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HomeMy WebLinkAbout01-19-95 ECONOMIC DEVELOPMENT COMMITTEE AGENDA January 19, 1995 8:00 a.m. Army Reserve Center 4655 North Lexington Avenue 1. Call to order. 2. Oath of Office 3. Approve minutes from December 15, 1994 Meetings. 4. Monthly Report. 5. Marking Packet. 6. Miscellaneous 7. Adjournment. * Please note that I will be in Washington D.C. and unavailable for the meeting. Please be sure to have someone take minutes. Economic Development Committee Meeting Minutes December 15, 1994 7 : 00 a.m. Army Reserve Center 1 . The meeting was called to order at 7 : 00 a.m. 2 . Present were Arnold Lindberg, Dan McCallum, Tom Goblirsch, Robb Carlson, Jr. , Mary Miller, Council Liaison Beverly Aplikowski, Community Planning Coordinator Brian Fritsinger. Absent were : Jerry Moehnke, Steve Freimuth and Trygve Egge . 3 . Monthly Report Brian gave an update of monthly activities . Specifically he briefly touched on Warner\Stellian and Green Bay Packaging. Ms . Miller provided some information about Knowlans `�. Grocery Store looking for expansion space . Staff was asked to correspond with Knowlans as to any interest in Arden Plaza. Ms . Aplikowski also, briefly discussed the concept of once week garbage pick up. Several members of the Committee were opposed this because it only is another way for government to place unneeded controls on business . 4 . Marketing Packet The committee reviewed the new packet on a page by page basis . Overall the Committee liked the layout and information included in the packet . Mary Miller will follow up on some of the missing information and get it to Brian. The Committee decided to use testimonials and if possible have them scattered throughout the packet . The letter in front would also come directly from the Mayor. The Committee would like the packet prepared as soon as possible . The front cover should simply have a graphic front and then later in the year the Committee will consider alternatives . Staff should meet with design as soon as possible to review the internal layout graphics and printing costs . Staff will send a draft of the final copy before going to print . 5 . Meeting adjourned at 9 : 10 a.m. 6 . The next meeting is anticipated to be Thursday, January 19, 1995 . Staff will verify this and when confirmed will send a schedule to the Committee . BF\jt CITY OF ARDEN HILLS MEMORANDUM MM DATE: January 13, 1995 TO: Economic Development Committee FROM: Brian Fritsinger, Community Planning Coordinator SUBJECT: Monthly Report The following are my activities for the past month which relate to the Economic Development efforts of the City. 1. Marketing Packet I've made some additional refinements to the marketing packet and have been in contact with a graphic designer. It appears the cost for printing between 250-500 packets will be approximately $3000. The Committee should review the use of its testimonials and see how it may want them placed in the packet. The testimonials received by staff appear to be long to place randomly throughout the packet. I would expect to have a rough draft including graphics available sometime in the next several weeks. 2. Dynamark Staff has met several times with representatives of Dynamark to discuss a potential expansion in Arden Hills. The company has indicated that it would like to build two new buildings of 30- 40,000 square feet each. This would add over 120 employees to the current staff. I am currently investigating the City's ability to provide financial assistance to the project. The company has formally requested Tax Increment Financing assistance. The company has stated it is considering three (3) cities for its expansion. The six (6) acre Control Data Site, adjacent to their existing facility, is the preferred Arden Hills site. 3. Everest\GBD Negotiations with Everest are accelerating and continuing at a rapid pace. The City Council extended the preliminary development agreement until February 16 to allow for the proforma financial statements to be thoroughly analyzed by staff. Staff anticipates sane direction being provided by the City Council this week as to its continued commitment to the project. 