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HomeMy WebLinkAbout05/02/2019 EDAC PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, May 2, 2019 8:00 A.M. Community Room AGENDA CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: April 4, 2019 3. DISCUSSION ITEMS A. BRE Program Update B. Project Updates 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: April 4, 2019 MEMBERS PRESENT: Andrew Cravaro, Thomas Colgan, Don Johnson, Patrick Kohler, Jim Schueller Nathan Vojtech, Chad Wagner MEMBERS ABSENT: Michael Ruhland, Julie Schwartz OTHERS PRESENT: Mikaela Huot, Mike Grochala, Monika Mann, Mara Strand APPROVAL OF MINUTES It was moved by Mr. Vojtech to approve the minutes from February 7, 2019 and March 7, 2019. The motion was seconded by Mr. Cravaro, passing unanimously. DISCUSSION ITEMS A. 49 & J Lyngblomsten TIF request Michael Grochala, Community Development Director, introduced the staff report. Mikaela Huot, Baker Tilly, provided and explanation of the Tax Increment Financing and an overview of the project. Mr. Grochala stated that the City Council discussed the proposal at the April 1, 2019 work session. Two primary questions discussed by the the City Council. • Is redevelopment of the area is a high enough priority to use tax increment financing? • Is the City Council comfortable exceeding the City's practice of providing 5-6 years of TIF? Mr. Grochala explained the City's 5% retainage of the increment. City's retainage can be put towards qualifying projects within the development district (the city limits). Mr. Schueller asked if the request was outside of what has previously been asked of the City. Ms. Huot explained the project is consistent with how the City has previously used tax increment dollars. Mr. Wagner asked if the project is protected if the school and counties opt out of the TIF district once they are notified. Mrs. Huot noted that schools and counties are not able to opt out. Mr. Colgan asked if the $19 million soft cost included stabilization and marketing. Mrs. Hout noted that everything was included in the cost. Mr. Colgan asked if the tax value to the total value of the project seem on par. Mrs. Hout noted that the total value tends to be similar to the actual cost, but this project does not include the value of the skilled nursing unit. Mr. Colgan asked about the ability to finance another project down the road. Staff explained the projects are independent. Mr. Johnson asked why the developer is not using special revenue bonds. Mr. Grochala explained they will be using conduit bonds that the city will sign off on. Mr. Cravaro asked if there were existing plans to improve Hodgson Road. Mr. Grochala stated there are no current road improvement plans. Mr. Grochala asked the committee if there is a high enough priority to do tax increment for this project. If so, does the group support exceeding 6 years if warranted. The Committee indicated there support for the use of TIF on the project and would support a longer duration of the district if warranted. Mr. Schueller asked if the project information is public and if a longer duration is allowed will it set a precedence for future projects. Mr. Grochala stated that the information is public but each project stands on its own. Ms. Huot stated the next steps moving forward would include addition discussion at a City Council work session on Monday. She noted that the tax increment process takes approximately 45-60 days. She estimated that the public hearing would be held by City Council in June or July to allow for the developer to break ground in August 2019. Mr. Vojtech asked why the red area was tax exempt. Ms. Huot explained that portion of the building was for skilled nursing which is tax exempt. Ms. Huot noted that 20% of the units in any housing district must be occupied by individuals that make 50% of the area's median income. Mr. Vojtech asked if the developer has decided to rent or sell the townhomes. Mr. Grochala explained the townhomes will be rented and there will be an age requirement. Mr. Vojtech asked if there will be a monument sign at the gateway. Mr. Grochala explained the city will build in a requirement for a gateway monument entrance. B. Projects Updates A building permit has been issued for Watermark. The City received an application for Saddle Club 4t" Addition. Love to Grow On is under construction. All Season's Rental will break ground. The city is finishing up the design on Water Tower #3 and bids will go out in May. A feasibility study for Well #7 is in progress. The City is in land negotiations for construction of the northeast drainage channel. Dunkin Donuts is going in by McDonalds. Another user is looking at the southeast corner. Birch Street, from Deerwood Ln to Centerville Roadwill be paved this Spring. County Road J, from Centerville Road to I-35E has seen issues with increased traffic. Senator Chamberlain is working on legislation for state funding to prepare a preliminary design of the corridor. 