Loading...
HomeMy WebLinkAbout06-04-14 EDCCall To Order Approval Of The Agenda Minutes April 2, 2014 04 -02 -14 EDC MINUTES.PDF Unfinished And New Business Business Retention And Expansion MEMO.PDF City Video Tour MEMO.PDF, ATTACHMENT.PDF Revolving Loan Fund MEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF 2014 State Of The City MEMO.PDF, ATTACHMENT.PDF Updates TCAAP Update MEMO.PDF Commission Members Council Liaison Staff Comments Adjourn ADJOURN A quorum of the City Council may be present at this meeting. Chair: Ed Von Holtum  Commissioners: Dan Altstatt Dan Erickson  Steve Heikkila  Jim Huninghake David Radziej Vacant Vacant Vacant Council Liaison: Ed Werner Economic Development Commission June 4, 2014 8:00 am to 9:30 am City Hall Address: 1245 W Highway 96 Arden Hills MN 55112 Phone: 651 -792 -7800 Website : www.cityofardenhills.org City Vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play. Agenda CALL TO ORDER 1. 2. 3. 3.A. Documents: 4. 4.A. Documents: 4.B. Documents: 4.C. Documents: 4.D. Documents: 5. 5.A. Documents: 5.B. 5.C. 5.D. 6. Call To OrderApproval Of The AgendaMinutesApril 2, 2014 04 -02 -14 EDC MINUTES.PDFUnfinished And New BusinessBusiness Retention And ExpansionMEMO.PDFCity Video Tour MEMO.PDF, ATTACHMENT.PDFRevolving Loan FundMEMO.PDF, ATTACHMENT A.PDF, ATTACHMENT B.PDF 2014 State Of The City MEMO.PDF, ATTACHMENT.PDF Updates TCAAP Update MEMO.PDF Commission Members Council Liaison Staff Comments Adjourn ADJOURN A quorum of the City Council may be present at this meeting. Chair:Ed Von Holtum Commissioners:Dan AltstattDan Erickson Steve Heikkila Jim HuninghakeDavid RadziejVacantVacantVacantCouncil Liaison:Ed Werner Economic Development Commission June 4, 2014 8:00 am to 9:30 am City Hall Address:1245 W Highway 96 Arden Hills MN 55112 Phone:651 -792 -7800 Website : www.cityofardenhills.org City VisionArden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well -maintained infrastructure, fiscal soundness, and our long -standing tradition as a desirable City in which to live, work, and play. AgendaCALL TO ORDER1.2.3.3.A.Documents:4.4.A.Documents:4.B.Documents:4.C.Documents: 4.D. Documents: 5. 5.A. Documents: 5.B. 5.C. 5.D. 6. CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT COMMISSION APRIL 2, 2014 8:00 AM CITY HALL -- 1245 WEST HIGHWAY 96 CALL MEETING TO ORDER Chair Ed von Holtum called the meeting to order at 8:04 a.m. ROLL CALL Present: Chair Ed von Holtum and Commissioners Steve Heikkila, Jim Huninghake, and David Radziej Also Present: Council Liaison Ed Werner, City Administrator Patrick Klaers, Community Development Director Jill Hutmacher, and Associate Planner Matthew Bachler 1. APPROVAL OF AGENDA It was the consensus of the Commission to accept the agenda as presented. 2. APPROVAL OF MINUTES It was the consensus of the Commission to accept the March 5, 2014, meeting minutes as presented. 3. UNFINISHED AND NEW BUSINESS A. Revolving Loan Fund Associate Planner Bachler provided an overview of the City’s Revolving Loan Fund (RLF). He explained that the Economic Development Authority (EDA) was currently discussing changes to the RLF, and that staff presented these recommendations to the EDC at their meeting in November 2013. Since then, staff has met with several local bankers to discuss the RLF in more detail and to determine the feasibility of the proposed revisions. Associate Planner Bachler explained that staff would like to present general recommendations on how the RLF program could be restructured at the EDA meeting on April 28, 2014. He requested that the EDC provide staff with any comments after reviewing the feedback received from the local bankers. EDC Minutes April 2, 2014 Page 2 of 5 Associate Planner Bachler stated that it was recommended that the program have clearly defined goals so that businesses can easily evaluate whether a project meets the City’s objectives. The bankers thought the City should prioritize projects that would result in a direct financial benefit to the City, such as through increases in property value, and that well - established businesses and industries should be targeted. The application process should also be transparent and the City should set a goal of completing the evaluation of loan requests within 30 days. In order to achieve this goal, a special committee made up of councilmembers and staff may need to be formed to review applications. Associate Planner Bachler reported that the maximum loan amount should be between $50,000 and $75,000, with an interest rate of two or three percent. The private lender would set the term length, but the City could still set a maximum number of years for a loan term. If the City wanted to focus on projects with shorter amortization periods, it may want to set 10 years as the maximum term length. Eligible projects should include land and building acquisition, real property improvements, commercial façade improvements, and fixed asset equipment. Associate Planner Bachler explained that revolving fund loans would act as gap financing for loans being made by a private lender. He provided details on how such a partnership between the City and a private bank would be structured. Local bankers recommended that a minimum of 50 percent of any project be privately financed. It was also advised that RLF projects be exempt from evaluation using the City’s Grading and Report Card as this tool is largely focused on redevelopment projects. Chair von Holtum asked if the RLF interest rate could be changed over time in response to fluctuations in the private lending market. Associate Planner Bachler responded that the City could decide to change the interest rate at a point in the future. He recommended that the City try to maintain a consistent interest rate, as this would help in efforts to market the program and would reduce confusion amongst applicants. Chair von Holtum asked if a business applied for revolving loan funds whether their financial records would be included in the public record. He commented that this would be a deal breaker for most businesses. Commissioner Radziej questioned how the City would ensure timely approval of RLF loan applications if final approval is required by the EDA, which only meets quarterly. Associate Planner Bachler commented that this was an area of concern identified by staff and that further research needed to be done on how the approval process could be structured to make it as streamlined as possible. Commissioner Heikkila suggested that the City could establish a short window of time each year when applications for revolving loan funds are accepted. This would allow the City to more easily coordinate the different approvals required for an application. EDC Minutes April 2, 2014 Page 3 of 5 Associate Planner Bachler commented that this would be an interesting approach. His one concern was that a business’ need for financing may not always line up with the period of time during which the City accepted applications. Chair von Holtum commented that the biggest stumbling block appeared to be the approval process. Commissioner Huninghake reported that the Minneapolis Community Planning and Economic Development department manages a similar revolving loan fund program and that the approval process was handled at the staff level for the most part. He recommended that if the participating bank approves the loan package, the City should also approve it. Commissioner Radziej recommended that very specific guidelines be established for the RLF. This would allow City to more easily approve applications assuming all of the criteria were met. B. City Video Tour Community Development Director Hutmacher reported that staff has met with CTV and has drafted an outline for the City video tour. The video would include five parts: an introduction by the Mayor, background information, business and industry, economic development, and a wrap- up. She asked the EDC for additional direction so that staff could begin the work of drafting a script, contacting