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Home My WebLink About03/03/2016 EDAC PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, March 3, 2016 8:00 A.M. Community Room AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES. January 7, 2016 3. DISCUSSION ITEMS A. BRE Program - Comprehensive Business Inventory Discussion/ Evaluation B. Proposed Warehouse/Distribution Facility — 35E Corridor C. Project Updates • 49 Club Building Demo • Mattamy Homes • Legacy at Woods Edge 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: January 7, 2016 MEMBERS PRESENT: Nathan Vojtech, Rebecca Glewwe, Chad Wagner, Tami Wier MEMBERS ABSENT: Lou Masonick, Thomas Colgan, Julie Schwartz, Don Johnson OTHERS PRESENT: Michael Grochala, Keith Dahl, Kirsten Barsness APPROVAL OF MINUTES It was moved by Rebecca Glewwe to approve the minutes of December 3, 2015. The motion was seconded by Chad Wagner and passed unanimously. BUSINESS RETENTION & EXPANSION PROGRAM Mr. Dahl outlined the scope of work staff has completed in researching, inventorying, and evaluating local businesses in Lino Lakes. He presented the comprehensive business inventory and discussed the parameters used to identify the businesses on the list. Mr. Dahl then introduced and turned it over to Kirsten Barsness, Development Consultant, to lead the EDAC discussion on identifying additional parameters to refine the comprehensive business inventory. EDAC discussion lead to the identification of additional parameters: • Identifying companies with higher growth trends (Sales Volume) • Focusing on a specific industry • Ranking companies based on longevity within Lino Lakes • Identifying companies that have had City assistance in the past EDAC also recommended refining the comprehensive business inventory by looking at what assistance the City can offer companies. Kirsten also mentioned that another way to refine the comprehensive business inventory is by mapping the businesses to locate clusters throughout the City. PROJECT UPDATES Mr. Grochala provided an overview of ongoing projects throughout Lino Lakes. The owner of the 49 Club is reviewing the development agreement sent over by the City for demolition of the building. The developer of the Jenson property submitted concept designs however; the plans were not consistent with the planned use in the area. Mattamy Homes will likely submit plans at the end of January for the Watermark project; the development of 372 acres located in the northwest quadrat of I-35E and Main St. Storm water drainage is the main area of concern for the watermark project as feasibility studies are being conducted for the area. A development agreement has been reached with DR Horton for the property located in the Residential Block of Legacy at the Woods Edge. The North Oaks Company is reviewing their concept plans for the planned residential community located south of County Road J/Ash Street, west of CSAH 21/Centerville Road and north of Wilkinson Lake Boulevard. ADJOURNMENT The meeting was adjourned at 8:55 AM. ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: March 3, 2016 REQUEST: Discuss the Business Retention & Expansion Program BACKGROUND Attached is a memo from Kirsten Barsness, Barsness Consulting, for review and discussion. We have identified a list of 31 local businesses to evaluate as we continue development of our BRE program. ATTACHMENTS 1. Barsness Memo 2. NAICS Code Summary 3. Comprehensive Business Inventory 4. Inventory by Tier 5. Inventory by Taxbase Memo To: Michael Grochala From: Kirstin Barsness Date: February 24, 2016 RE: BRE Program Development Update Business Research At the request of the Economic Development Advisory Committee (EDAC), I have organized the initial Lino Lakes business information into various categories. Initially there were 113 businesses included in the BRE list; this sample was reduced by separating the "wealth generating" businesses from the retail, commercial and non-profit entities. The resulting 31 companies comprise the working list used for evaluation. Numerous spread sheets were constructed in order to get a better understanding of the City of Lino Lakes business composition. The 31 businesses were sorted into specific categories. These included: • By NAICS (North American Industry Classification System) Through this process, industry clusters within Lino Lakes were identified. These were then compared to national growth trends. The information allowed for further separation of manufacturing, warehousing/distribution, and technical businesses. A separate handout on the key NAICS codes is attached to this memorandum. It details the industry clusters and corresponding businesses within them. Within the table, the specific companies that are in the fastest growing nationally, are identified. • Employee number Businesses were ranked from largest to smallest number of employees. Interesting when compared to company revenues. There are businesses with a modest number of employees and significant revenues. • Revenues Companies were ordered from highest sales volume levels to lowest. • Tax Base Each company's parcel