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HomeMy WebLinkAbout01/07/2021 EDAC PacketHow to Join the Meeting Phone: Dial 1-312-626-6799 Meeting ID: 891 8157 2815 Web link: htlps://us02web.zoom.us/j/89181572815 CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING AGRNDA 1. CALL TO ORDER AND ROLL CALL Thursday, January 7, 2021 11 Meeting to be held electronically Pursuant to MN Statute 13D. 021 2. APPROVAL OF MINUTES: November 5, 2020 3. DISCUSSION ITEMS A. Economic Development Strategic Plan B. Project Updates 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE TIME STARTED TIME ENDED MEMBERS PRESENT MEMBERS ABSENT STAFF PRESENT I. CALL TO ORDER : November 5, 2020 . 8:02 A.M. . 8:40 A.M. : Jim Schueller, Thomas Colgan, Andrew Cravero, Nathan Vojtech, Don Johnson, Julie Jeffrey - Schwartz, Patrick Kohler : Chad Wagner : Michael Grochala, Janele Waterman, Jessica Eller Chair Schueller called the Economic Development Advisory Committee meeting to order at 8:02 A.M. on November 5, 2020. II. APPROVAL OF MINUTES Mr. Cravero made a MOTION to approve the October 1, 2020 Meeting Minutes. Motion was supported by Mr. Vojtech, passing unanimously. III. DISCUSSION ITEMS A. Letter of Intent, Purchase of Lots 12 and 13 Carole Estates 2nd Addition Mr. Grochala, Community Development Director, presented the staff report. The City of Lino Lakes owns 2.01 acres of property located at the NW corner of 77th Street and Lake Drive. The City recently received an offer to acquire this property. In addition, the company, Vaquero Ventures Management, is also considering adjacent property to the south that would allow for additional redevelopment and realignment of 77th Street as planned. Mr. Colgan commented he thought the price per square foot was a good value. Mr. Cravero asked if the City would be obligated to build the future road improvements and development if the property is purchased. Mr. Grochala stated the City would not be obligated to build any additional redevelopment or road improvements; however, the end user may need it to happen in order to make it a viable site. Mr. Grochala explained that in Economic Development Advisory Committee November 5, 2020 Page 2 the past they have been somewhat contingent on not selling unless these improvements were incorporated into the project. Mr. Vojtech asked if the community gardens, which are currently located on this property, would be relocated. Mr. Grochala stated the City is interested in relocating the gardens and is in the process of identifying suitable areas. Ms. Jeffrey -Schwartz commented that if the City can facilitate this development and have an equitable cost share that is satisfactory between the developer and the City, it is a good play to position the City to be ready for development in the future. The committee recommended the City proceed with some caveats and that the project be developed as an integrated site. B. Project Updates Mr. Grochala updated the committee on the passage of the bonding bill which included funds for the County Road J and I-35E interchange. He also provide an update on Lennar's Watermark devleopment, the Northeast drainage project, and the status of the Chain of Lakes YMCA. IV. ADJOURNMENT Mr. Cravero made a MOTION to adjourn the meeting at 8:40 A.M. Motion was supported by Ms. Jeffrey -Schwartz, passing unanimously. Respectfully submitted, Jessica Eller, Community Development Intern DRAFT MINUTES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: January 7, 2021 TOPIC: Economic Development Strategic Plan BACKGROUND As part of the City's economic development efforts, EDAC is responsible for the preparation of a 5-year Economic Development Strategic Plan. The plan was last updated in 2014. With the recent adoption of the Comprehensive Plan, staff is proposing to begin work on an update. The 2014 Plan identified four main "Areas of Opportunity" which included: O Development and implementation of a Business Retention Program EDAC went through a process to identify a priority business list of manufactures. A business survey was completed and business visits were started. O Development of the Legacy site by City Hall The City sold 10 acres of land to DR Horton in 2015. Rebranded as Woods Edge, the development included 112 TH units and over 27 million in new valuation. Nine acres remain on the site. Staff hosted a developer roundtable in summer of 2020 regarding the remaining area. Further discussion was postponed pending determination of YMCA future use. O Redevelopment of CR 49 (Hodgson Road) and County Road J Staff facilitated the redevelopment of the northwest quarter of intersection with Lyngblomsten. 49 Club, liquor store, and insurance building along with a single family home were acquired and slated for demolition. Development is expected in 2021. Road improvements to 49 and CR J are currently being planned with the developer, Anoka County, Ramsey County, and Shoreview. O Development of the Commercial and Industrial Corridor along I-35E Distribution Alternatives was relocated to a new 402,000 square foot building along 35E that included construction of 21' Avenue South. Main Street Shoppes constructed along Otter Lake Drive with three new eating venues. Partnered with Anoka County Regional Economic Development, Connexus Energy, and surrounding municipalities to market the corridor as the Minnesota Technology Corridor. Each of these areas are still relevant as we move past 2020 and each is a core component of the 2040 Comprehensive Plan implementation strategies which include: 1. Collaborate with business support organizations to serve the needs of current and future businesses. 2. Develop strategies and programs to attract high tech and high value industrial, business and professional service enterprises that have an emphasis on job creation. 3. Continue to support local business retention and expansion initiatives by implementing a Business Retention and Expansion Program. 4. Promote the rehabilitation and redevelopment of existing commercial facilities by continuing to pursue and make available various financial programs and assistance. 