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Home My WebLink About10-22-18-EDAAPPROVAL OF AGENDA APPROVAL OF MINUTES April 23, 2018 Minutes 04 -23 -18 EDA.PDF NEW BUSINESS Preliminary 2019 EDA Budgets Gayle Bauman, Finance Director MEMO.PDF ATTACHMENT A.PDF Gateway Sign Jane Kansier, City Planner MEMO.PDF ATTACHMENT A.PDF ATTACHMENT B.PDF ATTACHMENT C.PDF EDA MEMBER COMMENTS ADJOURN President: David Grant Commissioners: Brenda Holden Fran Holmes Dave McClung Steve Scott Economic Development Authority October 22, 2018 6:00 p.m. 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. 2.A. Documents: 3. 3.A. Documents: 3.B. Documents: 4. APPROVAL OF AGENDAAPPROVAL OF MINUTESApril 23, 2018 Minutes04-23 -18 EDA.PDFNEW BUSINESSPreliminary 2019 EDA BudgetsGayle Bauman, Finance Director MEMO.PDFATTACHMENT A.PDFGateway SignJane Kansier, City Planner MEMO.PDFATTACHMENT A.PDFATTACHMENT B.PDFATTACHMENT C.PDF EDA MEMBER COMMENTS ADJOURN President:David Grant Commissioners:Brenda HoldenFran HolmesDave McClungSteve Scott Economic Development Authority October 22, 20186:00 p.m. 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 ORDER1.2.2.A.Documents:3.3.A.Documents:3.B.Documents: 4. Approved: October 22, 2018 CITY OF ARDEN HILLS, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY MEETING April 23, 2018 6:30 PM – CITY HALL CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, EDA President Grant called to order the Economic Development Authority meeting at 6:30 p.m. Present: EDA President David Grant; EDA Commissioners Brenda Holden, Fran Holmes, Steve Scott, and Dave McClung (arrived at 6:33 pm) Absent: None Also present: EDA Secretary Dave Perrault; Finance Director Gayle Bauman; City Planner Matthew Bachler; and City Clerk Julie Hanson 1. APPROVAL OF AGENDA MOTION: EDA Commissioner Holden moved and EDA Commissioner Holmes seconded a motion to approve the meeting agenda as presented. The motion carried unanimously (4-0). 2. APPROVAL OF MINUTES A. July 24, 2017 EDA MOTION: EDA Commissioner Holden moved and EDA Commissioner Holmes seconded a motion to approve the July 24, 2017, Economic Development Authority Meeting Minutes as presented. The motion carried unanimously (4-0). 3. NEW BUSINESS A. EDA Budget Calendar ARDEN HILLS EDA MEETING – April 23, 2018 2 Finance Director Bauman presented the 2019 EDA budget calendar. Commissioner Holden asked about the status of Cottage Villas TIF certification. Secretary Perrault and Finance Director Bauman stated that they would check on this. Secretary Perrault noted that Ehlers would be providing an updated report regarding TIF in the future. MOTION: EDA Commissioner Holden moved and EDA Commissioner Holmes seconded a motion to accept the EDA budget calendar. The motion carried unanimously (5-0). B. EDC Work Plan Update City Planner Bachler directed the EDA to his memo that outlined the EDC’s accomplishments of 2017. He stated for 2018, the EDC would be focusing on improving communications with the business community and assisting as necessary with planning for the annual State of the City event. City Planner Bachler stated that the EDC would like to hold a networking event for local businesses and possibly partner with neighboring communities that have economic development functions within their city. He said that the EDC would also work with the Communications Coordinator to develop articles for the newsletter that relate to the business community. He stated the EDC and Communications Coordinator had developed a brochure to be provided to businesses, welcoming them to the community. City Planner Bachler indicated that the EDC also would focus on the Business Retention and Expansion program and visit approximately fifteen (15) businesses in the Red Fox/Grey Fox business area. City Planner Bachler stated that the EDC would also discuss the annual State of the City planning at its next meeting in May. President Grant suggested using the Tavern Grill once again for the State of the City event and wondered what the costs were for the event last year. City Planner Bachler stated that the Tavern Grill charged less than Flaherty’s did when the event was held there. He also indicated that Land O’ Lakes had reached out to offer their new facility for a future State of the City event, once construction is complete. Commissioner McClung pointed out that this year would not be ideal as road construction in that area was ongoing. Commissioner Holden asked for clarification as to which fifteen (15) businesses the EDC would meet with and suggested contacting Roberts Management. ARDEN HILLS EDA MEETING – April 23, 2018 3 City Planner Bachler stated the EDC would target manufacturing and office businesses and not retail. He stated that the EDC could reach out to Roberts Management as well as they are a large landowner. Commissioner Holmes asked what the approach for the business meetings would be and if that approach would differ based on the size of the company (large versus small). City Planner Bachler stated that the St. Paul Chamber of Commerce had developed a survey that was then scaled down slightly but was still in use by City staff and the EDC. He indicated that the main purpose was to thank businesses for operating in the city, let them know City staff is here to assist them, and obtain general feedback as to how operations are going. Another reason for the visit was to find out if the business