CR2002-110 PH Modification of redevelop Project 1
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June 18,2002 HOPKINS Council Report 2002-110
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PUBLIC HEARING
MODIFICATION OF REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT #1
(RE: COMMUNITY FACILITIES PROJECT)
Proposed Action
Staff recommends approval of the folIowing motion: adopt Resolution 2002-64, approving
modification ofredevelopment plan for Redevelopment Project No.1.
Overview
The City/HRA is proposing to undertake a construction project to address space needs of the
Hopkins Police, Fire, and Public Works departments (Community Facilities Project). The new
constmction phase of this project will take place on the existing Public Works site, the Pavilion
site, and the parking lot between Public Works and Katherine Curren elementary school.
All or a portion of the subject project is proposed to be financed through an HRA-issued lease
revenue bond. This financing requires that the property on which the project is to be constmcted
be located within a redevelopment project area. Also, construction and financing for the project
. need to be authorized in the redevelopment plan. This is an area that has been identified by the
HRA, in which possible redevelopment activities might occur.
Presently, Redevelopment Project Area No.1 encompasses a large portion of the City. The
attached plan modifies the existing Project Area No.1 to include the property on which the
Community Facilities Project wiII be undertaken.
Lori Yager will provide an overview of the Community Facilities Project. A representative of
Ehlers & Associates will be present at the meeting.
Supporting Documents
. Plan modification
· Resolution 2002-64
. Site map-Redevelopment Project Area No.1, approved October 1992
· Site map d~tailing property to be added
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Jim KeITigan/
Planning & Economi _ Development Director
. Financial Impact: $ N/A _ Budgeted: YIN _ Source: I
Related Documents (CIP, ERP, etc.):
Notes:
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. CITY OF HOPKINS
RESOLUTION NO. 2002-64
RESOLUTION APPROVING A MODIFIED
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO.1.
BE IT RESOLVED By the City Council ("Council") of the City of Hopkins ("City") as
follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of Hopkins
("Authority" ) previously established Redevelopment Project No. 1 (the "Project") and i)
Redevelopment Plan ("Redevelopment Plan") therefor. pursuant to Minnesota Statutes, Sections
469.001 to 469.047 (the "HRA Act").
1.01. The City and Authority have determined a need to modify the Redevelopment Plan
for the purpose of expanding the Project area to facilitate construction of a fire station. public
works faci! ity, and pol ice station (the "Public Facilities") to be used by the City.
1.03. The Public Facilities will be located within a portion of the existing Project area and
the expanded Project area (the "Public Facilities Site").
. 1.0-l-. The City Planning Commission has provided a written coml11cnt to this Council
finding that the Modified Redevelopment Plan is consistent with the comprehensive City pIan.
1.05. This Council has fully reviewed the contents of the Modified Rednelopment Plan
and on July 2, 2002 conducted a public hearing the:reon at \vhich the views of all interested
persons were heard.
Section 2. Findin2:s: Redcyelopment Proiect.
2.01 The Public Facilities Site is characterized by blight, blighting bctors. or areas
sho\ving the potential for the development of blight. all as defined in Section -l-69.002.
subdivisions II and 1-l- of the HRA Act. as further described in the Redevelopment Plan.
2.0L The redevelopment of the Public Facilities Site \\'ill revitalize that property
contribute to the vitality of the surrounding area and the City as a \vhole.
2.03. The redevelopment of the Public Facilities Site is essential to prevent further
deterioration of the Project Area and the City as a \vhole, and the Public Facilities are essenti;)l to
the maintenance of existing improvemcnts in the City and the promotion of future redevelopment
in the City.
2.04. The land in the Project area \vould not be made available for redevelopmcnt without
. the financial aid to be sought.
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e 2.05. The Modified Redevelopment Plan for the Project will afford the maximum
opportunity, consi:-;tent with the needs of the City as a whole, for the redevelopment of the
Project by private enterprise.
2.06. The Modified Redevelopment Plan. as modified, conforms to the general plan for
the development of the City as a whole.
1.07. These findings me based on the facts and conditions described in the Modifieu
Redevelopment Plan. which arc incorporated herein by reference.
Section 3. Plan Adopted: Further Proceedings.
3.01. The Modified Reuevelopmcnt Plan is hereby approved and adopted.
3.02. City statf and consultants are authorized to taLe all actions necessary to implement the
Modified Redevelopment Plan in cooperntion with the Authority.
Approved by the City Council of the City of Hopkins this 2nd day of July, 2002.