4. Arby's\Sbarro Staff has also met with representatives of Arby's who is interested in constructing a new Arby's\Sbarro food court on the vacant land located south of Shannon Square. There is also the potential for expanding Shannon Square. Arby's would like the City to consider utilizing TIF to assist the project. Staff is investigating the potential for realigning the entrance to the site and extending a road on the west side of the property to Grey Fox Road. Miscellaneous Staff has responded to at least six (6) other industrial type `,- businesses who have inquired as to available building sites in Arden Hills. BF\jt DRAFT Dear Decision Maker: We welcome you to explore the benefits of locating in Arden Hills. We offer excellent business advantages along with wonderful residential locations and diverse recreational opportunities. You will find Arden Hills a friendly place to work, live and play_ This exciting blend of activities has existed since much of our present city was occupied by Arden Dairy Farms. Our city has continued this tradition as we have grown and developed. Much has changed as a result of the.transportation advantages brought by Interstates 35W and 694 in addition to Highways 10 and 96. We are proud to be the home to hundreds of businesses, both large and small. Arden Hills is corporate home of Cardiac Pacemakers, Mutual Service Insurance (MSI), Land O'Lakes, Delta Environmental and the H.B. Fuller Company. Control Data Systems and Pharmacia Deltec also have large facilities in Arden Hills. We expect many new businesses to join us in Arden Hills. Presently we have two areas under development. These consist of 80 acres in our Gateway Business District bound by Interstates 694 and 35W and our Lexington-Fox Area adjacent to a new Target Greatland store. Substantial additional growth and development will occur as the Twin Cities Army Ammunition Plant, consisting of 2,330 acres, is released for sale. The release of this land, already in the planning stage. will continue the Arden Hill tradition of commercial development, with additional residential and recreational opportunities. We are proud of our existing business community, our residents, and educational opportunities, especially being home to Bethel College and Northwestern College. We think the unique mix of our neighborhoods, businesses, # lakes and other recreational facilities, make Arden Hills the perfect place to live work and play. We hope that you will consider locating your company in Arden Hills and becoming a valued part of our business community. Please join us, Arden Hills Economic Development Committee Frank J. Jandric President East Suburban Market Norwest Bank Minnesota, N.A. Arden Hills Office NORWEST BANKS 1220 West County Road E Arden Hills, Minnesota 55112 Bus: 612/490-2677 Fax: 612/490-2699 December 14, 1994 Dear Prospective Arden Hills Resident: Welcome to Arden Hills. Norwest Bank has been part of the Arden Hills community since 1978. We see Arden Hills and the surrounding area as a very attractive place to do business. The area is experiencing growth that is greater than the Twin Cities average and there are a large number of major employers within a short distance of each other as well as numerous smaller firms. Arden Hills enjoys a great location with easy freeway access to major shopping centers and both downtowns. It is a community of committed, civic minded citizens, an `.- outstanding school system, quiet neighborhoods and convenient, safe recreation areas for the family. We're sure you'll enjoy it. Respectfully, (,-; � � '�. Frank Jandric COMMUNITY PROFILE HOUSING Total Number of Households — growth — Total % Area 1970 1980 1990 2000 2010 2020 Change (1970-2020) City 1,586 2,380 2,904 3,250 3,850 4,450, 180% 1 County 153,623 176,995 190,500 200,950 209,360 216,630 41% MSA* 573,634 721,357 875,504 1,100,540 1,111,400 1,216,710 112% *MSA=metropolitan statistical area Source: 1990 Census Metropolitan Council estimates Housing Occupancy Owner Percentage Renter Percentage Persons Per Area Total Occupied Owner Occupied Renter Household E City 2,904 2,551 87.80% 353 12.20% 2.81 County 201,016 118,499 58.95% 72,001 35.82% 2.47 Source: 1990 Census Median Rent Area Housing Values Arden Hills $5051 Arden Hills $1.25,2001 Shoreview $497 Shoreview $109,700 New Brighton $483 New Brighton $102,000 Roseville $472 Roseville $97,000 Mounds View $459 Mounds View $86,400 County $418 County $83,600 Source: 1990 Census Source: 1990 Census COMMUNITY PROFILE POPULATION Population by Race Race Number Percent White 8,760 95.3% Asian 307 3.3% African American 105 1.1 American Indian 11 0.1% Other 16 0.2% TOTAL 9,199 100.0% Source: 1990 Census Total Population — growth — Total Area 1970 1980 1990 2000 2010 2020 Change (1970-2020) City 5,149 8,012 9,199 9,850 10,700 11,400 121% County 476,255 459,784 485,783 504,560 516,150 525,460 10% MSA* 1,874,612 1,985,873 2,288,729 2,570,910 