HomeMy WebLinkAbout2019-03-20 EDA Packet CITY OF CENTERVILLE
ECONOMIC DEVELOPMENT AUTHORITY
enter�i�� AGENDA
Wednesday, Marcli 201, 20,19
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6:30, p.m. or shortly thereafter
I. CALL TO ORDER
II. ROLL CALL
III. APPROVAL OF AGENDA
1. Call for Changes to the Agenda
IV. APPROVAL OF MINUTES
1. January 16, 2019 Meeting Minutes
V. BILLS AND COMMUNICATIONS
1. Bills
a. None
VI. REPORTS
1. None
VII. OLD BUSINESS
1. None
VIII. NEW BUSINESS
1. Res. EDA 19-01 -Appointment of Treasurer
2. Res. EDA 19-02 - Setting Terms of Office
3. Discuss Business Incentives Loan/Grant Program
4. Appointment of Member to Rebranding Committee
5. Discussion of Downtown Tax Increment Financing District
a. Res. EDA 19-03 —Authorizing Occupied Structure Assessments in Proposed
Downtown TIF District
IX. ADJOURNMENT
*INFORMATIONAL MATERIALS**
*REMINDERS**
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CITY OF CENTERVILLE
ECONOMIC DEVELOPMENT AUTHORITY/PLANNING& ZONING COMMISSION
JOINT MEETING MINUTES
January 16, 2019
6:30 p.m.
Pursuant to due call and notice thereof, the City of Centerville held a regularly scheduled
Economic Development Authority meeting and a specially scheduled Planning and Zoning
Commission Meeting,jointly on January 16, 2019 at City Hall, 1880 Main Street.
I. CALL TO ORDER
President Hanzal called the meeting of the EDA to order at 6:34 p.m.
Chair Mosher called the meeting of the P&Z Commission to order at 6:34 p.m.
It was decided that President Hanzal would preside over the joint meeting on behalf of both the
EDA and P&Z Commission.
II. SWEARING IN OF NEW MEMERS
1. Mr. Michael Giovinazzo
2. Mr. D. Love
3. Ms. Michelle Lakso
City Administrator Statz swore in Mr. Michael Giovinazzo and Council appointments D. Love
and Michelle Lakso.
III. ROLL CALL
EDA Members
PRESENT: President Jeff Hanzal
Vice-President Jim Weatherhead
Mr. Michael Giovinazzo �����IIIII °
Council Member D. Love
Council Member Michelle Lakso
P & Z Members —Lack of Quorum
Chairperson Darrin Mosher
Commissioner Ben Fehrenbacher
Commissioner Darrel Olson
ABSENT: EDA:
None
P&Z:
Commissioner Kim Ganzel
City of Centerville
EDA/P&Z Meeting Minutes
January 16,2019
Commissioner Nick Twohy
Commissioner Mark Haiden
Commissioner Linda Brussard-Vickers
STAFF: City Administrator Mark Statz
City Attorney Kurt Glaser
......... ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ............ ....
IV. APPROVAL OF AGENDA
President Jeff Hanzal provided an opportunity for modification to the agenda.
Motion by Commission Member Love, seconded by Commission Member Weatherhead to
approve the order of the Agenda as submitted. All in favor. Motion carried.
V. APPROVAL OF MINUTES
President Hanzal provided an opportunity for modifications to be made to the submitted
December 5, 2018 meeting minutes.
Motion by Commission Member Weatherhead, seconded by Commission Member Hanzal
to approve the Minutes of the December 5, 2018 Meeting as presented. All in favor. Motion
carried.
VI. BILLS AND COMMUNICATIONS
1. Bills
(a) None
VII. REPORTS
1. None
VIII. OLD BUSINESS
1. None
VII. NEW BUSINESS
1. Downtown Block 7 Presentation
(a) Truline Construction—Mr. Chris Harchanko
Administrator Statz stated that he had met with Mr. Chris Harchanko regarding the
redevelopment of the city-owned property on Block 7 of the downtown. Mr. Harchanko's
company, Truline Construction is interested in purchasing the property and redeveloping it into a
63-unit apartment complex with a small reserve space for retail opportunities. Parking for the
Page 2 of 3
City of Centerville
EDA/P&Z Meeting Minutes
January 16,2019
facility would be a combination of below ground and surface parking. Total parking spots would
be 63 underground and 65 above ground.
Mr. Chris Harchanko, presented information on his company, their vision for the site, past
projects completed and provided pictures of sample architecture that could be incorporated into
the proposed building.
