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HomeMy WebLinkAbout02-26-08 EDC Meeting Minutes - Unsigned EN HILLS CITY OF ARDEN HILLS,MINNESOTA ECONOMIC DEVELOPMENT COMMISSION FEBRUARY 26,2008; 7:30 AM CITY HALL-- 1245 WEST HIGHWAY 96 CALL MEETING TO ORDER Sed )C11 5 Chair Kunkel called the meeting to order at 7:30 a.m. ROLL CALL Present: Chair Kunkel Kunkel; Asst. City Administrator Noah Simon; Ed Von Holtum; Jim Paulet; City Planner James Lehnhoff; Ed Werner; Nancy Kneeland; Rob Davidson; Stacie Kvilvang, Ehlers; Interim City Administrator Willis; Councilmember Holden Holden. Absent: Chris Ashbach, Dale Beane. APPROVAL OF MINUTES—JANUARY 23, 2008 The minutes from the January 23, 2008, meeting were approved with the following correction. Page 2, line 11 should read "Nancy noted she thought the B2 moratorium should include the EDC helping find solutions to the problem." OLD BUSINESS Asst. City Administrator Simon referred to the Potential 2008 Comp Plan Draft that was distributed to each member for review. He noted the Council and staff remarks are included in this draft and asked the group to look it over and discuss it. City Planner Lehnhoff noted that this plan is really meant to create overarching idea of where economic development will likely or should likely go in the future. The group should focus on the content side rather than grammatical changes at this time. City Planner Lehnhoff noted the main focus is under the Vision and Goals section. The objectives are items that can be pursued afterward to achieve the vision and goals. In his opinion those are the most important items to focus on. He noted it is important to remember while the plan is meant to provide guidance it is not necessarily set in stone and won't be unchangeable in the future as other priorities arise. Chair Kunkel inquired as to how often this Comp Plan has to be amended. City Planner Lehnhoff replied every 10 years. Chair Kunkel asked this review schedule is state mandated. City Planner Lehnhoff replied that was correct. Councilmeinber Holden noted the Council is hoping this document will be a real living document for the City. City Planner Lehnhoff reaffirmed that that is the way to document should be looked at. EDC Minutes February 26, 2008 Page 2 of 10 Chair Kunkel said he thought the group needs to take some time and look this document over and provide comments to Asst. City Administrator Simon or City Planner Lehnhoff. City Planner Lehnhoff noted that comments can be taken for a couple weeks yet if there are none today. Asst. City Administrator Simon said the members could call or email either him or City Planner Lehnhoff with the comments. Councilmember Holden noted that she thought it was important the group look at the whole document as well because it all intermixes. She said there may be other issues that the group wants to provide input on. Nancy asked if this version of the Comp Plan different from the current one. City Planner Lehnhoff noted the current plan doesn't have an Economic Development/Redevelopment chapter so yes; it does differ quite a bit from the current plan. City Planner Lehnhoff noted the Economic Development/Redevelopment chapter is recommended but not required by law to be included. Rob asked if this plan includes affordable housing goals. City Planner Lehnhoff noted it does. He also indicated this plan requires Planning Commission approval and the final approval by the City Council. • Chair Kunkel asked about the length of the document in it's entirety as it stands now. City Planner Lehnhoff indicated it has 80 pages, not including maps. Chair Kunkel asked if the full document could be sent to the members via email. Asst. City Administrator Simon indicated it would be sent out via email. Jim Paulet noted the one thing that jumped out to him was the reduction of the amount of surface parking and inquired what the reasoning was behind this item. Asst. City Administrator Simon indicated the reasoning behind this item was looking at parking by identifying appropriate parking needs based on the use and averages and not an extreme on one end or the other. Rob said his thoughts are very consistent with what Asst. City Administrator Simon said — that there is no need to have 10 parking spaces when you only need 5 so it allows for an appropriate utilization of space. City Planner Lehnhoff said this helps prevent over paving and landscaping as well. Nancy asked if that meant supporting public parking ramps. City Planner Lehnhoff indicated he would say that could be one potential tool that can be used, but it doesn't necessarily say it supports parking ramps. He feels it is looking at all future ways parking can be reduced. Asst. City Administrator Simon noted he looked at the issue of parking structures and whether or not they would be viable and that would depend on the use of a property and the surrounding areas. EDC Minutes February 26, 2008 Page 3 of 10 • Chair Kunkel asked everyone to continue reviewing the document and send comments to City Planner Lehnhoff or Asst. City Administrator Simon. He indicated he would