businesses to request testimonials, and identifying “shots” with CTV. Commissioner Radziej recommended that the video include information on the travel time from Arden Hills to the Minneapolis-St. Paul International Airport, as well as to other recreational and cultural amenities in the metro. He noted that the TCAAP redevelopment should be included in the video given the importance of this project for the City and the region. He added that the City Revolving Loan Fund could be promoted in the economic development segment of the video. Chair von Holtum commented that the proposed outline was formulaic, but that this was a safe and effective approach for the City to take. Community Development Director Hutmacher replied that while the format may be standard, the information presented in the video would clearly distinguish the City from other communities. Commissioner Huninghake questioned how the video voice over would be done. Community Development Director Hutmacher responded that City would have a professional do the voice over for the video. She commented that it was important for the narration to be professional sounding in order to help attract businesses to the community. EDC Minutes April 2, 2014 Page 4 of 5 C. Business Retention and Expansion Associate Planner Bachler explained that staff had recently completed a course on Business Retention and Expansion through the University of Minnesota Extension. The final course paper written by staff was included in the EDC packet and it discusses what some of the important milestones might be for implementing a BRE program in Arden Hills. He asked the commissioners to provide staff with feedback on the course paper. Commissioner Radziej commented that the BRE program outlined in the paper involved a large number of different groups in the implementation process, such as the Leadership Team, the Task Force Team, and the EDA. He expressed a concern that having so many groups working on the project may lead to inefficiency and confusion. Associate Planner Bachler commented that the University of Minnesota Extension advised that the different groups described in the course paper be included in a BRE program. He added that the framework recommended by the university would need to be adapted to fit the particular needs of Arden Hills and that this may include having fewer working groups. Chair von Holtum commented that he knew of several local businesses with pressing needs that may require them to relocate. Having open lines of communication between the City and the business community will be critical in retaining these companies. He recommended that the EDC serve a prominent role on the Leadership Team and that this group make recommendations to the EDA and City Council. Community Development Director Hutmacher explained that the City Council should be actively involved in the decision making process throughout the BRE initiative considering that many of the proposed projects will require public funding. She recommended that the Leadership Team include at least two members of the City Council. Commissioner Radziej asked if the business survey in the BRE program could be set up so that businesses could complete the survey online. Associate Planner Bachler commented that the face-to-face interviews with participating businesses are an important component of the overall BRE program. He explained that the information gathered from these interviews would likely be more valuable and thorough than if the surveys were completed online. Community Development Director Hutmacher added that doing face-to-face interviews with businesses would allow the City to more easily identify warning flag issues that may require an immediate response. 4. UPDATES A. TCAAP Update EDC Minutes April 2, 2014 Page 5 of 5 Community Development Director Hutmacher explained that the City and Ramsey County are currently working together on a Request for Proposals for an infrastructure study that will consider roadways, utilities, surface water management, and grading on the TCAAP site. Staff expects that the RFP will be released in early April, and a consultant will be selected by mid- May. Community Development Director Hutmacher provided an overview of the scheduled City Council work session meetings where issues related to the Master Plan and City infrastructure will be discussed. She invited the commissioners to attend any of the upcoming meetings. B. Commission Members None. C. Council Liaison Council Liaison Werner reported that the City Council approved a budget adjustment to create the TCAAP Capital Fund at their March 31, 2014 meeting. He explained that this change will improve transparency and make it easier for the City to track expenditures and revenues. Council Liaison Werner provided an update on the revisions to the multi-family design standards recently approved by the City Council. He explained that the amendment reduced the size requirement for efficiency units and increased the size requirement for two and three- bedroom units. Council Liaison Werner reported that the proposed Minnesota House bonding bill included $18.3 million for the TCAAP road network. D. Staff Comments None. ADJOURNMENT Chair von Holtum adjourned the meeting at 9:28 a.m. __________________________ __________________________ _ Ed von Holtum, Chair Jill Hutmacher Community Development Director City of Arden Hills Economic Development Commission June 4, 2014 Page 1 of 3 MEMORANDUM DATE: June 4, 2014 EDC Agenda Item 4.A TO: Economic Development Commission FROM: Matthew Bachler, Associate Planner SUBJECT: Business Retention and Expansion Program Background At the Economic Development Commission (EDC) meeting on March 5, 2014, staff provided an overview on the goals of Business Retention and Expansion (BRE) programs and the typical structure of these types of initiatives. Since then, staff has met with the cities of Coon Rapids, Hugo, and Forest Lake to discuss the successes and shortcomings of the BRE programs that have been implemented in their communities. The following sections provide a summary of those discussions and outline the next steps for the City in implementing its own BRE program. Discussion University of Minnesota Extension Business Retention and Expansion Strategies Program The cities of Coon Rapids, Hugo, and Forest Lake all used the Business Retention and Expansion Strategies Program offered through the University of Minnesota Extension. Staff members at the Extension office served as consultants for the program in each city, which included advising the Leadership Team, training business visitors, assisting in the business selection process, facilitating meetings, and writing a Research Report and Summary Report on the program. The Extension’s BRE program is a well-organized and tested program that has been used by more than sixty Minnesota communities. Staff received feedback that a benefit of working with the Extension was that a structure was brought to the process, which helped ensure that the BRE program was completed within a timely manner. Additionally, the consultant team was able to provide certain skill sets that City staff did not necessarily have, such as meeting facilitation and training volunteers for business visits. City of Arden Hills Economic Development Commission June 4, 2014 Page 2 of 3 Hugo and Forest Lake did not have an established business development strategy prior to launching their programs. Several of the priority projects recommended by the Extension related to improving communication between the business community and City Hall. Both cities cited the work they have done on these projects as being reason alone for undertaking a BRE program. In contrast, Coon Rapids already had an effective system in place for providing assistance to businesses before starting their program. As a result, staff at the city reported that they got less out of the process because many of the recommendations made by the Extension were activities already being