Mayor
. Attest:
City Clerk
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First Draft
MODIFICATION TO REDEVELOPMENT PLAN
FOR
REDEVELOPMENT PROJECT NO.1
. HOUSING Ml) REDEVELOPMENT AUTHORITY
IN A.ND FOR THE CITY OF HOPKINS. l\fiNNESOT A
Adopted by HRA; . 2002
Adopted by City Council; . 2002
Drafted By:
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis. Minnesota 55402
(612) 337~l)300
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. I. STATElVlENT OF NEED AND PUBLIC PURPOSE OF MODIFICATION
The Housing and Redevelopment Authority in and [or the City of Hopkins, Minneso:a (the
"Authority") previously created a redevelopment project in 1971 that included the property
bOll11d~d by First Street North. Seventh A venue, the south border of the Burlington Northern
Railroad right-of \vay, amI Twelfth Avenue (the "Proje,:t Area"). This area was known as the
North Sector Area. In 1985, the Authority created a separate redevelopment project including
property generally south of the North Sector to Sixth Street South, east of the North Sector to
Fifth A venue North. and land adjacent to the railroad east to Tyler A venue.
In 1989, the Authority reorganized its redevelopment activity and renamed the
redevelopment area formally known as the North Sector Area as Redevelopment Project No.1
and consolidated the redevelopment plans for that area III a single document (the
"Redevelopment Plan"). The Authority has since consolidated the two redevelopment projects
into a single project area known as Redevelopment Project No.1 (the "Project Area"), and has
modified thc Redevelopment Plan on several occasions; most recently on December 4, 2001.
The Authority has now detenl1ined to expand the Project Area in order to facilitate
redevelopment of certain prope11y in the City for use as a fire station, public works facility, anu
police station (the '"Public Facilities"). The Public Facilities include redevelopment of the existing
City fire station attached to City Hall. located in the existing Project Area, together with the City's
. existing public works facility adjacent 10 the Project Area. The Authority is expanding the Project
Area to include the public works site and adjacent property owned by the Hopkins School District.
In this modification. the existing fire station and the property being added to the Project Area are
collectively retened to as the "Public FaciIitles Site."
The Authority finds that redevelopment of the Public Facilities Site will revitalize that
property anu contribute to the vitality of the surrounding area and the City as a whole. The
Authority also that this redevelopment activity is essential to prevent further deterioration of the
Public Facilities Site. as well as to maintain essential police, fire and public works services needed
to maintain existing improvements in the City and encourage future redevelopment in the City.
The Authority specifically finds that: (a) the Public Facilities Site \-\lould not be available for
redevelopment without the financial aid to be sought under this Modification to the Redevelopment
Plan; (b) the Modification to the Redevelopment Plan \\'il1 afford maximum opportunity. consistent
with the needs of the City as a whole, for the development of the Project Area and other
redevelopment areas of the City private enterprise; and (c) that the Modification to the
Redevelopment Plan confonm; to the general plan for the development of the City as a whole.
The Authority further finds that the Public Facilities Site is a "blighted area" within
the mcaning of Minnesota Statutes, Section 469.002, subd 11. The fire station, located
within the existing Project Area, is characterized hy numerous deficiencies:
. The properly does not meet OSHA requirements for existing occupancies \vhere
. vehicles may omit fumes and carbon monoxide \\'ithil1 a building and it is in
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. need of an upgrade of its vehicle exhaust system.
. The existing fire station roof is thirty eight years old and is in need of repair or
replacement to prevent leaking and damage to equipment.
. The roof deck consists of one inch wood fiberboarll with built up asphalt on top
and consequently the roof is ohsolete.
111ese conditions are evidence of "dilDpidation:' "obsolescence:' and "lack of ventilation. "
all of which are factors in detennining "blight" under Minnesota Statutes, Sections 469.00J
to 469.047 (the "HRA Act'}
The Authority h:Js also determined that the portion of the Public Facilities Site whicll
is located in the expanded Project Area is occupied by blighted areas, as described in the
Report on Blight Assessment. City of Hopkins Redevelopment Project Area No. 1
Expansion, prepared by Charles F. Habiger. attached as Exhibit C.
II. STA TUTORY AUTHORITY
The Authority is authorized under the HRA Act to undertake and administer the
Redevelopment Plan and the Project. and to finance public redevelopment costs through issuance of
bonds secured by project revenues.
. III. ST A TE1VIENT OF OBJECTIVES
By this Modification. the Authority seeks to accomplish the following general objectives:
A. Construct. acquire or finance any public facilities. including sanitary sewer. water.
StOlll1 drainage and roads. deemed necessary and desirable for the development or redevelopment of
the Public Farilities Site.
