HomeMy WebLinkAbout07-20-95 ECONOMIC DEVELOPMENT COMMITTEE AGENDA
Thursday, July 20, 1995
8:00 a.m.
Army Reserve Center
4655 North Lexington Avenue
1. Call to order.
2. Approve minutes from May 17, 1995 meetings.
3. Monthly Report.
4. 1995 Legislative Session Summary.
5. Everest Development Agreement\Gateway Business District.
6. Miscellaneous
7. Adjournment.
Please Contact staff if you are unable to attend this meeting.
Economic Development Committee Meeting Minutes
May 17, 1995
8:00 a.m.
Army Reserve Center
1. The meeting was called to order at 8:02 a.m.
2. Present were: Rob Carlson, Ray McGraw, Arnold Lindberg, Beverly Aplikowski,
Tom Goblirsch and City Administrator, Brian Fritsinger. Absent were Dan
McCallum, Steve Freimuth and Terry Nagle.
3. Minutes from the March 17, 1995 meeting were approved.
4. Monthly Report
Staff updated the Committee on a variety of projects now being considered in
Arden Hills. The Committee briefly discussed how to encourage the
redevelopment of Arden Plaza and the liability of the Everest project.
Staff brought the Committee up to date on the activities related to the arsenal
planning process.
5. Marketing_Packet
The Committee debated the value of the Marketing Packet and the need for it at
this time. The Committee agreed that the packet is a necessary tool which can be
useful now as well as when the arsenal opens up.
Bev Aplikowski, Ray McGraw and Tom Goblirsch volunteered to work on the
Marketing Packet.
6. Business Retention
The Committee recognized that while the packet is important, the key function of
the Committee should be business retention. This topic will become more of a
priority at future meetings.
7. Miscellaneous
Mr. McGraw updated the Committee on various planning activities.
8. Meeting adjourned at 9:10 a.m.
9. The next meeting is scheduled for June 15, 1995.
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CITY OF ARDEN HUTS
MEMORANDUM
DATE: July 20,1995
TO: Economic Development Committee
FROM: Kevin Ringwald,Community Development Director ! '
SUBJECT: Monthly Repot 1,
The following is a brief lot of staff contacts over the past several weeks.
1. Arby's\Sbanro
A plan including 4,400 square foot Arby's\Sbarro and a 7,500 square foot automative retail
center has been presented in concept to staff. The proposal would be located north of
Shannon Square. No formal application has been received.
2. Grocery Store
Staff has also been in contact with a grocery chain interested in the above-mentioned
property. Staff has been facilitating discussions between all interested parties to accommodate
a larger redevelopment project.
3. CSM\Dvnamai k
The Planning Commission has recommended approval of the 32,000 square foot phase H
building. The phase I building is progressing nicely towards completion.
4. Arden Plana
Frattalone's Ace Hardware is planning an expansion to their facility in the Arden Plaza. They
will be moving into the old grocery store site and moving their corporate offices here.
5. Manufacturing CompM
Staff has been meeting with a Twin Cities Manufacturer who wishes to relocate their
Corporate Headquarters\Manufactuiing Facility to the Gateway Business District. The facility
would provide an 80,000 square foot facility on an approximately 10 acre site.
6. Warehouse Fac7iity
Staff has been in contact with a representative of a Fortune 500 company who is relocating to
the Twin Cities area. They are evaluating sites in the North Metro Area adjacent to
Interstate 694 which could accommodate a 200,000-300,000 square foot warehouse
distribution facility on 12-15 acres.
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7. Nonvest Bank
Staff met with local and main office representatives of Norwest Bank. The meeting facilitated
discussions on development activities in Arden Hills and the services Norwest could provide to
existing and\or new businesses in the City.
8. Amoco
Has been proceeding on their renovation of the old restaurant site. No work has taken place
on the convenience store.
