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HomeMy WebLinkAbout12-04-13 EDCDan Altstatt -- Vacant www.cityofardenhills.org Vacant Vacant Ed Werner Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well- infrastructure, fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. CALL TO ORDER Minutes 3.A.13 EDC Minutes Documents:13 EDC MINUTES.PDF Unfinished And New Business 4.A.2013 Annual Report Documents:MEMO.PDF, 4.B.2014 Work Plan Documents:MEMO.PDF, 2014 Newsletter Assignments Documents:MEMO.PDF, TCAAP Redevelopment Project Documents:MEMO.PDF 5.A.Commission Members 5.B.Council Liaison Staff Comments 5.C.A.Carroll's Furniture Property Update Documents:MEMO.PDF, A quorum of the City Council may be present at this meeting. CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT COMMISSION NOVEMBER 6,20138:00AM CITY HALL --1245 WEST HIGHWAY 96 CALL MEETING TO ORDER Chair Ed vonHoltum called the meeting to order at 8:03a.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 agendaas presented. 2.APPROVAL OF MINUTES It was the consensus of the Commission to accept the August 14, 2013,meetingminutes as presented. 3.UNFINISHED ANDNEW 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 feltthe 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 2of 5 Commissioner Erickson responded that attendees appreciated the MnDOTupdate 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. CommissionerErickson 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 itshistory and funding sources. He reviewed the existing revolving loan fund guidelines and Economic Development Authority (EDA) discussions regarding potential revisions to the fund guidelines. CommissionerErickson 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 aboutthe 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 3of 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 areplanning 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 marketthe 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 4of 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 completingthe taskson the work plan. Chair von Holtum responded that there is a feeling among Arden Hillsbusinesses 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 thepresentation 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 5of 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 at9:30a.m. _____________________________________________________ Ed vonHoltum, ChairJill Hutmacher Community Development Director  MEMORANDUM DATE:EDC Agenda Item 4.A December 4, 2013 TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: 2013 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 Work 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. Two additional individuals have expressed interest in the EDC.Councilmember Werner has announced open EDC positions at televised City Council meetings, and information on open commission positionsas well as application materialsareposted on the City’s website. Revolving Loan Program Research on the history, original funding, and options for future use of the City’s revolving loan fund has been completed.The EDA has provideddirection 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 presentationto the EDA in early 2014. 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. City of Arden Hills Economic Development Commission December 4, 2013 12 Page of The Commission considered creating an electronic economic development newsletter, but it was decided that business news should be included in the City newsletter, posted on the City’s website, andincluded 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 newsletterwas 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 10/Highway 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 Citynotices 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 2013EDC Work Plan City of Arden Hills Economic Development Commission December 4, 2013 22 Page of Economic Development Commission 2013Work Plan 2013 EDC Goals Work TasksTimeline Q1 - Q4 Publish a newsletter article Q1 Post commission opening information on website New Member Recruitment Q1 - Q4 Promote membership at business visits Q1 - Q4 Contact Arden Hills business associates Q1 Research history of revolving loan program Q2 Identify options for use of loan funds Revolving Loan Program Develop a loan or other economic development Q3 - Q4 program, as directed by the Economic Development Authority Q2 - Q3 Plan and promote State of the City event Q1 - Q4 Use City newsletter to highlight local businesses Suggest business information to be added to the City Q1 - Q4 website Marketing & Outreach 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 business inventory and contact list for the Q1 Gateway Business District Q3 Develop a contact list for major landlords City of Arden Hills 1245 West Highway 96 Phone 651.634.5120 www.ci.arden-hills.mn.us  MEMORANDUM DATE:EDC Agenda Item 4.B December 4, 2013 TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: 2014EDC Work Plan Requested Action Approve the 2014 Economic Development Commission Work Plan. Discussion At the November 6, 2013, EDC meeting, Commissioners reviewed the draft 2014 Work Plan. The work plan isbased on EDC discussions and the City Council goal to “develop relationships with the business community and establish a reputation as a business-and development-friendly City.” Specific objectives within the City Council’s economic development goal include: 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. Processing current planning cases; responding to resident, business, and developer inquiries; and the TCAAP redevelopment project are priorities for the Community Development Department. These work tasks have statutory deadlines and business reasons for their urgency on a day-to-day basis.Council-directed projects such as code amendments and economic development City of Arden Hills Economic Development Commission December 4, 2013 12 Page of objectives