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HomeMy WebLinkAbout05-26-15-WS It ,` lZEN HILLS Approved: August 31, 2015 CITY OF ARDEN HILLS, MINNESOTA SPECIAL CITY COUNCIL WORK SESSION MAY 26, 2015 6:00 P.M. -ARDEN HILLS CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Grant called to order the special City Council work session at 6:04 p.m. Present: Mayor David Grant; Councilmembers Brenda Holden, Fran Holmes, Dave McClung, and Robert Woodburn Absent: None Also present: City Administrator Patrick Klaers; City Attorney Joel Jamnik; Director of Finance and Administrative Services Sue Iverson; Assistant City Engineer John Anderson; Community Development Director Jill Hutmacher; City Planner Ryan Streff; Associate Planner Matthew Bachler; and City Clerk Amy Dietl 1. AGENDA ITEMS A. Economic Development—Business Retention Strategies City Administrator Klaers stated that the Council needed to discuss business retention strategies. He noted that a local business was interested in an expansion project. He requested comments from the Council on possible financial incentives for this business. He stated that after speaking with Ehlers & Associates it was learned that TIF was not an option; however, tax abatement could be considered. He indicated that the City should make an offer to show its commitment to business retention. This business was hoping to have an offer to review by early June. He encouraged the Council to consider offering a tax abatement on the new growth. Councilmember Holden asked if there would be more than one new building with this project. She questioned when the 20-year tax abatement would begin. City Administrator Klaers reported that the discussions have been about one new building and one new parking structure. He explained that the 20 years would likely begin when the building was fully occupied. Mayor Grant inquired if staff had any information on the proposed building height. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—MAY 26, 2015 2 Community Development Director Hutmacher discussed the proposed building height with the Council. Mayor Grant did not object to the building height given the proposed location. Councilmember Woodburn hoped that the current green space buffer would remain around the site. Councilmember Holden asked if the City had an understanding of the footprint of the new building. Community Development Director Hutmacher stated that the City did not have this information. Councilmember Holden asked if staff knew what type of jobs and how many jobs would be created with the proposed expansion. Community Development Director Hutmacher reported that roughly 600 jobs would be created over the next 10 years. She understood that these jobs would be quite high paying, with a starting pay of approximately$60,000 per year. Mayor Grant discussed the potential growth expected for this business. Councilmember Woodburn provided comment on the expense to the City of providing tax abatement versus losing the business to another City. Councilmember Holmes understood that the City was willing to consider 20 years of tax abatement. She questioned what else the business was seeking from the City. City Administrator Klaers commented that the business was pursuing a certain dollar amount in order to help finance the project. He stated that at this time, the tax abatement would provide the business part of what they were hoping to receive for their expansion. He explained that if the County were to offer additional abatement, this could assist the business. He reported that after speaking with the business this afternoon, he believed that they wanted to remain in the City if provided a reasonable offer from the City and County. Councilmember McClung asked when the City would receive a commitment from the business. City Administrator Klaers explained that he didn't know of a specific date. Councilmember Holmes questioned if the City could write a payback clause into the abatement contract that would require the business to pay back the City if it were to move outside of Arden Hills. City Administrator Klaers believed that a clause of this type could be written into the abatement documents. ARDEN HILLS SPECIAL CITY COUNCIL WORK SESSION—MAY 26, 2015 3 Councilmember McClung recommended that the business be encouraged to remain in Arden Hills. City Attorney Jamnik requested that the Council provide staff with direction on how to proceed. Councilmember McClung opposed staff proceeding with the tax abatement. Councilmember Holmes feared that the proposed tax abatement or other incentives would not work and, in the end, the City would be giving up tax revenue. Councilmember Holden supported the City offering the business tax abatement in order to keep them in Arden Hills. She valued the jobs that this business offered to the community. Councilmember Woodburn was opposed to the 20-year tax abatement length. However, he could support it in order to keep the company in Arden Hills. Mayor Grant was in favor of offering the tax abatement and hoped that the County would be assisting with the offer. He provided comment on the importance of business retention and feared how Arden Hills would be impacted if this business were to move out of the community. It was his opinion that it was in the City's best interest to move forward with offering incentives for them to stay. Councilmember McClung questioned what would keep this business from coming back to the City and requesting further abatements. He expressed concern with how the City could be impacted by additional tax abatement requests. City Administrator Klaers stated that the City would be setting the bar very high by keeping this business in the community. This may assist the City in pulling other large companies to TCAAP. Based on the direction from Council, staff would continue to work on this matter with the City Attorney. 2. COUNCIL COMMENTS AND STAFF UPDATES None. ADJOURN Mayor Grant adjourned the special City Council work session at 6:55 p.m. Amy Dietl UDavid Grant City Clerk Mayor It, -ARPEN HILLS Request for Special City Council Work Session A special meeting may be called by the Mayor or by any two Councilmembers. Reason for meeting: 1. Economic Development- Business Retention Strategies Requested Date: 5/26/15 Requested time: 6:00 PM Open meeting X Closed meeting Signature of person(s) making request: 5/ 20 / 15 Mayor or Council Member Date Council Member Date -This section to be completed by City staff- Date received: / / Date meeting to be held: 5/26/15 Time of meeting: 6:00 PM Location: City Hall All necessary posting and notices have been completed. S Signature of Ci Clerk Date City of Arden Hills * 1245 West Highway 96 Arden Hills,MN 55112-5743 Phone 651-792-7800 + Fax 651-634-5137 www.cityofardenhills.org