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CITY OF ARDEN HHJ
MEMORANDUM
DATE: July 20,1995
TO: Economic Development Committee
FROM: Kevin Ringwald,Community Development Directorl v
SUBJECT: 1995 Legislative Session Summary
Attached the Committee will find a aimmary of the 1995 Mnnesota Legislative session. The summary
was prepared by the Minnesota Department of Trade Economic Development and the Economic
Development Association of Minnesota.
This information is provided only for your information.
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From:BCD/MKTG To: Mr.Brian Frttsinper Date:6/2/95 Time:12:58:58 Pape 1 o(2
ECONOMIC DEVELOPMENT UPDATE
DTED
EDAM
Minnesota Department of Trade = Economic Development
Economic Development i Association
un°= of Minnesota
Cunaact:Gene Goddard,612-297-1168 Volume 2,No.20
1-800-657-3858
Contact John Moon.612-854-6215
1995 LEGISLATIVE SESSION SUMMARY
Governor Slens Workers'Compensation Reform Bill:
Governor Ame H. Carlson signed the 1994 Workers'Compensation Reform bill. The compromise legislation developed by the Bipartisan
Workers'Compensation Caucus includes the following provisions:
•Cuts costs to Nlinnesota Employers by 11 percent,or about$130 million per year.
•Reduces cash benefits paid to injured workers by nearly 33°'i,. The reductions come primarily from raising the threshold of the
permanently disabled classification. ,,bout half as many workers would qualify for that category.
"Reduces and delays cost of living increases.A workers'compensation recipient can now get up to 4%cost of living increase after two
years. The bill would cut the increase to 2%and delay the dust cost of living adjustment until the fourth year.
*Repeals supplementary benefits for certain workers,and replaces them with a benefit equal to 65 0-o of the statewide weekly average
wage.
•Raises the maximum weekly benefit for a person who is temporarily totally disabled to$615 from$517.
•Provides a premium discount of 33°'o for small employers in the assigned-risk pool who have had no lost-time claims for three
consecutive years.
*Group self-insurance will be more available then ever. Smaller employers with good safety and premiums less than 53,000 per year will
be eligible for a 33%discount on their assigned risk premiums.
•Repealed the two tier system and lump sum benefits and replaced them with a new permanent partial disability schedule.
•WC benefits will end at age 67,unless the injured worker is without regular Social Secunty payments or lacks a pension.
a *Charges'Workers' Compensation Advisory Council with recommending changm to benefit amounts and other changes in the system.
Leadership of Bipartisan Workers'Compensation Caucus:Sen.Dallas Sams,Sen.Linda Runbeck Sen.Roy Terwilliger,Sen.Keith
Lanseth,Rep.Hilda Bettermamn,Rep.Becky Kelso,Rep. Jim Girard,Rep. JefFBertram Rep.Wayne Simoneau.
DTED Economic Development Spending Bill: The final budget bill passed by both houses includes several cuts for DTED. The
following is a list of the program funding levels:$6,017,000 Economic Recovery Fund first year only.
*$400,000 grant to Advantage Nfinnesota
*$900.000 match for SBDC's
*$3,949,000 biennial for\fN Job Skills partnership
*$1,000,000 increase for tourism marketing.
Corporate Welfare/Living Wage Bill Amended:Corporate Welfare provisions were included in S.F. 1670,Section 58 but the
language has been modified from its original version. The new provisions require that businesses that receive assistance, including TIF,
for economic development or job growth purposes in excess of$25,000 must create a net increase in jobs in Alinnesota within two years
of receiving the assistance. In addition,the agency must establish wage level and job creation goals to be met by the business and report
them to DTED. If these goals are not met the business must repay the assistance.
Tax Increment Financing:Compared to many versions of bills introduced that affect TT,the changes included in article 5 of the
Omnibus Tax Bill are relatively moderate. In at least one case,the changes may lead to increased opportunities for cities.EDA's and
HRA's. The following summary of key provisions has been prepared by\lark Ruff of EhlersiPublicorp:
LG,1-1ACA Penalty-
*The one change which seems to be a positive move is the local contribution option.A tax increment district is exempt from the
LGA%1L4,CA penalty if the authonty or municipality makes a local contribution to a project in the new district.The contribution must be
made from unrestricted money and is lower if a state incentive is involved. For economic development,housing and renewal and
renovation districts,the contribution is 10%,and for all other districts the minimum contribution is 7.5°b. Any district which requested
or requests certification after June 30. 1994,may elect to make the contribution.