done by their Community Development Department. Staff in Coon Rapids discussed how the BRE program seemed to be designed more for a rural community as compared to a suburban city and that it was difficult to adapt it to the local context. Specifically, the program requires a large number of meetings for those on the Leadership and Task Force Teams – typically comprised of local elected officials, city staff, and business representatives – and in the suburban context these individuals typically have less free time available. Suburban communities are also more likely to have a larger and better-trained community development staff that could identify priority projects for business retention and expansion without the assistance of a consultant team. Even with a consultant team, implementing a BRE program requires a significant amount of staff time. Hugo hired a part-time intern to work on the program who ended up spending an average of 10 to 20 hours per week on related administrative tasks. In Forest Lake, the Community Development Director acted as the project manager for the entire program. Depending on the scope of the program, the cost of hiring the University of Minnesota Extension can range from $10,000 to $15,000. Each city interviewed was able to find some amount of corporate sponsorship, with energy companies and local banks being the main contributors. In the case of Hugo, the program costs were entirely covered by corporate contributions. City of Shoreview Business Retention and Expansion Program Staff also completed research on the Business Retention and Expansion Program managed by the City of Shoreview. Unlike Coon Rapids, Hugo, and Forest Lake, Shoreview set up a BRE program without the assistance of a consultant. Their approach has focused on improved communications though including more business-related content on the City website, distributing a Business Matters newsletter, and organizing quarterly business exchange events that provide educational resources for local businesses. In addition, Shoreview has developed a business visitation program. A list of approximately 20 priority businesses was developed based on criteria including number of employees, tax base generation, number of years located in the City, and growth potential. Over several years, visitation teams comprised of City representatives and volunteers have interviewed all of the businesses. Before reaching out to these businesses, a tracking system was put in place to allow the City to easily respond to urgent issues brought up during the visits. City of Arden Hills Economic Development Commission June 4, 2014 Page 3 of 3 The benefit of this approach is that the City was able to tailor the BRE program to the specific needs of their community and the capacity of their staff. By developing a list of priority businesses, the City was also able to focus its limited resources on companies that were more likely to participate in this type of initiative. However, potential drawbacks of this approach may include the additional staff time required to design and implement the program and that the data collected from the business interviews is not as detailed or comprehensive as what is gathered by communities that use the Extension’s Business Retention and Expansion Strategies Program. Discussion Questions 1. What are some of the potential benefits and drawbacks associated with these two different approaches to organizing a BRE program? 2. Based on the overview provided, is there one approach that the EDC views as being a more viable option for Arden Hills? Next Steps Based on the direction provided by the EDC, staff will continue to research these two approaches. Additional information is needed on how cities go about initiating the process of working with the University of Minnesota Extension on a BRE program, the estimated costs associated with hiring the Extension as a consultant, and the businesses and entities in Arden Hills that may be interested in sponsoring a program. If Arden Hills decides to pursue a city-initiated program, staff would like to meet with the City of Shoreview to learn more about their experience with implementing a local BRE program. Taking this approach will also require further discussion with the EDC on the types of strategies the City would adopt in undertaking its own BRE program. City of Arden Hills Economic Development Commission June 4, 2014 Page 1 of 1 MEMORANDUM DATE: June 4, 2014 EDC Agenda Item 4.B TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: City Video Tour Requested Action Provide direction for the City video tour. Discussion Based on the draft outline and Commissioner comments from the April 2, 2014 EDC meeting, a draft video tour script has been written (attached). Potential filming locations are identified in the left-hand column. Testimonials from two businesses and the St. Paul Chamber of Commerce regarding the significance of the TCAAP project will be included. The script currently is timed at approximately four minutes. The original goal was to limit the length of the video tour to three minutes due to the concern that viewers would not be willing to watch anything longer. With the inclusion of the testimonials, the length is expected to be nearly five minutes. Staff expects CTV to be able to begin filming in June. Discussion Questions 1. What is the ideal length of the video? 2. Should any text be cut or added? 3. Do Commissioners have additional suggestions for filming locations? City Video Tour Draft Script Part I: Mayor Introduction Welcome to Arden Hills where we offer the best of small-town customer service with big-city amenities! Arden Hills values its vibrant business community and is proud to be the home of major employers. The vitality of the City’s four business districts, our proximity to both downtowns and the Twin Cities med-tech corridor, and our easy access to the highway system make Arden Hills an important business center in the North and East Metro. Part II: Background Information Maps will be used to show proximity to both downtowns, the I-694 med-tech corridor, and major transportation arteries. Arden Hills is conveniently located 10 miles (or a 15-minute drive) from both downtown Minneapolis and downtown St. Paul. The Minneapolis-St. Paul International Airport is also just 25 minutes away. Interstates 35W and 694, along with a network of major arterial roadways, provide convenient access to the entire metro region. Arden Hills is a community of approximately 9,500 residents. Unlike typical suburbs, however, Arden Hills is no bedroom community. The City’s major employers create a high-energy environment with an employment population of over 12,000. Businesses are drawn to the high educational attainment of the local workforce. Fifty-six percent of Arden Hills residents have a Bachelor’s degree or higher, and 24 percent hold an advanced degree. Bethel University and University of Northwestern, both located in Arden Hills, offer adult degree programs in areas such as business management and healthcare leadership. Potential Filming Locations Gateway Sign – Triangle Parcel Maps and downtown skylines Boston Scientific, Land O’Lakes Bethel University and University of Northwestern (get active campus shots in September) Employees can live nearby as Arden Hills offers a diverse selection of housing options from starter to executive homes. Arden Hills homes are a great investment. Homebuyers are attracted to the Mounds View School District, which consistently ranks among the top school districts in the State. Arden Hills homes held their value through the 2008 recession, with the average home in Arden Hills valued at 22% more than the metro average. Residents and employees have easy access to the City’s park system which includes 15 miles of trails connecting parks, neighborhoods, and business areas. Part III: Business and Industry Maps will be used to show the location of each district. Two or three testimonials from different types of