Mr. David Harchanko was also present. He is a licensed architect and would provide design
services for the project, under the umbrella of a partner company, named Apollo Development.
He fielded questions from the group regarding architectural treatments, market conditions and
other elements of the project.
Ms. Rebecca Bohl, 1680 Sorel Street, was recognized by President Hanzal. She stated that she
was a neighbor of the proposed project. Her concerns were regarding noise and light pollution
onto her property and asked if considerations would be made to mitigate those issues. Mr. David
Harchanko said that they have used berming, fencing, plantings or combinations of all 3 to
alleviate these issues on past projects.
Mr. Steve King, 1724 Sorel Street, was recognized by President Hanzal. Mr. King is a resident
in the downtown area. He had several questions for the board and prospective developer
regarding potential buyouts of adjacent homes and timing of the development. Mr. David
Harchanko said that they had not yet approached any neighbors regarding potential acquisitions
and at this point were not planning on doing so. However, he did not rule that possibility out.
Mr. Chris Harchanko stated that he felt a late fall groundbreaking would be a realistic timeline if
the project were to move forward.
Both the EDA and P&Z Commission generally looked favorably upon the proposed
redevelopment project, as proposed.
No formal action was taken since the presentation was only a concept plan and no formal
application has been made to the city.
VIII. ADJOURNMENT
Motion by Commission Member Giovinazzo, seconded by Commission Member
Weatherhead to Adiourn the EDA/P &Z Joint meeting of January 16, 2019 at 8:20 p.m.
All in favor. Motion carried.
Respectfully submitted by EDA Secretary, Teresa Bender
Page 3 of 3
CITY OF CENTERVILLE
REQUEST FOR ACTION
e,1,,1,,,,,,1P,1,,,,1 (t e rville
Agenda Item# Department: Requested Meeting Date:
Administration March 20, 2019
TITLE OF ISSUE:
Appointment of Treasurer
BACKGROUND AND SUPPLEMENTAL INFORMATION:
With the resignation of Mr. Spanier, from the EDA, this left our board without an appointed Treasurer. We are
proposing that Mr. Giovinazzo, who took Mr. Spanier's place on the EDA, also replace him in the position of
Treasurer
COST AND SOURCE(S) OF FUNDING:
No direct cost.
REQUESTED ACTION:
Motion to approve Resolution EDA 19-001 appointing Michael Giovinazzo to the position of Treasurer of the
EDA.
For Clerk's Use:
SUPPORTED DOCUMENTS ATTACHED
Motion By:
Resolution Ordinance Contract Minutes Plan Map
Second By:
X
Vote Record: Aye Nay
Hanzal
Other(specify)
Giovinazzo
0 Weatherhead
0 Love
0 Lakso
Refer to:
Consent Tabled Until:
Regular Other:
THE ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CENTERVILLE, MINNESOTA
RESOLUTION#EDA 19-01
RESOLUTION SELECTING OFFICERS
WHEREAS, pursuant to the Bylaws of the Economic Development Authority of the City of
Centerville, officers shall be appointed annually.
WHEREAS, on August 27, 2018, the Economic Development Authority of the City of
Centerville convened its first meeting.
WHEREAS, Mr. Gary Spanier was previously appointed to the position of Treasurer. Mr.
Spanier resigned from the Authority in September of 2018.
NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the Board of
Commissioners, names its Officers as follows:
President: Jeff Hanzel
Vice-President: Jim Weatherhead
Treasurer: Michael Giovinazzo
Assistant Treasurer: Bruce DeJong
Secretary: Teresa Bender
THE VOTE OF THE BOARD OF COMMISSIONERS FOR ADOPTION OF THIS
RESOLTUION WAS UNANIMOUSLY IN FAVOR OF THE RESOLUTION.
PASSED AND ADOPTED by the Economic Development Authority of the City of Centerville
this 20th day of March, 2019.
Jeff Hanzel, President
Attest:
Secretary, Teresa Bender
CITY OF CENTERVILLE
REQUEST FOR ACTION
e,1,,1,,,,,,1P,1,,,,1 (t e rville
Agenda Item# Department: Requested Meeting Date:
Administration March 20, 2019
TITLE OF ISSUE:
Setting Initial Terms of Officers
BACKGROUND AND SUPPLEMENTAL INFORMATION:
The attached resolution formalizes that Mr. Giovinazzo will assume the 3-year term of office vacated by Mr.
Spanier.
COST AND SOURCE(S) OF FUNDING:
No direct cost.
REQUESTED ACTION:
Motion to approve Resolution EDA 19-002 assigning Michael Giovinazzo to the 3-year Initial Term of Office.