B. By facilitating reuse of an aging and deteriorated building. prevent the emergence of
blight and revitalize the Public Facilities Site and the Project Area as a whole.
C. Help the City provide a fire station. public works facility and police statioll. which
are essential public: facilities that benefit the comlllunity as a whole and contribute to the general
health and welfare of the City and its residents.
D. Employ any powers of the Authority uncler the HRA Act for the benefit of the
Project in such cases and upon such terms as the Authority may deem appropriate.
IV. PROJECT AREA
The Project Area is expanded to include the are described on Exhibit A A map of the
Project Area, as expanded. is shown on Exhibit. B.
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. V. PROPERTY ACQUISITION
The Authority may acquire such property, or interests therein, as the Authority may deem
necessary or desirable to CatTY out the objectives of this Modification to the Redevelopment PIan.
Acquisition may be accomplished by negotiation or by the exercise of the Authority's powers of
eminent domain. The Authority anticipates that the property on which the Public Facilities arc
constructed will be subject to a lease-purchase agreement between the Authority and the City. under
vl/hich the City \vill acquire title to the facilities for a nominal amount at the enu of the lease tenn.
VI. REDEVELOPl\1ENT PROJECT FINANCING
TIle Authority intends to finance the acquisit ion and rehabilitation of the Pub] ic Facilities
through issuance of revenue bonds secured by payments from the City under one or more lease-
purchase agreements. The Authority cUlTently expects to issue lease-purchase revenue bonds in a
principal amount of up to $14 million in order to finance the Public Facilities.
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HPI lU 65
. EXfllBIT A
Description of Property Added to Project Area
1601 Second Street South PID 24 117 22 33-0005
1600 Mainstreet PID 24-117-22-33-0012
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EXHIBIT B
THE em OF
HOPKJNS J MlNNESOTA
HEHHEPIH COUNTY
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\. REDEVelOPMENT PROJECT
AREA NO.1
5 MOD I F I CAT ION
(APPROVED BY COUNCLL RESOLUTION 2002-64
\ JULY 2, 2002.)
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EXHIBIT C
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Report on Blight Assessment
City of Hopkins Redevelopment Project Area #1 Expansion
Prepared by: Charles F. Habiger, AlL\, crn - SMI Director of Pbnning - June 18,2002
This report addresses the expansion of the City of Hopkins Redevelopment Project Area #1.
'which is comprised of two properties [City puhlic \vorks facilities 1 hounded by Excelsior
Boulevard to the south and Hopkins Cross roads to the west. This report examines ,vhether the
City of Hopkins Redevelopment District meets the following definition for "Blighted Area"
according to Chapter 469 of t-,'Iinnesota Statutes:
"BljghteJ area (contains) buildings or improvements which by reason of dilapidation,
obsolescence, overcrowdinz, faulty arrans:emeut or desi!?:n. lack of venti1ation. li9:ht. and sanitarv
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facilities, excessive land coverage. ueleterious land use, or obsolete layout, or any combination
of these or other factors, are detrimental to the safety. health, morals. or welfare of the
comrnunity."
Site: Owner: Site Address; PID:
Hopkins Public \Vorks City of Hopkins 1601 Second Street S. 24 117 2:2 33 0005
Katherine Curren Sehl. Hop. Sch!. Dist. 270 1600 Mainstreet 24 117 22 33 0012
.
There is a very strong basis for finJing that the Hopkins Redevelopment District Area conforms
to the statutory detinition for a "blighted area" as described belmv. Stv'II has ranked the presence
of the various cri[cria that are included under the definition of bl ight for the prorerty located
,vithin the District. A narrative analysis of the Conditions of Blight for the subject site is JS
follows.
Presence of B1i'lht: NalT::ltive Analysis:
Property #1
Of the six structures located on the subject property site, two meet most of the crireri.1 identified
in the statutory definition for "blighted area." These include clilapiJation, obsolescence. faulty
arrangement or design, Jack of ventilation, light, and sanitary facilities, deleterious land use, :md
obsolete layout.
One structure was formerly the 01d Hennepin County maintenance fadlity garage which \vas
built in 1923 and upon inspection of the structure, became evident that due to the building's age
it is no longer stmcluraIly sound and is in need of major repairs including such basic repairs as
reproofing. The structure Vias originally construcrcd to house horses and horse drawn equipment.
The ceilings and vehicle entrance doors are not tall enough to house several pieces of equipment
that is in common llse with City Public works departments.
