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HomeMy WebLinkAbout01-27-14 Address: It 1245 W Highway 96 Chair: Arden Hills MN 55112 David Grant EN HILLS l�Jphone: Commissioners: 651-792-7800 Brenda Holden Economic Development Fran Holmes Authority and Economic Website: Dave McClung Development Commission Joint www.cityofardenhills.org Ed Werner Meeting January 27, 2014 6:00 p.m. City Hall City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well-maintained infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. Agenda CALL TO ORDER 1. APPROVAL OF AGENDA 2. APPROVAL OF MINUTES 2.A. Approval Of Minutes October 28, 2013 Documents: 10-28-13.PDF 3. NEW BUSINESS 3.A. 2013 EDC Annual Report Jill Hutmacher, Community Development Director Documents-. MEMO.PDF, ATTACHMENT A.PDF 3.B. 2014 EDC Work Plan Jill Hutmacher, Community Development Director Documents: MEMO.PDF, ATTACHMENTA.PDF 3.C. 2014 EDA Work Plan Patrick Klaers, City Administrator Documents: MEMO.PDF, ATTACHMENT A.PDF 4. EDA MEMBER COMMENTS ADJOURN DRIFT It EN HILLS Approved: CITY OF ARDEN HILLS,MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY MEETING OCTOBER 28, 2013 6:00 PM—CITY HALL CALL TO ORDERIROLL CALL Pursuant to due call and notice thereof, President Grant called to order the Economic Development Authority meeting at 6:02 p_m. Present: EDA President David Grant; EDA Conumssioners Brenda Holden, Fran Holmes, Dave McClung, and Ed Werner Absent: None Also present: Treasurer Sue Iverson; Executive Director Jill Hutmacher; Community Development Intern Matthew Bachler; and City Clerk Amy Dietl 1. APPROVAL OF AGENDA MOTION: EDA Commissioner Holmes moved and EDA President Grant seconded a motion to approve the meetine agenda as presented. The motion carried unanimously (5-0). 2. APPROVAL OF MINUTES A. July 29, 2013,Regular EDA B. August 26, 2013, Special EDA MOTION: EDA Coninussioner llolnies moved and EDA Commissioner holden seconded a motiou to .approve the July 29, 2013, rep-ulaa- Economic Development Authority and August 26, 2013, special Economic Development Authority minutes as presented. The motion carried unanimously (5-0). 3. CONSENT CALENDAR ARDEN HILLS EDA MEETING—OCTOBER 28, 2013 2 None. 4. NEW BUSINESS A. Approve Preliminary 2014 EDA Budgets Treasurer Iverson reviewed the preliminary 2014 EDA budgets in detail. These budgets are: the summary page showing all of the EDA budgets, the EDA General Fund, the Revolving Loan Fund, TIF 2, TIF 3, and TIF 4. At the last EDA meeting, a transfer was approved as well as a budget amendment to remove non-tax increment revenues from TIF 2 and place them into the PIR Fund. This change has been made, and as a result, the interest income in that fund has been revised. There have not been any other major changes to these budgets since the last meeting. She requested the EDA approve the preliminary EDA budgets. President Grant asked which TIF District fiords would assist with the Rotund Lake Road project. Treasurer Iverson indicated that it would be TIF District 2. EDA Commissioner Holden questioned if the gateway sign amounts should be reduced. Treasurer Iverson stated that the amount was reduced from $50,000 to $40,000. MOTION: EDA Commissioner Holmes moved and EDA Commissioner Werner seconded a motion to approve the preliminary EDA budgets for 2014. The motion carried unanimously (5-0). B. Update on Car r ol I's Pr oper ty Executive Director Hutmacher stated that the City Council discussed the old CarrolI's Furniture building and property at the October 21, 2013, work session. At that meeting, the Council expressed an interest in exploring the possibility of purchasing the property. Staff has been in contact with the local broker and has learned that the property has two full-price offers. The potential buyers are interested in reusing the existing building. She indicated that the two full-price offers are of great interest to US Bank. She discussed the proposed uses for the site. EDA Commissioner Holmes asked if the potential buyers have been made aware of the Clty's interest in putting in a sidewalk. Executive Director Hutmacher commented that the broker is aware of this information and that she provides this information to any potential buyers who contact the City. A visual of where the sidewalk would be located was also provided. It was noted that the City has a partial easement for a portion of the sidewalk on this property, and that the main concern is the number of parking spaces that will be lost when a sidewalk is installed. EDA President Grant stated that the bank probably would not consider a lower offer from the City given the fact that there are two full-price offers on the table. ARDEN HILLS EDA MEETING—OCTOBER 28, 2013 3 Executive Director Hutmacher stated that the bank may be willing to consider a full-price offer from the City with few contingencies. She explained that an inspection of the property could be completed. EDA Commissioner Holden was not i nterested i n movi ng forward on the Carrel I's property given the fact that the site already has two full-price offers. EDA President Grant and the rest of the EDA agreed with EDA Commissioner Holden. C. TIF 3 (Cottage Villas) Update Treasurer Iverson stated that the