like this item on the next EDC agenda as well. DISCUSSION ON GATEWAY SIGNS Asst. City Administrator Simon included information on signage quotes in the agenda packets that were distributed earlier. The information he has obtained so far is from a company called "Fast Signs". One of the things he was concerned about was the price per sign which appeared to be around $8,000 or $9,000. Asst. City Administrator Simon indicated asked Fast Signs to work on the pricing and they have now sent different signage options with different pricing. Asst. City Administrator Simon noted if the group is interested in one particular design, he could pursue that design and possibly get a mock up of it built. The group could then start talking more seriously about the project. He noted if the group knows of any other companies to contact for information and pricing to let him know. Councilmember Holden informed Asst. City Administrator Simon that the locations for these signs have already been designated by the Planning Commission in previous discussions. Rob inquired as to the locations. Councilmember Holden indicated she could not remember exactly all of them and thought there were 7-10 spaces designated for these signs through the City. • Chair Kunkel asked if the locations were prioritized. Councilmember Holden did not recall. Asst. City Administrator Simon noted the agenda packet did include a document called the EDC Strategic Plan document which references the Gateway Signs. He noted staff would go back and check some other documents for references to this sign project and would send that information out to the group as well, including the predetermined locations of the signs. Chair Kunkel asked about the structure of these signs and if there has been any design work performed. Councilmember Holden indicated a resident by the name of Derek Hames has performed design work on the signs. He has previously helped the City by designing our City logo as well as other items. Asst. City Administrator Simon indicated he would touch base with Mr. Hames. Chair Kunkel thought it would be helpful to have an independent person like Mr. Hames to look at the designs and provide feedback. Councilmember Holden indicated Mr. Hames had originally designed the last neighborhood signs. Rob wondered if the City has money budgeted for these signs. Asst. City Administrator Simon indicated he thought there was about $10,000 in the budget for Gateway Signage. Councilmember Holden indicated she recalled $10,000 was budgeted for the construction of three signs. Ed asked if these signs would require the City to open up a bidding process. Asst. City Administrator Simon indicated an amount of$10,000 it is not required. Ed noted it would still be appropriate to get competitive quotations on these signs. EDC Minutes February 26, 2008 Page 4of10 Rob asked if the City had permission from the land owners at the predetermined sign locations. Councilmember Holden noted they would be located within City easements. City Planner Lehnhoff noted none of them would be located on private property. Nancy asked if different sign styles could be used or are they required to all be consistently the same. Interim City Administrator Willis indicated he believed the City Council is truing to create an image for the community and having sign consistency would help to accomplish this task. He indicated the signs should be made of materials that are long lasting and with as low maintenance as possible. Nancy indicated she was thinking about the Shoreview sign on Lexington and 96 and asked if maybe we want to do something that is similar in style, not necessarily competitive, but that complimentary for instance. Chair Kunkel indicated that Mr. Hames' design should be reviewed and see how that works with the Shoreview sign both in terms of size and location. Asst. City Administrator Simon indicated as soon as he collects further information he will send it out to all members everyone via email. Nancy indicated Michelle Olson may have Mr. Hames' contact information. Chair Kunkel thought this is an issue that is important for the EDC and it's important for the City to have some level of identification. Jim Paulet suggested the City look at getting quotes from a sign business within in Arden Hills if possible. Councilmember Holden noted that a lot of people have commented on the park signs and noted that they were really attractive. She noted that particular style and size is another option — or a version. Interim City Administrator Willis noted what will affect pricing on the signs as well is whether it will be illuminated. Lighting should be considered in the design of the sign as well because it might require some type of power source. Chair Kunkel noted then there is the issue of illuminated lighting or backlighting and he noted he has found that the backlighting method is more expensive. He indicated it would be his expectation the signs would be illuminated in some manner. Nancy asked what the advantage would be to having illumination on the signs besides the obvious advantage of seeing them