identification number was researched and their taxable market value identified. This information is used to determine the largest tax payers in the City. Top Ten Companies in Each Category Employees Revenues Tax Base Curtis 1000 PAR Aide Products Co Northern Wholesale Supply Inc/ PAR Aide Products Co Bramstedt Surgical Inc Contract Hardware Co Inc Curtis 1000 Molin Concrete Products Co Bramstedt Surgical Inc Molin Concrete Products Co Custom Manufacturing Curtis 1000 Marmon/Keystone LLC Northern Wholesale Supply Inc Rice Industries Inc GNW Machine EJM Pipe Svc Badger Magnetics Nol Tec Systems Inc GNW Machine Northern Wholesale Supply Inc Interplastic Corp PAR Aide Products Co M C Metal Fab Schwan's Home Service Contract Hardware Co Inc Udor USA Inc Twin City Fab Twin City Fab Marmon/Keystone LLC Integrated Medical Tech Twin City Powder Coating/ USA Companies is all three categories Curtis 1000 Northern Whole Sale Supply * Designates in fastest growing NAICS nationally Companies is two categories Bramstedt Surgical GNW Machine PAR Aide Products ( building space lease?) Contract Hardware Co Inc Twin City Fab Marmon/ Keystone LLC* Molin Concrete Products Next Steps The EDAC will need to consider how to proceed with the research data and development of a Business Retention and Expansion Program. Discussion topics include: 1) What are the City's goals for implementing a BRE program? (Why do it?) 2) Which Businesses should be the focus of the BRIE progam? i) What are the criteria for inclusion? ii) Should the Program target certain tiers (manufacturing, distribution, etc.) 3) How should the program be structured? i) Visitation —targets, format, resources, timing ii) Outreach — targets, format, resources, timing iii) Management — number of visits annually, follow up responsibilities, visit participation, staff role, resources available to businesses and/ or City 4) What activities can the City provide help for? (what is the City's role) i) Employment Training ii) Product Development iii) Building Expansion 5) Development of Program Outline and Recommendation to the City Council NAICS Code Industry Clusters in Lino Lakes Sector 31-33 -- Manufacturing' 322 Paper Manufacturing' Industries in the Paper Manufacturing subsector make pulp, paper, or converted paper products. The manufacturing of these products is grouped together because they constitute a series of vertically connected processes. More than one is often carried out in a single establishment. There are essentially three activities. The manufacturing of pulp involves separating the cellulose fibers from other impurities in wood or used paper. The manufacturing of paper involves matting these fibers into a sheet. Converted paper products are made from paper and other materials by various cutting and shaping techniques and includes coating and laminating activities. Local Companies: Teknapack, Saberpack Inc 325 Chemical Manufacturing' The Chemical Manufacturing subsector is based on the transformation of organic and inorganic raw materials by a chemical process and the formulation of products. This subsector distinguishes the production of basic chemicals that comprise the first industry group from the production of intermediate and end products produced by further processing of basic chemicals that make up the remaining industry groups. Local Companies: Interplastic Corp, Mountain Machine, Lakes Mechanical 327 Nonmetallic Mineral Product ManufacturingT The Nonmetallic Mineral Product Manufacturing subsector transforms mined or quarried nonmetallic minerals, such as sand, gravel, stone, clay, and refractory materials, into products for intermediate or final consumption. Processes used include grinding, mixing, cutting, shaping, and honing. Heat often is used in the process and chemicals are frequently mixed to change the composition, purity, and chemical properties for the intended product. For example, glass is produced by heating silica sand to the melting point (sometimes combined with cullet or recycled glass) and then drawn, floated, or blow molded to the desired shape or thickness. Refractory materials are heated and then formed into bricks or other shapes for use in industrial applications. The Nonmetallic Mineral Product Manufacturing subsector includes establishments that manufacture products, such as bricks, refractories, ceramic products, and glass and glass products, such as plate glass and containers. Also included are cement and concrete products, lime, gypsum and other nonmetallic mineral products including abrasive products, ceramic plumbing fixtures, statuary, cut stone products, and mineral wool. The products are used in a wide range of activities from construction and heavy and light manufacturing to articles for personal use. Local Companies: Mohn Concrete Products Co, Carroll Distributing 8Z Construction 332 Fabricated Metal Product ManufacturingT Industries in the Fabricated Metal Product Manufacturing subsector transform metal into intermediate or end products, other than machinery, computers and electronics, and metal furniture, or treat metals and metal formed products