HomeMy WebLinkAbout11-06-13 EDCDan Altstatt
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Vacant
www.cityofardenhills.org
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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.August 14, 2013
Documents:DRAFT MINUTES 08 14 13 .PDF
Unfinished And New Business
4.A.Report On 2013 State Of The City
Documents:MEMO.PDF
4.B.
Documents:MEMO.PDF,ATTACHMENTS.PDF
2014 Draft EDC Work Plan
Documents:MEMO.PDF,
Documents:MEMO.PDF,ATTACHMENTS.PDF
5.A.Commission Members
5.B.Council Liaison
Staff Comments
A quorum of the City Council may be
present at this meeting.
CITY OF ARDEN HILLS, MINNESOTA
ECONOMIC DEVELOPMENT COMMISSION
AUGUST 14,20138:00AM
CITY HALL --1245 WEST HIGHWAY 96
CALL MEETING TO ORDER
Chair Ed vonHoltum called the meeting to order at 8:05a.m.
ROLL CALL
Present:Chair Ed von Holtum,Dan Erickson,Jim Huninghake, and Steve Heikkila.
Also Present:Council Liaison Ed Wernerand Community Development Director Jill
Hutmacher.
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 July 10, 2013,meetingminutes as
presented.
3.UNFINISHED AND NEW BUSINESS
A.State of the City
Community Development Director Hutmacher
stated that the promotional and marketing
activities for the State of the City had already begun. Specific marketing tasks were listed in the
staff memo.
Community Development Director Hutmacher
distributed postcards for commissioners to
give to businesses. Hutmacher noted that when the EDC divided up business districts for
commissioner visits, Lexington Avenue between the railroad tracks and I-694 was not included.
Commissioner Erickson
volunteered to visit Lexington Avenue businesses.
EDC Minutes
August 14, 2013
Page 2of 4
Chair von Holtum
asked when would be the best week to visit businesses.
Community Director Hutmacher
responded that anytime between August 19 and September 6
would be fine, depending on commissioners’ schedules.
B.TCAAPProject
Community Development Director Hutmacher
stated that the TCAAP project is moving
forward and much has happened in the past several months. Information on the demolition and
remediation project as well as summaries of the developer interviews andJuly 30, 2013, panel
discussion and public engagement workshop are included in the agenda packet.
Chair von Holtum
suggested that Commissioners who attended the July 30 event share their
reflections.
Councilmember Werner
expressed his satisfaction with the quality and diversity of the panel.
He found the comments on the importance of the younger generation at TCAAP very interesting.
Councilmember Werner noted that Arden Hills is an older community, and people often look for
senior housing that allows them to stay in Arden Hills.
Chair von Holtum
agreed that the panel was better than previous TCAAP panel discussions.
He noted that many of the same people who attendedpublic meetings during the Ryan plan also
attended the July 30 event to voice support for their interests and projects.
Chair von Holtum
added that the panel did a good job of distinguishing between the realities of
what will work on the site from what some people or groups would like to see on the site. The
panel was able to address the advantages and challenges to the site.
Councilmember Werner
found the comparison to Centennial Lakes in Edina interesting,
particularly the size difference between the projects and the length of the development timeframe
for Centennial Lakes.
Chair von Holtum
suggested that people still do not understand the difference between TCAAP
and the AHATS site. He continues to hear comments that people believe the AHATS site will be
developed.
Community Development Director Hutmacher
stated that she was pleased by the attendance
at the event, particularly that approximately half of the 85 or so attendees were Arden Hills
residents. She noted that the City was working with the Chamber of Commerce on ideas to
involve young professionals in the planning process.
Commissioner Erickson
asked whether the City should reach out to University of Minnesota
students.
EDC Minutes
August 14, 2013
Page 3of 4
Commissioner Huninghake
supported the idea and noted that even if the students have many
unrealistic ideas, they may also have a few very good ideas that would make the site more
appealing for Generation Y.
Commissioner Heikkila
added that the outreach should be extended to the younger populations
of Minneapolis and St. Paul. The outreach effort itself will help to brand Arden Hills as a
progressive,growing community.
Commissioner Huninghake
asked about Community Development Director Hutmacher’s
impressions of the Denver redevelopment areas.
Community Development Director Hutmacher
noted that both Stapleton and Lowry were
very interesting and well-designed, but she felt that Lowry was a better fit for Arden Hills since
it had a somewhat more suburban development pattern and traditional architecture. She added
that both developments incorporated a significant amount of public art which defined community
character and provided a unique sense of place. She noted that both developments used alleys
extensively, but that snow was less of a concern than in Minnesota. Alleys were maintained by
homeowners associations and were kept looking very nice.
Chair von Holtum
inquired about the amount of park space at Stapleton in Denver.
Community Development Director Hutmacher
responded that approximately 1100 out of
4700 acres at Stapleton were reserved for parks and open space. The development director for
Stapleton advised that it was too much park space and that the City of Denver could really not
afford to maintain such alarge amount of park space.
Councilmember Werner
added that the City Council approved an amendment to the Kimley
Horn contract on August 12, 2013.Ramsey County requested the amendment and will pay the
contract amendment costs. The amendment authorizes Kimley Horn to begin analysis and pre-
design work for the bridge and interchange improvements at Highway 96/I-35W and County
Road H/I-35W. The work will provide the County will information to gain legislative support
for transportation funding in time for the 2014 legislative session.
4.UPDATES
A.Commission Members
None.
B.Council Liaison
EDC Minutes
August 14, 2013
Page 4of 4
Councilmember Werner
notified the EDC that E Street Flats was nearing completion and had
leased 14 units. The City Council approved a temporary Certificate of Occupancy so that the
tenants could move in before the final site improvements were completed.
Councilmember Werner
added that the south water tower is currently being repainted and will
include the Citylogo. The logo will be visible to traffic on I-694 and Highway 51. The Snelling
Avenue road improvement project between Lake Johanna Boulevard and Highway 51 may
proceed next year.
C.Staff Comments
Community Development Director Hutmacher
asked whether the EDC needed to meet in
September.
Chair von Holtum
noted that the EDC would be meeting on September 12 for the State of the
City event. He also noted that he would be out of town during the scheduled October meeting.
Chair von Holtum
noted that the EDC had already accomplished most of the items on the2013
Work Plan and suggested that the EDC meet next in November.
It was the consensus of the Commission to cancel the September and October meetings.
ADJOURNMENT
Chair von Holtum
adjourned the meeting at9:30a.m.
_____________________________________________________
Ed vonHoltum, ChairJill Hutmacher
Community Development Director
MEMORANDUM
DATE:EDC Agenda Item 4.A
November 6, 2013
TO:
Economic Development Commission Chair and Commissioners
FROM:
Jill Hutmacher, Community Development Director
SUBJECT:
Report on 2013State of the City
The State of the City event was held on September 12, 2013, at Flaherty’s Arden Bowl.
Councilmembers and the Economic Development Commission Chair spoke on the TCAAP
project; economic development goals; current transportation and development projects; and the
Arden Hills Foundation.
The City received 92 RSVPs for the event, of which 56 (61%) attended. Nineteen people
registered as walk-ins for a total attendance of 75 people. Subsequent feedback from the St. Paul
Chamber of Commerce indicated that, in their experience, only 70% of RSVPs attend free events
and approximately 20% of attendees are walk-ins. The City will use this information for
planning purposes at any future State of the City events.
Events costs were as follows:
Flaherty’s Arden Bowl$963.46
Shoreview-Arden Hills Bulletin$563.20
Postage (2 postcard mailings)$112.20
Total costs$1,638.86
This is approximately $1,000.00 less than the cost of the 2011 State of the City event, largely due
to the cost difference between Flaherty’s and North Heights Lutheran Church.