had plans to expand and if so, would they have adequate space on site or would they be looking to relocate, so that the City could reach out and facilitate an option for adequate space elsewhere in the city. 4. EDA MEMBER COMMENTS President Grant asked about the status of the new Marriott Springhill Suites hotel. City Planner Bachler indicated that Building Official Scherbel said he expected construction plans to be submitted any day. President Grant indicated that Brausen Shell was planning to expand or reconfigure their current space. He acknowledged that this is a private property owner project but asked that staff contact Mr. Brausen to provide the name of the vendor that the City was working with for the waterline loop so that he may make his own determination regarding a contractor for his remodeling project. 5. ADJOURN MOTION: EDA President Grant moved and EDA Commissioner McClung seconded a motion to adjourn the Economic Development Authority meeting. The motion carried unanimously (5-0). EDA President Grant adjourned the Economic Development Authority meeting at 6:50 p.m. __________________________ __________________________ Julie Hanson David Grant City Clerk EDA President NEW BUSINESS –3A MEMORANDUM DATE: October 22, 2018 TO: EDA Chair and Commissioners Dave Perrault, City Administrator FROM: Gayle Bauman, Finance Director SUBJECT: Preliminary 2019 EDA Budgets Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A EDA Chair and Commissioners Should Consider The preliminary 2019 budgets have been prepared for the Economic Development Authority (EDA) governing board. The Chair and Commissioners may provide feedback for future budget sessions. Background The EDA is a blended component unit of the City of Arden Hills which makes EDA Funds Special Revenue Funds of the City. Annually, we are required by the State to set budgets for the City’s General Fund and all Special Revenue Funds (which includes all EDA Funds). The EDA Funds are: EDA General Fund EDA TIF District #3 Cottage Villas EDA TIF District #4 Presbyterian Homes Overall, the EDA General Fund is in good financial condition for 2018 with an estimated year-end reserve balance of $346,633 due to the fact that no Gateway Sign expenditures are projected for 2018. This reserve balance will slowly decrease as Gateway Signs are developed over the next 5 years. Tax revenues are likely the only reoccurring source of funding for EDA activities. The City Council approved $120,000 in tax revenues for the EDA as part of the 2018 budget (via a transfer from the General Fund). Staff is proposing to keep this amount the same for the 2019 budget. Discussion Staff respectfully requests the EDA to review these budgets and provide feedback. Staff would also like feedback on a proposal to not bring this forward as an agenda item to the EDA in the future. The EDA does not take action on the budgets and the EDA board and the Council share the same members. It might be more efficient just to deal with this at the Council level. Attachments A. 2019 Preliminary EDA Budgets 250 251 253 254 EDA EDA Revolving TIF #3 TIF #4 Total REVENUES Tax Increments ‐$ ‐$ 99,030$ 253,900$ 352,930$ Investment Earnings 3,500 ‐ 5,500 1,500 10,500 Transfers In 120,000 ‐ ‐ ‐ 120,000 TOTAL REVENUES 123,500$ ‐$ 104,530$ 255,400$ 483,430$ EXPENDITURES Personnel Expenses 43,520$ ‐$ ‐$ ‐$ 43,520$ Supplies and Materials 400 ‐ ‐ ‐ 400 Other Services and Charges 46,970 ‐ 2,000 192,630 241,600 Capital Expenditures 40,000 ‐ ‐ ‐ 40,000 TOTAL EXPENDITURES 130,890$ ‐$ 2,000$ 192,630$ 325,520$ NET CHANGES IN FUND BALANCE (7,390)$ ‐$ 102,530$ 62,770$ 157,910$ FUND BALANCE JANUARY 1, 346,633 172,387 665,717 73,984 1,258,721 FUND BALANCE DECEMBER 31 339,243$ 172,387$ 768,247$ 136,754$ 1,416,631$ CITY OF ARDEN HILLS, MINNESOTA Function: Economic Development 250 Activity: EDA General 47300 Activity Scope Objectives Issues Budget Commentary 2016 2017 2018 2019 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services 42,842$ 33,609$ 70,550$ 43,520$ Commodities 290 290 650 400 Contractual Services 29,513 44,358 66,237 46,970 Capital Outlay - 1,647 80,000 40,000 Other Charges - - - - Total 72,645$ 79,904$ 217,437$ 130,890$ Percent Change 10.0% 172.1% (-39.8%) Full-Time Equivalent positions - - 0.36 0.33 Expenditures by Classification Historically, the revenue to this fund has been primarily excess increment and interest income with transfers from the General Fund. A transfer was made in 2012 and 2013 for the Conduit Debt revenue received in 2011 and 2012 from the Presbyterian Homes project. The tax increment excess funding source expired in 2015. Transfers from the General Fund are now the prime funding source. An administrative charge was established in 2008 and all funds are charged back for overhead costs associated with Administration, Finance and Administrative Services, and Government Building departments in the General Fund. Other costs such as auditing, financial software, IT and insurance have been allocated to this fund also. Capital outlay relates to Gateway Signs. 2019 BUDGET Fund # : Activity # : This Special Revenue Fund accounts for general administration activities that are not specific to any individual Tax Increment Financing (TIF) District, as well as activities associated with the Economic Development Commission and Economic Development Authority. 1. Consider placement and construciton of Gateway Signs. 