2,780,300 2,968,920 58% *MSA=metropolitan statistical area Source: 1990 Census Metropolitan Council estimates Population by Sex and Age Number Percent Female 4,364 47.4% Male 4,835 52.6% Total 9,199 100.0% Median Age 33.9 Source: 1990 Census COMMUNITY PROFILE BUSINESS ASSISTANCE Tax Increment Financing Local Tax Increment Financing Assistance may be available to qualified development projects for certain public costs of development such as land acquisition, site preparation, water and sewer hookups and stormwater discharge ponding. Site Assistance The Arden Hills Economic Development Committee can help streamline dealings with government agencies and direct business to appropriate financial, labor training and manage— ment assistance programs. In addition the City will provide business with the specific site information necessary to en— courage development within our community. Export Assistance The Minnesota Department of Trade& Economic Development offers a vast array of assistance to companies interested in Small Business 504 Loans entering the foreign market.Assistance includes export loan guarantee,training seminars, personal advise from interna- - Long—term, below—market, tional trade experts,trade missions,trade shows and an ex— subordinated financing may tensive library of export data. be available through SBA 504 Loan Program for up to 40% of project costs, between $50,000 and Job Training Assistance $750,000. Several programs are in place to provide subsidies to em— To qualify a business must ployers for the training costs of new employees. They are as be existing,for—profit, "user" follows: Minnesota Job Skills Partnership, Minnesota Employ— business with a net worth of ment and Economic Development (MEED), Job Training not more than $6 million Partnership Act (JTPA),Targeted Jobs Tax Credit (TJTC) and net profits after taxes and Project JOBS. averaging less than $2 million. Loans can be used for land acquisition, construction or rehabilitation of a building, development costs, and • acquisition of qualified machinery and equipment. QUALITY OF LIFE Area Medical Facilities: * Group Health — Arden Hills *Arden Hills Family Physicians — Arden Hills * Unity Hospital — Fridley * Mercy Hospital — Coon Rapids * St. John's Hospital — Maplewood * St. Paul—Ramsey Medical Center— St. Paul * University of Minnesota Hospital — Minneapolis Area Accomodations: * Holiday Inn — Arden Hills * Emerald Inn — Arden Hills Crime Statistics: 1993 rate per 100,000 inhabitants 'Arden Hills 3,217 Shoreview 2,924 New Brighton 7,476 Roseville 12,142 Mounds View 10,848 Ramsey County 8,937 Source: Ramsey County Retail Sales County City Gross Sales $4.6 billion $8.3 million #of Establish— ments 5600 49 Source:Met Council MN Department of Revenue COMMUNITY PROFILE FACILITIES Distribution of Parcels %of Total Usage Market Value #of Parcels Parcels Residential $306,092,700 2,486 94.5% Commercial 82,438,600 94 3.6% Industrial 56,817,400 31 1.2% Mfg. Home Park 2,893,000 1 .1% Apartments 4,378,900 11 .3% Other 3,537,700 7 .3% TOTAL $456,158,300 2,630 100.0% Commercial/Industrial Sites * Twin City Army Ammunition Plant (TCAAP) With a total of 2,330 acres, it will start a substancial influx of building activity if the land is ever released or sold. This site consists of one—third of the total land area within the city.The city has begun working with the Army to develop a master plan for the re—utilization of this site. * Gateway Business District (GBD) _ These sites offer the most visible available property in Arden Hills. Located in the northeast quadrant of the intersection of 1-694 and I-35W, this area is zoned for mixed use. It consists of 85.8 acres, owned by several different propery owners. * Lexington/Fox Area The area of commercial redevelopment available in Arden Hills is on the west side of Lexington Avenue, south of 1-694. This area has been rezoned to encourage the redevelopment into a compatible retail mix which would feed off the nearby Target Greatland. Building Permits Issued 1993 Number of Permits Value Residential 200 $9,088,860 Commercial 34 2,315,306 Industrial 6 839,000 TOTAL 240 $12,243,166 COMMUNITY PROFILE TRANSPORTATION Highways Seasonal Load Limits Interstate I-35W, I-694 none State 10, 51 none County 96, D, E, E2, F none Lexington, Hamline City Roads 5-9 tons per axle Bus: * Metropolitan Transit Commission (MTC) serves the City of Arden Hills with numer— Truck: ous designated passenger stops. The Roseville Circulator also serves the area * There are over 24 truck lines headquartered