HomeMy WebLinkAbout05-23-07 'It
�-ADI�EN HILLS
ECONOMIC DEVELOPMENT COMMISSION
WEDNESDAY, May 23, 2007
7:30 A.M.
City Council Chambers, Arden Hills City Hall
I. CALL MEETING TO ORDER , i
11. ROLL CALL l7 �c^� l ` wvr
III. APPROVAL OF MINUTES
A. May 16, 2007 0 �� �e�v ✓—����(
IV. ECONOMIC DEVELOP ENT'STRATEGIC PLAN — Chair Kunkel
A. Review Revised Plan�
B. Discuss Presentation to City Council Ir V
V. BUSINESS LICENSING DISCUSSION
VI. REDEVELOPMENT DISCUSSION
A. Redevelopment Designation Process V� � 40 \0�
B. Redevelopment Tools
VII. COUNCIL UPDATE
VIII. OTHER BUSINESS eYU. I�
i ci n�
IX. ADJOURN
City of Arden Hills
1245 West Highway 96 •Arden Hills Minnesota 55112
Phone 651.792.7800•Fax 651.634.5137
www.ci.arden-hills.mn.us
\`,Metro-inet.us\ardenhills\Admin\Committees\Economic Development Commission\Agendas\2007\EDC Agenda 05-23-07.doc
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EN HILLS
• CITY OF ARDEN HILLS, MINNESOTA
ECONOMIC DEVELOPMENT COMMISSION
MAY 16, 2007; 7:30 AM
CITY HALL -- 1245 WEST HIGHWAY 96
Chair Kunkel called the meeting to order at 7:31 a.m.
Attendees: Chair Bruce Kunkel, Nancy Kneeland, Dale Beane, Chris Ashbach, Rob Davidson,
Ray McGraw, Jim Paulet, Mayor Harpstead, Community Development Director Karen Barton.
Absent: Ed Werner.
APPROVAL OF MINUTES—APRIL 25, 2007
The minutes from the April 25 meeting were approved as corrected.
REVIEW OF EDC PLAN
Chair Kunkel explained that currently we have two versions of the EDC plan — one the Mayor
revised and the one developed by Desco— and asked the group how they wanted to proceed with
finalize the EDC plan.
Jim asked if we accepting both versions of the document and editing them both. Chair Kunkel
• said one of the ideas could be to work with bath documents;,or, if the group so chose, they could
accept or reject one of the versions and move forward with`the accepted version. The Mayor
reminded the group that it is their objective to bring a document to a Council Worksession.
Ray expressed his concerns with the current EDC plan and that it didn't fit into the needs of the
City. He indicated the group did not have to go with all of Desco's recommendations. He also
expressed what he thought were the City';s main three issues at hand: curb appeal,
redevelopment,and the location 4f the current City Hall.
Chair Kunkel acknowledged Ray's passion and concerns and expressed that he thought the
Mayor is trying to develop a plan to allow the City to move forward and gather momentum.
The Mayor asked if the three items Ray expressed concern about are in the Desco version of the
EDC plan. Ray acknowledged that they were in the Desco plan.
Nancy asked if she could make a motion to proceed on the Mayor's amended plan being we have
already progressed beyond the Desco plan already. She indicated it is her desire to work on one
plan. Dale Beane seconded the motion.
Chris said he thought there wasn't enough substantial difference between the Desco plan or the
Mayor's version to lose anything by working on one versus the other.
The Mayor indicated the timing of the plan is important due to the budget cycle.
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EDC Minutes
May 16, 2007
Page 2 of 4
The group agreed to work on the Mayor's version of the plan.
Chair Kunkel asked when this plan should be presented to Council. Karen noted that it is on the
June City Council Worksession. .
Chair Kunkel asked if there are any issues that are of significant substance that the group wanted
to discuss. The Mayor said that any strong passions should be incorporated into the Executive
Summary portion of the plan.
Nancy indicated her idea of an issue of substance for her is the City Administrator position. She
indicated she believed the Administrator should have more authority to help with the day to day
activities of the City. She thought maybe the title doesn't have to be changed from
Administrator to Manager,but maybe the Council could give more authority to the Administrator
at their discretion. The Mayor reminded the group if there were a title change,it would have to
go before the citizens of Arden Hills as a referendum and once passed it was not irreversible//���
Nancy suggested the plan be changed by no longer suggesting the Administrator have a title
change to Manager. Chair Kunkel noted the group needed to vote on this suggestion. Nancy
moved to change paragraph 4 to reflect this change. Dale seconded. The group agreed with the
exception of Ray abstaining.
