in order to allow the most beneficial form of assistance for the particular development. Applications for creation of a Redevelopment Company must be filed in th� office of the Secretary of State of Minnesota, and must contain certain specifications as provided in the Statute. II� F7N.ANCINC �F SHEPARD PARK i•tFST nE��F'LOPMBN7' The final value of a proposed 101-unit apartment complex with under- ground garage £acilities on the site was recently set by an independent appraiser at $3,800,Od0. In order to obtain financing for a project of this scale, a substantial initial ictvestment must be made, a large portion of which includes the sum designated to pay the property taxes. Such taxes, based on discussions with the County Assessor's office and ca.nparisons with de�.�elopr,zents of comparab2e size and scale in the area, would equal approximately 15 percent of the total annual income of the project. For an estimated yearly income of approximately $600,000 (see Table IV) this would project a tax payment of over $90,000. -13- _ � ` TABLE IV ESTIMAT� OF Ai�T1�TUAL PROPERTY TE1X OBLIGATION Market Va2ue $3,8Q0,000 Estimated Gross Income $598,000 Estimated Annual Rea1 Estate Taxes $91,531 Estimated Annual Real Estaee Taxes $45,765 with SQ% Tax Exemption Source: Janski and Gibson - An Independent Real Estate Appraisal -14- .. ." s �,.��,�� Because of this substantial tax obligation, less "front-end" money is available to a potential developer for other costs associated with the development, Since the amount of financing available is usually directly dependent on the down payment that can be advanced, the reduction of such payments will have a "multiplier" effect. The application of this concept, known as leveraging, means that a $1 increase in the available "front-end" capital will allow additional financing of approximately $10. The designation of a developer as a Redevelopment Company would allow this party to receive certain £orms of assistance from the public sector, as outlined in the previous sectiono Without such assistance, it is estimated, such a project proposal would not be implemented. It is hereby proposed, then, as a part of the apprwal of this document, that the City Council of the city of Saint Paul authorize an annual 50% tax exemption for a period of 25 years. Based on the preceeding esta.mation of gross income, this would result in a tax obligation of $+5,765 annually, This savings to the developer, it is estimated, ��ill provide an additional sum of nearly $540,000 in financ- ing, which will make the development financially feasible, It should be emphasized that in no way does this proposal provide for a special bond issue under the provisions of tax incremen� financing, and thus it would not add to the long-tern obligation of the city of Saint paul or of the Housing and Redevelopment Authority of the city. It should also be noted that the land currently, in its undeveloped state, produces only $4,834 in taxes annually. Thus the proposed partial tax exemption should be loo'Ked upon not as a loss in revenues to the city, but as a tax increase amounting to some $40,Q00 annually, or an increase in excess of eight times the current payment. -15-