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1998-05-06 Development Fees Letter~ ati-86-198 ~?4~ 3~PM FROG"! Goy+r i ? MacArthur- TO ~; ~1<lishael C. Cv~tri• Andrew J'. Mac~irthur' Marcus W. ,Taller "Rlso Licensed fnlttln®is TO OF: COURT & MACAI~~'HUR Anorneys at haw SUS Central rlvv~ndiC Etttr P() Box 369 St. Machuel, MNSS378 ~a~a} a rr Y93a (812) 497 2599 (FAQ FACSIMILE COVER PAGE ~~ ,,f. FRQNd: ~~ ~'AX NULIk3ER: ,, ~~ r" DATE:. ~~ ~ `TIME: %f~ ~ TOTAL PAGES (INC~,UDINGr COVER SHEET)-~~ AUDITTONAL CC3MMENTS: THIS FACSIlViILE TRAI~iSMISSiON IS C®1V'FI'DENTIAL. IT :'~tAY BE PRT~'TLEGED AND IS INNi!"ENDED FOR °I'HE'; USE OF THE ADpRESSEE ONLY. IF `YOU ARE NOT THE ADDRESSEE (pR. A FEYtSON RESPpNSI'BLE FOR DELIVERIivG THIS TRAI~`SIVIISSION TO THE ADDRESSEE) DO SOT READ, COPY, OR USE TF-~IS TRANSMISSION IN ANY WAY, BUT PROMFTL'~ GONTAGT THE SENDER BY TELEPHONE TO ARR„~NC,E, ~'OR T'~ZE RETtIR?V pF TI3E ORIGINAL DOCGrMEEtTT Tp US. r GJ5-7b-1~'~B ~7~~36~'f9 FROM ~~~!ri 8~ i`1a.cArtF~~~r TL N[EMURAh"DUM TC~: DAVE L'~T1VD, AL$ERTVILLE CITY ADMYNIS'TRATOR, LINDA CiQEB, AI.BERTVILLE CITY CLERK, FETE CARLSON, CITY ENG1N"EER, LIZ STOCICI~~AN, CITY PLANNER FRt~iVl: MIKE C~L~R.I, ALBERTVILLE CITY ATTORNEY SUBJECT: PROPOSED OU'TLET` MALL--DEVEL®PMENT FEES I.,ETTE'R DATE: MAY 6, 1998 Attached is ~ clr~ of a development fee letter which will be sent to Dian Morse of .IMJ Development. Please review the letter. If I have forgattsn an}~ applicable fees or if dte listed fees ire incorrect, please contact me. I will be sending this letter to Morse an Friday, May 8~'. '1"harilc you. z k15-[~6-299 ~~ ~ ~:i6P~'1 FRl'N'1 Cur i z~ Placf?rthu~ TO 4° +'~~1~~ ~ ~ l~3 Mr, Jun ~OrSe May ~, X998 Page I DRAFT' May 8, 1998 Mr. Jim Morse JMJ 1'aroperties, lnc. 10'7 Sinclair Drive Muskegon, l~~ichigan 49#41 Re: City of Albertville; Minneapolis 1~ actory Shapers. hear Jim As you requested; listed below is an update on the applicable casts and fees that would be c~azged by the City of Albertville should Y~ choose to proceed with the proposed outtet mall. Several of these fees have changed from the amounts quoted to you in J~une~ 199b, and are subject to change in the future. I have also listed the estianated charge that you would have to pay the Joint f'vwe~rs Water Board far water related services. Ci Cty hams 1. Rezaning {if aiec~ssazy)--$400.40 plus $250 escrow and any additional professional fees incurred. C'urently the property is zoned PC~3 with an underlying business use, so a rezoning mad not be needed. ?. Planning review,' Legal review, Engineering review--Costs vary depending upon the complexity of the project. A1be~tviUe's expenses will be passed through to the I?eveloper. a. Site plan "review-$300 base fee plus $254 escrow and any prafessional fees incumcd {daes not include building inspection review). b. Subdivisiajn/preliminary piat~$344 base fee plus $50 per lot/outlotw plus 5104 public hewing fee and a 5500 escrow plus any pr®fessional fees incun~ed. c. Park dedication fees--10% of the value of the land as platted. 05-~6-1~9 04~ 37PM FROf'1 C,our i & MacRrthu^ TL ~~ ~ ~21Q© P, ~~ Mr. Jun Ivlorse May 8, 1998 Page 2 3. Building Permit fees-Listed below are the old fees under the 1988 LTf3C schedule. The City has sine adopted the 1994 iJRC Schedule, but I da not have the updated costs under the 1994 schedule as the City building inspector is unavailable at the time of this writing dire to a death in the family. I will forward the new .costs when I receive them, TIYe old fees were as follows: a. Building permit fee--Based upon the 1988 Unifoarn Building Code Schedule-- $3,539.50: for the first million dollars of value, plus 52.00 for each additional $1,000 of -value. b. Plan review fee--65% of building permit fee. c. Plumbing <permit fee--1.25% of job cost for jobs oven $30,000), d. HVAC permit fee--1.25°,~0 of job cost (for jobs over $30,0(30). e. State Sxxr~harge >~ee--.0005 of the job or rAr-struction cost as a state surcharge fee. This fee is collected by the City and passed an to the State. f. Separate electrical and fire protection ~~.spection fees must be paid to the State of Minnesota. 