businesses will be included. Arden Hills is part of the booming med-tech corridor along I-694, and the industry’s manufacturers and suppliers see the value in proximity. Major medical device companies in Arden Hills include Boston Scientific, Smiths Medical, and IntriCon. Corporate facilities for Medtronic and St. Jude Medical are nearby. Arden Hills has four distinct business districts. The Gateway or Round Lake Business District is located south of Highway 96 between I-35W and Round Lake. The Gateway District is comprised predominantly of office, manufacturing, and light industrial uses. Delkor, Hood Packaging, and Split Rock Studios are examples of the high quality, innovative businesses in this district. The Corporate Campus Business District is located north of I-694 between Hamline and Lexington Avenues. Arden Hills is proud to be the home of corporate facilities for Land O’Lakes, Boston Scientific, and Gradient Financial. Starter homes (southwest corner of City), Arden Village, Fox Ridge, lake homes, Tony Schmidt Regional Park/Beach, trails, wetlands, Lake Valentine Park, Valentine Hills Elementary Med-tech corridor map; IntriCon; Exos Completed Round Lake Road (Fall 2014); Delkor; Hood Packaging Gradient Financial; Ulteig The Red Fox/Grey Fox District is located south of I-694. Lexington Avenue is a major retail corridor and consumers are drawn to popular destinations such as Cub Foods, Caribou Coffee, Starbucks, and Noodles. Manufacturing, light industrial, and office uses west of the retail corridor enjoy easy access to I-694 and Hamline Avenue/Highway 51. International Paper and the world headquarters for Smiths Medical are located here. The County Road E Business District runs between Hamline and Lexington Avenues and is comprised primarily of office, retail, and service uses. Independent businesses such as Flaherty’s Arden Bowl and Now Bikes and Fitness enjoy the district’s community atmosphere. Part IV: Economic Development Include a testimonial by the St. Paul Chamber of Commerce focusing on the regional economic significance of TCAAP. Although Arden Hills is a nearly fully developed City, something is always happening. Properties are being redeveloped, and businesses are expanding and improving. The 427-acre TCAAP site is the most significant development area in the region and offers incredible growth potential. Following the completion of remediation activities in 2015, TCAAP will be home to up to 4,000 jobs and 4,000 people. Part V: Mayor Wrap-Up We hope you’ve enjoyed this virtual tour of Arden Hills and will consider us for your next business expansion or location decision. Check out our website at www.cityofardenhills.org for more business information or contact Arden Hills staff at 651-792-7800. We look forward to hearing from you soon! Lexington Station (Fall 2014); Health Partners; Aerotek; Smiths Medical Flaherty’s Arden Bowl; NOW Bikes and Fitness; Walgreens; Northpark Corporate Center Lexington Station (ASAP); construction at Boston Scientific (Summer 2014) TCAAP site work; TCAAP Master Plan Land Use Map Gateway Sign – Triangle Parcel City of Arden Hills Economic Development Commission June 4, 2014 Page 1 of 5 MEMORANDUM DATE: June 4, 2014 EDC Agenda Item 4.C TO: Economic Development Commission FROM: Matthew Bachler, Associate Planner SUBJECT: City of Arden Hills Revolving Loan Fund Background At the Economic Development Authority (EDA) meeting on April 28, 2014, staff presented recommendations on how the Revolving Loan Fund (RLF) program could be restructured to improve its effectiveness. Specifically, the topics of loan structure, project eligibility, financial criteria, and the approval process were discussed. The recommendations shared with the EDA were reviewed by the Economic Development Commission (EDC) at their April 2014 meeting. Generally, the EDA was supportive of the proposed guidelines. The partnership between the City and local banks in administering the loans was discussed and the EDA directed staff to develop a Participation Agreement that would adequately protect the City in the event of a loan default. The EDA agreed that the job creation and retention requirements in the existing RLF Guidelines should be updated, but felt that some type of job creation or retention criteria should be kept in the revised program. All loan applications would need to receive final approval from the EDA. Since this body is comprised entirely of the members of the City Council, a special meeting of the EDA could be convened following any regular City Council meeting in order to take action on an application. The EDA was comfortable with either having a new finance committee or a third party financial advisor make a recommendation to the EDA on a loan proposal. Additional discussion on the servicing of revolving loans is included in a later section of this memo. Program Overview The following is a draft version of the revised guidelines based on past discussions with the EDC and direction provided by the EDA. City of Arden Hills Economic Development Commission June 4, 2014 Page 2 of 5 Program Goals  To encourage reinvestment in commercial and industrial buildings and properties.  To support projects that will result in property maintenance and aesthetic improvements.  To provide incentives for the retention and expansion of Arden Hills firms that will promote increased employment opportunities for residents and a stronger tax base.  To provide affordable financing that could not otherwise be secured in the private market.  To advance other public policy goals adopted by the City Council. Loan Structure The program provides loans up to $50,000 for a term of up to 10 years at two percent interest. Revolving loan program participation requires a 100 percent match by a participating private lender, which has agreed to service the loans and to provide their match at a competitive market rate. Eligibility Properties must be located within a commercial or industrial district. The following projects are eligible for revolving loan funds:  Real property improvements - Internal fixed improvements (walls, ceilings, floors, lighting, windows, doors) - Streetscape and landscaping improvements - Plumbing, electrical, and mechanical systems - Air conditioning - Roofing - Parking lot surfacing and lighting - Accessibility improvements - Energy conservation and energy retrofits  Commercial façade improvements - Cleaning and painting of exterior surfaces - Repair or replacement of windows, doors, masonry, awnings, and decorative details - Sign removal, repair, or replacement  Fixed asset equipment - Production equipment Financial Guidelines  The revolving loan may finance no more than 50 percent of the cost of a project, up to a maximum of $50,000.  The lender shall make the determination of the appropriate term; however, the term of loan shall not exceed 10 years. City of Arden Hills Economic Development Commission June 4, 2014 Page 3 of 5  Applicants must provide valid bids for the work or equipment proposed.  Loan funds cannot be used to finance any work started prior to the issuance of the loan.  Projects financed through the RLF program are subject to the requirements contained in the Arden Hills Business Subsidy Criteria and City Public Financing Guidelines. Revolving loan applications will not be evaluated using the Public Financing Proposal Grading and Report Card.  