City staff hascompiled notes regarding room layout, food, and audio-visual equipmentwhich
will be used for planning future events. Staff welcomes Commissionerfeedbackfor future
event planning.
City of Arden Hills
Economic Development Commission November 6, 2013
11
Page of
MEMORANDUM
DATE:EDC Agenda Item 4.B
November 6, 2013
TO:
Economic Development Commission
FROM:
Matthew Bachler, Community Development Intern
SUBJECT:
City of Arden HillsRevolving Loan Fund
Summary
The Economic Development Authority(EDA)is currently discussing the future use of the City’s
Revolving Loan Fund (RLF). The City established the RLFin order to participate in the
Minnesota Investment Fund (MIF) program,managed by the Departmentof Employment and
Economic Development (DEED). Grant funding received through MIF in 1998 was used to
provide Cardiac Pacemakers, Inc. with a low-interest loan for an expansion project. A $100,000
portion of theloan was repaid to the City and was used to capitalize the RLF. As of October 24
2013, the RLF cash balance was $155,649.The CPIloan repayment and investment interest
earnings are the only revenue sources represented in this balance. A more detailed history of the
RLF was provided in the April 29, 2013, staff report to the EDA (Attached).
Background
The use of revolving loan funds is regulated by guidelines that were first adopted by the City in
1997.At theEDA meeting on August 26, 2013, staff and commissioners discussed the goals of
the RLFandwhether the guidelines needed tobe updated to reflect new priorities.The Arden
Hills Business Subsidy Criteria and City Public Financing Guidelineswere also reviewed to
evaluatehowthese policies might impact or limit the use of the RLF.
Any revisions the City wishes to make to the RLF guidelinesare required tobe reviewed by
DEED prior to EDA and City Council approval. At a minimum, the guidelines should be
changedto state that the Minnesota Business Subsidy Law applies to RLF loans(this law came
into effect following the adoption of the guidelines in 1997).Staff is requesting feedback from
the EDC on the goals and priorities outlined by the EDA. Specifically, staff is looking for insight
on how the business community would view the proposed RLF guidelines. The following is a
th
summary of the discussion from the EDA meeting on August 26:
Loan Amount and Terms
The EDA discussed settinga maximum loan amount of$75,000. This number was decided on in
part because under the Minnesota Business Subsidy Law, loans of less than $75,000 are not
considered business subsidies and are exempt from the provisions of the state law. Thequestion
of whether a minimum loan amount should be setwas raised, but the topic was not discussed.
The EDA would prefer to offer short-term loans (5-year term or less) with an interest rate of
between one andtwo percent. The loan term period and interest rate could be negotiated
depending on the public benefitsassociated with the project, such as jobcreation and tax base
increase.However, there would notbe an option to forgive a loan.
Eligibility
Eligible projects would include land and building acquisition and construction, remodeling,
relocation, and commercial façade improvements. Revolving loan funds could not be used for
equipment acquisition, working capital, or professional fees. Commercial multi-family
residential projects would also not be eligible for RLF financing. Loans would only be available
to businesseslocated within the City’s commercial districts.
Financial Criteria
The main purpose of offering revolving loan funds would be to provide gap financing to
businesses unable to obtain adequate affordable capital from the private market. SinceRLFloans
would be subordinate to loans issued by private banks, establishing and maintaining a good
working relationship with local financial institutions will be key in ensuring the successful
management of the RLF. Applicants would be required to meet the underwriting criteria of the
private financial institutionsparticipating in the project.
Theexisting financial criteria for the use of funds would remainlargelyunchanged. These
criteria include requirements on the public to private financing ratio and the percent of private
equity contributed to the project. As the RLF guidelines are currently written, a project would be
required to leverage at least two dollars for every EDA dollar invested, and should include a
borrower’s equity contribution of 10% of the total project cost.
Goals and Principles
The EDA would like to target loans towards small, established businesses in Arden Hills.Two
ideas that were discussed werehow thefunds could be used to assisthome occupation businesses
looking to expandoperationsinto a commercial building, and how they could support façade
improvement projects, especially along commercial corridors like County Road E. At the same
time,the EDA wouldalso like to market public financing to help bring new, value-added
businesses into the community.
Overall, the EDA seemed supportive of a cautious approach to lending revolving loan funds.
They discussed theneed to be selective in choosing projects for financing, and wanted to target
projects that would bring the most benefit to the community. At the same time, the EDA was
interested in making loans in the short term so that funds can startproviding benefits to the
community.
Arden Hills Business Subsidy Criteria and City Public Financing Guidelines
On April 29, 2013, The City Council voted to approve amendments to the Business Subsidy
Criteria and City Public Financing Guidelines, and to approve the Public Financing Proposal
Grading and Report Card. The Criteria and Guidelines set minimum standards forthe City for
grantingall forms of public subsidy,but they primarily address the use of TIF and tax
abatements.The Grading and Report Card evaluates public financing proposals based on a
number of criteria, includingtheratio of private to public investment, minimum valuation
threshold, and expected increase in real estate value. Projects must meet a certainnumber of
th
criteria in order to qualify for subsidies. At the August 26meeting, the EDA affirmed that these
policies would apply to all loansadministered through the revolving fund regardlessof whether
the loanamount wasless than what State statutesdefine as a business subsidy.
Discussion Questions
1.Given the Commissioners’ real estate and business experience, will the terms and conditions
outlined above be attractive to the business community and encourage investment in Arden
Hills?
2.Because the loans will be made in conjunction with bank loans, it will be important to market
the program to banks in Arden Hills and adjacent communities. How could the EDC assist
with these marketing efforts?
3.Consideringthe EDA’s interest in targetingloans towards small businesses, are there specific
types of projects that smallbusinesses commonlyseeks financingfor?
4.What other feedback or information could be helpful to the EDA as it considers the RLF
program?
Attachments
EDA Staff Report, April 29, 2013
City of Arden Hills, EDA Revolving Loan Fund Guidelines
City of Arden Hills Business Subsidy Criteria and City Public Financing Guidelines
Public Financing Proposal Grading and Report Card
MEMORANDUM
DATE:
April 29, 2013
TO:
EDA President and Commissioners
FROM:
Matthew Bachler, Community Development Intern
SUBJECT:
EDA Revolving Loan Fund
Requested Action
Provide direction on the future goals of the EDA Revolving Loan Fund.
Summary
The EDA Revolving Loan Fund (RLF) was established by the City in order to participate in the
Minnesota Investment Fund (MIF) program managed by the Department of Employment and
Economic Development (DEED). Grant funding received through MIF in 1998 was used to
provide Cardiac Pacemakers, Inc. with a low-interest loan for an expansion project. A $100,000
portion of this loan was repaid to the City and was used to capitalize the RLF. The CPI loan
repayment and investment interest earnings are the only revenue sources currently represented in
The existing RLF guidelines should be updated to meet State Business
Subsidy Law requirements. Revisions to the RLF guidelines must be approved by DEED.
Background
The Department of Employment and Economic Development established the Minnesota
Investment Fund to provide industrial, manufacturing, and technology-related businesses with
low-cost financing to help create or retain high quality jobs. Loans are awarded to and
administered by local units of governments; to qualify for financing, a business must complete a
joint application with a local government. Generally, the program allows local governments to
retain a portion of the loan repayment to create an RLF.
In January 1997, the City Council authorized the City Administrator to execute an MIF loan
agreement with Cardiac Pacemakers, Inc. (CPI). A $100,000 portion of the state financing was in
the form of a low-interest loan that was repaid to the City. This loan had a 5-year term at a 3%
interest rate. The proposed use for the funds was a 47,000 square foot expansion project to
enhance research and development programs at CPI. The company estimated an additional 200
high-skill jobs would be created as a direct result of the investment.