4. Sazdtary Sewer Trunk Charges--To be established in the near fixture with 4he first major servered development in that quadrant of the City--will cover cosh of upgrading lift station, etc. The City Engineer has roughly estimated these charges as approximately $1,400 per acre, although final numbers will not be available until the district is actuallg~ established. 5. Sanitary Sewer Access Charges--53,200 per 225 gallons of daily flow. it has yet to be determined whether calculation will be on a maximum or average daily flow--City engineer and Developer will discuss this as mare information is available. 6. Sanitary Sewer Rate Charges--Assuming normal household-type sewage, the cuare~it quarterly rates are $36,05 far the first 15,000 gallons and $2,63 per additional 1,1300 gallons. Sewer billings are billed quarterly. bates for stronger sewage {i.e. restaurant waste, etc.) will vary, depending upon the treahnent reeluired. 7. Water Access Charge--$200.04 fee. ~5--~_-199~ ~~; 38F`!'1 FP,Or1 Cour i z~ !'1a.c~rthur TU ~l~ ~ :~21 ~~ P . @r~ MI, ,~rr21 Morse May $, ~'~$ Page 3 8. Water Trunk Charge--To be establisried in the near future, probably with the first major bunk extension in that quadrant of the City will cover the costs of e:~tertding ttwzk water rrrains and looping water mains. The City engineer roughly estirYaates this cost to be apprpxirnately $1,00(? per acre, although heal nttrmbers will not be available watil the district is actually established. ~• Storm Sewer Fee--This fee is ~ two parts: a. Coruaection lFee--The connection fee is an acre-based fee which. refereaxces doe percen# of impervious surface on the site. Curr~eut charges are $753.40 per acre far developments which contain 6f% to 100% impervi€aaas surface. Developments with 3S°!o to 6S®/o impervious surface are charged. 21.90 per acre. Lesser per aca~ amounts apply for developments with less ' ~it~us surface. b. Quarterly" Fee-~A quarterly fee in the amaaant of $31.89 per acre for developments which contaa~a 5f% to 100% impervious surface.. Deweloprtagnts with S°/o to 6S°Jo impervious surface aze charged $17.72 per acre per quarter. Lesser peg acre amounts apply for developments with less impenriotas surface. 10. Special assessments--There may be some deferred special assessments existing for wa#er mains (these assessments would have been levied by the Ioint Powers Wa#er Board aaad shotald show rap on a special assessment search), if tine City ex#ends sanitary sewer service north on highway l 9, or constructs road ar water irxaprovemerats which beneftt the property, the costs of these improv~ertts ~vould be specially assessed. The City is under the assumption at this time that atzy such projects wi11 be undertaken by the Developer. Joant powers Water Board 1. Water Access fee--Joicat powers charges a fee of $1,300 far every 3,0'30 sclaaare feet al' comrnerciaf space, but excludes elevator shafts, mechanical rooir~, stairwellsF restroorXES, and urfinashed storage areas from that calculatnora. 'This item mxzst be paid before a building permit will issue from the City. Nate that restaurant space will trot be charged on a square foot basis, but wilt anstead be char~;cd at one $1,3dU fee for each. 2,2 seats if the restaurant uses disposable paper Plates, glasses and silverwaa•e. ~. mater meter-~Tlie cost ®f die meter depends or! its size. The zararnber of grater meters anal their size should be coordinated with the ,taint Po`vei-s 1Water Board. i u~TNL ~. ~.