*
Up to$1.5 million of tax increment for ethanol and agricultural processing facilities are exempt form the LGA F-L-kCA penalty
certain conditions.
*No new qualified manufacturing districts are allowed.
From:BCDIMKTG To: Mr.Brian Fritsinper Date:6085 Time:12:53:59 Pape 2 of 2
p. 2 TT continued.
Disclosure:
*The state auditor is now the repository of annual disclosure for TY districts established in any year,including pre-1979 districts. The
state auditor is authorized to randomly check records of authorities to verify compliance with the TIF law. Any violations of the TIF law
will be reported to the legislature and will be turned over to the county attorney for enforcement.
*A variety of increased disclosure for all districts is required including a list of payments of benefits to other taxing
jurisdictions,any payments to private entities,pa mients for publicly owned facilities,total amount of increment pooled,and impact of not
taking fiscal disparities from within the district.
*A new finding is required at the time of approval by the authority or municipality that the present value of potential increment from a
district is greater than the"unexpected"increased market value of the district,unless the district is a qualified housing district
Miscellaneous:
*Soils condition districts are only possible for areas with pollution problems. Bedrock condition soils problems are moved to economic
development districts.
*New districts,other than redevelopment districts are restricted to 20`0 pooling instead of 25 110.
*Parcels classified tinder MS. 273.111 and 473 H(agricultural preserves,open space and green acres class)within the last five}rears are
not allowable in a new distract unless located outside the metropolitan area and unless they contain a manufacturing use.
Business Tax Subsidy Studies to be done by DTED:The 1995 Omnibus Tax Bill also included language that will require communities
and development authorities that provide incentives in the form of a tax reduction or waiver to report to DTED the number of jobs created
and wages paid on those new jobs.
Housing Programs Funded: NIN Housing Finance Agency received funding for the following programs:
•$2,400,000 for Rental Housing Assistance.
•$6,000,000 for Affordable Rental Investment Fund-Metro finds are to be established with the Met Council.
•$5,800,000 for Community Rehabilitation.
*$374,000 for Urban Indian Housing.
*$500,000 for Lead Paint Abatement.
*$8,570,000 for Housing Rehabilitation and Accessibility.
*$3,000,000 for Rental Assistance.
Data Practices Act:A study has been required to be completed by Jan. 15, 1996 on what information state and locally-funded business
projects should be made public.
N11nimum Wage Bill:A bill that would have raised the miruimum wage in Minnesota from$4.25 to$4.5015.00 per hour died on the
House floor after heavy debate. This bill would have raised Minnesota's minimum wage higher than that of neighboring states.
DIED Commissioner Resigns:
E.Peter Gillette resigned his position as Commissioner of DTED effective June 2,and will be returning to his previous employer Piper
Jaffray. )tilt.Gillette was appointed by Governor Carlson in 1991 and has successfully led DTED through many large projects and
reorganization. Deputy Commissioner Jennifer Engh will serve as the Acting Comnussioner. An"Open House"reception for lMr.Gillette
will be held Thursday,June 8, 1995 from 4-6:30 pm,with a program scheduled for 4:45 pm. The reception will be in the atrium on the
third floor of the Minnesota World Trade Center at 30 East Seventh Street,St.Paul. If you have any questions please call Jan Williams at
612-296-6424.
CffY OF ARDEN HII I
MEMORANDUM
DATE: July 20,1995
TO: Economic Development Committee r'
FROM: Kevin Ringwald,Community Development Director
SUBJECT: Everest Development Agreement\Gateway Business District
The City has imposed a July 15, 1995 deadline for the completion of negotiations relating to the
Everest\City Development Agreement in the Gateway Business District. I have provided you a
summary of the outstanding issues as of July 13, 1995.