fabricated elsewhere. Important fabricated metal processes are forging, stamping, bending, forming, and machining, used to shape individual pieces of metal; and other processes, such as welding and assembling, used to join separate parts together. Establishments in this subsector may use one of these processes or a combination of these processes. Local Companies: Twin City Fab, GNW Machine, Twin City Powder Coating 339 Miscellaneous ManufacturingT Industries in the Miscellaneous Manufacturing subsector make a wide range of products that cannot readily be classified in specific NAILS subsectors in manufacturing. Processes used by these establishments vary significantly, both among and within industries. For example, a variety of manufacturing processes are used in manufacturing sporting and athletic goods that include products such as tennis racquets and golf balls. The processes for these products differ from each other, and the processes differ significantly from the fabrication processes used in making dolls or toys, the melting and shaping of precious metals to make jewelry, and the bending, forming, and assembly used in making medical products. Local Companies: Bramstedt Surgical Inc, Integrated Medical Tech USA Sector 42 -- Wholesale Trade' 423 Merchant Wholesalers, Durable Goods Industries in the Merchant Wholesalers, Durable Goods subsector sell capital or durable goods to other businesses. Merchant wholesalers generally take title to the goods that they sell; in other words, they buy and sell goods on their own account. Durable goods are new or used items generally with a normal life expectancy of three years or more. Durable goods merchant wholesale trade establishments are engaged in wholesaling products, such as motor vehicles, furniture, construction materials, machinery and equipment (including household -type appliances), metals and minerals (except petroleum), sporting goods, toys and hobby goods, recyclable materials, and parts. Local Companies: Composites One LLC, Marmon /Keystone LLC, Contract Hardware Co Inc, Rice Industries Inc, M C Metal Fab, Udor USA Inc, No] Tec Systems Inc, PAR Aide Products Co, Badger Magnetics Organized by NAICS Code Company Name NAICS Code Primary NAICS Description Hammerhead Brewing Co 208201 Brewers Mfrs EJM Pipe Svc** 237990 Other Heavy and Civil Engineering Construction Boe Ornamental Iron Inc** 238910 Site Preparation Contractors Schwan's Home Service 311412 Frozen Specialties Tekna ack 322121 Paper (except Newsprint Mills Saberpack Inc 322220 Coated & Treated Paper Manufacturing Curtis 1000 323111 Commercial Printing (Except Screen & Books Interplastic Corp 325211 Plastics & Resin Manufacturing Mountain Machine 326199 All Other Plastics Product Manufacturing Lakes Mechanical 326199 All Other Plastics Product Manufacturing Molin Concrete Products Co 327390 Other Concrete Product Manufacturing Carroll Distributing & Constr 327390 Other Concrete Product Manufacturing Underground Tools 333131 Drilling, Mining Underground Equip Manufacturing Twin City Fab 332312 Fabricated Structural Metal Manufacturing GNW Machine 332710 Machine Shops Twin City Powder Coating 332813 Electroplating, Plating, Polishing, Anodizing, and Coloring Custom Manufacturing 333511 Industrial Mold Manufacturing Bramstedt Surgical Inc 339113 Surgical & Medical Instrument Manufacturing Integrated Medical Tech USA 339113 Surgical & Medical Instrument Manufacturing Composites One LLC** 423310 Lumber, Plywood, Millwork/Wood Panel Mrchnt Whslrs Marmon/Keystone LLC** 423320 Metal Service Ctrs & Other Metal Merchant Whls Badger Magnetics 423610 Electrical A artus/Wirin Contract Hardware Co Inc 423710 Hardware Merchant Wholesalers Rice Industries Inc 423830 Industrial Machinery & Equipment Merchant Whlsrs M C Metal Fab 423830 Industrial Machinery & Equipment Merchant Whlsrs Udor USA Inc 423830 Industrial Machinery & Equipment Merchant Whlsrs Nol Tec Systems Inc 423830 Industrial Machinery & Equipment Merchant Whlsrs PAR Aide Products Co 423910 Sporting & Recreational Goods/Supls Mrchnt Whlsrs Sterling Plastics 424610 Plastics Materials and Basic Forms and Shapes Merchant Wholesalers Northern Wholesale Supply Inc 441210 Recreational Vehicle Dealer Pathfinders Systems Inc** 541511 Custom Computer Programming Services " Business retention working list The count is currently 30 Company Name Address Employee Size Sales Volume NAICS Code Primary NAICS Description Curtis 1000 2300 Main St 200 $30,068,000 323111 Commercial Printing (Except Screen & Books) Bramstedt Surgical Inc 524 Apollo Dr # 50 199 $50,339,000 339113 Surgical & Medical Instrument Manufacturing Molin Concrete Products Co 415 Lilac St 100 $19,250,000 32739 Other Concrete Product Manufacturing Custom Manufacturing 7582 4th Ave 80 $10,818,000 333511 Industrial Mold Manufacturing Northern Wholesale Supply Inc 6800 Otter Lake Rd # 2 60 $24,916,000 441210 Recreational Vehicle Dealer EJM Pipe Svc 7807 Lake Dr 50 $18,137,000 237990 Other Heavy and Civil Engineering Construction GNW Machine 2289 E Cedar St # 106 40 $6,427,000 332710 Machine Shops PAR Aide Products Co 6800 Otter Lake