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HomeMy WebLinkAbout01-27-14 EDA Joint With EDClt EN HILLS Approved: April 28, 2014 CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY JOINT MEETING WITH ECONOMIC DEVELOPMENT COMMISSION JANUARY 27, 2014 6:00 PM — CITY COUNCIL CHAMBERS CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, President Grant called to order the Economic Development Authority meeting at 6:00 p.m. Present: EDA President David Grant; EDA Commissioners Brenda Holden, Fran Holmes, Dave McClung, and Ed Werner Absent: None Also present: Secretary Patrick Klaers; Executive Director Jill Hutmacher; Associate Planner Matthew Bachler; and City Clerk Amy Died EDC Commissioners Present: Chair Ed von Holtum, Dan Erickson, James Huninghake, Dan Altstatt, Steve Heikkila, and David Radziej OATH OF OFFICE EDC Chair von Holtum administered the Oath of Office to EDC Commissioner David Radziej. 1. APPROVAL OF AGENDA MOTION: EDA Commissioner Holmes moved and EDA President Grant seconded a motion to approve the meeting agenda as presented. The motion carried unanimously (5-0). 2. APPROVAL OF MINUTES A. October 28, 2013 ARDEN HILLS JOINT EDA MEETING — JANUARY 27, 2014 2 MOTION: EDA Commissioner Holmes moved and EDA Commissioner Holden seconded a motion to approve the October 28, 2013, Economic Development Authority minutes as presented. The motion carried unanimously (5-0). 3. NEW BUSINESS A. 2013 EDC Annual Report Executive Director Hutmacher reported that the Economic Development Commission (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. She indicated that EDC Chair Ed von Holtum would be addressing the EDA on behalf of the EDC. EDC Chair von Holtum explained that Steve Heikkila was appointed to the EDC by the City Council on May 13, 2013. David Radziej was appointed to the EDC on January 13, 2014. Councilmember Werner has announced vacant EDC positions during televised City Council meetings and information regarding open commission positions, as well as application materials, is available on the City's website. EDC Chair von Holtum stated that research on the history, original funding, and options for future use of the City's revolving loan fund has been completed. The EDA has provided direction regarding changes to the loan program including eligible projects, interest rates, and terms. The EDC has provided feedback on the revolving loan program, and staff is seeking additional feedback from local bankers. All comments will be compiled for presentation to the EDA in early 2014. EDC Chair von Holtum indicated that 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. EDA President Grant was pleased with the attendance at the State of the City event. He stated that this year a larger venue may have to be selected to accommodate the residents and local business owners in attendance. EDC Chair von Holtum stated that the Commission considered creating an electronic economic development newsletter, but it was decided that business news should be included in the City's newsletter, posted on the City's website, and included in district -specific newsletters on an as - needed basis. In 2013, Commissioners and staff posted several business -related articles in the Arden Hills Notes; a business news page was added to the City's website; and a Round Lake - specific newsletter was distributed with information on upcoming and proposed transportation improvement projects. ARDEN HILLS JOINT EDA MEETING — JANUARY 27, 2014 3 EDC Chair von Holtum reported that 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. EDC Chair von Holtum commented that 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. EDC Chair von Holtum stated that businesses in the B-2 district were visited in 2012; and business visits are planned for the Red Fox/Grey Fox district in 2014. Commissioners hand - delivered State of the City notices to all City businesses in late August/early September. Staff and Commissioners visited new and relocated Arden Hills businesses including Sweet Chocolat and Now Bikes and Fitness. Also in 2013, staff developed an inventory and contact list for leased commercial property including broker and landlord contact information. EDC Chair von Holtum stated that he was proud of the work accomplished by the EDC in 2013. He discussed the successful business visits conducted by the EDC and thanked each of the EDC members for their contributions to that effort. Discussion ensued regarding how to create a local business mailing/email list. EDA President Grant recommended that the EDC add a local business mailing list to its 2014 work plan. B. 2014 EDC Work Plan Executive Director Hutmacher stated that at the December 4, 2013, EDC meeting, Commissioners approved the 2014 EDC work plan. The work plan is based on EDC discussions and the City 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. Executive Director Hutmacher reported that 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 ARDEN HILLS JOINT EDA MEETING — JANUARY 27, 2014 4 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. EDC Chair von Holtum was pleased with the new members on the EDC. He explained that efforts continue to bring new members to the group. He reported that the Red Fox/Grey Fox area continues to be an area of interest for the EDC, and marketing efforts for this location will also continue. He has been pleased with the articles the EDC members have drafted for the City's newsletter. He discussed business retention efforts that would be addressed by the EDC along with new business visits. Executive Director Hutmacher explained that the EDC may look into creating an economic development video for the City's website, which could lead to additional marketing opportunities for local businesses. EDC Commissioner Huninghake was in favor of moving forward with this initiative. EDA President