~6 ~5-~~-i'~~~ ®~ ~ 3"Phi FRGN'1 Cour i ~ MacArthur Tf~ Mr. Jia~a Morse May 8, 1998 Page 4 3. Plan Review-both fees listed in a and b below mtast be paid: a. Tf a 2•incli or greater water line is t~ be installed to the property {which serves only the lroperty in question}, the developer must place a $1,500 deposit with Joint Fowlers t~, cover plan r~wiew and inspection {;this is the Yntnimusu fee). any 3oint~Powers ex~nses over $1,500 will be billed to the l7eveloper. b. If a 2-inc~- or greater water line is to be installed to the property which will serve other properties as well {e.g. as in a sabdir~°isi~an of property), tlae developer° must place a $2,500 deposit with Jaunt Powers to cover plan revie~~er and inspection. Any Joint Powers expenses aver $2.,SOt3 will be billed tc~ tlae Developer. 4. Permit fee--an $~5 permit fee must be paid upon application to Joint Powers, 5. Water rates-Bil1~d quarterly, $17.60 for 10,000 gallons, $.t~ 176 per gallon thereafter, 14'linirxtum quarterly charge of $ 27.60, These quarterly billings arc done on a per-unat basis, meaning that if the building laad 20 separate tenants, each. tenant rvo~d be a ``urut'~ and tlhe bu~ldirtg owner vv ould have to pay 20 mini~ruurn q ly charges, plus arty per gallon overages. Because the Jairit Powers Water Board is a separate goverental. entity from. ~e Citya you rr~ay want to independently verify these amoua~ta with the Joint Fower eater Board, You can contact the secretary for the Board, Donna, at {6g2~ 497-3611 f~•orn 8 a.cn. to 3 p.zr-. Cerxtral time Monday thxough Thursday and 8 a.rn. to 1 p.rn. on Fridays. Please feel fires to contact Dave Lund City Adaninistrator}, Linda Goeb (City Clezic} or myself if you have any questions regarding the fees detailed above. Thank you. Sincerely, Michael C. Court RADZWI~.~., ~ C4iJF,~ cc; lvlr. Dave Luiad 11ns. Linda Loeb Ms, Liz Stc~cl~nan Mr. Pete Carlson .~ ~ Michael C. Couri~ Andrew J. MacArthur Marcus W. Miller 'Also licensed inlllinois Apri130, 1998 COURI & MACARTHUR Anorneys at Law 705 Central Avenue East PO Box 369 St. Midiael, MN55376 (612) 497-1930 (612) 497-2599 (FAX) Mr. Michael M. Knowlton Culver Sheridan Knowlton Even & Franks 250 Terrace Plaza P.O. Box 629 Muskegon, Michigan 49443 Re: City of Albertville; The Minneapolis Outlet Center. Dear Mr. Knowlton: As you requested, please find enclosed Minnesota Statutes §§ 469.174 (definitions related to TIF), 469.175 (establishment of TIF), 469.176 (limitations on TIF) and 273.111 (Agricultural property tax provision commonly referred to as "green acres" taxation). I have highlighted the provisions which I believe will apply to a soils correction TIF on this site. After reviewing the statutes, I have some doubt about whether a TIF can be established on this site. As I recall, this property has been enrolled in the green acres tax program sometime within the last five years. Under § 469.176, Subd. 7, any land which haS been in green acres within the five years prior to the request for TIF certification can o y be TIFed for manufacturing purposes or a qualified housing district. It appears that sods corrections districts would not be allowable under this provision. You may want to with the Rodens to confirm when this property was last in green acres. I, Having discovered this apparent obstacle, I have not researched the limitations on a foils correction district in regard to the filling of wetlands. I will continue this research if ~t turns out that the Roden property has not been enrolled in green acres in the past five years. Please let me know what you find out. Thank you. Mr. Michael Knowlton Apri130, 1998 Page 2 of 2 Sincerely, _ ~~~ Michael C. Couri Couri & MacArthur Enclosures Cc: " 1i. David Lund Mr. Pete Carlson Ms. Liz Stockman