Rd 30 $70,024,000 423910 Sporting & Recreational Goods/Supls Mrchnt Whlsrs Badger Magnetics 501 Apollo Drive 24 $27,296,000 423610 Electrical Appartus/Wiring Contract Hardware Co Inc 374 Apollo Dr 23 $53,240,000 423710 Hardware Merchant Wholesalers Twin City Fab 295 Apollo Dr 14 $3,641,000 332312 Fabricated Structural Metal Manufacturing Rice Industries Inc 424 Apollo Dr 12 $28,303,000 423830 Industrial Machinery & Equipment Merchant Whlsrs Teknapack 471 Apollo Dr 12 $3,000,000 322121 Paper (except Newsprint) Mills Hammerhead: Brewing Co 7785 Lake Dr 12 $10,633,000 208201 Brewers (Mfrs) Twin City Powder Coating 548 Apollo Dr # 20 12 $2,835,000 332813 Electroplating, Plating, Polishing, Anodizing, and Coloring Mountain Machine 400 Apollo Dr 11 $2,590,000 326199 All Other Plastics Product Manufacturing Carroll Distributing & Constr 7540 4th Ave 10 $11,629,000 327390 Other Concrete Product Manufacturing Lakes Mechanical 471 Apollo Dr 10 $2,354,000 326199 All Other Plastics Product Manufacturing M C Metal Fab 30-524 Apollo Dr 10 $23,286,000 423830 Industrial Machinery & Equipment Merchant Whlsrs Saberpack Inc 471 Apollo Dr 10 $235,000 322220 Coated & Treated Paper Manufacturing Underground Tools 6680 Hodgson Rd 10 $1,510,000 333131 Drilling, Mining Underground Equip Manufacturing Udor USA Inc 500 Apollo Dr 9 $21,227,000 423830 Industrial Machinery & Equipment Merchant Whlsrs Marmon/Keystone LLC 265 Apollo Dr 8 $20,661,000 423320 Metal Service Ctrs & Other Metal Merchant Whls Composites One LLC 375 Apollo Dr # A 7 $9,216,000 7837436 Lumber, Plywood, Millwork/Wood Panel Mrchnt Whslrs Boe Ornamental Iron Inc 484 Lilac St 6 $1,560,000 238910 Site Preparation Contractors Interplastic Corp 300 Apollo Dr 6 $6,938,000 325211 Plastics & Resin Manufacturing Integrated Medical Tech USA 548 Apollo Dr# 10 4 $1,011,000 339113 Surgical & Medical Instrument Manufacturing Nol Tec Systems Inc 425 Apollo Dr 3 $7,075,000 423830 Industrial Machinery & Equipment Merchant Whlsrs Pathfinders Systems Inc 524 Apollo Dr 2 $200,000 541511 Custom Computer Programming Services Sterling Plastics 375 Apollo Dr 424610 Plastics Materials and Basic Forms and Shapes Merchant Wholesalers Schwan's Home Service 1420 Park Ct. 3114121 Frozen Specialties * The list the follows are companies that have been removed from the business retention working list above Granite Consulting Inc 415 Lilac St 4 $4,651,000 541512 Computer Software Consultants BMI Group 973 Aspen Ln 3 $6,963,000 423990 Other Miscellaneous Durable Goods Merchant Whlsrs Advantage Concrete & Masonry 1288 Main St 5 $1,285,000 179504 Concrete Breaking Cutting & Sawing & Etc All Seasons Rental 7932 Lake Dr 4 $4,651,000 503230 Concrete -Ready Mixed -Wholesale Audio Design Systems 6479 Hodgson Rd 3 $585,0001 573113 Audio -Visual Equipment -Dealers Bauer Flooring Inc 7117 Rice Lake Dr 1 $252,000 175203 Floor Laying Refinishing & Resurfacing Company Name Address Employee Size Sales Volume NAICS Code Primary NAICS Description Bella Landscapes 730 Apollo Dr 2 $303,000 762950 Service Contracts & Agreements Centennial Builders 6487 Pheasant Hills Dr 2 $1,549,000 154213 Building Contractors Custom Remodelers Inc 474 Apollo Dr # 6 140 $79,297,000 236118 Residential Remodelers Fleetwood 1228 Choke Cherry Rd 2 $1,132,000 152112 Home Builders likes Plumbing Drain Cleaning 6497 Hokah Dr 1 $223,000 171105 Plumbing Contractors Jerry's Locksmith Svc 629 Apollo Dr 3 $378,000 769962 Locks & Locksmiths K L Auto Body Shop 909 Maple St 4 $480,000 753201 Automobile Body -Repairing & Painting Key Medical Supply Inc 532 Apollo Dr 4 $8,088,000 7801190 Medical, Dental/Hospital Equip/Supls Mrchnt Whlsrs Lawn & Snow Inc 6609 White Birch Ct 6 $668,000 78206 Lawn & Grounds Maintenance Lino Lakes Mn Locksmith 7265 Lake Dr 2 $252,000 769962 Locks & Locksmiths Magic Bounce 826 77th St 10 $2,733,000 735906 Party Supplies -Renting Miltona Turf Products 4 $224,000 18103 Turf Minnesota Groundcovers 7855 Lake Dr 1 $234,000 526108 Nurserymen North Country Builders Inc 6626 E Shadow Lake Ct 2 $1,132,000 152112 Home Builders Northland Motors Inc 8009 Lake Dr 1 $650,000 551103 Automobile Dealers -Used Cars Official Printing 7525 4th Ave 6 $777,000 323113 Commercial Screen Printing Pulte Homes 6411 Lakota Trl 1 $566,000 152112 Home Builders Ramsay Lawncare & Landscape 1168 Ruffed Grouse Ct 2 $222,000 78206 Lawn & Grounds Maintenance Scholl's Inc 435 Park Ct 100 $4,214,000 6369167 General Warehousing & Storage Showcase Exteriors 7124 Rice Lake Dr 4 $795,000 176109 Roofing Contractors Superl Inc 7301 Apollo Ct 50 $8,664,000 5717464 Drywall & Insulation Contractors Twin Cities Remodeling 7057 Rice Lake Ct 2 $1,132,000 152139 Remodeling & Repairing Bldg Contractors Water Furnace Intl 6683 Black Duck Dr 2 $393,000 596398 Direct Selling Establishments Rehbein Transit Inc 6298 Hodgson Rd 130 $15,605,000 4841809 Charter Bus Industry Case Bor-Mor Holdings Inc 2209 Phelps Rd 35 $8,519,000 4291888 Machine Tool Manufacturing Mikes Truck & Trailer Repair 227 Schlavin Ct 30 $3,396,000 4834888 General Automotive Repair Alex's Lawn & Turf 441 Birch St 19 $2,117,000 2471444 Landscaping