Council approves parameters for 100 and Fifth redevelopment: Scheels store, parking ramp and event stadium move forward

The Blaine City Council on Aug. 11 voted to approve tax-abatement and parameters resolutions tied to the 100 and Fifth Redevelopment District, authorizing the city to pursue temporary tax-abatement bonds and establishing conditions that must be met before any bond sale.

Eric Thorvig, interim city manager and community development director, presented the four related agenda items and said he would cover items 8.1, 8.2, 10.1 and 10.2 together because they relate to the same redevelopment project. He described a proposed Scheels retail store, a structured public parking ramp and an event stadium as the principal pieces of the plan.

The developer and retailer plan to build a roughly 220,000-square-foot Scheels store in the east portion of the 100 and Fifth Redevelopment District, which Thorvig said would represent roughly a $150,000,000 investment including the building and inventory. To meet parking demand, the plan calls for a parking ramp of about 750 stalls adjacent to a proposed hotel; Thorvig said the ramp would be available for general public use, not only for the retailer.

Thorvig said Shields/Scheels would request a city financing package in the neighborhood of $50,000,000 to support infrastructure, construction and real estate for the retail and parking project. He described an overall financing package for the retail and ramp that would not exceed about $83,900,000, including principal and interest on bonds. The city would initially use temporary tax-abatement bonds; Thorvig explained that if a district sales-tax authority is later approved, the bonds would convert to sales-tax revenue bonds.

"If and when a sales tax authority is approved, the bond type would convert from a tax abatement bond to a sales tax revenue bond," Thorvig said, describing the conversion as removing the abatement…