better at night. She indicated these signs aren't direction signs and are usually placed in intersections that are already lit. Ed commented that he thought if the City tries to save too much money on these signs, they may become counterproductive. If the signs are meant to welcome people to Arden Hills, a lesser sign might give the impression the City is saying they don't care much about this City. Nancy countered if too much is spent that EDC Minutes February 26, 2008 Page 5of10 they won't get done either. Ed noted it's probably better to spend too much and not get it done, than to do it poorly. Ed noted a monument sign like Shoreview's cannot be built because of the cost. Councilmember Holden said she would encourage everyone to drive around to different communities to get ideas on other gateway signs. Asst. City Administrator Simon noted once he receives the document that indicated the sign locations he would review the locations for power sources and send that information to the group. Rob indicated he though the group could prioritize the sign locations. OLD CITY HALL AND E-2 City Planner Lehnhoff noted he had the opportunity to meet with the City Council and some developers last Tuesday at a worksession to discuss the former City Hall/Public Works property. The focus of that discussion was discussing what was learned at the community meetings. He noted the Council did provide some feedback on the next steps, but does not yet have that information compiled in a format to handout to the members. The next step will be to host some type of community meeting—possible an "Open House"— around the end of March to present a draft of the potential land uses for that property. He noted the worksession discussion focused primarily on residential uses but the Council was open to mixed development depending on how it was arranged and on what type of commercial activities it involved. He indicated the Council is okay with the access on to Highway 96,but the access on to Hamline Avenue is still somewhat in of an open question. If that Hamline Avenue access is allowed, he's not sure how much access that would mean. City Planner Lehnhoff noted the amount of access can be limited depending on if a full intersection is allowed, or if right-in and right-out, etc. He said to watch for an email and notices on the City's website and newsletter for an announcement on this future community meeting. The EDC, along with all the other City commissions and committees, and residents will all be invited to attend this meeting. B-2 RFP City Planner Lehnhoff noted there were not significant changes since the last time the group has met. The RFP was sent out and the City did receive proposals from 5 different planning consultants. The proposal deadline is this Friday. The goal is to have staff make a recommendation to the City Council so that they can make a decision in March 31 so the study can get underway for that district. BUSINESS SUBSIDY PLAN Ms. Kvilvang reminded the group that last time she attended the EDC meeting there was a lot of clean up work done to the Business Subsidy Policy. She indicated the group has received an edited and cleaned up version of the document and that the biggest outstanding issue for the policy is to discuss the wage and job creation goals for the City. Typically, in cities that are fully developed, which is how she views Arden Hills,job creation and wage goals aren't necessarily as important as they might be to a community where there is a lot of growth potential. However, EDC Minutes February 26, 2008 Page 6of10 it still behooves the City to have that discussion to decide if it's truly important to provide assistance. Where this document stands right now is that staff is going to be talking to surrounding communities to get a flavor of what they are doing because she knows Councils always request that type of information. She said this group needs to decide where they sit on this and decide if they think the topic of jobs is a huge goal for the City or not. She will then start the guide for indicating how the research will be finished up for the document. Interim City Administrator Willis noted he thinks Ms. Kvilvang is right in that there is not much growth opportunity, except for the TCAAP property potential. He thinks that the City can address it with respect to the TCAAP property. He indicated there has to a report submitted to the Department of Economic Security on this job and wage goals every year so whatever is decided upon needs to be done a structure that can be followed up on. He also indicated when he worked for the City of Inver Grove Heights, a similar policy was adopted and they established 150% of the minimum wage as their goal which he feels should not be terribly difficult for a new business in the community. Jim Paulet asked for clarification on what the 150% of minimum wage meant. Interim City Administrator Willis indicated it is based off the minimum wage of the state at the time the policy is adopted—and then it is 1.5 times that wage. Chair Kunkel asked if that 150% figure is fairly typical. Interim