Services Merlin Goble Masonry Inc 2370 County Road J # 105 13 $2,071,000 6539175 Masonry Contractors Rock Gardens & Nursery 6074 Hodgson Rd 10 $1,114,000 4903058 Landscaping Services BWE Construction Co 476 Hawthorn Rd 9 $5,097,000 8898537 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Morrissette Mechanical 2193 Deer Pass Trl 8 $1,786,000 3667452 Electrical Contr & Other Wiring Installation Contr Reed & Neubert Construction 508 Park Ct 6 $3,398,000 2078896 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Bps Construction Inc 8120 4th Ave 5 $2,832,000 7843664 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Busy Beaver Builders & Rmdlrs 1046 Lantern Ln 5 $3,872,000 4140657 Commercial & Institutional Building Construction Husnik Homes Inc 2370 County Road J # 105 5 $2,832,000 4267462 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Waldoch Farm 8174 Lake Dr 5 $280,000 7801207 Nursery & Tree Production All Seasons Rental 7932 Lake Dr 4 $4,651,000 7172942 Brick, Stone/Related Constr Material Mrchnt Whlsrs D B Fence 799 Vicky Ln 4 $4,600,000 4334318 Other Construction Material Merchant Wholesalers Faulkner Construction Inc 2350 County Road J 4 $2,265,000 42647061 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Company Name Address Employee Size Sales Volume NAICS Code Primary NAICS Description Maetens Brenny Construction 865 Birch St 4 $2,265,000 7650807 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Ziccardi Construction LLC 2238 Flora Ct 4 $2,265,000 7624619 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Hicks Painting & Remodeling 8210 Blackbird Ln 3 $1,699,000 2713047 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Martin Recreational Properties 707 Fox Rd 3 $2,323,000 4868232 Commercial & Institutional Building Construction Miers, Henry T 904 Old Birch St 3 $1,699,000 4840778 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Robinson Sod Landscap Contr 310 Main St 3 $334,000 7847825 Landscaping Services Timothy Hanson Construction 760 62nd St 3 $1,699,000 4847965 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Focus Electric Co 6258 W Shadow Lake Dr 2 $416,000 7846466 Electrical Contr & Other Wiring Installation Contr Kevins Heating & Cooling Inc 6474 20th Ave 2 $446,000 2700427 Plumbing Htg & Air -Conditioning Contractors Langers Tree Svc 6413 Langer Cir 2 $222,000 4261330 Landscaping Services R & R Custom Homes 6447 N Trappers Xing 2 $1,132,000 6535967 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Severson Urman Construction 8399 W Rondeau Lake Dr 2 $1,132,000 4644170 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Sunrise Remodlers 5976 Hobe Ln 2 $1,132,000 7629295 Residential Remodelers A B Custom Landscape 7002 2nd Ave 1 $111,000 7170020 Landscaping Services Bauer Flooring Inc 7117 Rice Lake Dr 1 $252,000 6160947 Flooring Contractors Ike's Plumbing & Drain Clnng 6497 Hokah Dr 1 $223,000 7666830 Plumbing Htg & Air -Conditioning Contractors J & E Small Engine & Sport 698 Main St 1 $126,000 7847652 Home & Garden Equipment Repair & Maintenance Kurt Beseke Construction Inc 1209 W Rondeau Lake Dr 1 $566,000 4646218 New Single -Family Hsng Constr (Exc For -Sale Bldrs) Premium Design 570 Chippewa Trl 1 $566,000 4901610 Residential Remodelers Sma Construction Inc 6466 12th Ave S 1 $566,000 4866362 New Single -Family Hsng Constr (Exc For -Sale Bldrs) T Zastrow Enterprise 911 Orange St 1 $220,000 7843016 Wood Kitchen Cabinet & Countertop Manufacturing Wonderful Roofing & Siding 6186 Linda Ln 1 $198,000 2453373 Roofing Contractors Carpets Plus Color Tile 540 Apollo Dr 2 $510,000 571305 Carpet & Rug Dealers -New Cheesebrough Trucking Inc 448 Lilac St 2 $469,000 421304 Trucking Lino Cabinet Inc 911 Orange St 3 $540,000 175103 Cabinet Makers Showcase Designs 548 Apollo Dr # 50 4 $10,017,000 504602 Display Fixtures & Materials (Whls) BARC Industries 425 Arrowhead Dr 3 $872,000 521107 Windows International Society 6776 Lake Dr # 215 4 $1,577,000 161106 Asphalt & Asphalt Products Urban Cabinets 8351 Lake Dr 6 $1,081,000 175103 Cabinet Makers Advance Asphalt 8196 20th Ave 5 $1,971,000 7627954 Highway Street & Bridge Construction Advanced Concrete Construction 432 Lilac St 5 $1,285,000 7842450 Site Preparation Contractors Lincoln Brewery Corp 6250 Hollow Ln 6 $5,316,000 208201 Brewers (Mfrs) Pro Air Conveying 524 Apollo Dr # 10 7 $13,535,000 508744 Vacuum Equipment & Systems (Whls) Trutool Construction & Mntnc 548 Prairie View PI 7 $1,124,000 359903 Machine Shops (Mfrs) Arcade Asphalt Inc 6433 20th Ave 6 $2,365,000 4297005 Highway Street & Bridge Construction Rite -Way Waterproofing 448 Lilac St 20 $7,255,000 7860550 Other Building Finishing Contractors Arnt Construction Co Inc 2190 Phelps Rd i 80 $20,562,000 4261296 Site Preparation Contractors Organized by BRE Tier Company Name Address Employee Size Sales Volume NAICS Code Primary NAICS Description Hammerheart Brewing Co 7785 Lake Dr 12 $10,633,000 208201 Brewers (Mfrs) EJM Pipe Svc 7807 Lake Dr 50 $18,137,000 237990 Other Heavy and Civil Engineering Construction Boe Ornamental Iron Inc 484 Lilac St 6 $1,560,000 238910 Site Preparation Contractors