For Clerk's Use:
SUPPORTED DOCUMENTS ATTACHED
Motion By:
Resolution Ordinance Contract Minutes Plan Map
Second By:
X
Vote Record: Aye Nay
Hanzal
Other(specify)
Giovinazzo
0 Weatherhead
0 Love
0 Lakso
Refer to:
Consent Tabled Until:
Regular Other:
THE ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CENTERVILLE, MINNESOTA
RESOLUTION#EDA 19-02
RESOLUTION SETTING TERMS OF OFFICE
WHEREAS, Resolution 17-010 of the City Council of the City of Centerville authorized the
creation of the Economic Development Authority of the City of Centerville, and thusly defined
the initial terms of office for the three appointed Commissioners in successive periods of three,
four and five years.
WHEREAS, the Bylaws of the Authority defines a term of office for each appointed
Commissioner to begin effective August 1st
WHEREAS, on August 27, 2018, the Economic Development Authority of the City of
Centerville convened its first meeting.
WHEREAS, Mr. Gary Spanier was previously appointed to the EDA for a three year term. Mr.
Spanier resigned from the Authority in September of 2018.
NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the Board of
Commissioners assigns the appointed Commissioners to the following initial terms of office:
Three year term of office: Michael Giovinazzo. Office expiring July 30, 2021.
Thereafter, each appointed Commissioner shall serve a term of six years.
THE VOTE OF THE BOARD OF COMMISSIONERS FOR ADOPTION OF THIS
RESOLTUION WAS UNANIMOUSLY IN FAVOR OF THE RESOLUTION.
PASSED AND ADOPTED by the Economic Development Authority of the City of Centerville
this 20th day of March, 2019.
Jeff Hanzel, President
Attest:
Secretary, Teresa Bender
- 2 -
CITY OF CENTERVILLE
REQUEST FOR ACTION
(t e rville
Agenda Item# Department: Requested Meeting Date:
Administration March 20, 2019
TITLE OF ISSUE:
Revolving Loan and Grant Program
BACKGROUND AND SUPPLEMENTAL INFORMATION:
Recently, city staff met with a banker to review their experience with the White Bear Lake Revolving Loan and
Grant Program (the program we are modeling ours after). Out of that meeting, we wanted to discuss some of
the basic terms and conditions of the program we are drafting. Attached is a summary of those parameters for
discussion.
COST AND SOURCE(S) OF FUNDING:
$10,000 from EDA Levy for Grant Fund (initial contribution); $50,000 HRA funds for Revolving Loan Fund
REQUESTED ACTION:
No formal action requested. Item is for discussion only at this point.
For Clerk's Use:
SUPPORTED DOCUMENTS ATTACHED
Motion By:
Resolution Ordinance Contract Minutes Plan Map
Second By:
X
Vote Record: Aye Nay
Hanzal
Other(specify)
Giovinazzo
0 Weatherhead
0 Love
0 Lakso
Refer to:
Consent Tabled Until:
Regular Other:
Centerville EDA Revolving Loan and Grant Program
Parameters:
Loan Term 10 Years
Loan Interest Rate 2.0
Loan Max $20,000
Loan Match Requirement 100
Loan Fund Source HRA Funds
Loan Fund Starter Amount $50,000
Grant Max $3,000
Grant Match Requirements $5,000 per$1,000 in grant
Grant Fund Source EDA Levy
Grant Fund Starter Amount $10,000
Program Boundaries See Attached Map
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CITY OF CENTERVILLE
REQUEST FOR ACTION
(t e rville
Agenda Item# Department: Requested Meeting Date:
Administration March 20, 2019
TITLE OF ISSUE:
Rebranding Committee
BACKGROUND AND SUPPLEMENTAL INFORMATION:
As part of the city's 2018 goals, we identified rebranding the city as a priority. City staff would like to have a
small working group to coordinate these efforts with made up of one member, each, of the City Council,
Planning and Zoning Commission and EDA. Having this committee would allow staff to gain input in a timely
fashion without creating open meeting law issues by soliciting input from the entire City Council. We envision
one initial, in-person meeting, after which, the committee may often meet via phone conference and/or through
simple email correspondence.
COST AND SOURCE(S) OF FUNDING:
No direct cost
REQUESTED ACTION:
Motion to appoint to the Rebranding Committee.