1. Corporate Site
The developer is requesting that if they acquire\control two-thirds of the property that the
project should be allowed to continue. Staff reasons that the primary intent of the agreement is
to facilitate assemblage of all of the properties including the corporate site,which the
developer is currently baking at.
e2. Acquisition by Eminent Domain
The development of language in this area which protects the City is complex and has yet to
bear fr uthil results. The amount of land which the City may be required to condemn,
maintenance of a public purpose,and maintenance of the City's sovereignty are major
unresolved issues.
3. City Land Acquisition
The developer proposes to purchase the City land in a certain period of time at$1.25 per
square foot. Staff reasons that the developer should pay the average cost of land in the project
as determined by acquisitions/condemnation.
4. T F Exdusivity
Everest has identified three areas of TTF exclusivity which have yet to be addressed in the
negotiations;
A Use of TIF in the City,
B. Indykavitz property;and
C. Vaughn Towers property.
5. Letter of Credit
The Letter of Credit is designed to protect the City if the project were to fail. The developer is
attempting to minimize the Letter of Credit. The City is attempting to maximize the Letter of
Credit.
6. Project Timing
Staff analysis has 5 elded a project timeline m which development will most likely not occur
until late 1997. The delay would be in response to lengthy environmental reviews and
anticipated acquisition time frames.
Staff is committed to the Gateway concept and is attempting to resolve the issues related to the
Development Agreement plan prior to the July 15th deadline.
However,if an agreement cannot be reached with Everest,then staff would recommend an
evaluation of the remaining options. Staff views this as a two step process. Step one would be
the evaluation of the vision of the Gateway Business District. Step two would be an analysis
of the development options;such as,the preparation of a Request For Proposals(RFP),City
Development of the GBD,and allowing market forces guided by the zoning district standards
to develop the site.
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CITY OF ARDEN HILLS
• MEMORANDUM
DATE: June 13, 1995
TO: Economic Development Committee
FROM: Brian Fritsinger, City Administrator
SUBJECT: June 15, Economic Development Committee Meeting
The Economic Development Committee Meeting originally scheduled for Thursday, June 15,
1995 has been canceled. Our next regularly scheduled meeting is July 20, 1995.
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410 CITY OF ARDEN HILLS
MEMORANDUM
DATE: July 24, 1995
TO: Economic Development Committee
FROM: Kevin Ringwald, Community Development Director
SUBJECT: Everest - City Development Agreement\Gateway Business District
The Economic Development Committee (EDC) requested to be updated on the outcome of the
negotiations between Everest and the City as it pertains to the Gateway Business District (GBD).
Previously, the City imposed a July 15, 1995 deadline for the completion of negotiations between
Everest and the City as it pertains to the GBD. Staff last met with representatives of Everest on
July 20th in an attempt to resolve the major outstanding issues. The meeting did not resolve the
major outstanding issues, although some progress was made. Subsequently, the City Council at
its Work Session on July 20, 1995 achieved consensus to discontinue negotiations with Everest.
• As I have previously stated, if an agreement cannot be reached with Everest, then staff would
recommend an evaluation of the remaining options. Staff views this as a two step process. Step
one would be the evaluation of the vision of the Gateway Business District. Step two would be
analysis of the development options; such as, the preparation of a Request For Proposals (RFP),
City Development of the GBD, allowing market forces guided by the zoning district standards to
develop the site, or a combination of the above.
I will be contacting you shortly to discuss the potential impact of this on the EDC work program.
If any of you should have any specific questions, please contact me at 633-5676.
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CITY OF ARDEN HILLS
• MEMORANDUM
DATE: July 25, 1995
TO: Economic Development Committee
FROM: Kevin Ringwald, Community Development Director
SUBJECT: Economic Development Committee meeting date changes
We have revised the Economic Development Committee meeting dates for the rest of the year.
The following meeting dates will be:
1. Wednesday, August 16
2. Wednesday, September 20
3. Wednesday, October 18
4. Wednesday, November 15
5. Wednesday, December 20
If you have any problems with these meeting dates, please call Julie at 633-5676.
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