City Administrator Willis . indicated he cannot answer if that is typical,but indicated he would not be surprised if it was. Rob asked if the City is required to establish hourly wage goals. Ms. Kvilvang indicated that is correct. In a policy job creation goals and minimums for the wage goals must be stated. She indicated anyone new coming into the City would have to meet that requirement of the plan unless they are exempt. Nancy asked if the City does not have business subsidy requirements, then are new companies then not required to meet any goals. Ms. Kvilvang indicated that was correct. She indicated the subsidy can be in the form of tax increment, abatement, reduction in fees that are standard such as SAC, WAC,park dedication fees, etc. Ms. Kvilvang indicated if there are goals stated in this policy, then a new business coming into the City has to meet that goal with the newly created jobs and be able to report on meeting that goal. If that requirement is not met, then the assistance would have to be paid back to the City. Nancy asked if that would rule out a company such as Target moving into the City. Ms. Kvilvang indicated that Target does have more high paying jobs that most people realize. Rob noted the one thing they have to keep in mind is that Arden Hills has a unique situation where we have one of the highest daytime employment centers in the area. He thought the thing we don't have are a lot of services to provide for these people, particularly restaurants. What the City will have offer is redevelopment opportunities. Ms. Kvilvang indicated there are exemptions from business subsidy plans through redevelopment, which is all based on formulas to prepare the land for sale for redevelopment. For instance, if the cost to prepare land for redevelopment is less than 70% of the assessor's value, the developer can be exempt. Ms. EDC Minutes February 26, 2008 Page 7of10 Kvilvang indicated that if what she is hearing that the group thinks we are a good employment center and it's service needs are what we need focus on, then she would say to look to lower the number of jobs that you require and the wage levels that are required. Ed noted if more restaurants do come in to the City, then one of the jobs that is created is a management job and they are going to make considerably more than 150% of the minimum wage. Nancy noted that there are typically a lot more individuals employed by a restaurant that make substantially less than a manager and this wouldn't reduce any effect a higher income job is going to create. Ms. Kvilvang noted whatever your job creation minimum goals are you need to be paid that level no matter what that position is. Ed asked how "tipped" employees are handled. Ms. Kvilvang indicated typically they wouldn't meet the requirement. Typically, in most cases where restaurants are part of that, it's usually in redevelopment districts and it's already exempt from the business subsidy policy or reporting so they don't have to meet job and wage goals because there is another public purpose they meet which is clearing up blight. Jim Paulet asked if this would apply in a TIF district or redevelopment. Ms. Kvilvang indicated it may apply, so again you have to look to see it can be exempted from the reporting requirements. A City can always choose to not go along with their business subsidy policy by explicit findings in the form of a resolution. If exemption findings are not met, a Council can still making findings that job creation is not the main goal. Chair Kunkel indicated he thought what was initially said was that restaurants are exempt in redevelopment. Ms. Kvilvang indicated that was incorrect and that again, it all depends on the qualification that you meet have for redevelopment to exempt yourself from business subsidy. She indicated there is a list of about 25 exemptions and redevelopment criteria happens to be one of them. Most cities will typically look to exempt it in redevelopment because they goals are to clean up the area. Nancy asked if spot redevelopment can be looked at. Ms. Kvilvang indicated spot development can be looked at,but typically larger parcels are the focus. Ms. Kvilvang noted the thing to remember about job and wage goals is the minimums. Other requirements can always be added when forming a development agreement, but the minimum must always be met. Jim Paulet asked about the dangers of stating these goals versus not stating them. Ms. Kvilvang stated simply put, if you go with one job at"X" amount, you provide the maximum flexibility. If you put on an onerous number, it may be difficult for some employers to meet that goal. EDC Minutes February 26, 2008 Page 8of10 Chair Kunkel asked if in a community like ours, where we have significant employers, would it be advantageous to keep the number at a lower level. If we do, are there down sides to having a lower number. Ms. Kvilvang stated the majority of the cities keep the number to a minimum level to provide for the maximum flexibility. A City is only bound by the minimum. Ms. Kvilvang reviewed surrounding communities' minimum