______________________________________________________________________________
City of Arden Hills
Economic Development Authority Meeting April 29, 2013
12
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Prior to dispersing theMIF grant, the State required Arden Hills to adopt guidelines for the
revolving loan fund (attached). The regulations were designed to set parameters on the use of
funds development policies. The RLF guidelines
were approved by the EDA on August 25, 1997 and by the City Council on May 26, 1998.
The CPI loan principal plus accrued interest was paid off entirely as of December 31, 2003. At
this point the RLF cash balance was approximately $140,000. This number represents the CPI
loan principal, interest payments, and investment interest earnings. The RLF balance was
estimated to be $154,969 as of December 31, 2012. Growth in cash reserves in the RLF between
2004 and 2012 was derived entirely from investment interest earnings.
The City did administer a second MIF loan through the RLF for Guidant in 2004. However, none
of the funds currently in the RLF are associated with this agreement, as the City forgave its
portion of the Guidant loan. In April 2004, the City executed an agreement with DEED to
provide the company with $250,000 for the purchase of machinery and equipment. The City
committed to forgive its $100,000 portion of the loan if the company met certain job creation
numbers. Guidant complied with these set terms and its portion of the loan was subsequently
forgiven. On April 20, 2005, the City transferred the repaid loan principal and interest
($150,083.30) from the RLF to DEED.
Revolving Loan Fund Guidelines
The use of the EDA Revolving Loan Fund is regulated by the Minnesota Business Subsidy Law.
Loans of less than $75,000, however, are not considered business subsidies. The EDA may want
to consider revisions to the RLF guidelines that target loan funds to specific types of economic
development projects. At a minimum, the RLF guidelines should be revised to state that the
Business Subsidy Law applies to RLF loans. Any revisions made to the RLF guidelines will need
to be reviewed by the State Department of Employment and Economic Development prior to
EDA and City Council approval.
As staff drafts revisions to the RLF guidelines, guidance on the following questions is requested:
What are some types of business development projects the City would like to finance
using RLF loans?
What steps could be taken to educate the local business community about the availability
of RLF loans and other public financing tools?
Do the existing RLF g and objectives
regarding the use of RLF loans?
Recommended Action
Direct staff to draft revisions to the Revolving Loan Fund Guidelines in accordance with EDA
discussion on the goals of the RLF.
Attachments
City of Arden Hills, EDA Revolving Loan Fund Guidelines
______________________________________________________________________________
City of Arden Hills
Economic Development Authority Meeting April 29, 2013
22
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City of Arden Hills
Business Subsidy Criteria and City Public Financing Guidelines
APRIL 29, 2013
1.
PURPOSE AND AUTHORITY
A.The purpose of this document is to establish the criteria for the City of Arden
Hills for granting of business subsidies and for City public financing for private
development within the City. These criteria shall be used as a guide in processing
and reviewing applications requesting business subsidiesand/or City public
financing.
B.The City's ability to grant business subsidies is governed by the limitations
established in Minnesota Statutes 116J.993 through 116J.995(Statutes).The City
may choose to apply its Business Subsidy Criteria to other development activities
not covered under this statute.City public financing may or may not be
considered a business subsidy as defined by the Statutes.
C.Unless specifically excluded by the Statutes, business subsidies include grants by
state or local government agencies, contributions of personal property, real
property, infrastructure, the principal amount of a loan at rates below those
commercially available to the recipient of the subsidy, any reduction or deferral of
any tax or any fee, tax increment financing(TIF), abatement of property taxes,
loans from the City’s Revolving Loan Fund,any guarantee of any payment under
any loan, lease, or other obligation, or any preferential use of government
facilitiesgiven to a business.
D.These criteria are to be used in conjunction with other relevant policies of the
City.Compliance with the Business Subsidy Criteria and City Public Financing
Guidelines shall not automatically mean compliance with such separate policies.
E.The City may deviate from these criteria by documenting in writing the reason(s)
for the deviation. The documentation shall be submitted to the Department of
Employment and Economic Development with the next annual report.
F.The Citymay amend this document at any time. Amendments to these criteria are
subject to public hearing requirements contained in the Statutes.
2.BUSINESS SUBSIDY PUBLIC PURPOSE REQUIREMENT
A.All business subsidies must meet a public purpose with measurable benefit to the
City as a whole. Public purpose may include, but not be limited to, creating
needed services or facilities not currently available, providinga variety of housing
ownership alternatives and housing choices, redevelopingand removingblight
City of Arden Hills Public Financing Policy Page 1of 7
April 29, 2013
and encouragingredevelopment in the commercial and industrial areas of the City
in order to encourage high levels of property maintenance and private
reinvestment in those areas, retaininglocal jobs, increasingthe job base, and
providingdiversity in that job base, enhancingexisting jobs through increased
wages, encouragingadditional unsubsidized private development in the area,
either directly, or through secondary “spinoff” development, offsettingincreased
costs of redevelopment over and above those costs that a developer would incur in
normal urban and suburban development, and meetingother uses of public policy,
as adopted by the Council from time to time including the promotion of quality
urban design, quality architectural design, energy conservation, decreasing the
capital and operating costs of local government, etc.
B.Job retention may only be used as a public purpose in cases where job loss is
specific and demonstrable. The City shall document the information used to
determine the nature of the job loss.
C.The creation of tax base shall not be the sole public purpose of a subsidy.
D.Unless the creation of jobs is removed from a particular project pursuant to the
requirements of the Statutes, the creation of jobs is a public purpose for granting a
subsidy. Creation of at least oneFull Time Equivalent (FTE)job is a minimum
requirement for consideration of assistance.
E.The wage floor for wages to be paid for the jobs created shall be not less than
150% of the State minimum wage in effect at the time the subsidy is granted. The
City will seek to create jobs with higher wages as appropriate for the overall
public purpose of the subsidy. Wage goals may also be set to enhance existing
jobs through increased wages, which increase must result in wages higher than the
minimum under this Section.
3.SUBSIDY AGREEMENT
A.In granting a business subsidy, the Cityshall enter into a subsidy agreement with
the recipient that provides the following information: wage and job goals (if
applicable), commitments to provide necessary reporting data, and recourse for
failure to meet goals required by the Statutes.
B.The subsidy agreement may be incorporated into a broader development
agreement for a project.
C.The subsidy agreement will commit the recipient to providing the reporting
information required by the Statutes.
4.CITY’SOBJECTIVEFOR THE USE OF PUBLIC FINANCING
A.Asa matter of adopted policy, the City mayconsider using public financing
which may include tax increment financing(TIF), tax abatement, bonds, waiver
of City fees (excluding building permit fees),and other forms of public financing
City of Arden Hills Public Financing Policy Page 2of 7
April 29, 2013
as appropriate,to assist private development projectswhen such assistance
complies with all applicable statutory requirements to:
1.Remove blight and/or encourage redevelopment in designated
redevelopment/development area(s)per the goals and visionsestablished by
the City Council
2.To achieve thefollowing housing-related goals:
a.To provide a balanced and sustainable housing stock to meet diverse
needs both today and in the future
b.To ensure all housing is safe and well-maintained
c.To promote neighborhood stabilization and revitalization by the removal
ofblightand the upgrading of existing housing stock.
3.To retain local jobs and/or increase the number and diversity of quality jobs
4.To encourage additional unsubsidized private development in the area, either
directly or through secondary “spin-off” development.
5.To offset increased costs forredevelopment over and above thecosts that a
developer would incur in normal urban and suburban development
(determined as part ofthe But-For analysis).
6.To facilitate the development process and to achieve development on sites
whichcouldnot be developed without this assistance.
7.To meet other uses of public policy, as adopted by the CityCouncil from time
to time, includingbut not limited topromotion of quality urban design, quality
architectural design,energyconservation, sustainable building practices,and
decreasing the capital and operating costs of local government.