Chris expressed he thought we should focus on the City Center designation. He asked if the •
group should address this item. Jim said until that TCAAP committee goes through their process
if the EDC should tackle the City Center issue. Chris indicated he thought because of the way
the freeways go through Arden Hills, that it will create an old district and a new district once
TCAAP is developed. The Mayor said there is a lot of action items embedded within the City
Center issue. Chair Kunkel expressed that he doesn't believe the plan should get into tactical
ideas but rather point out the issues. 'Ray,said he believes the Council should be told they need to
plan to spend money on redevelopment. Rob reminded the group that the plan already does state
the City needs to plan for this. Ray said he believes we can't present a 21 page document to the
Council and expect them to approve it.
Nancy said she thought the City had already decided that the downtown district is within
TCAAP and that was evident by where the City Hall was placed. She thought anything south of
694 is going to become a suburb of Arden Hills and those living there will continue to shop
along County Road E.
Jim said he thought the group that is most interested in the City is south of 694 and there is
always going to be an interest from them in maintaining County Road E. Chair Kunkel said that
area also serves a significant portion of Shoreview. Karen noted she believes we do not have to
designate only one downtown area.
The Mayor said the big burden in the County Road E area is the bridge.
•
EDC Minutes
May 16, 2007
Page 3 of 4
•
Jim asked if the group if they truly thought City Hall was located in the wrong place. Three
members agreed that it was in the wrong place. The Mayor asked if the City should have some
kind of facility presence south of 694. Chair Kunkel said he liked the idea of some kind of City
presence south of 694. Jim said he thought as a result of the City Hall being in a wrong place
then that is why he believes discussion is occurring as to placing a City presence south of 694.
Chris said he didn't think in his estimation a city presence south of 694 wouldn't make a
difference to business activity. The Mayor said the curb appeal in that area is suffering and one
of the ways other cities have changed this problem is to put in a City facility.
Nancy asked if a committee could be formed to look at redevelopment. Chair Kunkel said he
thought a lot of the City's current committees have a similar goal but are operating on their own
sphere. He asked if bringing the City committees together could help bring a united front to City
Council. Karen said she could put together another committee but she believes the EDC could
serve in that capacity with the PTRC and PC. She said in her previous `;experience other
committees were brought in to EDC meetings when needed.
The Mayor asked Karen to put her thoughts together on her previous experience with EDC plans
and present it at the next EDC meeting.
Jim asked why they couldn't ask the other City committees to give their input and help finalize
• the document. Nancy said the group could make this recommendation. Rob thought this would
delay the process and the group needs to start doing things and stop talking. Rob said he
believes the group is trying to get a blue print so they know how they can move forward and
after this blueprint is approved, they can start working on action items.
Jim indicated it appeared to him the Council did not look upon the group in a favorable manner.
The Mayor said he would ask each Council member their impression of the group and let the
group know Council's feelings.
Chair Kunkel said he believes what he is hearing is that the group wants to get moving forward.
He said if the group feels comfortable with this current document that they can take a vote or it
can continue to be worked on at the next meeting.
Rob moved and Dale seconded a motion to accept the document and present it. Chris said he
thought it was a good idea to present the document as is and at least get input from the Council
so they can continue working on it.
Dale asked if we are trying to develop a City plan or satisfying just a couple council members.
The Mayor said he hoped it was the latter. Rob said he thought it was okay for the group to
present a document that maybe wasn't quite perfect just so they can get some starting point.
Chair Kunkel said he would not want to go to Council and have them fully reject the plan. He
said he wants them to be able to say this is an acceptable vision and have them buy into with
• some tweaking so they have ownership.
EDC Minutes
May 16, 2007
Page 4 of 4
•
Ray asked if the Executive Summary is supposed to combine everything in the document. Chair
Kunkel said that is the reason for an Executive Summary.
The Mayor reminded the group that it shouldn't be considering asking the Council for money at
this point when they do not know where the money is coming from and what they should be
asking Council is to "walk with them" on the plan.
Chair Kunkel suggested that next Wednesday's meeting include a vote on whether to present the
current document or not to Council as is. He also said the meeting should include Karen's
presentation on past experiences. Karen also indicated Business Licensing, the 5-year CIP, and
some redevelopment marking pieces also needed to be discussed at next week's meeting.
Rob said the new president of Anchor Bank will be on the next meeting.
Karen indicated Chesapeake Companies may be attending the June EDC meeting.
She also indicated there is a joint picnic with the PTRC,PC, EDC, and CC on July 17 at a park
location to be determined.