levels. Ms. Kvilvang noted the business subsidy document includes the issue of figuring out land values and requiring appraisals to be commissioned which are paid for by the developer. Nancy noted this document was to be reviewed by 3 different parties and asked if all those groups have had that opportunity at this point. Ms. Kvilvang indicated this is not the final document and it will be submitted to the City Attorney and TIF Attorney for a final review. Nancy indicated she feels the whole document is geared to TIF. Ms. Kvilvang indicated the document is generic enough that tax increment, abatement, etc. can be used. She also indicated this policy applies only to new businesses coming into the City. Councilmember Holden asked how non-monetary items are reflected in the document, such as lowering the landscaping requirements. Ms. Kvilvang indicated density is not part of the document — only items that have a monetary value. Discussion ensued regarding how appraisers are chosen. Ms. Kvilvang indicated most cities have a preferred list of vendors they use and appraisers are usually on this list. Nancy noted when she read the document she felt it was geared to large developments and not necessarily small ones. Ms. Kvilvang expressed she thought the document is generic enough that smaller development should be able to come in and meet the criteria as well. Nancy asked if the document is making it too restrictive for a smaller developer. Ms. Kvilvang indicated she thinks it is generic enough for smaller developers. Chair Kunkel asked what the next steps would be for this document. Asst. City Administrator Simon noted additional research is required on his part and he will try to have that research done shortly. This research will all be brought to the group as well for their view. Ms. Kvilvang asked if the group wants to see the information on what surrounding cities are doing for their minimums. Chair Kunkel indicated from his standpoint that yes he would like to see this information. Nancy agreed as well. Asst. City Administrator Simon indicated the end of April is about the rough timeline of when the group can expect to see the document back in a final form for their review. EDC Minutes February 26, 2008 Page 9 of 10 Rob asked if this document is an initiative or an adoption of a plan. Ms. Kvilvang noted it is an adoption of a policy. NEW BUSINESS Committee Vacancy: Asst. City Administrator Simon indicated because of Ray McGraw resigning from the EDC, advertisements for the vacancy have been posted and one application has been received to date. He would like to review the City's policy with Chair Kunkel after the meeting, and try to set up an interview time with the applicant with the group. If the group is okay with the applicant, it will then go before the City Council for approval. The group also noted contact should be made with Dale Beane and Chris Ashbach to make sure they want to continue with the EDC in 2008. City Welcoming or Recognition Policy: • Nancy asked if there was any policy or procedure within the City to welcome or recognize businesses within the City. Councilmember Holden noted she was under the impression the EDC was putting together a welcome packet for businesses. She also indicated the City newsletter committee usually places acknowledgement type items in the paper when they are made aware of them. Ed noted he thought it was a wonderful idea to acknowledge business accomplishments. Councilmember Holden noted a detailed process has to be developed if acknowledgments are going to be noted so companies are not missed. Rob suggested if committee members know of a new business or an accomplishment, they should contact Asst. City Administrator Simon and he would then be responsible for sending out a welcome packet. Nancy thought even an already established business should receive a congratulatory acknowledgment for things such as added employees, expansions, etc. Rob commented that if he were to receive a personal phone call from the Administrator or Asst. City Administrator it would mean a lot to him as a business owner. Councilmember Holden noted she thinks it would also be good for to give a company some type of document they hang up and visually see in addition to a phone call. 7 I . EDC Minutes February 26, 2008 Page 10 of 10 • Chair Kunkel suggested Asst. City Administrator Simon come back to the group at the next meeting with a suggested procedure for welcoming and acknowledging Arden Hills businesses. Transoma IPL: Nancy noted she read in the paper that Transoma is not doing their IPL because of market conditions and wondered if that meant they are also not moving. Rob expressed he believes they are still moving into a new building in New Brighton, on the corner of 35W and 694. UPDATE ON COUNCIL Councilmember Holden provided the group with an update from Council. ADJOURNMENT The meeting was adjourned at a.m. Minutes approved by: • Chair Kunkel Kunkel, Chair Noah A. Simon, Asst. City Administrator NEXT MEETING The next regular meeting of the EDC is scheduled for Tuesday, March 18, 2008 at 7:30 a.m. •