Centerville's New Downtown Taking Shape
Agreement Struck Between Developer, City
According to a timeline prepared by Centerville City Engineer Mark Statz, construction of the road, sewer, and water improvements involved in the first phase of the city's downtown redevelopment project is tentatively slated to be completed just 14 months from now.
If that construction is indeed completed by October of 2008, it will be an impressive accomplishment - the first phase involves both the redevelopment of properties adjacent to Centerville Road and Main Street, and a similar overhaul for some downtown properties east of Progress Road.
On July 11, the Centerville City Council took a first step toward ful lling the engineer's ambitious timeline by entering into a formal development agreement with Centerville Mainstreet, LLC, the working name of the Beard Group, the company that will handle the private aspect of the project's public-private partnership.
The city entered into a preliminary development agreement with the Beard Group last September, but the formal agreement approved on July 11 specifies in a legal document the obligations of the Beard Group and the city as the downtown redevelopment begins to move from plan toward reality.
In part, the agreement stipulates that the city will sell publicly owned downtown properties located within the project area to the Beard Group for $420,000.
The contract also states that the city will work toward the purchase of additional privately owned properties that are in the project area. The city would then sell those newly acquired properties to the Beard Group, allowing the redevelopment to proceed in a comprehensive manner.
The possibility that those private lands might be taken by the city from unwilling property owners is the main concern that Council Member Linda Broussard Vickers has voiced about the contract approved on July 11. She was the only council member to vote in opposition, making the final tally 4-1.
"I'm not in favor of the eminent domain requirements of the contract," Broussard Vickers said.
"The city will need to use eminent domain where available and appropriate if the developer is unable to obtain the [privately owned] property," she said, adding, "For me, eminent domain is an issue that cities need to avoid whenever possible."
Minnesota state statute was recently changed to make eminent domain seizures more difficult for cities. Eminent domain can no longer be used for economic development purposes, but only to remove "blighted" buildings.
"In this case there could be some buildings that meet that requirement," Broussard Vickers said.
In addition to her concerns about eminent domain, she also questions if public funds are necessary to facilitate downtown redevelopment.
"I am okay with downtown developing on its own time frame without Tax Increment Financing," she said, referencing the fact that TIF will be necessary to finance the public infrastructure improvements involved in the project.
On the other hand, Mayor Mary Capra, an outspoken supporter of the redevelopment plan, believes that downtown redevelopment wouldn't happen in the near future without city funds.
"What [council] is saying is that unless we give some sort of incentive we don't believe redevelopment will happen in the downtown area," Capra said.
With the development agree ment signed, the city and the developer can shift focus toward completing necessary infrastructure and environmental studies.
According to City Administrator Dallas Larson, funding for the studies will primarily come from the two large grants the city has recently received.
Following the vote on the development agreement, the council approved the commencement of the project's infrastructure study. The infrastructure study will determine what infrastructure improvements are needed and the timing of their construction, and it must be completed before the environmental study can begin.
The infrastructure study will be conducted by Bonestroo Engineering for a fee of $23,000. The money to pay for the study will initially come out of the city's general fund, but will ultimately be reimbursed through county grant money.
Broussard Vickers and Council Member Tom Lee voted against approval of the study, for a vote of 3-2.
Once all necessary studies are completed, the Beard Group will return before the council with preliminary plans and specifications for the first phase of the project. After those plans and a funding method for public infrastructure improvements are approved, construction can begin, and, if Statz's projections hold true, Centerville residents will begin to see the fruits of the city's planning efforts shortly after next summer.