For Clerk's Use:
SUPPORTED DOCUMENTS ATTACHED
Motion By:
Resolution Ordinance Contract Minutes Plan Map
Second By:
Vote Record: Aye Nay
Hanzal
Other(specify)
F
Giovinazzo
0 Weatherhead
0 Love
0 Lakso
Refer to:
Consent Tabled Until:
Regular Other:
CITY OF CENTERVILLE
REQUEST FOR ACTION
e,1,,1,,,,,,1P,1,,,,1 (t e rville
Agenda Item# Department: Requested Meeting Date:
Administration March 20, 2019
TITLE OF ISSUE:
Downtown Tax Increment Financing District
BACKGROUND AND SUPPLEMENTAL INFORMATION:
Staff is requesting authorization to inspect properties in the downtown area. These inspections are necessary to
determine if we have sufficient substandard properties to be eligible for a Redevelopment Tax Increment
Financing (TIF) district. Please see the attached memorandum for details.
COST AND SOURCE(S) OF FUNDING:
No direct cost; staff time only.
REQUESTED ACTION:
Motion to approve Resolution EDA-XX-19 authorizing Home Inspections in the proposed Downtown
Redevelopment TIF District.
For Clerk's Use:
SUPPORTED DOCUMENTS ATTACHED
Motion By:
Resolution Ordinance Contract Minutes Plan Map
Second By:
X
Vote Record: Aye Nay
Hanzal Other(specify) TIF District Memo, Timeline
Giovinazzo
0 Weatherhead
0 Love
0 Lakso
Refer to:
Consent Tabled Until:
Regular Other:
III�III��;
ryIS80 M l a Sbllt( F r 11'1,1, WP ti 55038
77777,7777 µ �' r 429 U32 n,N 651 429 8629
Date: March 13, 2019
To: Mayor and City Council Members
Through: Mark Statz, City Administrator/Engineer
From: Bruce DeJong, Finance Director
RE: Authorization to Request Home Inspections
Staff has been reviewing the Downtown area for redevelopment along with Tammy Omdal, our financial
advisor from Northland Securities, Inc. There are currently two developers interested in the city-owned
property in the area commonly referred to as Block 7—the area the city owns between Heritage Street and Sorel
Street west of Centerville Road. In order to accomplish long-standing city redevelopment goals for that area
there may need to be some city assistance provided to a developer. There also have to be some affordable units
in the proposed complex to meet original funding requirements that exist because of the Community
Development Block Grant(CDBG)funding used to purchase and clear the blighted properties that existed on
that block.
As you may be aware, there is an existing Tax Increment Financing (TIF) District 1-6 on six of the seven
parcels owned by the city. That district was established in 2005 with a maximum life of 25 years. Since the
time for initial development on that district has passed (the Five-Year Rule), the city is limited to spending 25%
of the increment generated from that area over the next 11 years. This is called out-of-district expenditures or
pooling, since in-district expenditures have to be committed within the first five years of existence.
The amount of revenue generated by the remaining district life may be insufficient to fund the type of
development that will meet both City Council and resident goals for that property. One possible solution is
terminating (decertifying) the existing district and creation of a new, larger TIF district covering most of the
downtown area. This would cover all properties on Block 7 and surrounding properties to the north and east
along Heritage Street, Sorel Street, Progress Road, Centerville Road, and Main Street.
This new TIF district would only be possible if we can find over 50% of the existing buildings to be sub-
standard in a technical sense. The TIF statute defines this as a building that would require at least 15% of the
cost of a replacement building to bring the existing building up to current building code standards. Staff
assumes that this may be the case since many of these properties were constructed prior to adoption of a city
building code.
The only way to find this out is to actually inspect the existing buildings. That is obviously dependent on the
owner's cooperation and no forced inspections would be contemplated. The inspections are proposed to be
completed by city building code staff, Paul Palzer and Dan Schmitz. This in a necessary first step to what
would be a long process of redevelopment. The area contemplated for inclusion is shown on the attached map.
This seems to be a timely opportunity. The increment generated by this process would be potentially available
to help support other redevelopment, including the street and water project along Heritage Street, Sorel Street,
Progress Road, Centerville Road, and Main Street, and other redevelopments or sales that may occur in the
district.
Staff is not trying to commit the City Council to any specific redevelopment goals or timelines. We are simply
trying to move forward in a timely manner to preserve all options to assist in redevelopment of this important
area of town. Going forward with the inspections in a necessary step prior to pursuing a new TIF district. It
seems as if Centerville has a tremendous opportunity to combine a long-awaited apartment project with other
redevelopment goals at the same time. Staff recommends that the City Council authorize staff to move forward
with inspections of downtown buildings to see if this area would be eligible to become a new TIF district.
Attachments: Map
Proposed Timeline from Northland Securities, Inc.