The EDA will prioritize those projects that can demonstrate job retention or creation as a result of the public financing. Loan Servicing Following the EDA meeting in April, staff met with the Central Minnesota Development Company (CMDC) and SPEDCO, both of which are non-profit certified development companies authorized to originate and service SBA loans. CMDC currently manages revolving loan funds for the cities of Coon Rapids, Blaine, and Brooklyn Park. This includes completing the underwriting, servicing the loans, and marketing the programs. SPEDCO has explored offering similar services to cities but is not working with any localities at this time. Staff met with these companies to determine whether either could assist in the management of the City’s RLF. While CMDC manages three municipal revolving loan funds, the size of these funds and the scale of the types of projects being financed are significantly greater as compared to Arden Hills. As a result, their services would likely not be a good fit for the City’s RLF program. SPEDCO suggested that revolving loan funds could be used to help cover the 10 percent borrower equity contribution required for SBA 504 financing. This would place the City’s financing in a tertiary position behind a private bank loan and an SBA loan. Staff believes this option could expose the City to unnecessary risk and that the EDA would not be supportive of such an arrangement. CMDC and SPEDCO recommended that the City use a third party financial advisor to verify the underwriting work completed by a participating bank. Both companies have staff that could complete this review within one to two hours. The cost associated with the service would be covered by a loan application fee. The third party recommendation along with the staff review of the project’s eligibility and code compliance would provide the EDA with sufficient information to take action on a loan application. Based on its discussions with the EDA and EDC, and the feedback received from CMDC and SPEDCO, staff is recommending the following general outline for loan servicing: The City of Arden Hills would be responsible for:  Determining eligibility based on eligibility of improvements, compliance with relevant City Codes and Ordinances, and consistency with design standards.  Obtaining a third party review of underwriting completed by participating bank.  Participation agreements with local financial institutions. City of Arden Hills Economic Development Commission June 4, 2014 Page 4 of 5  Purchasing participation in the note at the time of the loan closing.  Promoting program though communication with local banks and the City’s website and community newsletter. Participating financial institution would be responsible for:  Processing applications.  Completing all necessary underwriting to determine eligibility.  Determining loan amortization period.  Approval or disapproval of loan subject to final approval by the Arden Hills EDA.  Preparing appropriate collateral documentation.  Distribution of loan funds and collection of principal and interest payments for both the City and private portions of the loan. Monthly payments are submitted to the City. Next Steps Depending on the feedback provided by the EDC, staff is proposing the following next steps for implementing the updated RLF program: 1. Follow up with CMDC and SPEDCO on the financial review services they could provide the City in verifying underwriting completed by participating banks. This would include determining how to set up the review process and the estimated cost of these services. 2. Work with the City Attorney and local banks that have expressed an interest in the program on developing a draft of the Lender Agreement and the Participation Agreement documents. These documents would include the requirements of the program and the responsibilities of the City and the bank. 3. Draft a final version of the revised RLF Guidelines to be reviewed and approved by the EDC at a later meeting. 4. Review RLF Guidelines with the Minnesota Department of Employment and Economic Development to verify consistency with any state requirements. 5. Present RLF Guidelines to the EDA for final approval. The presentation would also include an overview of how loans will be serviced and how the approval process will be structured. Carroll’s Furniture Redevelopment Update At the City Council Work Session on May 12, 2014, staff provided an update on U.S. Bank’s efforts to sell the former Carroll’s Furniture property at 1203 County Road E. The councilmembers discussed whether revolving loan funds could be used as an incentive for a City of Arden Hills Economic Development Commission June 4, 2014 Page 5 of 5 private developer to undertake site improvements the City would like to see completed, such as a partial demolition of the existing building and the addition of more parking stalls. Staff is currently in discussion with U.S. Bank on the feasibility of such an arrangement. There continues to be interest in the property and the City’s preference is for these improvements to be completed without public assistance. Attachments A. Staff Report to the Economic Development Authority, April 28, 2014 B. Draft Economic Development Authority Minutes, April 28, 2014 ______________________________________________________________________________ City of Arden Hills Economic Development Authority Meeting April 28, 2014 Page 1 of 4 MEMORANDUM DATE: April 28, 2014 TO: EDA President and Commissioners FROM: Matthew Bachler, Associate Planner SUBJECT: EDA Revolving Loan Fund Requested Action Provide feedback and direction on proposed changes to the EDA Revolving Loan Fund. Background The EDA discussed the City’s Revolving Loan Fund (RLF) at two previous meetings on April 29, 2013 and August 26, 2013. At these meetings, staff provided general background information on the history of the RLF and the EDA discussed its goals and priorities for the future use of the funds. Since then, staff has discussed this topic with the Economic Development Commission (EDC) and has met individually with several local bankers to discuss the revisions proposed by the EDA in more detail. The section below provides a summary of these discussions and presents general recommendations on how the RLF program could be restructured so that funds will be more actively used by the Arden Hills business community. Based on the feedback provided by the EDA, staff will work with the EDC to draft revised RLF Guidelines that will be reviewed at a later meeting. Prior to final approval by the EDA and City Council, the revised RLF Guidelines are required to be reviewed by the Minnesota Department of Employment and Economic Development. Discussion Goals and Principles The RLF Guidelines should include a list of goals that clearly define the purpose of the program. Businesses applying for loans should be able to easily evaluate whether their projects would be consistent with the City’s objectives. Specific goals might include:  Support projects that encourage redevelopment of and investment in commercial and industrial buildings and properties. ______________________________________________________________________________ City of Arden Hills Economic Development Authority Meeting April 28, 2014 Page 2 of 4  Support projects that will result in property maintenance and aesthetic improvements, such as landscaping or commercial façade improvements.  Focus on projects that will assist in the retention and expansion of established Arden Hills businesses.  Provide affordable financing that could not otherwise be secured in the private capital market.  