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04-780i z 3 ., 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 36 39 40 41 42 43 44 45 46 47 48 49 50 51 Council �le # �� l OV Green Sheet # 3021436 Presented By RESOLUTION 41N7 PAUL, MINNESOTA Referred To Committee: Date RESOLUTION OF TFIE CTTY COUNCII. OF THE CITY OF SAINT PAUL, NIINNESOTA APPROVING THE EXPANSION OF THE GREAT NORTI3ERN BUSINESS CENTER, PI3ASE I, AREA DEVELOPMENT RATE ZONE TO INCLUDE THE GREAT NORTHERN BUSINESS CENTER, PHASE II (DALE STREET SHOPS) WI3EREAS, the City of Saint Paul has supported the perition of Xcel Energy, formerly laiown as Northem States Power Company, to the Minnesota Public Utility Commission to authorize the continuarion of Area Development Rate Zones; and WHEREAS, the 1995 Minnesota Legislature eartended the use of Area Development Rates within under- urilized industdal zones on a pennanent basis; and WHEREAS, Area Development Rate (ADR) Zones aze dishicts where electric urility services are provided at a reduced rate to new and expanding manufachuing and wholesale trade businesses; and WHEREAS, the Ciry of Sairn Paul qualifies under Xcel's Area Development Rate program; and WHEREAS, the City of Saint Paul has a s4ong commiiment to maintaining a healthy urban economic base; and WHEREAS, the Saint Paul Port Authority aduvnisters the ADR Zones in Saint Paul; and WHEREAS, the Ciry of Sairn Paul has had ADR Zones since June 28, 1990, and businesses have benefited from the program, creating and retaining jobs in the City; and WHEREAS, the City CouncIl has final approval of the location of the ADR Zones within Saint Paul; and WIIEREAS, the Saint Paul Port Authoriry indicated to the City Council in 1492 that at a future date the Port Authority of the City of Saint Paul may request the Ciry Council and Xcel to relocate or expand ADR Zones to areas that may benefit from the ADR program; NOW, THEREFORE, BE IT RESOLVED, that the City Council approves the eapansion of the Great Northem Business Center, Fhase I, ADR to include the Great Northern business Center, Phase II (Dale Street Shops). Adopted by the City Council of ffie City of Saint Paul on ___ , 2004. ti 3194g.1. D�l - 7$0 ..�.��,� � . , : ,.�� .,...,, .' '' �� . ,�� - •�� e� Adopted by Council: Date - Adoprion Certified by Council Secretary � Approved � by Department of: `� �l ��.��.� .�Y�/ -�f � Farm Approved h City Attorney By: �� -� �� -�� oy Appzoved by Mayor for Submission to Council � 31949.1. � Green Sheet Green Sheet oy- 7 �o Green Sheet Green Sheet Green Sheet Green Sheet � DepartmeM/officelcouncil: Date Initiafed: pq — Po�tAurhority 2&JUL-04 Green Sheet NO: 3021436 Contact Person & Phone: Deoarhnent Sent To Person InifiallDate John Young � 0 o Auth ri 2245686 A55ign 1 ortAuth ri De artmeotDirector �_ Must Be on Council Agenda by (Date): Nmnber 2 ]annin & Econ mic D vel irector '� August 11, 2004 Fo* �ry�j Routiag 3 i A o e ,� _ _�� Order 4 a or' O �c 5 o nci 6 lerk Total # of Signature Pages _(Clip All Locations for Signature) Action Requc�tetl: Approve an e7ctension of the Area Development Rate provided by NSP (Xcei Energy), commonly refened to as Project Gemini, from the exisiting Area Development Rate Zone of the Great Northern Business Center Phase I to include the Great Northern Business Center Phase II. Recommendations: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Questions: Planning Commission 1, Has this persoNfirm ever worked under a contract for this departmeat? CIB Committee Yes No Civil Service Commission 2. Has this persoNfirm ever been a city employee? � Yes No 3. Does this person/firm possess a skill not normally possessed by any current city employee? Yes No Ezplain a11 yes answecs on separate sheet and attach to.green sheet Initiating Probiem, Issues, OPPortunity (Who, What, When, Where, Whyj: Northern States Power Company (Xcel Energy) has zeceived authorization fromt he niinnesota Public Utilities Coxnmission to extend the use of rate mnes "Area Development Rate Zones" ADR wittun under utilized indushial azeas on a permanent bases. Northern States Power Company (Xcel Energy) has agreed that the extension of the Area Development Rate Zone from the existing zone covering the Great Northern Business Center Phase I to the Great Northern Business Center Phase II, both sites, Phase I and: �by the Area ' Development Rate Zone, which will reatl aid marketin efforts in the area. AdvanW�les If Approved: The advantages of approving the extension of the ADR will be to provide reduced electrical rates to the Great Northem Business Center Phase II that will aid mazketing and redevelopment efforts Disadvantaqes lf Approved: None DisadvanWqes If NotApproved: Reduced electrical ntes will not be availabie to land purchases at the Great Northern Business Center Phase II, which will not aid mazketing and redevelopment efforts. TotalAmountof � CosURevenue Budgeted: Transaction: Funding Source: � Activitv Number. � Financia{ Mformation: (F�cpiain) . d� �� 7900LandmarkTawers Q O R t Te1:657-224-5686 345 St. Peter Street �`� '9 Fax: 657-223-5798 Saint Paul, Minnesota Q a ioll Free: 800-328-8417 55102-1661 4 � � wwwsppacom Y � y a �y �Y Ju1y 19, 2004 Ms. Susan Bimberly, Director Planniug & Economic Development Department 1300 City Hall Annex 25 West FoLUth Street Saint Paul, Minnesota 55102 RE: Project Genaini — Area Development Rate Extension to Great Northern Business Center Phase II(Dale Street Shops) Dear Ms. ' erl}�� We submit for your review and referral to the office of the Mayor, City Council, and City Attorney's office a Green Sheet requesting an extension of the Great Northern Business Center, Phase I(Maxson Steel) Area Development Rate Zone (ADR) to the Great Northern Business Center, Phase II(Dale Street Shops). ADR's are also coznmonly referred to as Project Gemini — reduce@ electrical rates offered by Xcel Energy to qualifying businesses. The reduced electrical rates provide an incentive for businesses to locate in the urban core. Xcel Energy supports the extension of this zone. In addition to our Port Authority Board memorandum, we are attaching a draft copy of the proposed City Council Resolution. Consideration by the City Council is requested at its August 4, 2004 meeting. Your expeditious handling of this matter will be appreciated. Sin� ly, ,�y`��'" �� - Kenneth R'. 7ohnson President Attachment cc: Lorrie J. Louder, Saint Paul Port Authority John W. Young, Saint Paul Port Authority 31763.7. o�-?�o SAINT PAUL PORT AUTHOKITY MEMORANDUM TO: BOARD OF COMMISSIONERS (Regalar MeeSng of June 22, 20Q4) John W.Young Lorrie J. Loude �� Kenneth R. Joh on /,!�� !! DATE: June 15, 2004 FROM: SUBJECT: PROJECT GEMtNI - AREA DEVELOPMENT RATE EXTENSION TO GREAT NORTNERN BUSINESS CENTER PHASE II (DALE STREET SHOPS) Resolution No. 4082 Action Requested: Approva! of a resolufion requesting Saint Paul's City Counci! to approve an extension of the Great Northem Business Center Phase i(Maxson Steel) Area Development Rate (ADR) zone, commonly referred to as Project Gemini, to the Great Northern Business Center Phase II (Dale STreet Shops). Public Puruose: We own 13 acres of this largely vacant and blighted 37-acre site in the Thomas/Dale neighborhood. Redevelopment will create at least 150,000 square feet of new building construction and a minimum of 150 jobs. These are much needed job opportunities for neighborhood residents, and the District Seven Planning Council supports our redevelopment of this site. Business Subsidv: NIA Backaround: Xcel Energy has received authorization from the Minnesota Public Utility Commission and the Minnesota State Legislature to continue and e�end the use of area development rate zones within under utilized industrial zones on a permanent basis. ADR zones commonly referred to as Project Gemini provide reduced electrical rates to participating business for five years. Xcel Energy designed the zones to help existing public efforts to revitalize urban neighborhoods. The reduced electrical rates in some cases may approach twenty percent and are a significant amenity for businesses wishing to relocate or expand in the urban areas. The authority to change ADR zones rests solely with the Saint Paui's City Council. Xcel Energy agrees that extending the current Great Northem Phase I zone to cover Great Northem Phase II will aid the Port Authority's redevelopment efforts. Xcel wi41 provide information and background to Saint Paul City Council Members as necessary. Recommendation; Approval of a resolution requesting Saint Paul's City Council to approve an extension of fhe Great Northem Business Center Phase I(M�son Steel) Area Development Rate (ADR) zone, commonly referzed to as Project Gemini, to the Great Northem Business Center Phase il (Dale Sfreet Shopsj. JWY/rrd 3'1651.1. oy-�o Resoiution No. 4082 RESOLUTI ON OF THE PORT AUTHORITY OF THE C[TY OF SAWT PAUL WHEREAS, Xcel Energy has received authorization from the Minnesota Pubiic Utilities Commission for the establishment of certain Area Developmenf Rate (ADR) Zones for lower utility rates in underutilized industrial areas; and WHEREAS, said program is commonfy referred to as Project Gemini; and WHEREAS, the Council of the City of Saint Paul is the authorized party to approve fhe establishment of ADR Zones; and WHEREAS, fhe Porf Aufhority has acquired part of the vacated and underutilized Dale Street Shops property on Dale