Schwan's Home Service 420 Park Ct. 311412 Frozen Specialties Teknapack 471 Apollo Dr 12 $3,000,000 322121 Paper (except Newsprint) Mills Saberpack Inc 471 Apollo Dr 10 $235,000 322220 Coated & Treated Paper Manufacturing Curtis 1000 2300 Main St 200 $30,068,000 323111 Commercial Printing (Except Screen & Books) Interplastic Corp 300 Apollo Dr 6 $6,938,000 325211 Plastics & Resin Manufacturing Mountain Machine 400 Apollo Dr 11 $2,590,000 326199 All Other Plastics Product Manufacturing Lakes Mechanical 471 Apollo Dr 10 $2,354,000 326199 All Other Plastics Product Manufacturing Molin Concrete Products Co 415 Lilac St 100 $19,250,000 327390 Other Concrete Product Manufacturing Carroll Distributing & Constr 7540 4th Ave 10 $11,629,000 327390 Other Concrete Product Manufacturing Twin City Fab 295 Apollo Dr 14 $3,641,000 332312 Fabricated Structural Metal Manufacturing GNW Machine 2289 E Cedar St # 10 40 $6,427,000 332710 Machine Shops Twin City Powder Coating 548 Apollo Dr # 20 12 $2,835,000 332813 Electroplating, Plating, Polishing, Anodizing, and Coloring Underground Tools 6680 Hodgson Rd 10 $1,510,000 333131 Drilling, Mining Underground Equip Manufacturing Custom Manufacturing 7582 4th Ave 80 $10,818,000 333511 Industrial Mold Manufacturing Bramstedt Surgical Inc 524 Apollo Dr # 50 199 $50,339,000 339113 Surgical & Medical Instrument Manufacturing Integrated Medical Tech USA 548 Apollo Dr # 10 4 $1,011,000 339113 Surgical & Medical Instrument Manufacturing Composites One LLC 375 Apollo Dr # A 7 $9,216,000 423310 Lumber, Plywood, Millwork/Wood Panel Mrchnt Whslr: Marmon/Keystone LLC 265 Apollo Dr 8 $20,661,000 423320 Metal Service Ctrs & Other Metal Merchant Whls Badger Magnetics 501 Apollo Drive 24 $27,296,000 423610 Electrical Appartus/Wiring Contract Hardware Co Inc 374 Apollo Dr 23 $53,240,000 423710 Hardware Merchant Wholesalers Rice Industries Inc 424 Apollo Dr 12 $28,303,000 423830 Industrial Machinery & Equipment Merchant Whlsrs M C Metal Fab 30-524 Apollo Dr 10 $23,286,000 423830 Industrial Machinery & Equipment Merchant Whlsrs Udor USA Inc 500 Apollo Dr 9 $21,227,000 423830 Industrial Machinery & Equipment Merchant Whlsrs Nol Tec Systems Inc 425 Apollo Dr 3 $7,075,000 423830 Industrial Machinery & Equipment Merchant Whlsrs PAR Aide Products Co 6800 Otter Lake Rd 30 $70,024,000 423910 Sporting & Recreational Goods/Supls Mrchnt Whlsrs Sterling Plastics 375 Apollo Dr 424610 Plastics Materials and Basic Forms and Shapes Merchant Wholesalers Northern Wholesale Supply Inc 0 Otter Lake Rd # 60 $24,916,000 441210 Recreational Vehicle Dealer Pathfinders Systems Inc t524Apollo Dr 2 $200,000 541511 Custom Computer Programming Services Organized by Largest Tax Base Company Name PIN Market Value Northern Wholesale Supply Inc243122430011 $ 5,256,200 PAR Aide Products Co 243122430011 Curtis 1000 243122140002 $ 5,019,900 Molin Concrete Products Co 083122330003 $ 4,400,700 Marmon/Keystone LLC 183122420007 $ 3,748,300 GNW Machine 243122430013 $ 2,059,700 Nol Tec Systems Inc 173122230014 $ 1,529,900 Interplastic Corp 183122410016 $ 1,246,400 Schwan's Home Service 173122320010 $ 1,131,700 Twin City Fab 183122420006 $ 1,080,000 Twin City Powder Coating 173122210030 $ 1,005,700 Integrated Medical Tech USA 173122210030 Contract Hardware Co Inc 183122410010 $ 971,900 Sterling Plastics 183122410006 $ 884,600 Composites One LLC 183122410006 Mountain Machine 183122410004 $ 878,700 Teknapack 173122220045 $ 852,500 Lakes Mechanical 173122220045 Saberpack Inc 173122220045 Badger Magnetics 173122220039 $ 820,000 M C Metal Fab 173122210028 $ 738,000 Pathfinders Systems Inc 173122210028 Bramstedt Surgical Inc 173122210028 $ 738,000 Underground Tool 303122240002 $ 653,600 Rice Industries Inc 173122230020 $ 598,800 Carroll Distributing & Constr 173122220011 $ 571,500 EJM Pipe Svc 083122140027 $ 500,800 Hammerheart Brewing Co 083122410028 $ 466,700 Custom Manufacturing 173122220008 $ 451,700 Udor USA Inc 173122220033 $ 434,100 Boe Ornamental Iron Inc 173122220022 $ 336,800 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: March 3, 2016 REQUEST: Distribution Center and Outdoor Storage Requirements BACKGROUND Staff has been contacted regarding construction of a large industrial warehousing/distribution facility along 35E. The facility would be approximately 460,000 square feet with a proposed value of 18 to 22 million dollars. The property is zoned L-I, Light Industrial. Warehouse and distribution facilities are a permitted use in this district. The project will require the construction of 21St Avenue from Commerce Drive to Cedar Street. The proposed project will likely require an amendment to the zoning ordinance to allow for exterior storage of trailers. It is also anticipated that the applicant will request financial assistance in the form of Tax Increment Financing. Exterior Storage The business is proposing have exterior parking areas for semi -trailers. Currently, the zoning ordinance considers trailers as exterior storage. Open and Outdoor storage is allowed as Conditional Use in the L-I District. The current requirements are as follows: Section 1007.120 (9): (e) Open and outdoor storage (not outdoor sales lots) as an accessory use provided that: 1. The designated storage area shall comply with all building setback requirements for the district. Outside storage is prohibited between the principal structure and any public right-of-way. 2. The storage area is landscaped and screened from view of adjacent uses and public rights -of -way via a fence and greenbelt planting strip, in accordance with § 1007.043 (17)(f) of this Ordinance. 