Support projects that advance other public policy goals adopted by the City Council, including energy conservation and sustainable building practices. Loan Amount and Terms The City should set a maximum loan amount somewhere between $50,000 and $75,000. This number should be set in part based on the type and number of projects that the City sees itself financing. For example, a lower maximum amount would allow the City to support more projects, but the projects being undertaken would likely be at a smaller scale. If the City were to set the RLF interest rate at two percent, these loans would be very competitive with commercial lending rates. Currently, commercial rates average at least five percent. The EDA could consider setting the interest rate as high as three percent, which would increase the amount being repaid into the RLF while still being competitive with commercial rates. The private lender should set the term length, but the City could still put a limit on the maximum number of years for a loan term. Terms are determined by the amortization period. Projects requiring less capital investment (equipment acquisition) usually have a shorter amortization and term, while projects with a larger investment (real estate acquisition) have a longer amortization and term. If the goal is to see a quicker return of loan repayments, the City should focus on projects with short-term amortization periods of ten years or less. Eligibility The following types of projects should be eligible for loans issued through the RLF:  Real property improvements - Internal fixed improvements (walls, ceilings, floors, lighting, windows, doors) - Streetscape and landscaping improvements - Plumbing, electrical, and mechanical systems - Air conditioning - Roofing - Parking lot surfacing and lighting - Accessibility improvements - Energy conservation and energy retrofits  Commercial façade improvements - Cleaning and painting of exterior surfaces ______________________________________________________________________________ City of Arden Hills Economic Development Authority Meeting April 28, 2014 Page 3 of 4 - Repair or replacement of windows, doors, cornices, masonry, awnings, and decorative details - Sign removal, repair, or replacement  Fixed asset equipment - Production equipment Financial Criteria Revolving fund loans should act as gap financing for loans being made by a private lender. For each bank participating in the program, a Lender Agreement would be signed with the City. This agreement would outline the general requirements of the RLF program and what the expectations are of the bank in partnering with the City. A Participation Agreement would also be created for individual loans, providing specific details and responsibilities for each deal. The lender would prepare the note and collateral documents and the City would issue a check from the RLF to purchase a participation in the note. The lender would be responsible for disbursing the loan funds and collecting payments for both the City and private portions of the loan. Monthly payments would then be submitted to the City. The bank would also be responsible for doing the necessary underwriting for the entire loan package. Since banks are risk-averse, if an applicant meets a bank’s underwriting requirements the City can be confident about the risk level associated with the loan. The City should primarily rely on the financial criteria used by the participating bank to screen loan applications. Additional recommendations included:  Require that a minimum of 50 percent of the project be privately financed.  Many projects would likely not receive a high score using the City’s Grading and Report Card for public financing proposals, as this tool is largely focused on redevelopment projects. Consider exempting projects receiving financing through the RLF from being reviewed using this evaluation tool.  The job creation requirements in the existing RLF Guidelines should be revised considering that certain projects such as façade improvements and equipment acquisition may not meet this required criteria.  Be willing to take on some risk recognizing that the City will likely see a direct benefit from a completed project regardless of whether the loan is repaid in full (for example, improvements to landscaping or public frontage façades). Guidelines and Approval Process The application process for obtaining revolving loan funds should be streamlined and transparent. The City should set a goal of completing the necessary evaluation and deciding on a loan request within 30 to 45 days of receiving a completed application. A long approval process will make the program less attractive to businesses interested in participating. While the City should request financial records from the applicant, if possible these documents should not be included in the public records for meetings. ______________________________________________________________________________ City of Arden Hills Economic Development Authority Meeting April 28, 2014 Page 4 of 4 The City should consider establishing a special committee comprised of members of the EDA, the EDC, and staff that would be responsible for evaluating applications and making recommendations to the City Council. A detailed list of criteria should be created so that businesses have a level of certainty that a project will be approved by the City Council if it successfully makes it through the committee approval process and meets the required criteria. A schedule similar to the one used by the City to process land use applications could be developed so applicants are aware of the loan approval timeline from the beginning. Because the City is unlikely to receive a large number of loan applications, this committee could have a set regular meeting time every month, but only convene on an as needed basis. Requested Action Provide feedback and direction on proposed changes to the EDA Revolving Loan Fund. Attachments A. City of Arden Hills, EDA Revolving Loan Fund Guidelines B. City of Arden Hills Business Subsidy Criteria and City Public Financing Guidelines, April 29, 2013 C. Public Financing Proposal Grading and Report Card D. EDA Staff Report, August 26, 2013 E. EDA Minutes, August 26, 2013 Approved: CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY MEETING APRIL 28, 2014 6:00 PM – CITY HALL 5. UNFINISHED BUSINESS A. EDA Revolving Loan Fund Associate Planner Bachler stated that the EDA discussed the City’s Revolving Loan Fund (RLF) at two previous meetings on April 29, 2013, and again on August 26, 2013. At these meetings, staff provided general background information on the history of the RLF and the EDA discussed its goals and priorities for the future use of the funds. Since then, staff has discussed this topic with the Economic Development Commission (EDC) and has met individually with several local bankers to discuss the revisions proposed by the EDA in more detail. Associate Planner Bachler explained that based on the feedback provided by the EDA, staff will work with the EDC to draft revised RLF Guidelines that will be reviewed at a later meeting. Prior to final approval by the EDA and City Council, the revised RLF Guidelines are required to be reviewed by the Minnesota Department of Employment and Economic Development. Associate Planner Bachler reviewed the goals and principles of the RLF program. He indicated that the RLF Guidelines should include a list of goals that clearly define the purpose of the program. Businesses applying for loans should be able to easily evaluate whether their projects would be consistent with the City’s objectives. Specific goals might include:   Support projects that encourage redevelopment of and investment in commercial and industrial buildings and properties.  Support projects that will result in property maintenance and aesthetic improvements, such as landscaping or commercial façade improvements.  Focus on projects that will assist in the retention and expansion of established Arden Hills businesses.  