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The \\'idth of the structure is insufficient to park equipment and vehicles on both sides of the
stmcture while leaving the center dei ve lane sufficiently open for vehicle access. Fire safety
egress doors are insufficient for the OCCUp~ll1cy of the structure. The structure does not meet
energy efficiency requirements. does not have adequate ventilatiun, natural light in placE's, and
does not have any sanitary facilities. The building has a center trench drain th:1t nms the length of
the structure, which colJects ] iquid materials. It is suspected that the drain allows for leaching of
cleIetcriutls substances into the ground. Site layout does not provide for adequate vehicular
circubtion around the structure.
A second structure located 011 the property site \vas formerly the City's old ice hockey arena
building that had been taken over and converted into a garage/storage facility by the public
works department after the CUlTent municipal arena was constructed. This structure although not
as old as the first building aJdressed in this report, WQS never constructed for il's CUlTcnt use and
hns even JO\yer ceilings and less room for vehicle access. The refit of lhis structure has created
similar problems for adequate ventilation, natural light. and does not have any sanitary facilities
for its occupancy. It docs not meet ClllTent energy codes and lacks proper emergency egress. The
site does not provide for adequate vehicular circulation around the structure and overall access to
'he facilities must pass through a public school parking lot area where students arc picked up and
. dropped of by pments and scbool busses which posses a safety issue.
Al '>0 on this pmpeny there is the City-owned pavilion building. Presentl)' tbcre <:Ire vehicle
pedestrian conflicts on this site directly adjacent to the pavilion. The driveway adjacent to this
building was originally meant to be a drive-up and pedestrian service driveway. Also. this
drivev...ay abuts within a few feet of the exit/entmnce doors. There needs to be a separation of the
drive\vay and pedestrian watkwd)'.
Property #2
The most obvious criteria resu1Ling in conditions of blight related to the properLy concem site
parking. Presently the schonl's only parking area is the public \'irorks parking lot directly to the
south of this prorerty. This docs prO\-ide fur cont1icts bet\veen parents and buses uropping off
~md picking up children. In many situQtions, children are required to v,:alk in front of public
works truck traffic. There needs to be a separation of lots to proviJe adequate safety.
Summary Findings - City of Hopkins Redevelopment Area - Blight Assessment:
Assessment of the City of Hopkins Redevelopment f\rea to evaluate the presence of "blighC as
defined under I'vfinnesota Statutes requires an in-depth examin::nion of the subject property as
detailed above as \vel! as consideration of the conlext of the surrounding area.
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Conclusion:
Numerous criteria for blight are evident on this parcel of property within the Hopkins
Redevelopment Project Area #1 Expansion. These include dilapidation, obsolescence, faulty
ammgement or design, lack of ventiJ~tJon, light and Sanil:lry facilities. deleterious land use, and
obsokte layout. Presence of these various blight crileri:l in addition to numerous structural
substanoard conditions, heJlth and safely issues and code deficiencies identified on two of the
City uf Hopkins public works structures located \vithin the site area provide for a strong basis for
finding that the City of Hopkins Redevelopment }\.rea cunforms to the statutory definition for Ll
"blighted area."
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I A Vision for Hopkins
City of Hopkins ; . Creating a Spirit of Unity
~fii Hopkins will be a community where
;- o People are treated with respect
._n... . .~~]\~~t~'_T~:~ ..
~~'~. II m o People participate in building culture, character
."~,' ,--:;' and common bonds
, . Business growth throughout the City is supported
Redevelopment for our Ii while maintaining a \'ibrant City center
future! o People feel safe, support outsrnnding schools and
iff"'$. celebrate cultural herirages
o People enjoy quality public services, parks and
housing
I To Accomplish OUf Vision I WHY?
;
~~~ . Current Police and Fire department
t"",-'".:~ . Provide safe facility for employees to f-!i,~'$ buildings were built in 1965, current
- work. .- public works storage was inherited from
. . . Provide adequate work space for !Ill the county fair days in the 1940's.
'!: employees to complete job duties . . New standards for procedures, larger
affectively and efficiently. ~~ equipment and a higher demand for
. . services, have created a need for safer
. Provide storage that increases life span and adequate work areas.
... of equipment and vehicles. ~
"
. WHY? ~ T~.\
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,. . Police department has outgrown its space.
:1.
. Lacks storage space for evidence. ;:...~ :.::':
.- . Lockers are inadequate for required officer ,Ii
gear.
~ . No emergency vehicle warm storage. .
. . No interview rooms. .
. Detention configuration does nol meet I
i
.. current jail standards. .. I
i
. Dispatch cenler is not large enough for !