10 Business Retention Surveys returned. ADJOURNMENT The meeting was adjourned at 9:03 A.M. 3 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Monika Mann, Community Development Intern Michael Grochala, Community Development Director EDAC MEETING DATE: May 02, 2019 TOPIC: BRE Program Update BACKGROUND In June of 2016 EDAC, worked with Kristen Barsness of Barsness Consulting, prepared a draft Business Retention and Expansion (BRE) Program. The program has been on the back burner as development activity increased and staff time was limited. The BRE Program aims to promote reinvestment and facilitate employment growth within the community. The purpose of the program is to gather information about local business activity; anticipate changes in a company's status, and work to retain the businesses that provide the greatest positive economic impact. With the assistance of Jacquel Hajder, Anoka County Economic Development Specialist staff prepared a draft business survey for distribution. Questions and format were generally based on content GreaterMSP (Regional Economic Development) used in their outreach material. EDAC reviewed and provided feedback on a BRE survey in February 2019. Changes were made to the survey based on feedback from the committee. Staff sent out Business Retention and Expansion surveys to 40 local businesses with the hope of a 25% response rate. The City received 11 surveys back from various businesses. This data was reviewed and used to help the city understand what it can do to further support local businesses. Since reviewing the survey results, the City has already started working with Nicole Swanson at the Anoka County Job Training Center regarding opportunities to help businesses find employees. The City will be setting up general meetings with businesses in the coming months to further the discussions started. KEY FINDINGS • (Note: For multiple questions, businesses were able to choose multiple responses so responses will not add up to 11.) 1. Location Factors a. The most common factor for choosing Lino Lakes for business was proximity to major highway. Why Businesses Chose Lino Lakes ■ Proximity to Major Highway 14% (4) "PL ■ Property Prices 33% (7) Close to my Residence 29% (6) ■ Availability of 10% (2) Land/Buildings Other 14% (3) b. Write in answers of why businesses chose Lino Lakes included being centrally located for the owner and employees, the city, and the wide open spaces since 1970. 2. Employment. Over half of the respondents have had trouble finding employees. Trouble Finding Eml r 2 a 3. Job Growth: a. 10 of 11 business responded that they anticipate the number of jobs at their facility to increase in the next year. The other business anticipates the number of jobs to remain constant. 4. Future Location Decisions and Investment Plans Future Location Decisions and Investments 23% (5) 18% (4) 5% (1) 4% (1) 0 14% (3) Renovating Expanding Investing in New Facilities Merging Moving Making Major Equipment Purchase 5. 7 of the 11 businesses said they were open to further conversation. The City will be reaching out to these businesses in the coming weeks. ATTACHMENTS 1. BRE survey 3 CITY,' IN I KE Business Retention and Expansion Survey 1. Comaanv/Contact Info First Name Last Name Title Company Street City State/Zip Phone (Ext) Fax Company Email If primary contact unavailable, ask for: Company Website Year Company Est. in Community: 2. Location Factors What factors motivated you to establish your business in Lino Lakes? ❑ Proximity to Major Highways ❑ Proximity to Related Industries ❑ Property Prices ❑ Utility Prices ❑ Close to my Residence ❑ Railroad Service ❑ Quality of Workforce ❑ Availability of Land/Buildings ❑ Other: 3. Facilities a. Do you currently own or lease sufficient property to allow for expansion? ❑ Yes ❑ Maybe ❑ No b. If MAYBE or NO, what type of land/building/space needs do you foresee? c. Does your company have other business facilities in Minnesota? ❑Yes ❑ No 4. Products/Services What does your business do at this location (what is produced/services ottered, etc.)?: 1 2 3 4 5. Local Employment and Workforce a. How many employees at your Lino Lakes facility? (Estimates are okay.) Please break the number out into job categories below. Total Employees FTE ( Full Time) Part Time ( as defined) Seasonal Temp Agency Employees b. Has your company had trouble finding employees? ❑ Yes ❑ No c. In the next year, do you expect the number of jobs at this facility to: ❑ Increase ❑ Decrease ❑ Remain Relatively Stable ❑ Unsure 6. Future Location Decisions and Investment Plans Are you currently considering (Select ALL that apply): ❑ Downsizing ❑ Selling ❑ Renovating ❑ Expanding ❑ Investing in New Facilities ❑ Merging ❑ Moving ❑ Closing ❑ Making Major Equipment Purchases ❑ None of the Above 7. Continued Conversation Would you be open to meeting with the City of Lino Lakes to further discuss topics from this survey? ❑ Yes ❑ No C I T YA� O F L. [QL;WS Thank you for participating in the City of Lino Lakes Business Retention and Expansion Program. We appreciate the time you have given us and the contribution your business is making to our local community.