Senator Sieben SF 1179 Representative Schoen HF 1374 Presentation 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 acres on vacant MnDOT Right of Way at the southwest corner of the I-494/TH 61 Interchange
Key Points: Newport is a City of 3435 people (2010 census) located in Washington County; the City’s 2013 Certified Property Levee is $ 2,311,000 The City of Newport has worked cooperatively with MnDOT over the past 12 years to complete the upgrade of the I-494 – TH61 interchange, a $350 M project. The property which was acquire to accommodate the roadway, and storm water management systems associated with the project reduced the City’s population by 280 residents and reduced the City’s tax base by approximately 9%. The resulting impact to the City’s property tax has left the City with a major challenge to regain its competitiveness with like communities in the Metro area. In an effort to reduce the property tax rate and replace property back on the tax roll the City is working with Washington County to re develop a 40 Acre site at the south western corner of the Interchange called the Red Rock Gateway Area. The City is combining its redevelopment plans with development of the Red Rock Commuter Rail Transit Site. Planning for redevelopment on this site has been underway since 2010. The first phase of this project will break ground in early summer 2013. The comprehensive redevelopment 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 these there is a potential 3.2 Acre parcel located immediately adjacent to the Transit Station site. 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 the planned land use for this property is a Grocery Store or a similar commercial use that would serve the future residents of the area, commuters, and residents of adjacent neighborhoods. In 2012 the City was approached by Aldi’s Supermarket chain seeking a location for a store with good freeway visibility. The 3.2 acre parcel shown would be a prime site for locating such a store. A grocery /convenience store or similar commercial use located on 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 3.2 Acre Redevelopment Maxwell Ave. Property Alternative uses complimentary to the multi-family Red Rock Gateway development would be a convenience store/gas station, liquor store, auto service (like O’Reilly Auto Parts). Each of these uses would benefit from the freeway access and visibility of the MnDOT property and adjacency to other uses proposed in the redevelopment area. The City approached MnDOT staff requesting that City be permitted to purchase the 3.2 acre property for fair market value. MnDOT responded negatively indicating that the Agency was interested in preserving the whole ROW incase storm water regulations would requirements may change sometime in the future. We have reviewed the MnDOT property land dedicated to stormwater treatment at the Interchange. 34.1 acres of land presently dedicated and used as stormwater ponds in the 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’s interchange storm water system by constructing a ponding and infiltration project that reduces by 300% rate of stormwater discharge directed to the Interstate I-494- TH 61 interchange. The project added 7 acres of ponding and easements to the Interchange Storm Water System at a cost of $2.6M and reducing the volume of stormwater, phosphorus loading, and sediment reaching the interchange. Exhibit 5: North Ravine Drainage Improvement Project.

REASONS TO APPROVE SF 1179 TRANSFERRING THE PARCEL TO THE CITY OF NEWPORT.

1. The City of Newport proposes to pay fair market Value for the 3.2 Acre Parcel 2. The Parcel is pivotal to developing an appropriate gateway to the 40 acre Red Rock Redevelopment. 3. Completing the Infrastructure upgrades necessary to serve the redevelopment will Cost in excess of $2.0M. Adding a grocery store or similar commercial use on the 3.2 Acre parcel will help make this investment more cost effective. 4. Reserving a site that has commercial development potential for future unknown stormwater requirements is not the “highest and best” use of the site. The site has the potential to generate significant local property taxes provide a return on the investment that the County and City are making to redevelop the area. 5. The City contributed $2.6 M and provided another 7 acres of ponding in 2012 mitigating drainage impacts to the Interchange site. 6. MnDOT owns another 6 acres of vacant land on the west side of TH 61 that could be utilized for storm water treatment. 7. Leaving the 3.2 Acre site vacant until MnDOT undertakes the next interchange reconstruction (40 years in 2060 possibly) is hardly the highest and best use for this property.
Letter of Support Neighbor; Cold Storage Mr. Drew Greenberg, President

3.2 Acre MNDOT Remnant

Exhibit 1: 2011 Redevelopment Plan Red Rock Gateway

Exhibit 2: 3.2 acre Development Site

Exhibit 2:

Exhibit 3: Legal Description 3.2 Acre Redevelopment Maxwell Ave. Property

MnDOT Ponding Locations

Exhibit 4: MnDOT Pond Locations

Green = West of TH 61 White = East of TH 61 Red = Future locations

TH 61

Exhibit 5: North Ravine Drainage Improvements Project

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