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SF 1179 Handout

SF 1179 Handout

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SF 1179 Handout
SF 1179 Handout

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03/17/2013

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Senator Sieben SF 1179Representative Schoen HF 1374Presentation Guide
Appearance
Transportation and Public Safety, Room 15 of the Capitol. 3-5:30 PM on Wednesday, March 13
 Speakers
 
Honorable Senator Katie Sieben
 
Tim Geraghty
Mayor City of Newport
 
Debora Hill – Newport City Administrator
 
John Stewart – City Engineer City of Newport
The City of Newport is seeking the Legislatures assistance in acquiring 3.2 acreson vacant MnDOT Right of Way at the southwest corner of the I-494/TH 61Interchange
Key Points:Newport is a City of 3435 people (2010 census) located in Washington County; the City’s2013 Certified Property Levee is $ 2,311,000The City of Newport has worked cooperatively with MnDOT over the past 12 years tocomplete the upgrade of the I-494 – TH61 interchange, a $350 M project.The property which was acquire to accommodate the roadway, and storm watermanagement systems associated with the project reduced the City’s population by 280residents and reduced the City’s tax base by approximately 9%. The resulting impact tothe City’s property tax has left the City with a major challenge to regain itscompetitiveness with like communities in the Metro area.In an effort to reduce the property tax rate and replace property back on the tax roll theCity is working with Washington County to re develop a 40 Acre site at the southwestern corner of the Interchange called the Red Rock Gateway Area. The City iscombining its redevelopment plans with development of the Red Rock Commuter RailTransit Site.Planning for redevelopment on this site has been underway since 2010. The first phaseof this project will break ground in early summer 2013. The comprehensiveredevelopment plan for this area is shown by
Exhibit 1: 2011 Redevelopment Plan Red
 
Rock Gateway.
 
 MnDOT’s construction has left several properties vacant and undeveloped. Of thesethere is a potential 3.2 Acre parcel located immediately adjacent to the Transit Stationsite. This underlying vacant property was created by relocation of an exit ramp. A
Exhibit 2: Development Site 3.2 Acres.
As shown on the Redevelopment Plan theplanned land use for this property is a Grocery Store or a similar commercial use thatwould serve the future residents of the area, commuters, and residents of adjacentneighborhoods.In 2012 the City was approached by Aldi’s Supermarket chain seeking a location for astore with good freeway visibility. The 3.2 acre parcel shown would be a prime site forlocating such a store. A grocery /convenience storeorsimilar commercial use
 
locatedon the site shown could add an additional $ 16 - 20K per year to city property taxes.A legal description of the 3.2 acre property is shown by
Exhibit 3: Legal Description 3.2Acre Redevelopment Maxwell Ave. Property
 
Alternative uses complimentary to the multi-family Red Rock Gateway developmentwould be a convenience store/gas station, liquor store, auto service (like O’Reilly AutoParts). Each of these uses would benefit from the freeway access and visibility of theMnDOT property and adjacency to other uses proposed in the redevelopment area.
 
The City approached MnDOT staff requesting that City be permitted to purchase the 3.2acre property for fair market value. MnDOT responded negatively indicating that theAgency was interested in preserving the whole ROW incase storm water regulationswould requirements may change sometime in the future.We have reviewed the MnDOT property land dedicated to stormwater treatment at theInterchange. 34.1 acres of land presently dedicated and used as stormwater ponds inthe vicinity of the interchange area.There are, not including the Maxwell Avenue Parcel, a further 6 acres of vacant land,available for future stormwater treatment. See ponding areas outlined in white, green,and red on
 
Exhibit 4: MnDOT Pond Locations
The City of Newport and South Washington Watershed District augmented MnDOT’sinterchange storm water system by constructing a ponding and infiltration project thatreduces by 300% rate of stormwater discharge directed to the Interstate I-494- TH 61interchange. The project added 7 acres of ponding and easements to the InterchangeStorm Water System at a cost of $2.6M and reducing the volume of stormwater,phosphorus loading, and sediment reaching the interchange.
Exhibit 5: North RavineDrainage Improvement Project.
 
REASONS TO APPROVE SF 1179 TRANSFERRING THE PARCEL TO THE CITYOF NEWPORT.
 
1.
 
The City of Newport proposes to pay fair market Value for the 3.2Acre Parcel2.
 
The Parcel is pivotal to developing an appropriate gateway to the 40acre Red Rock Redevelopment.3.
 
Completing the Infrastructure upgrades necessary to serve theredevelopment will Cost in excess of $2.0M. Adding a grocery storeor similar commercial use on the 3.2 Acre parcel will help make thisinvestment more cost effective.4.
 
Reserving a site that has commercial development potential forfuture unknown stormwater requirements is not the “highest andbest” use of the site. The site has the potential to generatesignificant local property taxes provide a return on the investmentthat the County and City are making to redevelop the area.5.
 
The City contributed $2.6 M and provided another 7 acres ofponding in 2012 mitigating drainage impacts to the Interchange site.6.
 
MnDOT owns another 6 acres of vacant land on the west side of TH61 that could be utilized for storm water treatment.7.
 
Leaving the 3.2 Acre site vacant until MnDOT undertakes the nextinterchange reconstruction (40 years in 2060 possibly) is hardly thehighest and best use for this property.
Letter of SupportNeighbor; Cold Storage Mr. Drew Greenberg, President

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