comprise approximately 20% of the planning/economic development work load. These projects are advanced as time and resources permit. The EDC Work Plan assumes that the Community Development Department is able to maintain its current level of planning and economic development staffing which includes the Community Development Director, City Planner, and a full-time intern/Associate Planner.If the City is unable to maintain staffcapacity due to budgetary or other reasons, staff recommends that the EDC focus its efforts on marketing and outreach in order to continue building and improving the City’s relationship with the business community. Staff recommends that work on the revolving loan program and business retention and expansion program be postponed until time and resources can be made available. The Work Plan will be considered by the Economic Development Authorityat a joint meeting with the EDC at 5:30 pm on Monday, January 27, 2014. Attachment 2014 EDC Work Plan City of Arden Hills Economic Development Commission December 4, 2013 22 Page of Economic Development Commission 2014Work Plan 2014 EDC Goals Work TasksTimeline Promote membership at business visits Q1  Q4 New Member Recruitment Q1  Q4 Contact Arden Hills business associates Review and provide feedback on Revolving Loan Q1  Q2 Program Market Revolving Loan Program to banks in Arden Revolving Loan Program Q3  Q4 Hills and surrounding communities Create promotional materials for the City website and Q3 newsletter Develop a business inventory and contact list for the Q1  Q2 Red Fox/Grey Fox Business District Q1  Q3 Research BRE programs in other cities Business Retention and Consider costs and benefits of a BRE program Q2  Q3 Expansion (BRE) Program Consider priorities and goals of a BRE program Q2  Q3 Present BRE research to the EDA and gauge interest in Q4 the development of a BRE program Identify newsletter topics and assign articles to Q1 Commissioners and staff Plan and promote State of the City event Q2  Q3 Coordinate business outreach with Public Works Department on Round Lake Road improvement Q1  Q3 project Marketing and Outreach Q1  Q4 Visit new businesses within 6 months of occupancy Update City website with business news and other Q1  Q4 information Assist with City video tour on economic development Q4 content City of Arden Hills 1245 West Highway 96 Phone 651-792-7800-634-5137 www.cityofardenhills.org  MEMORANDUM DATE:EDC Agenda Item 4.C December 4, 2013 TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: 2014 Newsletter Assignments Requested Action Assign newsletter articles to Commissioners and staff. Discussion In 2013, EDC Commissioners and staff contributed several business-focused articles to the Arden Hills Notes. Newsletter articles are included on the 2014 EDC Work Plan. The Communications Committee has requested that the EDC provide a schedule and list of topics for business articles. The Committee may need some flexibility in scheduling based on space needs, but it will try to accommodate EDC articles whenever possible. The Communications Committee publishes the Arden Hills notes ten times annually (schedule and deadlines attached). They have suggested that an EDC article every second edition would be appreciated. Possible 2014 newsletter topics include: Lexington Station (when it is nearing completion and some tenants are known) Revolving Loan Program Round Lake Road Improvements (in conjunction with Public Works) County Road E Business District Carroll’s Furniture reuse Focus on particular businesses/types of businesses Attachment 2014Arden Hills NotesPublication Calendar City of Arden Hills Economic Development Commission December 4, 2013 11 Page of  MEMORANDUM DATE:EDC Agenda Item 4.D December 4, 2013 TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: TCAAP Redevelopment Project Requested Action None. Master Plan In collaboration with the St. Paul Chamber of Commerce, the City held an on-site master planning workshopat Land O’Lakes on Thursday, November 7. This was a pilot project designed to determine whether the City could reach a younger and more diverse demographic with targeted, on-site events. The twelve participants generally ranged in age from the 20’s to the early 30’s. Comments received included the following: Participants wanted to be able to walk to bars, restaurants, and entertainment venues from their homes, but acknowledged that cars will still be their primary mode of transportation. Participantssuggested that a transit center or park and ride should be included to provide transportation options. Participants felt that professionals moving to the area and starting careers would be most interested in townhomes and condominiums, but young families would prefer single- family homes. Participants mostly (but not unanimously) favored public open space over large private yards. Back yards should be just big enough to “throw a ball”. Participants wanted to minimize their time spent on household chores and maintenance – most preferred a home no larger than necessary and a homeowner’s association to take care of mowing and shoveling. City of Arden Hills Economic Development Commission December 4, 2013 13 Page of When asked how to reach a younger demographic, attendees responded that events such as the one at Land O’Lakes are an innovative and effective way to reach their age group. Participation makes them want to seek additional opportunities to be involved. Attendees also suggested using social media tools such as Facebook, Instagram, and Linked-In. Given the success of the event and the positive feedback received, the City is working with SPACC to schedule additional on-site master planning workshops at major employers in January and February. Snelling Avenue Bus Rapid Transit th The Snelling Avenue Arterial Bus Rapid Transit (BRT) route will connect the 46Street (Blue Line) and the Snelling Avenue (Green Line) light rail stations with Rosedale Mall. Arterial BRT