3. The entire storage area is fenced and secured in an appropriate manner. 4. The storage area is blacktopped or concrete surfaced, unless an alternative wear -resistant material is determined by the City Engineer to be 1 suitable to control dust and drainage and is specifically approved by the City Council. 5. The storage area does not take up parking space or loading space as required for conformity to this Ordinance and is not located in the front yard. 6. The property shall not abut I-35W or I-35E. 7. The ratio of storage area to building footprint shall not exceed 2.5:1. 8. All parking, loading and truck staging activities shall occur on site. On -street parking and loading associated with the use is prohibited. 9. Storage shall not include material considered hazardous under Federal or State Environmental Law. As noted exterior storage is not allowed on property abutting 35E or 35W. Staff would like to discuss possible consideration of an amendment that would allow for trailer storage in these areas. Possible considerations may be to allow trailer storage as an accessory use. The City could limit the location and number of trailers. Berming and landscaping would be a requirement as well. The Planning & Zoning Board reviewed the request and recommend amending the zoning ordinance to accommodate the trailer storage. Tax Increment Financing (TIF) TIF is a financing tool frequently used for economic development purposes. In simple terms TIF is a funding mechanism that uses the increased taxes paid by development (increment) to offset project development costs. It is often used to fund public improvements, write down land costs, or fund site development costs. The developer is reviewing project development costs and preparing an application for City review. At this time staff is interested in have a general discussion on the topic. ATTACHMENTS I. Distribution Facility Concept Plan 2. TIF Explanation Handout 2 I N T E R S T A T E ------ ------------------------ // I 5m 0 5 Lu EXISnNG r- BILLBOARD _- - - - - - - - 70 TRAILERS ELIMINATE ACCESS F TO BILLBOARD I G •// I 1 " 58 DOCKS W L L LJLJLJ LJLJLJ JLJLJLJ J LJLJL LJLJL LJ J JLJ LJ JLJLJLJ JLJ LJ JLJLJLJ JLJ J L LJ LJLJL LJL ED 8 3 5 E -- - - ---- -� --- ___ �___ ____ _ -? \ IAD\ — — \ \ \\ I IjADII I \ \ \ 111 \ { III I I \I \ I I I I Li LJLJLJLJ J L— `O+ --- --- 0 Ir 7 60 SPE A - T - - - - T oo IL \ B ILO G �CvtiCK r -T F F OH \ IL --- --- j, 04 KING I I I I I I I I I I ROPOS9,8f�0 S FIL,ING� I I I 5AY52T - - - - F F7 -T T T- SPEE BAY - - - - - - I I I I I i"' Dil ao I ' �r�r�r�r-II �-rr a� �1r�rrr�rhri rrrlr�r�r�nY�r� r�r�nrrr.r.Frr� r�rtrr�rrrrrlrrr ---� I r rv�r� v�r� r-Ir�r 60 PARKING STALLS 32 TRAILERS \ P I \ \ I I OPTI.NAIi--- DOCKS It I I -T T 17 \ I I y \ \ \I I _ I I 0 I I 32 TRAILERS - ----I--tl--tr--------H-----+1-+----1-4--I-I--I-�---4------1-I----- --- - - - - - - - - - - - - -------- ---- --- — _ — — _ — — — _ — — _ — — _ _ — --- -- — — — _ _ __ _ _ __ - - __ _ — _ — — — — — —. — _ — — — — — _ _ _ __ _ _ _ J _ — — _ a w 0 1 2 1 S t A V E N U E S O U T H EXTEND EXISTING, a 21st AVE SOUTH 1 SITE PLAN = C_ U Y Z q1 SCALE: 1 = 60'-0" Z \_ a ~ U W U) z F J X U W U an zo.N r _ _____- F I.--- y ___ 4 \I o L54 ,I r I --- __ I LJ_1_LJ 1za I- , - _ _ — — _I—,— — — — — — — — — — — — —J _ SITE DATA LOT AREA - t1,770,229 S.F. = 40.6 ACRES ZONING - L7, LIGHT INDUSTRIAL BUILDING - 459.800 S.F. DISTRIBUTION PARKING DATA 459,800 S.F. AT 1/2000 = 230 STALLS REQUIRED 338 STALLS DEMONSTRATED I � LU 1 Iw I< ILU V I L A M P E R T A R C H I T E C T S 420 Summit Avenue St. Paul, MN 55102 M PM1anv:]Z.]55.1211 Fax:]fi5.>5].IBL9 IvmpartBlvmpart—vreM1.evm ARCHITECT CERTIFICATION: I HEREBY r TIFY NAT THIS PLAN. SPECIFICATION OR REPORT WAS PREPARED BY ME OR UNDER MY DIRECT SUPERNSION AND TRAT I AM DULY LICENSED ARCHITECT N LAWS v\M,% TA. CIJ LE`��A�I \PE T��X4 1 66 v /`Ia"- IUNITEO �� j��_ PROPERTIES 3600 American BWd. W. Suit. 750 Bloomington, MN 55431 952-835-5300 W LU W c y Q U Z LU W U i Qt� LU Q W J J m U C,yrigFl 2015 I--- Lampert ArtM1llocle. P.A. Project Designer: JAMES 8 Drawn By. JRB Checked By. LL Revisions 11/2/15 PRELIMINARY SITE PLAN Sheet Number A 1 Project No. 151007-1 C� • e . y� n ��,. ?:y1 -- `► :.. _ �_� ray "�f,• I JA it lk es -. awaroff'o, Ila 77 - .r— MEN 11 € • MINE- M HOUSE RESEARCH Short Subjects Joel Michael Updated: October 2010 Tax Increment Financing What is TIF? Tax increment financing (TIF) uses the increased property taxes that a new real estate development generates to finance costs of the development. In Minnesota, TIF is used for two basic purposes: To induce or cause a development or redevelopment