Provide affordable financing that could not otherwise be secured in the private capital market. ARDEN HILLS EDA MEETING – APRIL 28, 2014 2  Support projects that advance other public policy goals adopted by the City Council, including energy conservation and sustainable building practices. Associate Planner Bachler stated that the City should set a maximum loan amount somewhere between $50,000 and $75,000. This number should be set in part based on the type and number of projects that the City sees itself financing. For example, a lower maximum amount would allow the City to support more projects, but the projects being undertaken would likely be at a smaller scale. Associate Planner Bachler commented that if the City were to set the RLF interest rate at two percent, these loans would be very competitive with commercial lending rates. Currently, commercial rates average at least five percent. The EDA could consider setting the interest rate as high as three percent, which would increase the amount being repaid into the RLF while still being competitive with commercial rates. Associate Planner Bachler reported that the private lender should set the term length, but the City could still put a limit on the maximum number of years for a loan term. Terms are determined by the amortization period. Projects requiring less capital investment (equipment acquisition) usually have a shorter amortization and term, while projects with a larger investment (real estate acquisition) have a longer amortization and term. If the goal is to see a quicker return of loan repayments, the City should focus on projects with short-term amortization periods of ten years or less. The following types of projects should be eligible for loans issued through the RLF:  Real property improvements - Internal fixed improvements (walls, ceilings, floors, lighting, windows, doors) - Streetscape and landscaping improvements - Plumbing, electrical, and mechanical systems - Air conditioning - Roofing - Parking lot surfacing and lighting - Accessibility improvements - Energy conservation and energy retrofits   Commercial façade improvements - Cleaning and painting of exterior surfaces - Repair or replacement of windows, doors, cornices, masonry, awnings, and decorative details - Sign removal, repair, or replacement  Fixed asset equipment - Production equipment ARDEN HILLS EDA MEETING – APRIL 28, 2014 3 Associate Planner Bachler reported that the revolving fund loans should act as gap financing for loans being made by a private lender. For each bank participating in the program, a Lender Agreement would be signed with the City. This agreement would outline the general requirements of the RLF program and what the expectations are of the bank in partnering with the City. A Participation Agreement would also be created for individual loans, providing specific details and responsibilities for each deal. The lender would prepare the note and collateral documents and the City would issue a check from the RLF to purchase a participation in the note. The lender would be responsible for disbursing the loan funds and collecting payments for both the City and private portions of the loan. Monthly payments would then be submitted to the City. Associate Planner Bachler indicated that the bank would also be responsible for doing the necessary underwriting for the entire loan package. Since banks are risk-averse, if an applicant meets a bank’s underwriting requirements the City can be confident about the risk level associated with the loan. The City should primarily rely on the financial criteria used by the participating bank to screen loan applications. Additional recommendations included:  Require that a minimum of 50 percent of the project be privately financed.  Many projects would likely not receive a high score using the City’s Grading and Report Card for public financing proposals, as this tool is largely focused on redevelopment projects. Consider exempting projects receiving financing through the RLF from being reviewed using this evaluation tool.  The job creation requirements in the existing RLF Guidelines should be revised considering that certain projects such as façade improvements and equipment acquisition may not meet this required criteria.  Be willing to take on some risk recognizing that the City will likely see a direct benefit from a completed project regardless of whether the loan is repaid in full (for example, improvements to landscaping or public frontage façades). Associate Planner Bachler explained that the application process for obtaining revolving loan funds should be streamlined and transparent. The City should set a goal of completing the necessary evaluation and deciding on a loan request within 30 to 45 days of receiving a completed application. A long approval process will make the program less attractive to businesses interested in participating. While the City should request financial records from the applicant, if possible these documents should not be included in the public records for meetings. Associate Planner Bachler stated that the City should consider establishing a special committee comprised of members of the EDA, the EDC, and staff that would be responsible for evaluating applications and making recommendations to the City Council. A detailed list of criteria should be created so that businesses have a level of certainty that a project will be approved by the City Council if it successfully makes it through the committee approval process and meets the required criteria. A schedule similar to the one used by the City to process land use applications could be developed so applicants are aware of the loan approval timeline from the beginning. Because the City is unlikely to receive a large number of loan applications, this committee could have a set regular meeting time every month, but only convene on an as needed basis. ARDEN HILLS EDA MEETING – APRIL 28, 2014 4 Associate Planner Bachler requested that the EDA provide feedback and direction on proposed changes to the EDA Revolving Loan Fund. EDA Commissioner Holden questioned how grants were factored into this program. Executive Director Hutmacher reported that there were not a lot of grants available for businesses. Associate Planner Bachler believed that the City would be willing to partner with businesses on a loan if they had received a grant. EDA Commissioner Holden thought that this was a great policy for non-TCAAP properties, but did not want to see it made available to small businesses in TCAAP. EDA President Grant agreed and suggested that applications for the revolving loan fund go through the EDC, with recommendations then made to the EDA. Executive Director Hutmacher discussed the process preferred by local banks, noting a smaller subcommittee was recommended to streamline the process. EDA Commissioner Holmes questioned how the $155,000 would impact local businesses. She asked if the money should be given back to DEED. James Ostlund, Financial Planning and & Analysis Committee, suggested that the decision making process be outsourced to Central Minnesota Development Company (CMDC) or that banks be allowed to decide. He believed that the loans would impact small businesses and should proceed. EDA President Grant agreed that the EDA did not have a lot of additional time to review these matters. He did not want future loan requests to become ‘analysis paralysis’. He supported the requests being reviewed by the FPAC or EDC, or having the requests come straight to the EDA. EDA Commissioner McClung did not want to overwhelm staff by these requests either. He encouraged the loan review process be streamlined as much as possible. EDA Commissioner Holden suggested that staff and a banker review the requests and that a recommendation be made to the EDA. Executive Director Hutmacher stated that CMBC would be an option that would reduce the need for additional staff time and subcommittee review. EDA President Grant supported this recommendation. ARDEN HILLS EDA MEETING – APRIL 28, 2014 5 EDA Commissioner McClung recommended that the loans be tied to job creation or job retention. Secretary Klaers reported that the EDA would review this information again at a future meeting. City of Arden Hills Economic Development Commission June 4, 2014 Page 1 of 2 MEMORANDUM DATE: June 4, 2014 EDC Agenda Item 4.D TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: State of the City Requested Action Provide direction on a potential 2014 State of the City event. Discussion A State of the City event was held in September 2011 and 2013. The purpose of the event is to build relationships with the Arden Hills business community and to provide local businesses with information about City projects and goals. In order to maximize business turnout for the event, the State of the City has been held on a weekday morning with continental breakfast included. Feedback for both the 2011 and 2013 