5.PUBLIC FINANCING PRINCIPLES
A.
The guidelines and principles set forth in this document pertain to all applications
for City public financing regardless of whether they are considered a business
subsidy as defined by the Statutes. The following general assumptions of
redevelopment shall serve as a guide for City public financing:
1.All viable requests for City public financingassistance shall be reviewed by a
third party financial advisorwho will inform the City of its findings and
recommendations.
2.The City shall establish mechanisms within the development agreement to
ensure that adequate checks and balances are incorporatedin the distribution
of financial assistancewhere feasible and appropriate, including but not
limited to:
a.Third party review of the “but for” analysis
City of Arden Hills Public Financing Policy Page 3of 7
April 29, 2013
b.Establishment of “look back provisions”
c.Establishment of minimum assessment agreements
3.TIF and abatement will be provided on a pay-as-you-go-basis. Any request
for upfront assistance will be evaluated on its own merits and mayrequire
security to cover any risks assumed by the City.
4.The City will elect the fiscal disparities to come from inside applicable TIF
district(s)to eliminate any impact to the existing tax payers of the community.
5.The City will target up to the maximum allowed by State Statute of tax
increment for administrative purposesonly.
6.The developer shall proactively attempt to minimize the amount of public
assistance needed through the pursuit of grants, innovative solutions in
structuring the deal, and other funding mechanisms.
7.Proposals should not be used to support speculative industrial, commercial,
office or housing projects. In general the developer should be able to provide
market data, tenant letters of commitment or financestatements which support
the market potential/demand for the proposed project.
8.Public financing will not be used in a project that involves an excessive land
and/or property price. This will normally be where the acquisition price is
more than 20% in excess of market value as determined by an independent
appraisal of the property (exclusiveof relocation benefits). The City shall
commission an appraisal and the cost will be paid from Developer’s escrow.
9.Public financing will not be used in projects that would give a significant
competitive financial advantage over similar projects in thearea due to the use
of public subsidies. Developers should provide information to support that
assistance will not create such a competitive advantage. Priority consideration
will be given to projects that fill an unmet market need.
10.TIF and Abatement will not be utilized for the construction of new rental
housing units. The City will consider waivers of various City fees for new
rental housing developments (building permit fees excluded).
11.Public financing will not be used for projects that would generate significant
environmental problems in the opinion of the local, state, or federal
governments. Priority will be given to projects that aim to clean-up existing
contaminated sites and would facilitate the location of an industry or business
that has anenvironmentally-sound track record, or that meets a housing need
in the City.
12.The City will not approve new TIF districts that would cause the percentage
of the City’s total tax capacity captured within TIF districts to rise above six
percent.
City of Arden Hills Public Financing Policy Page 4of 7
April 29, 2013
6.PROJECTS WHICH MAY QUALIFY FOR PUBLIC FINANCING ASSISTANCE
A.All new applicationsfor assistanceconsidered by the City must meet each of the
following minimum qualifications and will also be evaluated based on their
not
ability to meet the desired qualifications for assistance.However, it should be
presumed that aproject meeting any of the qualifications will automatically be
approvedfor assistance. Meeting the qualifications does not imply or create
contractual rights on the part of any potential developer to have its project
approvedfor assistance.
6.1Minimum Qualifications:
A.In addition to meeting the applicable requirements of State law, the project shall
meet one or more of the Publicfinancing objectives outlinedin Section 4;and
shalleither:
1.Remove blight and/or encourage redevelopment in the City in order to
encourage high quality development or redevelopment and private
reinvestment in those areas; OR
2.Facilitate the development process and to achieve development on sites which
would not be developed without this assistance.
B.The developer must demonstrate to the satisfaction of the Citythat the project is
not financially feasible “but for” the use of tax incrementor other public
financing.
C.Theproject must be consistent with the City’s Comprehensive Plan and Zoning
Ordinances, Design Guidelines or any other applicable land use document.
D.Prior to approval of a financing plan, the developer shall provide any requested
market and financial feasibility studies, appraisals, soil boring, private lender
commitment, and/or other information the City or its financial consultants may
require in order to proceed with an independent evaluationof the proposal.
E.The developermust provide adequate financial guarantees to ensure the
repayment of any public financing and completion of the project. These may
include, but are not limited to, assessmentagreements, letters of credit, personal
deficiency guarantees, guaranteed maximum cost contract, etc.
F.Any developer requesting assistance mustbe able to demonstrate past successful
general development capability as well as specific capability in the type and size
of development proposed. Public financing will not be used when the developer’s
credentials, in the sole judgment of the City, are inadequate due to past history
relating to completion of projects, general reputation, and/or bankruptcy, or other
problems or issues considered relevant to the City.
City of Arden Hills Public Financing Policy Page 5of 7
April 29, 2013
G.The developer, or its contractual assigns, shallretain ownership ofany portion of
theproject long enough to completeit, to stabilize its occupancy, to establish
projectmanagementand/or needed mechanisms to ensure successful operation.
6.2Desired Qualifications:
A.Projects providing higher than a3 to 1 ratio of privateinvestment to City public
investmentwill receive priority consideration.Private investment includes
developer cash, government and bank loans, conduit bonds, tax credit equity, and
land if already owned by the developer.
B.Projects meeting the following minimum building valuationwill receive priority
consideration:
Minimum Value
Use
Per Sq/Ft or Unit
Industrial$60
Commercial/Retail$125
Office$100
Rental Housing$100,000
C.Proposals that significantly increase the amount of property taxes paid after
redevelopment will receive priority consideration.
D.Proposals that encourage the following will receive priority consideration:
1.Provides significant improvement to surrounding land uses, the
neighborhood, and/or the City
2.Provides opportunities for development of restaurants
3.Attracts or retains a significant employer within the City
4.Provides opportunity for hi-tech, med-tech and R & D facilities/office
5.Provides significant rehabilitation of an existing apartment complex or
significant rehabilitation and/or expansion of existing office, commercial
or industrial facility
6.Provides opportunities for high end and/or specialty retail that is not
currently available to City residents
7.Redevelopsa blighted and/or challenged site
City of Arden Hills Public Financing Policy Page 6of 7
April 29, 2013
8.Provides opportunities for small businesses
E.Preference will be given to projects that meet good public policy criteria as
determined by the City Council, including:
1.High project quality (e.g. sound architectural design, quality construction
and materials, sustainable building practices)
2.Projects that meet financial feasibility criteria established by the City
3.Projects that provide the highest and best desired use for the property
7.PUBLIC FINANCING PROJECT EVALUATION PROCESS
A.The following fivemethods of analysis for all public financingproposals will be
used:
1.Consideration of project meeting minimum qualifications
2.Consideration of project meeting desired qualifications
3.Project meets “but-for” analysis and/orstatutory qualifications
4.Project is deemed consistent with City’s Goals and Objectives
5.Score of a “B” or higher on the TIF report card
Please note that the evaluation methodology is intended to provide a balanced review.
Each area will be evaluated individually and collectively and in no case shouldone
area outweigh another in terms of importance to determining the level of assistance.