2. Consider the use of TIF District 3 funds for low to moderate housing needs. 3. Review the operating budget and identify a sustainable funding source. 4. Continue to grow and evolve the business retention program. 1. Consistent administration of the City's polices, plan, ordinances, guidelines, statues, etc. 2. Promotion of available industrial property. 33% 0%36% 31% Personnel Services Commodities Contractual Services Capital Outlay Other Charges CITY OF ARDEN HILLS, MINNESOTA Function: Economic Development 253 Activity: TIF #3 Cottage Villas 47305 Activity Scope Objectives Issues Budget Commentary 2016 2017 2018 2019 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services -$ -$ -$ -$ Commodities - - - - Contractual Services 1,894 1,549 4,725 2,000 Capital Outlay - - - - Other Charges - - - - Total 1,894$ 1,549$ 4,725$ 2,000$ Percent Change (-18.2%) 205.1% (-57.7%) Full-Time Equivalent positions - - - - Expenditures by Classification The City no longer has any obligations to pay the developer as of February 1, 2010. Only administrative costs have been planned for 2019. 2019 BUDGET Fund # : Activity # : TIF District No. 3, Cottage Villas Housing, was originally certified as a Housing District on May 10, 1993. This district is located on the east side of Cleveland Avenue, just south of County Road E-2/Cleveland Avenue intersection. This 64 unit Cottage Villas Apartment complex is available for low-moderate income seniors. Originally, this district was set to decertify on December 31, 2009. In December 2009, the City Council extended this district until December 31, 2019, to allow the City the possibility of using these funds for other affordable housing projects within the City. The City entered into a “pay-as-you-go” agreement with Cottage Villas of Arden Hills Limited Partnership on February 28, 1994. The Development Agreement called for the developer to be reimbursed for certain public development activities initially estimated at $834,286. Repayment to the developer would only be from tax increment actually received from the district. Payments were to be 90% of the tax increment received not-to- exceed a total annual payment of $57,557. The City is no longer obligated to make payments after February 1, 2010. Utilize available funds for low to moderate income housing projects. Ensure use of funds is consistent with TIF laws. 100% Personnel Services Commodities Contractual Services Capital Outlay Other Charges CITY OF ARDEN HILLS, MINNESOTA Function: Economic Development 254 Activity: TIF #4 Presbyterian Homes 47308 Activity Scope Objectives Issues Budget Commentary 2016 2017 2018 2019 Budget Summary ACTUAL ACTUAL BUDGET BUDGET Personnel Services -$ -$ -$ -$ Commodities - - - - Contractual Services 155,147 185,105 139,525 192,630 Depreciation - - - - Other Charges - - - - Total 155,147$ 185,105$ 139,525$ 192,630$ Percent Change 19.3% (-24.6%) 38.1% Full-Time Equivalent positions - - - - Expenditures by Classification Increment was received starting in 2014 and is estimated for 2019. Payments are based on 75% of increment received to the developer and estimated for 2019. The only other charges budgeted are administrative charges. 2019 BUDGET Fund # : Activity # : TIF district No. 4, Presbyterian Homes, was established as a 15 year renewal and renovation district to facilitate the redevelopment of existing senior housing units and replacement of existing nursing home units. The first increment was received in 2014 with the districted expiring on December 31, 2029. Utilize funds for Presbyterian Homes project per the development agreement. Ensure compliance with TIF laws for uses of available funds. 100% Personnel Services Commodities Contractual Services Depreciation Other Charges NEW BUSINESS –3B MEMORANDUM DATE: October 22, 2018 TO: EDA Chair and Commissioners Dave Perrault, City Administrator FROM: Jane Kansier, City Planner SUBJECT: Gateway Sign Budgeted Amount: Actual Amount: Funding Source: N/A N/A N/A EDA Chair and Commissioners Should Consider Authorization of funds to prepare a plan for a gateway sign at the southwest corner of County Road F and Lexington Avenue. Background On June 11, 2018, the City Council approved a site plan for Primrose School at 4061 Lexington Avenue. One of the conditions of approval required “The property owner shall work with City staff to provide a gateway sign easement measuring approximately 27 feet by 27 feet at the northeast corner of the property prior to the issuance of a final Certificate of Occupancy, contingent on Xcel Energy granting consent for the gateway sign easement.” Attachment A is a concept plan for the location of the gateway sign; Attachment B is an example of the type of sign that could be located at the site. City staff have been working with Xcel Energy for permission to encroach into the Xcel easement. Before they will consider this request, Xcel requires several items for consideration (see Attachment C). Staff asked Bolton & Menk, Inc. to provide a high level estimate for providing some of the information requested by Xcel Energy. Bolton & Menk estimates the cost would be from $3,000 to $5,000 to prepare the information. The major costs would be for surveying and CAD work. Discussion Staff respectfully requests the EDA provide feedback and direction for this project. Attachments A. Concept Plan B. Sign Type C. Xcel Energy Easement Encroachment Form