EDA work plan included a discussion on the use of the Cottage Villas TIF District fund balance for October 2013 and January 2014. The current status of the find balance was reviewed. The projected fund balance at the end of 2013 is $250,954. It was noted that the fund balance has been increasing by about $40,000 per year. Staff recommended that the EDA defer discussion on the District until 2014. In 2014,staff will be working with Ehlers to help analyze this District and how the:ftmds may be spent. Treasurer Iverson explained that there is no urgency to make a decision on how these funds should best be used as the District does not expire until 2019. The main restriction on the use of these funds is that they need to be spent on qualified low and moderate income housing projects. Also, it should be noted that receiving future funds depends on the current owners of Cottage Villas continuing to comply with the low and moderate income housing requirements. EDA Commissioner Holden questioned why Ehlers was being considered to complete an analysis. Treasurer Iverson commented that their analysis would provide the City with information regarding what housing,projects qualified as low to moderate income. EDA Commissioner Holden recommended that the Commission defer discussion until 2014 and that the City not hire Ehlers at this time. MOTION: EDA Commissioner Holden moved and EDA Commissioner McClune seconded a motion to defer discussion on TIF 3 (Cottage Villas) until 2014 and that the City not hire Ehlers at this time. The motion carried unanimous) 5-0 . 5. UNFINISHED BUSINESS None. 6. EDA COMMISSIONER COMMENTS EDA Commissioner Werner questioned who would be able to attend the dedication service at Presbyterian Homes on November 5, 2013. ARDEN HILLS EDA MEETING—OCTOBER 28, 2013 4 EDA Commissioner Holmes indicated she was planning to attend the event. She questioned if she should be prepared to give a presentation. EDA President Grant recommended that staff speak with Presbyterian Homes regarding this matter. EDA Commissioner Holden commented that she had a difficult time reviewing the Bethel staff report. She recommended that the pages within the staff report, along with the attachments, be numbered in the future. EDA President Grant stated that this would be helpful for larger staff reports. 7. STAFF COMMENTS None. S. ADJOURN MOTION: EDA Commissioner Holmes moved and EDA President Grant seconded a motion to adjourn the Economic Development Authority meeting. The motion carried unanimously (5-0). EDA President Grant adjourned the special Economic Development Authority meeting at 6:32 p.m. Jill Hutma.cher David Grant Executive Director EDA President NEW BUSINESS —4A �r' ,-ARZEN fMLS MEMORANDUM DATE: January 27, 2014 TO: Economic Development Authority President and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: 2013 EDC Annual Report Requested Action Accept the 2013 EDC Annual Report. Discussion The EDC approved the 2013 Work Plan at its December 5, 2012, meeting. The 'Nark Plan was reviewed and approved by the Economic Development Authority (EDA) at a joint meeting with the EDC on January 28, 2013. Following is a summary of work completed towards the 2013 EDC goals.. New Member Recruitment Steve Heikkila was appointed to the EDC by the City Council on May 13, 2013. David Radziej was appointed to the EDC on January 13, 2014. Councilmember Werner has announced open EDC positions at televised City Council meetings, and information on open commission pod ti ons as wel I as appi 1 Cdi on mater!aI s are posted on the Ci ty's web51#e. Revolving Loan Program Research on the hi story, on gi nal f undi ng, and opti ons f or f uture use of the Ci ty s revol A ng I oan fund has been completed_ The EDA has provided direction regarding changes to the loan program including eligible projects, interest, and term. The EDC has provided feedback on the revolving loan program, and staff is seeking additional feedback from local bankers. All comments will be compiled for presentation to the EDA in early 2014. City of Arden Hills Page 1 of 2 Marketing and Outreach The EDC and City Council hosted a State of the City event on September 12, 2013. Approximately 75 people attended the event. Presentations included economic development, current transportation and development projects, the Arden Hills Foundation, and TCAAP. The Commission considered creating an electronic economic development newsletter, but it was decided that business news should be i nil uded in the City neNsi etter, pasted on the City's website, and included in district-specific newsletters on an as-needed basis. In 2013, Commissioners and staff posted several business-related articles in the Arden Hills Notes; a business news page was added to the City website; and a Round Lake-specific newsletter was distributed with information on upcoming and proposed transportation improvement projects. Work began on an analysis of vacancy rates for retail, office, and industrial properties in Arden Hills compared to the metropolitan and northeast submarket averages. Vacancy rates within each of the City's business districts were also examined. Business Visits Over the past few years, staff has worked to build a business