Adopted by Arden Hills City CouncilApril 29, 2013
City of Arden Hills Public Financing Policy Page 7of 7
April 29, 2013
Public Financing Proposal
Grading and Report Card
Business and Commercial Redevelopment
FINAL GRADE:F
1Ratio of private investment to public investment in project:
Points:
0
Note: Private investment includes developer cash, loans from banks, conduit bonds, tax credit equity and land if already owned by developer
Private Funds/Public FundsPoints
$-3to11
Private Investment
$-4to12
Public Investment
#DIV/0!5to13
Ratio of Private/Public Financing
6to14
7 & Upto15
2Minimum Valuation threshold
Points:
0
Industrial ValuationPoints
$-$601
Building Valuation
0$61to$702
Building Square Footage
$0.00$71to$803
Value Per Sq/Ft
$81&Up4
Points:
0
Retail ValuationPoints
$-$1251
Building Valuation
0$126to$1502
Building Square Footage
$151to$1753
Value Per Sq/Ft
$176&Up4
Points:
0
Office ValuationPoints
$-$1001
Building Valuation
0$101to$1102
Building Square Footage
$111to$1203
Value Per Sq/Ft
$121&Up4
Points:
0
3Increase in real estate value:
Points:
0
Before/After Points
$-1to1.90
Value of site before redevelopment
$-1to21
Value of site after redevelopment
#DIV/0!1to32
Ratio of value before/after redevelopment
1to43
1to54
1&Up5
4Bonus Points (18 points total)
Points:0
Points
AvailAwarded
A. Project will add value to and likely stimulate further investment in surrounding neighborhood30
B. Provides opportunities for restaurant30
C. Project attracts or retains significant employer within the City30
D. Provides opportunity for hi-tech, med-tech and R & D facilities/office30
E. Provides significant rehabilitation or expansion of existing facility20
F. Provides opportunities for high end and/or specialty retail20
G. Project will redevelop a blighted and/or challenged site10
H. Provides opportunities for small business10
180
TOTAL
32 Total Points Available
5
TOTAL POINTS0Total PointsGrade:F
0to5F
6to10D
11to15C
16to21B
22to32A
1
MEMORANDUM
DATE:EDC Agenda Item 4.C
November 6, 2013
TO:
Economic Development Commission Chair and Commissioners
FROM:
Jill Hutmacher, Community Development Director
SUBJECT:
Draft 2014EDC Work Plan
The Economic Development Commission should approve a 2014 EDC Work Plan at its
December 4, 2013 meeting. 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.
Staff has prepared the attached draft 2014 Work Plan based on City Council and EDC economic
development goals. Commissioners are asked to review the draft work plan and provide
feedback. A revised 2014 Work Plan will be presented for EDC approval at the December EDC
meeting.
City of Arden Hills
Economic Development Commission November 6, 2013
11
Page of
Economic Development Commission
2014Work Plan
2014 EDC Goals Work Tasks Timeline
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.D
November 6, 2013
TO:
Economic Development Commission Chair and Commissioners
FROM:
Jill Hutmacher, Community Development Director
SUBJECT:
TCAAP Development Project
Demolition and RemediationProject
Ramsey County received notice that the Minnesota Pollution Control Agency (MPCA) and the
Environmental Protection Agency (EPA) have approved the Quality Assurance ProjectPlan
which means that below-grade remediation work can begin in the 30 acres that are subject to the
lease agreement with the federal government.
TCAAP Open House
The first open house for the TCAAP Master Planning process was held on September 17, 2013.
The purpose of this open house was to provide information about the master planning process,
share background information on the redevelopment site including site constraints, and solicit
input on site opportunities and issues. Over 80 people were in attendance.
The following boards were on display and have been posted on the City’s website:
Goals and Objectives
Project timeline and schedule
Site context and features
Key lessons from developer panel/developer interviews
Transportation and access
Environmental features
Topography and elevations
Parks, trails, and open space
Attendees were asked to comment on residential and commercial building types, open space
types, and neighborhood patterns. Attendees also had an opportunity to participate in a land use
exercise in which they could distribute their preferred mix of residential, retail, office, and park
City of Arden Hills
Economic Development Commission November 6, 2013
13
Page of
uses across the site. Photos were taken of each completed exercise and projected onto a screen in
the room.
Comments received at the open house largely addressed the following themes:
Emphasize trails and provide multi-modal connectivity
Limit the amount of development to preserve the natural environment
Create regional destination in the form of shopping centers or community attractions and
amenities
Place non-residential uses on the west and residential on the east part of the site
Focus on small and local businesses
Incorporate indoor and outdoor sporting/recreation facilities
Provide lifecycle housing opportunities (young singles, families, retirees)
Find a way to incorporate alternative energy production
Make sure there is ample green space and active space
Make provisions for transit service.
In an effort to increase involvement of businesses and young professionals in the master planning
process, staff is working with the St. Paul Chamber of Commerce to schedule a master planning
event at Land O’Lakes in early November. The event will be very similar, in terms of
information presented and the land use exercise, to the September 17, 2013, TCAAP open house.
Depending on the outcome of the Land O’Lakes event, additional on-site master planning
activities may be scheduled at major local employers in winter/spring 2014.
Alternative Urban Areawide Review (AUAR)
An Alternative Urban Areawide Review (AUAR)is a form of environmental documentation
through Minnesota State Rules that evaluates development scenarios for an entire geographical
area rather than a specific project. An AUAR process is formally initiated by Responsible
Governmental Unit (RGU) order, which establishes the study area and scenarios to be addressed,
and officially starts the AUAR process.The City of Arden Hills is the RGU for the TCAAP
Development.
Input from public and stakeholder engagement activities, discussions with the City Council and
JDA, and findings of technical analysis have been reviewed by the consultant team along with
City and County staff. This information has been utilized to develop two scenarios for evaluation
in the AUAR.
The AUAR mustinclude a scenario that is consistent with the existing comprehensive plan.
Because the existing TCAAP zoning offers more detail than the comprehensive plan, using
zoning regulations is an acceptable alternative.
It is also in the best interest of the City to include a scenario which covers the “worst case”
possible impactssince the AUAR loses its validity if actual development –in total or in any
City of Arden Hills
Economic Development Commission November 6, 2013
23
Page of
subarea –is proposed to exceed the maximum development studied. The AUAR will “test” the
development so the Cityhas information available to make informed decisions about level of
development and mitigation needed.
On October 14, 2013, the City Council issued an AUAR orderandapproved the following
development scenarios tobe evaluated in the TCAAP AUAR:
Zoning Scenario:
up to 1,500 residential units; 500,000 square feet of retail; and
1,700,000square feet of non-retail commercial.
This scenario is consistent with the City’s comprehensive plan and the associated
development limits included in the City’s zoning code.
Maximum Development Scenario:
up to2,500 residential units; 550,000 square feet of
retail; and 1,950,000 square feet of non-retail commercial.
This scenario increases the amount of development to maximum density based on the
anticipatedcapacity of the transportation network, including reconstructed intersections
at CR H and TH 10/CSAH 96,and an access to CR I.
Next Steps
The master planning process is on schedule. The consultants anticipate having a draft of the
Master Plan prepared for City Council review in December 2013. At the next TCAAP open
house in January/February 2014, attendees will be asked to provide feedbackon the draft Master
Plan. The final Master Plan and the draft AUAR are both expected to be completed in spring
2014.
Pioneer PressArticles
Pioneer Pressreporters worked with City and County staff over the past few months to develop
material for a series of TCAAP articles. Articles published in October are attached.
City of Arden Hills
Economic Development Commission November 6, 2013
33
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http://www.twincities.com/ramseycounty/ci_24389799/arden-hills-h
Arden Hills to have big say in TCAAP development
By Sarah Horner shorner@pioneerpress.com TwinCities.com-Pioneer
TwinCities.com
Posted:
Ramsey County owns the land, but Arden Hills will have equal say
Twin Cities Army Ammunition Plant in the northern suburb.
The county purchased 427 acres in April for about $28.5 million.
tandem to prepare it for redevelopment by the private sector.
The effort is driven by a shared goal to see the site cleaned up
tax base and jobs.
"The county owns it but I wouldn't say that gives them any more
Hills Mayor David Grant. "Our interests are aligned. ... (The co
property so they can get their money back, but the city has the
get our planning money back."
"This is definitely a partnership," echoed Heather Worthington,
To tackle the massive undertaking -- expected to take some 10 to
creating a master plan for the parcel, which will ultimately det
shape.