and will stop at any safe intersection. In in the metro area and over 100 first class addition, Greyhound and Jefferson ser— carriers. vice the metro area. * Trucking/Freight companies located in Arden Hills include McCallum Transfer and Tyson Trucking. Rail: * The Metro area is served by six railroad com— panies with the three dominating lines as Air: follows: 1. Burlington Northern International Airport: Minneapolis/St. Paul 2. Chicago & Northwest Transportation Co. * 10 national/international carriers 3. Soo Line Railroad * 8 local/regional * 7 air cargo * Arden Hills is serviced with a direct rail line * 20 charter maintained by Wisconsin Central. * 35 freight forwarders * Distance to: 13 miles Local Airport: Anoka County/Blaine * Minor Capacity Airport * Accomodates business,flight training, personal/recreational, military and air taxi users * Distance to: 2 miles Other Airport: St. Paul Holman Field * Corporate Flights * Distance to: 20 miles COMMUNITY PROFILE UTILITIES Natural Gas: Supplier: Northern States Power Contact: Community Servcie Manager (612) 779-3181 Note: Energy consultant can provide gas brokering and transportation,engineering studies for installation of natural gas and incentive programs for installation of natural gas technologies. Electricity Power Supplier: Northern States Power Contact: Community Service Manager (612) 779-3181 Water: Supplier: City of Arden Hills Contact: Public Works Department (612) 633-4443 Storage Capacity: 1.5 million gallons Tapwater Hardness: 5 PPM Average Demand: 950,000 gallons Peak Demand: 2.1 gallons Rates: Summer — $2.09/1,000 Gal. Winter — $1.99/1,000 Gal. Telecommunications: Supplier: U.S. West and other long distance carriers Waste Water Service: Metropolitan Council Wastewater Service Rate: $2.69/1,000 gallons of water usage COMMUNITY PROFILE AREA BUSINESSES # of Employees I Typical Businesses* Product/Service in Arden Hills Cardiac Pacemakers, Inc. Medical Manufacturing 1,777 Alliant Techsystems, Inc. Manufacturing — Defense 1,200 p Land O'Lakes Corporate Offices 750 Control Data Systems Computers 725 Pharmacia Deltec Medical Manufacturing 500 Presbyterian Homes Elderly Housing/Nursing 497 Deluxe Corporation Telemarketing 230 Dynamark Data Marketing 220 Resistance Technology Medical Manufacturing 190 143 H.B. Fuller Corporate Offices 130 Holiday Inn Hotel Midway National Bank Banking/Electronic Data 125 American Family Insurance Insurance/Service 92 Scholls, Inc. Wholesale Distribution 75 50 Firstar Bank of Minnesota Banking/Finance Norwest Bank Banking/Finance/Mortgage 47 35 Homestead Mortgage Mortgage/Finance 35 McCallum Transfer Transportation 15 TCF Bank Banking/Finance Mutual Service Insurance Corporate Offices St. Paul Book & Stationary Corporate Offices/Retail Scherer Bros. Lumber Co. Retail/Lumber * There are over 330 businesses located in Arden Hills. This is only a partial list of the larger employers. COMMUNITY PROFILE QUALITY OF LIFE Recreation There are thirteen parks in the City Ramsey County has Tony Schmidt Park, of Arden Hills. These parks offer which is located in the City of Arden Hills. a diverse array of recreational facili— This park offers swimming, boating, picnic ties. Partnerships with three area grounds and ball fields. The County also schools provide additional athletic has several Open Space areas within the fields and playgrounds to serve City. the community. Also located in Arden Hills are numerous picnic areas, year—round scenic beauty and a complete network of pedestrian trails. Currently, there are six miles of finished trails which connect a number of City Parks and the County Open Space areas.Additional trails are in the develop— ment stage. Arden Hills is a community where generation after generation returns to raise its own — where homes are passed, not only to new residents, but family members. Conveniently located near the 694/35W interchange, residents are within 15 minutes of both urban centers — providing small town atmosphere with big city convenience... where animal life is not restricted to domestic pets. COMMUNITY PROFILE TAXES . Propery Taxes Tax Capacity: Residential Homestead First $72,000 of estimated market value at 1% plus the excess above $72,000 at 2%. Non-Homestead 3.40% Commercial-Industrial First $100,000 of estimated market value at 3% plus the excess above$100,000 at 4.6%. Property Tax Capacity Rate - 1993/94 Municipal 17.1 County 44.5% Minnesota real estate taxes School 65.6% are based on market value, Miscellaneous 5.2% construed to be the price TOTAL 132.4% that a willing buyer would pay to a willing seller in a free market. Tax capacity Calculation Example times the tax rate equals Assume: Commercial Property with an estimated property taxes. market value of S250,000. 