NEXT MEETING
The next regular meeting of the EDC is scheduled for May 23, 2007`at 7:30 a.m.
ADJOURNMENT
The meeting was adjourned at 8:56 a.m.
Minutes approved by:
Bruce Kunkel, Chair Karen Barton
Community Development Director
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,,--ARQEN HILLS
MEMORANDUM
DATE: May 22, 2007
TO: Economic Development Commission
FROM: Karen Barton, Community Development Director
SUBJECT: Redevelopment Process Overview
The Arden Hills Economic Development Commission adopted an economic
development strategic plan for the City on August 16, 2006. One of the goals of the
strategic plan and a top priority of the EDC is targeted redevelopment of a number of
sites in the city. These sites include the Red Fox/Gray Fox business/industrial area, the
former city hall/public works site on CR 96, the Lexington and CR E business area, and
• the Chesapeake property in the Gateway Business District.
To facilitate the redevelopment of these areas, there are a number of options the city
can pursue. The following provides a general outline of the redevelopment process and
lists tools that are available to aid in the process:
Redevelopment Area Designation
The city is not required to designate redevelopment areas. However, having formally
designated redevelopment areas can aid in obtaining grants, such as Community
Development Block Grants. It also helps to ensure the city's vision regarding
redevelopment is carried forward regardless of council, EDC, and/or staff changes.
Redevelopment areas can be designated via a formal council resolution or through
inclusion in the city's Comprehensive Plan. Given that the city is just beginning the
process to update its Comprehensive Plan, the timing is good for designation and
inclusion of targeted redevelopment areas within the Plan.
Redevelopment Memo
May 22, 2007
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\\Metro-inet.us\ardenhills\Admin\Committees\Economic Development Commission\Redevelopment Memo 5-22-07.DOC
Redevelopment Plan
A specific redevelopment plan is prudent when the proposed redevelopment affects a
significant change to the land use of the area, for example, if the city were
recommending redeveloping the Red Fox/Gray Fox business area into a mixed-use
housing/commercial/retail area. However, if the proposed redevelopment is for the
same or similar use, a plan is not necessary.
The planning process would be similar to that of the current TCAAP redevelopment, but
on a much smaller scale, and would involve a great deal of involvement from the
council, commissions, committees, and the public.
Redevelopment
The actual redevelopment could occur in a number of ways:
■ The city could choose to work with a master developer to redevelop the area
(similar to the TCAAP redevelopment);
■ The city could choose to acquire and demolish certain properties, then market
the "shovel-ready" properties to developers and/or businesses for development;
■ The city could choose to aid in soliciting interested developers or businesses to
acquire, demolish, and redevelop specific properties. This option of course
would require collaboration with the property owner and tenant (if applicable).
■ The city could choose to do nothing and allow the market to drive the
redevelopment. •
Tools to facilitate Redevelopment
The role of government, as we all learned in high school government class, is to step in
where the free-market can't or won't. Therefore, oftentimes the use of"incentives" is
needed to help facilitate the redevelopment of an area.
The following is a list of"incentives" that the city could use to foster redevelopment
within the city:
■ Creation of a TIF District to help pay for acquisition, demolition, and infrastructure
improvements;
■ Tax Abatement of the city portion of the property taxes. The abatement can be
100% of the city taxes or a lesser percentage (i.e., just on the increased value
portion);
■ Institution of an Economic Development Authority (EDA) levy;
Redevelopment Memo
May 22, 2007
-2—
\\Metro-inet.us\ardenhills\Admin\Committees\Economic Development Commission\Redevelopment Memo 5-22-07.DOC
A
■ Increase of the city levy for specific projects;
■ Referendum to issue debt for specific activities/projects resulting in the issuance
of General Obligation bonds supported by the levy;
• ■ Special Legislation: for example, creating a special services district that would
levy property owners in the district to pay for maintenance and upkeep (this was
done in the Excelsior and Grand project area, as well as at 50th and France in
Edina); and
■ Economic development grants such as the County's Community Development
Block Grant program or State and County Brownfield grants to help pay for
acquisition, demolition, and/or clean-up of blighted properties.
Next Steps
The EDC can choose to make recommendation to the City Council regarding
redevelopment of certain areas within the city and the recommendation as to incentives,
if any. Staff recommends the EDC present any recommendations to the Planning
Commission prior to approaching the City Council.
•
Redevelopment Memo
May 22, 2007
- 3—
• \\Metro-inet.us\ardenhills\Admin\Committees\Economic Development Commission\Redevelopment Memo 5-22-07.DOC
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