inventory and contact list for all Arden Hills businesses. In 2013, staff visited every business in the Round Lake/Gateway Business District. Information was provided to businesses on the US 101Highway 96 construction project and the proposed improvement project for Round Lake Road. Information was collected on the type of business, number of employees in Arden Hills, and business representative contact information. Businesses in the B-2 district were visited in 2012; and business visits are planned for the Red Fox/Grey Fox district in 2014. Commissioners hand-delivered State of the City notices to all City businesses in late August/early September_ Staff and Commissioners visited new and relocated Arden Hills businesses including Sweet Chocolat and Now Bikes and Fitness. Also in 2013, staff developed an inventory and contact list for leased commercial property including broker and landlord contact information. Attachment Attachment A: 2013 EDC Work Plan City of Arden Hills Page 2 of 2 Attachment A -ARZEN ELLS Economic Development Commission 2013 Work Plan 2013 EDCGoals Work Tasks Timeline Publish a newsletter article Q1 -Q4 New Member Rost commission opening information on website Q1 F,ecruitment Promote membership at businessvisits Q1 -Q4 --7bntact Arden Hils business associates Q1 -Q4 F12seareh history of revolving loan program Q1 Identify options for use of loan funds Q2 FL-volving Loan Program Develop a loan or other economic development program, as directed by the Economic Development Q3-Q4 Authority Ran and promote State of the City event Q2-03 Use City newsletter to highlight local businesses Q1 -Q4 axUest business information to be added to the City Q1 -Q4 Marketing& Outreach website Explore publishing an economic development Q1 -Q4 newsletter Assist with City video tour on economic development Q3-Q4 content Establish a program to visit new businesses within 6 Q1 -Q2 months of receiving a Certificate of Occupancy Business Visits Develop a busi ness inventory and contact list for the Q1 Gateway Business Distrid Develop a contact list for major landlords Q3 City of Arden Hills 1245 West Highway 96 ■Arden Hills Mlnresota 55112 Phone 651.634.5120- Fax 651.634.5137 www.ci.and en-hill s.nm.us NEW BUSINESS—4B �r, ,-A I�MEN HILLS MEMORANDUM DATE: January 27, 2014 TO: Economic Development Authority President and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: 2014 EDC Work Plan Requested Action Approve the 2014 Economic Development Commission Work Plan. Discussion At the December 4, 2013, EDC meeting, Commissioners approved the 2014 EDC Work Plan. The work plan is based on EDC discussions and the City CounciI goal to "develop relationships with the business community and establish a reputation as a business- and development-friendly City." Sped fi c obj eclives withi n the Ci ty Counci I's economi c development goal i nd We: ❑ Increase contacts with the business community; ❑ Support Arden Hills businesses; ❑ Research economic development and business outreach efforts in other cities; and ❑ Determine whether additional programs are needed to maintain a healthy economic environment. The 2014 EDC Work Plan includes goals and objectives for marketing and outreach in order to increase contacts with the business community and support Arden Hills businesses. EDC goals related to the revolving loan program and a.potential business retention and expansion program are consistent with Economic Development Authority discussions regarding the loan program and the need to be in closer contact with businesses regarding their real estate needs. Attachment Attachment A: 2014 EDC Work Plan ,It Attachment A -A PEEN .ILLS Economic Development Commission 2014 Work Plan 2014 EDCGoals Work Tasks Timeline New Member Promote membership at business visits Q1 --Q4 Recruitment Contact Arden H'ills business assodates Q1 -Q4 FL-view and provide feedback on Revolving loan Q1 -Q2 Program Devolving Iran Program Market Revolving Loan Program to banksinArden Q3—Q4 Frills and surrounding communities Create promotional materialsfor the C3tywebsite and Q3 newsletter Develop a business inventory and conted list for the Q1 -Q2 Fbd Fox1C}ey Fox Business[Jistrict search programs in other cities Q1 -Q3 Expansion {BRE} Program gram Business Retention and F l�Consider costs and benefits of a BF;E program Q2-Q3 Consider priorities and goals of a 6F2Eprogram 02-Q3 Present KE research t o t he E DA and gauge interest in Q4 the development of a BFE program Identify newsiettertopicsand assign articdesto Q1 Commissioners and staff Flan and promote Etate of the City event Q2-Q3 Coordinate business outreach with Public Works Department on Fund Lake Fbad improvement Q1 -Q3 Marketing and Outreach project Visit new businesses within 6 months of occupancy Q1 -Q4 Update City website with business news and other 01 -Q4 information Assist with My video tour on economic development 04 content City of Arden Hills 1245 West H i ghway 96-A rden H i I I s M i n nesota 55112 Phone 651-792-7800 ■ Fax 651-634-5137 www.cityofarde hi11s.org NEW BUSINESS—X lt EN HILLS MEMORANDUM DATE: January 27, 2013 TO: Honorable Mayor and City Councilineinbers FROM: Patrick Klaers, City Administrator SUBJECT: EDA 2014-15 Work Plan