and Minnehaha; and WHEREAS, for redevelopment purposes staff proposes that the 13 acres of the Dale Street Shops property acquired by the Authority be designated as an ADR Zone; NOW, TNEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PORT AUTHORITY OF THE CITY OF SAINT PAUL, that the President is hereby authorized on behalf of the Authority to request the Council of the City of Saint Paul to approve the extension of the Great Northern Business Center Phase I("Maxson Steel") ADR Zone to include the Great Northem Business Center Phase II ("Dale Street Shops"). Adopted: June 22, 2004 ATTEST: -?" By Its Secr tary PORT AUTHORITY OF THE CITY OF SAINT PAUL By � Its Chair 31679. I. Minnesota Statutes 2003, 216B.161 N"i � � � Mimiesota 5tatutes 2003, Table of Cha�ters Table of contents for Chapter 216B 2168.16I Area development rate plan. Subdivision 1. Definitions. (a) For pu� of this section, the following terms have the meanings given them in this subdivision. (b) "Area development rate" means a rate schedule established by a utility that provides customers within an area development zone service under a base utility rate schedule, except that charges may be reduced from the base rate as agreed upon by the utility and the customer consistent with this section. (c) "Area development zone" means a contiguous or noncontiguous area designated by an authority or municipality for development or redevelopment and within which one of the following conditions exists: (1) obsolete buildings not suitable for improvement or conversion or other identified hazards to the health, safety, and general well-being of the community; (2) buildings in need of substantial rehabilitation or in substandard condition; or (3) low values and damaged investments. (d) "Authority" means a rural development financing authority establi5hed under sections 469.142 to 469.151; a housing and redevelopment authority established under sections 469.001 to 469.047; a port authority established under sections 469.048 to 469.068; an economic development authority established under sections 469.090 to 469.108; a redevelopment agency as defined in sections 469.152 to 469.165; the Iron Range Resources and Rehabilitation Board established under section 298.22; a municipality that is administering a development district created under sections 464.124 to 469.134 or any special law; a municipality that undertakes a projecC under sections 469.152 to 469.165, except a town located outside the metropolitan area as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or less; or a municipality that exercises the powers of a port authority under any general or special law. (e) "MUnicipality" means a city, however organized, and, with respect to a project undertaken under sections 469.152 to 469.165, "municipality" has the meaning given in sections 469.152 to 469.165, and, with respect to a project undertaken under sections 469.142 to 469.151 or a county or multicounty project undertaken under sections 469.004 to 469.008, also includes any county. Subd. 2. Area development rate. The commission may a11ow gas or electric public utilities to offer area development Page 1 of 2 http:f/www.revisor.legstate.mn.us/stats/216B/161.htm1 6f22J2004 Minnesota Statutes 2003, 216B.161 Page Z of 2 rates. The program must be designed to assist industrial �� revitalization projects located within the service area of the participating utility. Subd. 3. Terms and conditioas of rate. An area development rate offered under this section must: (1) be offered for a specified length of time to be determined by the commission; (2) be offered as a supplement to other development incentives offered by the authority or municipality in which the rate is available; (3) be available only to new or expanding manufacturing or wholesale trade customers; (4) be designed to recover at least the incremental cost of providing service to the participating customers; (5) be offered in a fixed number of area development zones; and (6) include a provision that the utility provide participating customers with an energy audit and inform those customers of all existing energy conservation programs available from the utility. Recovery of costs under clause (4) must not be from residential customers. A utility within a general rate case, may seek recovery of the dif£erence in revenue collected under the area development plan rate and what would have been collected under the standard tariff. Subd. 4. Repealed by amendment, 1995 c 9 s 1 HIST: 1990 c 370 s 2,7; 1995 c 9 s 1,2; 1996 c 471 art 7 s 2 Copyright 2003 by the Office of Revisor of Statutes, State of Minnesota. http://www.revisor.leg.state.mn.us/stats/216B/161.hhn1 6/22l2004