Phase I of the plan to develop the approximately 21 acres south of Sunnen Products and east of Hanley Road is complete — removal of existing buildings, grading, and environmental remediation — the developer, Cozad Commercial Real Estate, is ready for Phase II — building.
Phase II is to include:
- New, market rate apartments and senior citizen residential complexes
- Commercial and retail uses that comply with current zoning codes and any rezoning needed, to include restaurants, quick service food establishments, and gasoline stations/convenience stores
- New car dealerships
- Office and service uses
Phase I was completed without using eminent domain, according to the property owner, Sunnen Co. The developer is using 2834 Bartold Avenue as an office, but expects to demolish it as part of Phase II. The house is the last one remaining from the previous subdivision.
See the Phase II development plan.
A public hearing for Phase II is set for 7:30 p.m. on November 24 at Maplewood City Hall — see the notice.
The area has been blighted by the city — designated Chapter 353 — a state statue to encourage redevelopment of blighted areas by providing real property tax abatement.
Chapter 353 permits tax abatement up to 25 years after completion of a project, with 100 percent abatement for the first 10 years, and 50 percent for the next 15 years.
The developer is requesting 100 percent abatement for the first 10 years, and 50 percent for the next five years, for each portion of the area as it is developed.
The abatement would include the entire 21 acres, including a proposed Porsche dealership. The design and review board will consider a new building for the dealership at its meeting on Thursday.
I am a little concerned about the additional traffic that will be on Hanley Road. Rush-hour is already so crowded there.
The current property taxes from the property would continue. They would just not be paying property taxes on the new value of the property after it is developed.
I’m not up to speed on these types of things. Can someone explain to me why not just offer them a TIF? Does it make more sense for the city to lose the property tax income instead?
—
The developer would lease the property to the car dealer and other businesses but pay no property taxes. The city would benefit because of the sales tax generated? How much of the sales tax stays in Maplewood?
—
Would the development happen even without the abatement? They already own the property and have completed phase 1. Would they just sit on the land if they don’t get the abatement for phase 2?
—
Lots of questions! Would love to hear some answers. Thank you.
Nick – I found this on the difference between a TIF and tax abatement http://ovcc.blogspot.com/2006/10/tax-abatement-vs-tax-increment.html
Thanks Doug!