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HomeMy WebLinkAbout04/07/2011 EDAC Minutes 1 Approved CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: April 7, 2011 MEMBERS PRESENT: J. Schwartz, M. Keller, B. Combs, D. Johnson, L. Salzman, J. Stranik, L. Masonick MEMBERS ABSENT: L. Thor OTHERS PRESENT: M. Divine, Paul Tucci (part) APPROVAL OF MINUTES The minutes of January 6, 2011 and March 3, 2011 were approved. INTRODUCTION OF NEW MEMBERS New member Lee Salzman was introduced. ELECTION OF OFFICERS Ms. Divine noted EDAC has 8 members this year. When electing chair and vice chair of EDAC, recall that they are also non-voting liaisons to the Economic Development Authority. Ms. Keller nominated Mr. Stranik as chair. Mr. Masonick seconded the motion. Motion passed unanimously. Ms. Julie nominated Ms. Keller as vice-chair. Mr. Masonick seconded the motion. Motion passed unanimously. PRESENTATION BY OPPIDAN ON 49/J CONCEPT Ms. Divine introduced Paul Tucci of Oppidan who is proposing a 49,500 sq. ft. grocery store on 8 acres of the Jensen property on the northwest side of the 49/J intersection. Oppidan has met with the city council twice and received some encouragement to address neighborhood concerns. Oppidan understands it would be ideal to incorporate it, but the price does not work for this project. Mr. Tucci noted that Oppidan has done a number of major grocers around the metro area. The store is oriented to the street facing east. The two buildings (insurance and old liquor store) could be available. EDAC asked if the 49 Club was a part of the project. Mr. Tucci stated that the 8 acres under agreement is less than the price being asked for the 49 Club. A pharmacy is not likely on the 49 Club corner because of the competition with a grocer that has a pharmacy. The plan is to put in a liquor store by the grocer, and the plan shows 6,000 sq. ft. of multi-tenant. Small shop retail is very difficult right now. A senior housing component to the north of the grocer is being studied. 2 The major access is on Hodgson approximately 1,000 sq. ft. from Cty. J. Mr. Tucci explained the interim access points for this project with future development access points. Oppidan has met with the county to work out access issues. He also explained how they addressed neighborhood concerns with creating a 6-foot berm with a 6-foot fence between the store and the residences. The nearest point between a residence and the store is 40 feet. The back of the store will be lit with wall packs rather than poles. Oppidan has told the operators that deliveries may not start until 7 a.m. and will have an end time by 11 p.m. There are 300 stalls, or 5 per 1,000 sq. ft., per city ordinance. Mr. Tucci discussed the trade study that shows mainly an east-west market. The numbers are strong. This store is the same size as the Festival in Hugo. Ms. Divine noted that size was an issue with the City Council. Oppidan is talking to several operators, because this store is small for a Cub. Mr. Tucci said this $8 million project will need TIF assistance because of the large cost of road and utilities improvements that benefit the entire quadrant. Ms. Divine noted that TIF has never been allowed on Greenfield sites for retail in the past, but the legislature has provided a one-year opportunity to TIF retail to spur development. This legislation would have to be extended to be able to use for this project. Ms. Divine gave a short explanation of how TIF works. Mr. Combs questioned is this the right time to do this project? Ms. Divine said except for the window of opportunity with the TIF legislation, this project would not happen for many years because of the high cost of bringing in road and utility improvements. Mr. Tucci said without assistance, Oppidan could not absorb $1.5-2 million in improvement costs. Mr. Tucci stated a neighborhood meeting will be held soon and their goal is to try to mitigate their concerns. Ms. Keller noted that the past proposals have met considerable resistance. Mr. Tucci stated that a grocer or a drug store are about the only drivers for this quadrant. Pharmacies and grocers don’t like to be near each other because they compete. It’s not on a highway, so regional users like Menards etc. wouldn’t want this site. Ms. Divine noted that the draft Comp Plan designates this area for mixed use, which recognizes its neighborhood character and will likely partly develop as housing. After Mr. Tucci left the meeting Mr. Stranik asked members their opinions on the grocer proposal. Ms. Keller and Ms. Schwartz both agreed it was necessary to take the opportunity to start redevelopment of the area, otherwise the area will become more blighted. Mr. Salzman questioned whether it could succeed at that location, and how the improvements will impact taxpayers. Ms. Divine stated that TIF would provide assistance, only impacts the taxpayers in that for a period of time, they don’t benefit from the new taxes generated. She added that the user will likely be required to pay its share of the improvements. Mr. Combs stated that since the grocers have done their studies, he believes it is a good site. His concern is how to sell this to the residents and the council, since this may not be an opportunity the city can’t afford to pass up. Mr. Masonick said cities must find ways to raise revenue through new tax base. What does the council want to see there? Mr. Johnson said it’s the way to get utilities to the area and to provide a livable community with neighborhood access to conveniences. Mr. Stranik agreed, but 3 questioned that this would eliminate the opportunity to get a pharmacy on the 49 Club site. Mr. Stranik suggested to hold off on a recommendation until after the neighborhood meeting and response from the developer. TIF LEGISLATION The city is seeking special legislation due to the 22 acres of the Legacy project on 35W that went tax forfeit due to the recession. The City must continue to pay bonds on the improvements until the parcels develop, at which time the city can reassess the properties. This legislation is a temporary fix that would allow the increment from TIF District 1-10 to be used to help pay the bonds until development of the parcels occur. It will cover approximately $173,000 of the approximately $500,000 bond payments. It appears that it will pass in the tax bill. Several cities are asking for special TIF legislation. RACETRACK Ms. Divine informed the board that IMEDC has made no further contact with the city. Discussions with Columbus indicate they have not heard further either. Meeting adjourned.