City officials say they expect to see a blend of residential, co
ratio of the mix and where each will be located is undecided. Gr
expected to be included in the final footprint.
Two open houses were held over the summer and fall and another i
community feedback. Residents can also share input at city counc
The city expects to finish the master plan by next June. It will
city council and the Ramsey County board of commissioners.
A Joint Development Authority made up of two city council member
Arden Hills resident is overseeing its implementation, according
community-development director.
The authority members are city resident David Sand, who chairs t
city council member Brenda Holden, and Ramsey County commissione
Ortega.
All development proposals will need to get a green light from th
said. Proposals that don't match the vision will need to apply f
city and county.
The city is also tasked with drafting environmental reviews and
Page 1 of 2Nov 01, 2013 03:25:58PM MDT
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such as the height and material of buildings. City staff will al
Costs to develop the guiding framework are estimated at about $4
plans to recoup the cost when developers buy the land.
Depending on the pace of development, the city is hoping to fiel
current staff.
"Obviously, if it goes quicker, we may need to look at hiring,"
While the city is working to decide what should go where, the co
soil is safe for construction.
Cleanup is expected to be complete by October 2015, Worthington
The county is also charged with marketing the parcel to potentia
To facilitate development, a road running north/south through th
utility line installed. The city and county will split the respo
and the city the utilities, said Grant.
The trunk line is expected to cost about $4 million. The city pl
necessitated by development, Grant said.
Costs will be reimbursed through permitting fees and access char
If work progresses on schedule, development could begin as early
"Right now it's the planning phase, the fun part where we get to
basically a blank canvas almost inside the beltway," Grant said.
Sarah Horner can be reached at 651-228-5539. Follow her at twitter.com/hornsarah.
Page 2 of 2Nov 01, 2013 03:25:58PM MDT
http://www.twincities.com/ramseycounty/ci_24389797/if-pollution-
If TCAAP pollution costs soar, Ramsey County says it's covered
By Frederick Melo fmelo@pioneerpress.com TwinCities.com-Pioneer
TwinCities.com
Posted:
Pollution cleanup, a major barrier to the development of the for
well underway.
Ramsey County is spending $28.5 million to buy and clean up Minn
federal government, a move that has prompted some to raise quest
from the polluted site.
What if the cleanup costs more than expected? What if additional
County officials say the necessary protections against cost over
the redevelopment of the Arden Hills site is moving forward.
"We feel really safe and confident that the residents of the cou
said Heather Worthington, deputy county manager.
Among the guarantees obtained by Ramsey County is a fixed-price
contractor, Carl Bolander & Sons, and its subcontractor, Wenck A
In addition, the county has garnered assurances from the U.S. Ar
decades, to continue to be a partner on groundwater cleanup to 2
"We have a lot of information on the property, and the county ha
spent 25 years as the Army's property manager for TCAAP's surplu
any big surprises."
The county has touted its decision to purchase and clean the sit
draw developers to the table, create jobs and put the acres on t
The project is designed to make the land ready for residents to
Years ago, when the Army cleaned a five-acre portion of TCAAP to
an acre.
The county's decision to buy the property without a development
strong support in some development circles and a twinge of polit
And future developers will need firm legal assurances they won't
PREVIOUS ATTEMPT
For the better part of 10 years, a development team led by Bart
trumpeted their interest in redeveloping the surplus military la
With approval from the city in 2002, partners in Ryan Rehbein La
confident they could put a large section of the property on the
Page 1 of 5Nov 01, 2013 03:23:12PM MDT
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to shops and offices.
In May 2009, they abruptly changed course. Citing the faltering
partnership pulled out of the deal. Their detailed environmental
media and government inquiries about the data have been met with
"We invested significant dollars in the information we created t
environmental consultants ... and we will not be releasing that
with the Ryan Cos., in a message to a reporter.
Collins said, however, that "market conditions, moreso than any
from the project.
Ramsey County officials say the development team's departure fro
bump, but not entirely surprising given the economic downturn at
market.
POLLUTION ESTIMATES
Pollution, and the cost of cleaning it up, is the wildcard that
made some public officials nervous.
"You almost have to remind the commissioners, it's really Ramsey
They had us buy the biggest Superfund site in the state," said s
"I would have looked to the developers and had an inkling there
you clean it up, I'll do X.' Then I could somehow see spending t
In 2011, the Metropolitan Council and the Minnesota Sports Facil
report on the TCAAP site in light of the possibility of the Minn
by residences and office space.
Nearly half the report dwelled on the site's environmental histo
estimated at the time to cost anywhere from $23 million to $70 m
demolition.
County officials have said that those cost estimates were overst
"The uncertainty regarding the cost for remediation poses a sign
to approximate remedial cleanup costs at this time, based on the
additional site investigation, the uncertainty regarding groundw
Others aren't so concerned. Jeff Hall, owner of Ursidae Investor
Recycling, which redevelops polluted brownfields in Minnesota an
"It seems to me they're on the right track," Hall said of the co
which is great. The feds are so slow, so you need local control
good contractor. I'm sure the investigation was very thorough, b
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"It's cleanup to residential standards, which is the highest sta
plenty for anybody wanting to do development. Developers want a
MPCA (Minnesota Pollution Control Agency). If they end up with t
cleanup sites are safer than (typical development sites) ... bec
KEY TAXPAYER PROTECTIONS
Ramsey County's agreement with the federal government includes a
enough to fully cover the cost of building demolition and enviro
million contract with Bolander will be deducted from the purchas
costs are projected to be $4.9 million.
What's more, officials say the agreement with Bolander is fixed-
increase even if the extent of cleanup is greater than expected.
County Commissioner Victoria Reinhardt, who initially voted agai
isn't worried about cost overruns.
"Our liability from a dollar standpoint is capped in the contrac
something they didn't anticipate and it costs a lot more, then t
government. That's not on us."
While finding something unexpected is a distinct possibility, Re
thorough vetting from Bolander and a rival bidder, Veit Contract
"It was in the contractor's best interest before agreeing to a c
possibly could before putting out that bid," she said. "Otherwis
the federal government and the feds say 'you should have known.'
As further backup, the county also took out an environmental ins
'EVERYTHING THAT'S KNOWN IS ON US'
"The contract is written as such that everything that's known is
Bolander's environmental consultant, Wenck Associates of Maple P
something that's new, then the Army has to respond. ... We've re
was wrapped in asbestos. We're not seeing much other than pretty
haven't been ugly surprises."
One building "had a horrible amount of asbestos on the walls," O
wall. There were PCBs on the equipment in the building, and it t
building. So we've got a real cleanup to do there. It's a five-t
problem, and we will solve it. The good news about PCBs is they
"This piece of real estate, these four square miles, have been a
Minnesota," Otte said. "The most significant problem is the one
namely this groundwater plume.
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"The soil contamination, by and large, has been contained to man
areas on the site.
"There were huge areas of that site between manufacturing buildi
mow the lawn," he said. "And we're not finding anything that's s
might find in our back yards."
YEARS OF STUDY AND CLEANUP COMPLETE
County officials say the parcel has been studied more than most,
site under federal government ownership.
In fact, years of cleanup have already taken place. The Army beg
1978, prompting efforts to remove lead, mercury and other contam
groundwater wells, some reaching water supplies in New Brighton
and ongoing water treatment.
In 1982, 14 locations within the TCAAP property were placed on t
government's official listing of environmental hotspots. A Feder
groundwork for state and federal action.
By 1997, the Environmental Protection Agency, the Army and the M
put the Army in charge of cleaning the grounds to its own indust
The Army says that 397 acres -- 90 percent of the work -- is alr
30 contaminated acres from the federal government until Bolander
The Army's "military industrial" standards were created specific
found, the military has promised to cover the cost of bringing t
said.