.--" new radio equipment. I
. Squad room is also used as break room. ,
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II WHY? I
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c, . Fire engines have changed in size.
,.f:---- " T~
. Inadequate space for cleaning and ~~~
.. maintaining fire equipment and engines. ..
~ . Difficult to maneuver trucks in and out of 111
! current station. .
. Storage of equipment is on second floor
with no lift. ~',;;.'!:O::::.
. . No alarm system and inappropriate .
ventilation system. ~~
- '.:c':'-,,:,:,<~:;r
I
-I WHY? I
~
uk:. . Public Works equipment and vehicles l __~
~~, . . stored in cold storage which makes for f~
,. proper inspection during the cold months )I
. m impossible. ..
. . A semi heated storage facility would !
reduce the wear on engines and hydraulic
.. systems. f:~
. Not able to stock pile pure sail due to .
limited indoor storage space. ~
~ ~ ,'.".
~
Fleet of 105 Vehicles Valued at 3.3 MiJlion I Public Facility Redevelopment
L
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w~
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.
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II
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. . . _.~ ". ";',::ij.V 'c,~~
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,.,__~~;.~ ... _ P\IIIC_~1ilAn--'5o;'-I
i-;:;''"ft,~~. .
.
2
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" Municipal Changes II Hopkins Growth Pattern
,. .~
. Diverse Population 11 5000
- . Community Oriented 4500
~ . Tourism . 3500
3000
. . Changing Commercial and II 2500
Industrial base 2AIOO
;.T. ~.;:~ . New Standards for performing I 1500
. duties. 1001I
500
.' ~~~ 0
" 1900 1970 19S1l 1990
"".r:-:,_~
I City Goals I Project Goals
4
?:~~~. . Maintain and improve upon existing .. . Use city owned property for
ii
~~:'-S.L: city seNlces. redevelopment project.
"-"~.
'.
. . . Maintain high standard regarding .. . Provide Fire department with adequate
safety, citizen response and clean facility for current and future needs.
. environment. . . Provide Police department the needed
. Provide safe working environment for _~-:~t..;~ space to perform their duties.
.. II . Provide Public Works department with a
employees. safe and adequate area for maintaining
-;n." ~"~. '--b.'= and storing equipment.
~"li
II How Much Will This Project Cost? :, How Will We Pay For This?
iI
, . The city proposes to issue debt to pay for
. Fire Station along with reconstruction of t:.~,^;
the parking lot will cost approximately $5.1 !;".'.'._i the facility redevelopment project.
I~:'~: Ii
;iiI million. . The HRA has the authority to issue bonds
m . Public Works storage facility will cost .. for new facilities or improvements and
approximately $4.4 million. lease the property back to the city.
. ! . The debt issued will be paid by property
. Police remodel will cost approximately taxes and utility revenues.
. $1.8 million. ~l~4 . The city is proposing an HRA lease
. Site work, soft costs, contingencies, bond . revenue bond process as opposed to a
issue costs total about $2 million. r!rl-~~' referendum bond process, to minimize
. .. . Total projected costs ot $13.3 million. costs to residents and to expedite the
III project.
If
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3
-~.- ..--- .~
.
.
II What will the average homeowner pay I What will an average commercial
~ in City taxes? industrial owner pay in City taxes?
.
EXAMPLE t T;;_~ EXAMPLE
. - p:---+,_..
":':,JtiBn
.- 2003 2004 iii 2003 2004
~ Market value $150,000 $160,000 . Market value $500,000 $530,000
~ Classification x 1.0% x 1.0% 'I Classification x2.1% x 2.1%
.'~:::::~~.H
. Tax capacity $ 1,500 $ 1,600 II Tax capacity $ 9,300 $ 9,930
.-.;:~c~~ City tax rate x 9.6% x 9% ~~ City tax rate x 9.6% x 9.0%
I City tax $ 144 $ 144 City tax $ 890 $ 890
~..~;~ >.':
I .':;::-:::0
Will Utility Rates Increase? -I What is the Proposed Schedule?
The city water rate is projected to
.'- increase in 2004 by $.10 cents l' The city would like to issue bonds
~',.. ...,. . t,t~; early this fall and begin the
;ill per 1,000 gallons. Four cents of ,a. process for hiring construction
the increase can be associated
. . with the facility project. ill managers and architects
. The refuse rate is projected to . immediately.
increase in 2007 by $1.45 a :, ...:~~ Site work could begin as early as
~--..-;::..:.-
Ii month. Seventy cents a month II this fall with demolition and
can be associated with the facility construction beginning in early
:::"i-.:Y: project. ;f~ spring.
I
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