Background/Discussion At the January 28, 2013, Economic Development Authority (EDA) meeting, the EDA approved their 2013-14 work plan. Attached is this work plan — it is included as part of my January 284' agenda memo to the EDA. At this January 28, 2013 EDA meeting, review of the Carroll's building and site was added to the work plan. Overall, the EDA did a good job in making progress on the 201.3-14 work plan. The EDA held their four quarterly meetings and had two special meeting in 2013 (one on the Business Subsidy policy and one on the Revolving Loan program). The only work plan item that did not get much attention last year was a review of TIF #3. At this January 27, 2014 meeting, I need to get the EDA's input on what they would like to see in the 2014-15 work plans. I will then present the work plan for consideration and approval at the April EDA meeting. Possible topics/issues for the EDA to consider for their 2014-15 work plan include the following: ❑ Round Lake Road improvemeKpro —This is really a City Council project but it is related to economic development as it impacts local businesses.Also,the EDA approved using TIF#2 funds to help finance this project (about $160,000). LJ Revolving Loan proms—the EDC will be reviewing the I oan program and the EDA's comments from their August 2013 special meeting and will offer the EDA some feedback on the program. The EDA should plan to update the Loan Guidelines in 2014. Any update needs to be reviewed by DEED. The Guidelines have not been updated since they were approved in 1997. Page 1 of 2 ❑ CarrolI's—The EDA (City) will continue to monitor the redevelopment situation at Carro[I's and hopeful I y can find away to i m prove the access and d ri vewaylentrance i nto the site for the benefit of all the businesses in this vicinity. ❑ Bum-The 2015 EDA budgets will need to be reviewed and approved. Gateways Signs (money is transferred from the Pllt fluid) are included in the 2014 EDA budget. A sustainable revenue source needs to be identified for the EDA General Fund budget. ❑ TIF#3 —This district expires in 2019. The EDA needs to develop a plan to use the available funds for the benefit of qualified low to moderate income housing projects. ❑ TIF 94—This district for Pres H omes wi I I be"up and running" in 2014. The EDA will want to be kept advised as to the revenues and expenditures in this district_ ❑ Business Retention and Expansion (BRE}prograni —The EDC plans to make a presentation to the EDA in 2014 on the"pros and cons' for the development of a program in Arden Hills. ❑ B2 Improvement praiect—This may be a 2015 construction project. This is a City Council project but is also related to economic development as it will impact most of the business operation along County Road E. This list is not meant to be all inclusive. As appropriate, please add projects for the 2014-15 work plans. Attachment Attachment A: EDA 2013 Work Plan Page 2 of 2 Attachment A 'It EN HEM MEMORANDUM DATE: January 28, 2013 TO: Economic Development Authority (EDA) Board of Commissioners FROM: Patrick Klaers, City Administrator SUBJECT: EDA 2013 Work Plan BackeroundlDiscussion On February 21, 2012 the City Council met in a work session to discuss the need for an EDA in Arden Hills. The City established an EDA in 1996, and in 1997,the City Council transferred authority over the TIF Districts to the EDA. At the February 21, 2012, Council work session,Director of Finance and Administrative Services Sue Iverson reviewed with the Council the status of the TIF Districts and the status of the Revolving Loan Program. Attached for your review is the February 21"memo from Sue. Most of the items noted i n Sud s memo from 2121l12 are proposed to be i nd uded i n the EDA work plan for 2013 -14. If the proposed by-laws are approved, then the quarterly EDA meetings in 2013 are scheduled for April 29, July 29 and October 28. The proposed work program includes: Pro ectlActivity Timeline 1. Finalize the TIF Policy(includes a chart 1. Special EDA work session meeting for the ranking of applications) and in February or March; April EDA update the Business Subsidy Policy meeting agenda. 2. Research the City revolving loan 2. April and July EDA meetings program including loan restrictions and guidelines; consider/decide future program activities 3. Consider using TIF 2 District funds for 3. July EDA meeting; and if the project a Round Lake Road West street and moves forward, it will be oil all the sanitary sewer improvement project in EDA quarterly agendas until 2014 cum leted at the end of 2014. 4. EDA.2014 operating budget-review 4. July and October EDA meetings and consideration(the EDA needs to identify and approve a sustainable revenues source) 5. TIF 3 District (Cottage Villas) - 5. October and January 2014 EDA discussion on use of fund balance. The meetings funds need to be spent on low to moderate housing. The July EDA meeting agenda looks a little heavy. We may want to think about a special EDA meeting to discuss TIF 2 District funds and the need for a Round Lake Road West street and sanitary sewer improvement project. Recommendation: Approve the Economic Development Authority Work Flan subject to any adjustments made at tonight's meeti ng.