events was very positive, and the EDC may want to consider holding a State of the City in 2014. In 2013, the EDC directed staff to research potential locations including:  Flaherty’s Arden Bowl  Bethel University  Northwestern College  North Heights Lutheran Church  Ramsey County Public Works Facility, Marsden Room  U.S. Army Reserve  Minnesota National Guard Both the U.S. Army Reserve and the Minnesota National Guard declined the request due to security reasons. The Marsden Room was eliminated from further consideration because catering is not available, and other options that offer catering are available at a reasonable cost. Northwestern College has available space and catering, but was eliminated as a preferred location since it is not centrally located in Arden Hills. City of Arden Hills Economic Development Commission June 4, 2014 Page 2 of 2 For research purposes, staff assumed 75 attendees. In 2013, cost estimates for the remaining locations were as follows. Bethel University $571 Flaherty’s Arden Bowl $657 North Heights Lutheran Church $1,219 The Commission decided that the 2013 State of the City should be held at Flaherty’s Arden Bowl. Staff notes following the September 12, 2013, event are attached. Discussion Questions 1. Would the EDC like to organize a 2014 State of the City event? 2. In the past, the event has been held in mid-September. When would the EDC like to schedule the event for 2014? 3. What is the preferred location? 4. Are there presentation topics that the EDC would like to recommend to the City Council? State of the City Notes – Thursday, September 12, 2013 2013 Attendance: - 92 RSVP’s were received - RSVP’s that attended = 56 (61%) - Non-RSVP’s that attended = 19 - Total Attendance = 75 According to the St. Paul Chamber of Commerce, 70% of RSVPs attend free events. Approximately 20% of attendees are walk-ins. Future State of the City – Punch List 1) Double check PA system 2) 2 working microphones a. One for the Speaker b. Additional one for questions from audience 3) Different layout of the space if Flaherty’s Arden Bowl is used for the event again a. Podium and screen in SW corner 4) Slide design and transitions a. Speakers need to be able to smoothly transition slides b. Consider rehearsal for speakers and slide movers c. Wireless mouse/remote for computer/projector 5) Food a. Not just donuts b. Maybe a variety of pastries c. Add eggs and one meat 6) Larger table to place nametags and sign-in sheets a. The entryway got a bit congested at times b. Have enough staff to assist with registration; divide pre-registered by alphabet to speed check-in c. Note which pre-registered attendees came (or retain unused nametags) d. Send reminder email to RSVPs 7) Advertising and promotion a. 2 ads in Shoreview-Arden Hills Bulletin b. City newsletter c. Announcements at Council meeting d. Website business news and home page e. Cable Bulletin f. 2 post card mailings to business license list g. Post card delivery by EDC members h. Facebook and Twitter 2013 Timeline 7:30 - 7:45 Breakfast and networking 7:45 Welcome and Introductions (Mayor Grant) 7:50 Economic Development Goals (EDC Chair von Holtum) 7:55 County Road E Improvements (Councilmember Holden) 8:05 TCAAP (Mayor Grant) 8:15 Development Projects (Councilmember Werner) 8:25 Transportation Projects (MnDOT and Councilmember Holmes) 8:35 Arden Hills Foundation (Nick Tamble) 8:40 Q&A (Mayor Grant) 9:00 Adjourn 2013 Costs Flaherty’s Arden Bowl 110 pp based on 94 RSVPs; “assortment of pastries, muffins, bagels, fruit, coffee, tea, juice, water” at $7/pp $770.00 $138.60 gratuity $54.86 tax $963.46 total Shoreview-Arden Hills Bulletin 2 ads on 3rd page; B/W; 3.25” x 4” $563.20 Postage 2 mailings of approx 170 @ $0.33 each $112.20 Total $1,638.86 Page 1 of 2 DATE: June 4, 2014 EDC Agenda Item 5.A TO: Economic Development Commission Chair and Commissioners FROM: Jill Hutmacher, Community Development Director SUBJECT: TCAAP Update Requested Action None. Master Plan The City Council has been meeting to discuss topics related to the approval of the TCAAP master plan land use map as follows:  Parks, Trails, and Recreation Committee recommendations for park needs and amenities (April 21)  Surface water amenity (April 21)  Residential development and densities (May 19)  Flex space land use (May 19) On April 21, 2014, the City Council discussed recommendations from the Parks, Trails, and Recreation Committee (PTRC) for amenities needed within each park area. The PTRC recommendations, which were accepted by the City Council, can be summarized as follows:  Park areas in neighborhoods should include play structures, a gazebo, and off-street parking (located either in lots or in bump-outs along the public street);  Parks should be located nearer to center or at the entrance to residential neighborhoods so that park traffic is not routed through the neighborhood;  An adult athletic facility (softball and hockey) should be located adjacent to a County road. This facility should be lighted and ideally will have shared parking with adjacent businesses. The City Council also discussed goals for the surface water amenity on April 21. Council comments included:  Pond areas should be well-maintained and should have water present at all times; MEMORANDUM Page 2 of 2  Ponds may be connected by natural areas or a “brook” environment;  Trails and benches should be included so that the surface water management can also be a site amenity. The City Council discussed residential densities and the flex space land use on May 19, 2014. The City Council chose not to set a maximum number of dwelling units at this time, although the Council may revisit a maximum unit count during the regulations and policies component of the master planning process. The City Council did not make changes to the amount of land designated for the flex space land use. The City Council discussed their preference for office development and that this type of development should be allowed and encouraged in the flex space area. The City Council will consider regulations that limit the amount of warehouse/distribution uses at TCAAP. The City Council will review the revised draft master plan land use map on June 16, 2014. The City Council is tentatively scheduled to approve the master plan land use map on June 30, 2014. AUAR The public comment period for the draft AUAR and Mitigation Plan ended on May 28, 2014. Comments were received from Mr. Lyle Salmela, the City of Shoreview, the Minnesota Department of Health, MnDOT, the Minnesota Pollution Control Agency, and the Metropolitan Council. City staff and consultants are reviewing the comments to determine how they should be reflected in the final draft document. The City Council will review the final draft AUAR and Mitigation Plan on June 30, 2014, and is tentatively scheduled to approve the final document on July 28, 2014. Infrastructure Study The team of Kimley-Horn and Associates and Wenck Associates was selected by Ramsey County and the City of Arden Hills for the development and design of the TCAAP Redevelopment Site Infrastructure. Their scope of services addresses design of public infrastructure including roadways, drainage, and stormwater management features, and utilities to support the redevelopment. The consultants will spend the next several months developing preliminary design layouts for the Spine Road, thumb road connection to County Road I, regional stormwater management system, grading plan, mitigated wetlands, and sanitary sewer and water supply systems. Their work will require close coordination with ongoing planning and remediation activities and development of the adjacent interchange on County Road H at I-35W. The preliminary designs will enable the consultant team to develop refined construction cost estimates to assist in the development of an infrastructure financing plan. The consultant team will also ultimately prepare construction documents for public bidding of the site infrastructure improvements.