EXHIBIT A
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Preliminary for Discussion Purposes Only
City of Centerville
Municipal Development District No.1
Establishment of Tax Increment Financing District No.1-8
Redevelopment TIF District
DT Redevelopment
Public Hearing on May 8
IE ��X-lull,01MEMEM
5 M T W T F 5
1 2
3 4 5 6 7 8 9
10 11 12 1314 15 16
17 18 19 20 21 22 23 March 20 Inspection report with findings on conditions for redevelopment district finalized
24 25 26 27 28 29 30 March 27 Call for public hearing
�p
31 March 29 Last day for written notice to County Commissioner
IC° M
5 M T W T F 5
1 2 3 4 5 6 April 1 Draft TIF Plan distributed to City staff for review
7 8 9 101 11 12 13 April 8 Last day for notice and TIF plan and fiscal implications to County and School District
14 15 16 17 18 19 20 April 8 First day to publish hearing notice
21 22 23 24 25 26 27 April 19 Last day for notice to newspaper
28 29 30 April 28 Actual publication date
April 28 Last day to publish hearing notice
IE
5 M T W T F 5
1 2 3 4
5 6 7 8 9 10 11 May 8 Public hearing and establishment of TIF District
12 13 14 15 16 17 18
19 20 21 22i 23 24 25 May 22 Request certification by County
26 27 28 29 30 31 May 22 Submit plan to State
III1011111 mime
5 M T W T F 5
1
2 3 4 5 6 7 8
9 10 11 12'I 13 14 15
16 17 18 19 20 21 22
23 24 25 26' 27 28 29
30
Notes to Calendar:
1. Denotes regular city council meeting dates,2nd and 4th Wednesday of the month.
2. City needs to confirm publication dates for hearing notice and is responsible for submitting the notice to the newspaper.
3. Calendar provides for the City establishing and administering the TIF District. If the EDA will administer the TIF District than the calendar will
need to be modified.
4. City may determine to request the Planning Commission review the TIF Plan and make certain findings. The calendar assumes the City Council
will make the necessary findings versus the Planning Commission.
NORMAND
Centerville TIF 1-8 Preliminary 2/12/2019
THE ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF CENTERVILLE, MINNESOTA
RESOLUTION#EDA 19-03
RESOLUTION RECOGNIZING COUNCIL SUPPORT & AUTHORIZING OCCUPIED
STRUCTURE INSPECTIONS ASSOCIATED WITH THE BEGINNING PROCESSES OF
EXPLORING THE ELEIGIBILITY OF ESTABLISHING A TAX INCREMENT FINANCE
(TIF) DISTRICT (REDEVELOPMENT DISTRICT) IN THE DOWNTOWN AREA
WHEREAS, the City Council of the City of Centerville met on March 13, 2019, discussed the
processes associated with establishing a Tax Increment Financing (TIF) District (Redevelopment
District), the area that would be proposed, and authorized commencement of occupied structure
inspections necessary to determine whether a district would be feasible within the Downtown
Area outlined in Exhibit A (attached).
WHEREAS, the City of Centerville Economic Development Authority (EDA) also discussed the
processes associated with organizing a TIF district, the area that would be proposed and also
authorizes commencement of occupied structure inspections necessary to determine whether a
district would be feasible within the Downtown Area outlined in Exhibit A (attached).
NOW, THEREFORE, IT IS HEREBY RESOLVED AND KNOWN TO ALL, that the Board of
Commissioners authorizes the City's Building Official and Building Inspector to complete the
following as required by State Statute 469.174:
1. An interior inspection of the occupied structures within the Exhibit A area
2. If unable to gain access to the properties after using its best efforts (mailing a
letter, telephone call to the party that owns or controls the property and physical
appearance at the property to obtain permission) the above stated staff will
complete an alternative method by inspecting the exterior of the structure for
deterioration, reviewing police and fire inspections, if any; reviewing property tax
appraisals, if any; housing inspections, if any; and reviewing at least three (3)
years of previous building, mechanical,plumbing and electrical permits, if any.
3. Written documentation of findings will be made and retained by the City of
Centerville and only used for the purpose of determining whether the
establishment of a TIF District is feasible.
THE VOTE OF THE BOARD OF COMMISSIONERS FOR ADOPTION OF THIS
RESOLTUION WAS UNANIMOUSLY IN FAVOR OF THE RESOLUTION.
PASSED AND ADOPTED by the Economic Development Authority of the City of Centerville
this 20th day of March, 2019.
Jeff Hanzel, President
Attest:
Secretary, Teresa Bender
- 2 -