Nevertheless, experts have raised concern that past testing for
dozens of buildings in place.
An April 9 letter from the Minnesota Pollution Control Agency to
would not be associated with "identified release," or pollution
studies. The "no determination" letter is considered an importan
along to potential developers.
But it may not be until the last building foundation is removed
apparent.
"The records are amazingly complete, but there are inevitably so
didn't know about," Worthington said.
The Met Council's 2011 stadium report noted: "Contaminants exist
remediate or address under (the Superfund law) or the FFA (feder
petroleum, and site-wide concerns, such as contamination around
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around current and former structures, and removal of asbestos-wr
Worthington said the county has addressed all those concerns.
"The contract between the county and Bolander goes well beyond t
the FFA (federal facilities agreement)," she said, "and includes
and releases associated with the former rail lines running acros
Environmental experts also caution that the military standards f
development, which in turn allow far more contamination than the
work remains.
"What you'll find is fairly dramatic acceptable concentration di
said Brent Jorgensen, an Oregon-based pollution-control expert w
which is not affiliated in any way with the TCAAP site. "It is s
cleanup to meet residential standards. However, it's very expens
Depending upon the type of contamination, the 397 acres have bee
certain contaminants, is more forgiving than what the state of M
The Met Council's 2011 stadium report noted that "lead cleanup l
site-specific standard were established at 1,200 milligrams per
uses of the site, the state would allow no more than 700 mg/kg f
for residential development.
More recently, the Army began using the lead cleanup standard of
state standard.
The difference is much less dramatic for acceptable levels of so
the federal standard is tougher than the state standard.
Shanna Schmitt, a geologist with the MPCA, said the state Brownf
and cleanup being done by Bolander and Wenck.
Once finished, the site will be taken off the federal Superfund
completion.
"Therefore, the expected level of cleanup will meet our standard
environmental assurance for cleanup."
Frederick Melo can be reached at 651-228-2172. Follow him at twitter.com/FrederickMelo.
Page 5 of 5Nov 01, 2013 03:23:12PM MDT
http://www.twincities.com/politics/ci_24267709/ramsey-county-bon
In Ramsey County bonding priorities, $15.6 million for roads nea
TCAAP
By Frederick Melo fmelo@pioneerpress.com TwinCities.com-Pioneer
TwinCities.com
Posted:
East metro ski trails, a proposed transit line from St. Paul to
Interstate 694 in Shoreview and Vadnais Heights are among Ramsey
2014.
The Ramsey County Board of Commissioners voted Tuesday to give p
bonding requests to state lawmakers, as well as a sixth request
The bonds will be included in a package to the Legislature, whic
approval to later this year.
The requests include $5 million for I-694 capacity improvements
Avenue, $4 million for design and construction improvements to t
and $2 million for pre-design and design work on the proposed Ru
They also include $10 million for an engineering study to allevi
railway network, mostly in St. Paul's Hoffman Yard, and to impro
Union Depot in downtown St. Paul.
Another $15.6 million would support four transportation projects
Ammunition Plant site in Arden Hills, mostly along the Interstat
and H. Eager to see the acreage turned over to private developer
expand the county's tax base, county officials expect to ask for
projects through 2018.
County Commissioner Janice Rettman, who has been critical of the
million to buy and clean up the contaminated TCAAP property, cas
bonding request. Rettman has said the federal government should
remediation on the polluted Superfund site, without the county b
risk.
County officials have said the roads need to be improved, regard
redeveloped.
The county board also will ask state lawmakers for about $200,00
Center.
Frederick Melo can be reached at 651-228-2172. Follow him at twitter.com/FrederickMelo.
Page 1 of 1Nov 01, 2013 03:27:38PM MDT
http://www.twincities.com/ramseycounty/ci_24345707/other-develop
Other developments could compete with TCAAP
By Frederick Melo fmelo@pioneerpress.com TwinCities.com-Pioneer
TwinCities.com
Posted:
Turning vast acres of open space into homes, offices and stores
especially true when the land is contaminated.
While the business and construction community is eyeing Ramsey C
Cities Army Ammunition Plant in Arden Hills as a future developm
game in town.
The following is a list of other high-profile development areas
Several of them are contaminated properties or former federal Su
presented challenges to city and county planners and the busines
of the recession. And all of them could be diamonds in the rough
FORD PLANT
On the east bank of the Mississippi River, the former Ford Motor
150 acres in St. Paul's upscale Highland Park neighborhood. Ford
only recently began demolition on the property, which the compan
St. Paul Mayor Chris Coleman has spoken of making the site a mod
living, a signal that city officials are not looking for Ford to
As demolition proceeds, Ford will identify environmental issues
will market the site in 2015, with plans to complete sale and en
2017, readying the property for redevelopment in 2018.
The riverfront property is near the St. Paul and Minneapolis dow
access is off city streets, and residential neighbors are taking
Officials at the St. Paul Port Authority figure there will be li
TCAAP.
"Ford, it's city street access," said Port Authority President L
potential. I think the market will be different for the two thin
Online: www.stpaul.gov/Ford
CEDAR GROVE
Over a decade in the making, Eagan's vision for a 65-acre redeve
Page 1 of 3Nov 01, 2013 03:20:14PM MDT
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Cedar Avenue and Highway 13 has survived the recession but evolv
The old Cedarvale Mall was purchased in February 2006 and demoli
pushback from some property owners. In all, the city acquired mo
mall and relocated 37 businesses. The Cedar Grove Transit Statio
housing, opened in 2010.
Under construction and scheduled to open next August, the 441,00
premium outlet center will install 100 stores on 29 acres. The p
Outlet Partners.
Work has also progressed on a 1,550-space parking structure bein
Development Authority. South of Cedar Grove Parkway, Lennar's fi
Townhomes is underway.
The latest addition approved in September calls for the east end
intersection of Silver Bell Road and Cedar Grove Parkway to host
otherwise known as the Flats at Cedar Grove. It will have 190 ma
center.
Online: tinyurl.com/eagancedargrove
WOODBURY PHASE II
Developers are flocking to fast-growing Woodbury.
A single landowner controls 400 acres near Interstate 94 and Man
owners control an additional 2,150 acres of mostly vacant land i
"Phase II" residential growth area. Within 10 years, that land c
6,300 homes.
Construction is slated to begin this fall on the Bielenberg Gard
center totaling 150,000 square feet on 30 acres. The project wou
Master Plan" area and designed as a pedestrian-friendly developm
Drive and Bailey Road.
A 100-acre corporate campus at Interstate 94 and Radio Drive is
estate investment firm, which is contemplating development there
UMORE PARK
In 2006, the University of Minnesota's Board of Regents approved
in Rosemount and Empire Township. To be developed over 30 years,
education, sustainable living and outdoor recreation.
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The vision for the university-founded community includes 13,000
an "eco-industrial" business center for research and design comp
as well as walkable neighborhoods blending retail, commercial an
Rosemount has approved gravel mining in the western portion of t
been built, and everything is still conceptual. The city is work
urban area-wide review," an assessment of how development of the
sanitary sewers, natural resources and other aspects of the surr
before the city council this month.
Online: www.umorepark.umn.edu
NEW BRIGHTON EXCHANGE
New Brighton began planning in the 1980s to attract fresh invest
portion of the city east of Long Lake that had bustled with pass
century before they were effectively cut off by the interstate s
Cleanup has been extensive, but development has been slow. Begin
eminent domain proceedings to assemble land within a 100-acre ar
Northwest Quadrant.
The land, at the intersection of Interstates 35W and 694, is cal
of life are growing.
A 1999 agreement with Ryan Cos. to serve as "master developer" f
Ryan re-emerged in 2006 on a more limited basis, resulting in th
office building in 2008.
