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HomeMy WebLinkAbout11-06-13 �ENHILLS CITY OF ARDEN HILLS,MINNESOTA ECONOMIC DEVELOPMENT COMMISSION NOVEMBER 6,2013 8:00 AM CITY HALL -- 1245 WEST HIGHWAY 96 CALL MEETING TO ORDER Chair Ed von Holtum called the meeting to order at 8:03 a.m. ROLL CALL Present: Chair Ed von Holtum, Dan Erickson, Dan Altstatt, and Steve Heikkila. Also Present: Council Liaison Ed Werner, Community Development Director Jill Hutmacher, and Community Development Intern Matthew Bachler. 1. APPROVAL OF AGENDA It was the consensus of the Commission to accept the agenda as presented. 2. APPROVAL OF MINUTES It was the consensus of the Commission to accept the August 14, 2013, meeting minutes as presented. 3. UNFINISHED AND NEW BUSINESS A. Report on 2013 State of the City Community Development Director Hutmacher gave a brief report on attendance and costs of the State of the City event. Chair von Holtum stated that he felt the event went reasonably well and had good turnout. Councilmember Werner added that it seemed that the business community was very aware of the event with the two postcard mailings and Commissioner visits. He noted that the event cost approximately $1,000 less than 2011 when it was held at North Heights Lutheran Church. Commissioner Altstatt asked if there were any particular highlights of the event. EDC Minutes November 6, 2013 Page 2 of 5 Commissioner Erickson responded that attendees appreciated the MnDOT update given the many transportation projects that are currently underway in this area. Councilmember Werner added that the economic development portion of the presentation which was given by Chair von Holtum was well-received by attendees. Commissioner Erickson asked about the venue. Community Development Director Hutmacher responded that staff made notes regarding room setup, audio-visual equipment, and food so if the event is held at Flaherty's again some minor adjustments can be made. Hutmacher added that the Flaherty's staff was very friendly and helpful throughout the planning process and the event. B. Revolving Loan Fund Community Development Intern Bachler gave a presentation on the background of the City's revolving loan fund including its history and funding sources. He reviewed the existing revolving loan fund guidelines and Economic Development Authority (EDA) discussions regarding potential revisions to the fund guidelines. Commissioner Erickson noted that it was unclear whether loan funds would be targeted towards established or startup businesses, particularly since loans to startup businesses are usually high-risk and his understanding was that the EDA wanted assurance of loan repayment. Commissioners discussed the origins of the revolving loan fund and its inactivity for the past several years. Commissioner Altstatt inquired about the balance of the fund and whether it could be used to improve real estate. Community Development Intern Bachler responded that the current fund balance is $155,649 and that it must be used specifically for economic development activities; it cannot be transferred to the City's general fund. The loan funds could be used for real estate improvements provided that the project met the fund guidelines. Commissioner Heikkila asked whether loan funds could be used for appraisals or environmental assessments. Community Development Director Hutmacher responded that the EDA had indicated that they did not support using loan funds for professional fees. Commissioner Erickson stated that he felt the proposed terms of the revolving loan program were appropriate; however, he was concerned that the ideal candidate for loan funds was not EDC Minutes November 6, 2013 Page 3 of 5 clearly defined. Apprehensions that the loan approval process could be lengthy and uncertain could cause businesses to be unwilling to participate in the program. Chair von Holtum noted that the requirements for job creation listed in section 2 of"Criteria for Use of Funds" in the existing revolving loan fund guidelines was unclear. It was maybe created specifically for the previous Guidant loan and was no longer applicable. Commissioner Erickson asked whether the loan program would be marketed directly to businesses. Community Development Director Hutmacher stated that the program would be marketed to local banks since the loan program requires loans to be made in participation with banks which would be responsible for underwriting and loan administration. Also, banks are likely to be already working with businesses which are planning expansion projects and know which projects may need additional financing and would fit City loan guidelines. Commissioners agreed that marketing to banks would be effective and that local bankers communicate with each other and could help market the program. Commissioner Erickson suggested that the guidelines could be better defined to decrease business uncertainty. Chair von Holtum recommended that staff speak to local bankers to help define the program. C. Draft 2014 EDC Work Plan Community Development Director Hutmacher stated that the EDC will be asked to approve the 2014 Work Plan at the December 4, 2013, meeting. The work plan will be presented for EDA approval at a joint meeting of the EDC and EDA on January 27, 2014. Community Development Director Hutmacher stated that staff had compiled a draft EDC Work Plan based on the approved City Council goals which includes the goal, "Develop relationships with the business community and establish a reputation as a business- and development-friendly City." The draft Work Plan is also based on EDC discussions over the past year on the need to develop and strengthen relationships with the business community. The four primary tasks on the draft 2014 Work Plan include: • New Member Recruitment • Revolving Loan Program • Business Retention and Expansion(BRE) Program • Marketing and Outreach Community Development Director Hutmacher added that given the work load with the TCAAP Master Plan, it may not be possible to complete all of the tasks on the draft Work Plan in 2014. EDC Minutes November 6, 2013 Page 4 of 5 Chair von Holtum stated that the Revolving Loan Fund should not take too much time for the EDC. He believed that a Business Retention and Expansion Program is a priority. Commissioner Altstatt asked about the role of the EDC in completing the tasks on the work plan. Chair von Holtum responded that there is a feeling among Arden Hills businesses that they don't know how to approach the City. He believed that may be due in part to past staff turnover and the lengthy Walgreens/CVS approval process. He felt that the presentation of BRE research to the EDA in the fourth quarter of 2014 may be too ambitious given other work load demands. Commissioner Heikkila commented that the BRE program work would require a lot of research and a concerted effort to distill information. Commissioner Erickson believed that the draft 2014 Work Plan was very do-able and did not include anything too daunting. Chair von Holtum added that staff has been more productive in the last few years. A lot of work is done and prepared for EDC consideration. 4. UPDATES A. Commission Members None. B. Council Liaison Councilmember Werner notified the EDC that Bethel University was considering purchasing the Country Financial building. The City Council is considering a conditional use permit to allow educational uses as a principal use at 2 Pine Tree Drive. Councilmember Werner added that the City has been contacted by several parties which are interested in reusing the Carroll's Furniture property. Councilmember Werner stated that the City Council is considering enacting a franchise fee through Xcel Energy. The fee would be charged to every user of electricity or natural gas including entities that are exempt from property taxes. The City Council has discussed the potential franchise fee with Xcel Energy at three work session meetings. Public hearings are tentatively scheduled for the regular City Council meetings on February 10 and 24, 2014. EDC Minutes November 6, 2013 Page 5 of 5 C. Staff Comments Community Development Director Hutmacher noted that the regular January 2014 EDC meeting would occur on January 1, 2014. The meeting would need to be rescheduled or canceled. Hutmacher suggested canceling the regular meeting since the EDC will have a joint meeting with the EDA on January 27, 2014. It was the consensus of the Commission to cancel the January 2014 meeting. ADJOURNMENT Chair von Holtum adjourned the meeting at 9:30 a.m. Ed von H. ltum; Chair Jill H acher Community Development Director