operates in regular traffic without dedicated lanes. Stops are more widely spaced than regular bus routes and bus stops have more amenities such as substantial shelters, ticket vending machines, radiant heat, and real-time bus information. Of the project’s $25 million cost, Metro Transit has secured $15 million in funding. Pending final funding, Metro Transit plans to construct improvements in 2014 and begin operation of the Snelling Avenue Arterial BRT line in 2015. The Metropolitan Council has announced that it will evaluate a future extension of the Snelling Avenue BRT line from Rosedale Mall to TCAAP via Snelling and Hamline Avenues. The extension would run north on Snelling and Hamline Avenues and could serve University of Northwestern, Bethel University, the County Road E business district, Land O’Lakes and Boston Scientific. Metro Transit will conduct a study to determine the feasibility of BRT extension to TCAAP. Regional Transportation Improvements An open house to gather public feedback on the design options for the Highway 96/I-35Wand County Road H/I-35Winterchanges was held at the Ramsey County Public Works facility on November 19, 2013. Attendees were encouraged to view the concepts for both interchanges and ask questions of the staff present. The event was well attended with 66 members of the general public signing-in at the welcome table and more who declined to sign-in. Staff were present from Arden Hills, Ramsey County, MnDOT, and Kimley-Horn and Associates. A handout was given to attendees that included a general project summary and project timeline. Sixteenboards were displayed showing area constraints, concepts for both interchanges, and a basic overview of TCAAP. Elevencomments were submitted in writing at the open house. The nature of the comments consisted mostly of concerns with bicycle and pedestrian access, access toTCAAP, pros and City of Arden Hills Economic Development Commission December 4, 2013 23 Page of cons of roundabouts in general, and the construction impacts of the interchanges. Verbal feedback was generally positive about the momentum to improve the interchanges and raised concerns similar to those submitted in writing. The conceptdesigns are posted on the TCAAP Master Plan page of the City’s website. Next Steps City Council review of the first Master Plan draft is scheduled for December 16, 2013. The next TCAAP open house is tentatively scheduled for Wednesday, January 22, 2014. Master Plan consultants will also ask for feedback from the JDA and the Planning Commission on January 6 and 8, 2014, respectively. The final Master Plan and the draft AUAR are both expected to be completed in spring 2014. City of Arden Hills Economic Development Commission December 4, 2013 33 Page of MEMORANDUM DATE:December 4, 2013 TO:Economic Development Commission FROM:Matthew Bachler, Community Development Intern SUBJECT:Carroll’s Furniture Property Update Background The former Carroll’s Furniture property at 1203 County Road E is currently being marketedfor $450,000. This is approximately the value of the underlying land according to Ramsey County tax records.Severalparties have contacted staff expressing an interest in the property. All of the prospective buyers have indicated that they would reuse the existing building rather than tearing th it downand rebuilding on the site. At the City Council Work Session on November 18, the Council reviewed a concept plan for the site proposed by Creative Catering. Thebusiness is currently leasing space at the Country Financial office building at 2 Pine Tree Drivein Arden Hills. Discussion The Carroll’s Furniture building is configured as a single tenant building with a total floor area of approximately 40,000 square feet. Creative Catering would repurpose the buildingfor a banquet area, catering facilities, and retailuses.To accommodate the different uses, the applicant wouldseparate the buildinginto three sections. Banquet and meeting room space would be located on the upper level (15,000 s.f.),catering facilities on the lower level (15,000 s.f.), and retail bays would be constructed within theeastern sideof the building (7,000 s.f.) that fronts County Road E. Creative Catering intends to make improvements to the building’s exteriorand update the existing signage on the property. Staff has informed Creative Catering about the need for a sidewalk and public easement along County Road E, the possible closure of the entrance on the western end of the parking lot, and the shared driveway improvement along the easternproperty line.The company has indicated their willingness to work with the Cityto address these items. The City Council expressed concerns regarding the amount of parking that would be provided on the site.TheZoning Coderequiresbanquetuses to provide oneparking space for every two seats;retail uses oneparking space per150 square feet of retail floor space;and catering uses one space for each 1,000 square feet of floor area.Based on the proposed use of the building,up to262 parking spaces could be needed.The existing parking lot has a total of 35 spaces, 17 of which are likely to be removed if the City constructs a sidewalk in the easement area. Creative Catering has proposed mitigatingtheparking deficiencyby securing shared parkingagreements withadjacent properties and otherslocated in the area. A valet service would be provided for larger events at the banquet facility. Next Steps Staff has determined that at a Site Plan Reviewapplicationwillbe required for theproposed reuse of the property. The application would need to be reviewed by the Planning Commission and approved by the City Council. Prior to submitting a formal application, the Council strongly recommended that Creative Catering obtain all necessary shared parking agreements and that they review the proposal with the Ramsey County Sheriff’s Officeand theLake Johanna Fire Department. Attachments County Road E Improvements Map –Carroll’s Furniture