1. Tax Capacity: 3%of the first S100.000 of estimated market value- $3,000 4.6%of the estimated market value in excess of S100.000- $6 900 Total tax capacity- $9,900 1995 2. Net Taxes Payable: Area City Tax Capacity Rates Tax Capacity (S9.900)X Tax Capacity Rate- 132.142% Estimated Net Taxes Payable- $13,082.06 Arden Hills 17.438 New Brighton 18.064 Roseville 18.322 Shoreview 19.570 Sales Tax: Mounds View 26.423 State Rate 6.5% Local Rate none Source: State Tax Guide Corporate Income Tax: flat 9.8% Personal Income Tax: first$13,620 at 6% • above$44,750 at 8.5% Source: State Tax Guide Workers Compensation: $2.476 rate per$100 of payroll Unemployment Insurance $200 average tax per worker Rate: Source: MN Dept.of Labor and Industry COMMUNITY PROFILE EDUCATION Statewide * Minnesota has the second lowest dropout rate in the nation. * Minnesota high schools have 97 percent attendance. * Minnesota ACT scores are 4 percent better than the U.S. average. Profile of Mounds View School District: The City of Arden Hills is serviced by both the Mounds View School District#621 and Roseville District#623. Mounds View#621 services the majority of the community. Mounds View School District is known for its high quality of education. This is evidenced by the numerous state and national awards seen over the years in both academia and teacher quality.The following awards and special accomplishments rank Mounds View School District as one of the best. * In 1993, Irondale High School was awarded"Blue Ribbon School of Excellence" by the U.S. Secretary of Education. * Several Future Problem Solving Teams have represented the State at international competition since 1987. * Numerous Odyssey of the Mind Teams qualified for World Competition. Teaching Awards: * National Teacher of the Year * Two State Teachers of the Year ACT composite score 1993: 23.2 SAT scores 1993: Verbal 503.7 Math 577.6 _ Schools Number Enrollment Grades il Pupil/Teacher Included Elementary 8 5,537 K-5 25.5 Middle School 3 2,820 6-8 28.2 High School 2 3,297 9-12 30.3 Parochial 2 764 K-8 n/a Private 3 50 K-5 n/a Source: Mounds View School District Post Graduate Education Local Colleges * Bethel College — Arden Hills * Northwestern College — Arden Hills/Roseville Nearest University * University of Minnesota Nearest Community College * Anoka—Ramsey Community College * Lakewood Community College • Nearest Technical College * North East Metro Technical College #916 COMMUNITY PROFILE - LABOR & WAGES MSA@ County 1993 1992 1991 1993 Civilian Labor Force 1,369,030 1,344,542 1,346,152 269,711 Employed 1,311,787 1,285,944 1,287,317 258,735 Unemployed 57,243 58,598 58,835 10,976 Unemployment Rate 4.2 4.4 4.4 4.1* @MSA=metropolitan statistical area *The unemployment rate for the County excluding the City of St.Paul is 3.1% Source: MN Dept.of Economic Security Select Wage Comparisons State Statistics Computer Secretary Word * Minnesota manufacturing Operator Processor Iworkers are more produc- MetroTwin Cities tive than their national coun- $10.38 $1 1.33 $10.65 Los Angeles $11.70 $12.65 $13.00 ter arts,adding an average San of value per San Francisco $12.18 $11.53 $13.13 $56.835n hour. produc- Newark $10.70 $13.53 $10.73 New York City $11.90 $12.43 $11.65 * Minnesota has the highest Boston $10.75 $11.43 $11.40 of population with Houston $10.43 $12.08 $10.83 percentage g p p at least a degree Washington D.0 $1 1.00 $11.63 $11.78 among twelve bachelor'setde Source: MN Dept.of Economic Security western states. Average Hourly Wages in Minnesota Professional Management & Technical: Plant/Production: Machine Mechanics $13.67 General Manager/Executive $23.08 $13.75 Industrial Production Manager $20.19 Machiist $8.62 Purchasing Manager $18.50 Electronic Assembler $7 00 Financial Manager $22.49 Freight Laborer $12.50 Computer Engineer $16.43 Constructiono Laborer Industrial Engineer $17.94 Tool & Die Maker $14.70 .28 We $10.23 Mechanical Engineer $$1919.28 Machine Tool Operator $11 25 Chemical Engineer Welder&Cutter Chemist $16.23 Machine Assemblers $9.86 Chemical Equipment Controller $13.46 Biological Scientists $16.23 $14 23 $ 4 1 Computer Programer 5 $10. 9 Sales Engineer Sales Representative $1 4 Office Administrative Import-Export Manager 3 Secretary $10.07 General Office Clerks $9.00 Bookkeeping, Acct. Clerk $9.46 Word Processor $10.88 Stock Clerks $8.58