that otherwise would not occure.g., to convince a developer to build an office building, retail, industrial, or housing development that otherwise would not be constructed. To do so, the increased property taxes are used to pay for costs (e.g., land acquisition or site preparation) that the developer would normally pay. • To finance public infrastructure (streets, sewer, water, or parking facilities) that are related to the development. In some cases, the developer would be required to pay for this infrastructure through special assessments or other charges. In other cases, all taxpayers would pay through general city taxes. How does TIF When a new TIF district is created, the county auditor certifies (1) the current work? net tax capacity (i.e., property tax base) of the TIF district and (2) the local property tax rates. As the net tax capacity of the district increases, the property taxes (i.e., the "tax increment") paid by this increase in value is dedicated and paid to the development authority. The tax increment is limited to the tax derived from the certified tax rate. Increases in value that generate increment may be caused by construction of the development or by general inflation in property values. The authority uses the increment to pay qualifying costs (e.g., land acquisition, site preparation, and public infrastructure) that it has incurred for the TIF project. How is TIF used to There is a mismatch between when most TIF costs must be paid —at the pay "upfront" beginning of a development —and when increments are received —after the development costs? development is built and begins paying higher property taxes. Three basic financing techniques are used to finance these upfront costs: Bonds. The authority or municipality (city or county) may issue its bonds to pay these upfront costs and use increment to pay the bonds back. Often, extra bonds are issued to pay interest on the bonds ("capitalizing" interest) until increments begin to be received. Interfund loans. In some cases, the authority or city may advance money from its own funds (e.g., a development fund or sewer and water fund) and use the increments to reimburse the fund. Pay-as-you-go financing. The developer may pay the costs with its own funds. The increments, then, are used to reimburse the developer for these costs. This type of developer financing is often called "pay-as-you-go" or "pay -go" financing. What governmental Minnesota authorizes development authorities to use TIF. These authorities are units can use TIF? primarily housing and redevelopment authorities (HRAs), economic development authorities (EDAs), port authorities, and cities. In addition, the "municipality" (usually the city) in which the district is located must approve the TIF plan and some key TIF decisions. TIF uses the property taxes imposed by all types of local governments. But the school district and county, the two other major entities imposing property taxes, are generally limited to providing comments to the development authority and city on proposed uses of TIF. The state -imposed tax on commercial -industrial and seasonal -recreational properties is not captured by TIF. What is the but for Before an authority may create a TIF district, it and the city must make "but -for" test? findings that (1) the development would not occur without TIF assistance and (2) that the market value of the TIF development will be higher (after subtracting the value of the TIF assistance) than what would occur on the site, if TIF were not used. What types of TIF Minnesota allows several different types of TIF districts. The legal restrictions districts may be on how long increments may be collected, the sites that qualify, and the created? purposes for which increments may be used vary with the type of district. District type Use of Increment Maximum duration Redevelopment Redevelop blighted areas 25 years Renewal and renovation Redevelop areas with obsolete uses, not meeting blight test 15 years Economic development Encourage manufacturing and other footloose industries 8 years Housing Assist low- and moderate -income housing 25 years Soils Clean up contaminated sites 20 years Compact development Redevelop commercial areas with more dense developments 25 years How many TIF According to the 2010 report of the Office of State Auditor (OSA), there were districts exist? 2,048 active TIF districts in 2008. The graph shows the relative shares by type of district. Redevelopment (950) \ Economic Development (454) TIF Districts by Type in 2008 (2,048 districts) Housing Renewal (25) Special Laws (7) Soils (20) Pre-1979 (47) Source: 2010 Report of the State Auditor For more information: Contact legislative analyst Joel Michael at 651-296-5057. Also see the House Research web site for more information on TIF at www.house.mn/hrd/issinfo/tifmain.htm. The Research Department of the Minnesota House of Representatives is a nonpartisan office providing legislative, legal, and information services to the entire House. House Research Department 1 600 State Office Building I St. Paul, MN 55155I 651-296-6753 I www.house.mn/hrd/hrd.htm