The APi Group is considering another office building, and potent
Among them, Pulte Homes has been approved to develop housing alo
Also west of the road, a former Superfund site is now open space
Online: tinyurl.com/NewBrightonExchange
Frederick Melo can be reached at 651-228-2172. Follow him at twitter.com/FrederickMelo.
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Ramsey County bets big on TCAAP development
By Sarah Horner and Frederick Melo Pioneer Press TwinCities.com-
TwinCities.com
Posted:
Boosted by Ramsey County's purchase of the land and exposure fro
proposal, the barbed-wire fence is finally coming down at the Tw
Arden Hills.
Building demolition and environmental cleanup is well underway o
purchased by the county in April for $28.5 million. A year from
the development community.
"It's a long-term project, but the timing is really good. ... It
Louis Jambois, president of the St. Paul Port Authority, which s
industrial land.
"In the seven-county metro area, it's on the edge of the most de
region. We're just north of Roseville, which is a fully develope
For the better part of 70 years, the 2,300-acre TCAAP site was o
Small-arms munitions were manufactured and tested there during W
Vietnam wars.
Since Ramsey County closed on the sale, demolition crews have be
crushed concrete, mangled rebar and other rubble started stackin
tall grass, cattails and wildflowers.
Teeming with asbestos, Building 502 is the dirtiest of the struc
Superfund site. Next spring, it will be the last to come down.
When the work is done, city and county officials say, the metro
primed for development by the private sector just 10 miles outsi
Minneapolis.
"You can see both downtowns from TCAAP, and it's amazing," said
Area Chamber of Commerce. "There aren't many other sites where y
downtowns, next to an interstate, and already have a nature cent
For many in the development community, TCAAP is Ramsey County's
heavily developed borders of St. Paul and Roseville.
This is prime territory for developers to build homes, offices o
take credit for drawing new jobs to a sprawling suburban site ne
downtown St. Paul, surrounded on two sides by a wildlife corrido
A project that big probably won't land in the hands of one devel
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"I bet five years after it's opened up, it will all be spoken fo
the U.S. Department of Housing and Urban Development who special
redevelopment through St. Paul-based Exeter Realty Co. and Iront
A WELCOME ADDITION TO TAX ROLLS
The long-idled TCAAP property has piqued developers' interest in
A partnership led by the Ryan Cos. looked hard at the property b
nose-dived.
Visions of a Minnesota Vikings football stadium surrounded by ho
Ramsey County, but that fell apart when the team brokered a stad
Talk of a new conference center next to the stadium ended almost
criticism from officials in St. Paul and Minneapolis.
There's risk and worry, too. The pollution in the ground and wat
Critics have objected to the county getting into the chain of ti
private partner in the wings.
"You really ought to leave the economic development to the econo
mission of counties is to deliver on human services," said state
is mission creep, and it's misdirected."
Nevertheless, the activity is a welcome change for those who hav
Ramsey County's tax rolls.
Developers and stakeholders are weighing in on what they see lan
needs to be done to ensure that this time development finally ta
"It's not going outside of the outer boundaries into the far-off
field," said Pat Mascia, a real estate attorney and broker affil
Shops at West End in St. Louis Park, as well as many industrial
"Generally, we talk about being within the (Interstate) 694/494
developed," Mascia said. "You're finding a way to develop some o
hard to find."
STADIUM TALK WAS THE SPARK
For David Grant, it's an exciting time to be mayor of Arden Hill
the property.
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"I'm getting a lot of emails, a lot of phone calls," Grant said.
happening here."
Much of the credit for the revived attention is due to the Vikin
In its attempt to persuade the NFL team to build its new stadium
18 months investigating the property and negotiating with the U.
TCAAP's former owner -- on a potential sale.
When the Vikings chose Minneapolis, Ramsey County had already do
to purchase the parcel.
"If it wasn't for the Vikings project, I don't think we would be
momentum."
Nothing as sexy as a stadium is planned for the site now.
"We don't envision any big single-purpose use out there like a f
Klaers, city administrator of Arden Hills. "There will be no NAS
Instead, officials expect to see a mix of residential, commercia
427 acres.
That concept has a long history in Arden Hills, according to Jil
community-development director.
"That's really been the plan since the Army first discussed sell
the community embraces," Hutmacher said.
"We don't need another Rosedale Mall -- there's one down the roa
seamless," Klaers added. "We would love to see some big users co
up a corporate campus. We think something special can happen giv
Rather than one developer scooping up the whole parcel as Ryan w
city expects the land to be bought piecemeal.
Arden Hills is tasked with developing the master plan that will
meetings have been held to gather input from residents. Another
Ian Peterson of Pulte Group envisions a blend of the Stonemill F
Woodbury with the commercial retail hub in Blaine off 35W and Le
Depot, Walmart, restaurants and office space.
"Something like that makes a lot of sense to me," said Peterson,
developer. "I could see some kind of anchor store, be it Target
experiences like coffee shops and dry cleaners nearby."
As far as homes, a mix of small and large single-family lots as
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potentially anywhere from 600 to 900 units, Peterson estimated.
CHALLENGES REMAIN
Nevertheless, there will be challenges to development.
With 400-plus acres in play, officials estimate a 10- to 15-year
"That means it will go through several different market cycles w
strong," Hutmacher said. "It will be challenging to be flexible
still stay true to the vision set forth in the master plan."
City planners in Edina initially expected to see more office spa
the Centennial Lakes Development, according to Gordon Hughes, Ed
now a consultant to Urban Land Institute Minnesota.
That development -- about a fourth the size of TCAAP -- weathere
12-year development, Hughes said.
The final build-out of Edina's Edinborough also shifted drastica
office towers to one office tower, a senior high rise and a hote
"My advice to the city and the county is be prepared for that to
site," Hughes said. "You have to be patient and flexible because
probably not going to be what ends up being built in the end."
Kramer, of the St. Paul Area Chamber of Commerce, said flexibili
"Don't lock yourself into a plan on day one," he said. "Create a
10, 15 years. That framework guides macro decisions: 'We want a
we're not going to accept an oil refinery.' ... Those are good d
"But what the developers are saying is don't go much more than t
want a park with three Dairy Queens and swings.' You're trying t
into the future, and none of us are that good."
Communicating a willingness to adapt will help ease developers'
"There is a long history on that site of different parties tryin
important to know people are willing to look past preconceived i
Roads present another hurdle. Only two access roads lead in to t
Hutmacher said.
Of even bigger concern are the roads around the site.
The I-35W interchanges at Highway 96 and County Road H are badly
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and city officials say, pointing to aging bridges and capacity i
The county recently submitted a bond request to the Minnesota Of
million to complete the work, according to Heather Worthington,
If the state money isn't granted, the projects will wait, Worthi
"Obviously, we need those improvements for the site to reach its
can't start development without them," she said. "I fully expect
remediation is complete; it will just move at a slower pace."
The county is also hoping the state will eventually finish the "
Street to ease traffic backups and congestion problems.
'A SELLER'S SITE'
County officials say one of the biggest impediments to developme
"If you take out its previous use and the contamination, TCAAP w
generations ago," said the St. Paul Port Authority's Jambois. "W
site."
The county plans to clean the entire site to residential standar
mark that kept many developers at bay in the past, according to
"That was a game changer," Hutmacher said. "It's basically sayin
and the development community really likes that."
Peterson agreed.
"I imagine once the site is clean, the pollution-control agencie
a document that it's clean ... the great unknown is gone," he sa
will be more hurdles, but I've heard (that site) is going to get
With the environmental worries eased, the obvious strengths of t
community to ignore, Peterson said.
The site sits in a good school district in close proximity to bo
"It's a big site in a great location," Peterson said. "I really
Frederick Melo can be reached at 651-228-2172 or fmelo@pioneerpress.com.
Sarah Horner can be reached at 651-228-5539 or shorner@pioneerpress.com.
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