Grant anticipated that the City and the County may be creating some sort of video for the redevelopment of the TCAAP property. He suggested that if the EDC moves forward with the video that it focus on the City's existing businesses. EDA Commissioner McClung agreed and recommended the video tour be elevated on the EDC's priority list to assist in marketing the City. EDA Commissioner Holden did not want to see existing businesses struggle or relocating after the TCAAP development was completed. She hoped the TCAAP businesses would be complementary to the City's existing businesses. EDA Commissioner McClung stated that there would be some level of marketing or branding for the TCAAP site that would be different from all other businesses in the City. He did not want the rest of the City's businesses to get overlooked. EDA Commissioner Holden indicated that this focus would have to change eventually, because the TCAAP site was part of Arden Hills. EDC Chair von Holtum anticipated that the future residents on the TCAAP property would benefit the existing businesses in Arden Hills. EDA President Grant thought it would be important to find strong, vibrant businesses offering good paying jobs and a solid employment history to locate on the TCAAP site. He stated that the TCAAP property has a prime location and would be able to draw from the surrounding talent pool. He discussed the TCAAP Master Plan along with the open house that was held on January 22, 2014. He asked if the Council had anything they would like to add or remove from the EDC's 2014 work plan. ARDEN HILLS JOINT EDA MEETING — JANUARY 27, 2014 5 EDA Commissioner Holden discussed traffic concerns near HealthPartners. MOTION: EDA President Grant moved and EDA Commissioner Holmes seconded a motion to approve the 2014 EDC Work Plan. The motion carried unanimously (5-0). C. 2014 EDA Work Plan Secretary Klaers stated that at the January 28, 2013, Economic Development Authority (EDA) meeting, the EDA approved their 2013-14 work plan. The EDA held their four quarterly meetings and had two special. meetings in 2013 (one on the business subsidy policy and one on the revolving loan program). The only work plan item that did not get much attention last year was a review of TIF #3. Secretary Klaers requested that the EDA consider what they would like to see in the 2014-15 work plan. The work plan will be considered for approval at the April EDA meeting. Possible topics/issues for the EDA to consider for their 2014-15 work plan include the following: • Round Lake Road improvement project — This is really a City Council project but it is related to economic development as it impacts local businesses. Also, the EDA approved using TIF #2 funds to help finance this project (about $160,000). • Revolving Loan program - the EDC will be reviewing the loan program and the EDA's comments from their August 2013 special meeting and will offer the EDA some feedback on the program. The EDA should plan to update the Loan Guidelines in 2014. Any update needs to be reviewed by DEED. The Guidelines have not been updated since they were approved in 1997. • Carroll's — The EDA (City) will continue to monitor the redevelopment situation at Carroll's and hopefully can find a way to improve the access and driveway/entrance into the site for the benefit of all the businesses in this vicinity. • Budget — The 2015 EDA budgets will need to be reviewed and approved. Gateways Signs (money is transferred from the PIR fund) are included in the 2014 EDA budget. A sustainable revenue source needs to be identified for the EDA General Fund budget. • TIF #3 — This district expires in 2019. The EDA needs to develop a plan to use. the available funds for the benefit of qualified low to moderate income housing projects. • TIF #4 — This district for Pres Homes will be "up and running" in 2014. The EDA will want to be kept advised as to the revenues and expenditures in this district. • Business Retention and Expansion (BRE) program — The EDC plans to make a presentation to the EDA in 2014 on the "pros and cons" for the development of a program in Arden Hills. • B2 Improvement project — This may be a 2015 construction project. This is a City Council project but is also related to economic development as it will impact most of the businesses along County Road E. Secretary Klaers explained that this list is not meant to be all-inclusive. He requested comments from the Council for projects that could be added to the 2014-15 work plan. ARDEN HILLS JOINT EDA MEETING — JANUARY 27, 2014 6 EDA Commissioner Holden suggested the EDA consider improvements for the B-2 District. EDA Commissioner Holmes agreed and recommended an item be added to the work plan that would focus on TCAAP. She wanted to be certain that the City could cover the expense of the roadways and utilities within the development without having to increase property taxes. EDA President Grant stated that the spine road would be constructed by the County. He explained that the City would be installing the utilities and these expenses would be passed on to future developers. EDA Commissioner Holden did not believe that this was an EDA concern and should be left to the City Council. MOTION: EDA President Grant moved and EDA Commissioner Holmes seconded a motion to approve the 2014-15 EDA Work Plan. The motion carried unanimously (5-0). EDA President Grant requested that staff put together a tasks and timeframe outline for the work plan projects. 4. EDA COMMISSIONER COMMENTS None. 5. ADJOURN MOTION: EDA President Grant moved and EDA Commissioner Holmes seconded a motion to adjourn the Economic Development Authority meeting. The motion carried unanimously (5-0). EDA President Grant adjourned the special Economic Development Authority meeting at 6:58 p.m. .G� Jill H tmacher Executive Director David Grant EDA President