5. The Economic Development Advisory Committee (EDAC) will continue to prepare five-year economic development plans and one year action plans. 6. Consider the use of available financial incentives (i.e. TIF/tax abatements/grants, etc.) to attract businesses to relocate or start up in Lino Lakes. 7. Work to actively market Lino Lakes as a great place to live and work. 8. Promote development of identified "Opportunity Areas": Legacy at Woods Edge, CR 49/J and I-35E Corridor Staff is proposing to start development of the Strategic Plan update process in the next few months. EDAC Direction None required. Staff is seeking EDAC ideas on areas of priority for next five years. ATTACHMENTS 1. 2014 Economic Development Strategic Plan. Lino Lakes ECONOMIC DEVELOPMENT PLAN Background In a series of meetings the Economic Development Advisory Commission (EDAC) evaluated the potential of four different areas for economic growth within the City of Lino Lakes. The areas represented the various types of development currently facing the community: housing, commercial, industrial and redevelopment. EDAC's charge was to prioritize the opportunities based on a review of each area's positive aspects and potential challenges. The four Areas of Opportunity that were assessed included: Development and implementation of a Business Retention and Expansion Program Q The Legacy Site located at Interstate 35 and Lake Drive 4 Redevelopment of the intersection of County Road 49 (Hodgson) and County Road J O The Commercial and Industrial Corridor along Interstate 35E and County Road 14 EDAC recognizes that the City needs to be flexible and responsive to the market place. This document represents a guide and framework for prioritizing the City's economic development efforts. When opportunities for development occur, Lino Lakes will respond in a manner that will facilitate the best outcome for the community. This work plan focuses actions to facilitate economic growth in the Areas of Opportunity. The document lays out the priorities identified and approved by the EDAC. It is the intent to amend and update the document as needed to be reflective of progress. � (r CITY f QF J INCA KES O 0 J Priority One - Business Retention and Expansion Summary Retention and expansion of key businesses is an important strategy in promoting continued economic growth. It is an avenue by which communities promote reinvestment and facilitate employment growth. By establishing a formal Business Retention and Expansion (BRE) Program, Lino Lakes can enhance its relationship with key existing businesses. The BRE is an avenue 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. EDAC identified business retention as the highest priority for the City's economic development efforts. The Commission noted that of all activities, there is the greatest level of local control and decision making associated with the development and implementation of a BRE Program. A linkage between the growth of businesses in the Apollo Business Park and vacant land along the Interstate 35E Corridor is an important one for the City. KEY Actions O Determine framework for Business Retention and Expansion Program Evaluate different outreach methodologies: general vs. targeted Identify desired program outcomes Discuss role of City Council, EDAC and staff Structure program including necessary outreach tools such as survey; newsletters; email blasts, etc. O Generate accurate business listing utilizing multiple sources both internal and external O Examine list and categorize businesses to determine possible industry clusters, emerging markets and key business targets O Identify economic development tools available for local business expansion o O Coordinate with other economic development organizations that have an interest in retention — and source potential resources for both program marketing and financial assistance for the businesses J 0 J D Priority Two - The Legacy Site Summary The site is located at Interstate 35W and Lake Drive. Recently, the City was granted land control though special legislation, allowing for greater authority in determining the type and timing of development. EDAC recognizes that the private market will prescribe the ultimate development scenario; however there are key elements which are within the City's sphere of influence. Lino Lakes ability to be flexible both on land sale pricing and type of development, plus the potential to assist with financing gaps will ultimately assist in the facilitation of a development plan that meets the City' goals. Blocks define the development tracts. They are identified utilizing the names: Neighborhood Block, Town Square Block, and Urban Block. Each Block can be considered its own, stand alone, development site or all the blocks can be developed by a single master developer. KEY Actions 4 Complete an analysis to determine land pricing scenarios which will ensure the optimal outcome for the city's costs recovery of the site assessments. 4 Refine City financial strategy for the overall site and if needed specific Blocks 4 Evaluate the benefit of a single Master Developer versus the City acting as Master. Ascertain the level of interest through a Request for Information for overall site: • Assess interest of commercial and housing developers • Evaluate financial implications of various scenarios and impact on overall site development Re -visit development companies that had an interest in the past Consider revising PUD to be reflective of City vision Research and meet with potential developers to determine level of interest and type of development the market can support. Evaluate financial implications of alternative development scenarios a 4 Lino Lakes | 6/1/2014 Priority Three –County Road 49 and County Road J Summary Redevelopment of this intersection has a number of community benefits. Suited toward smaller scale neighborhood development, the site is located at the southern gateway to Lino Lakes. Positive aspects to the redevelopment include the elimination of blight, addition of new goods and services, and increased tax base. Challenges include the collaboration of multiple cities and counties, infrastructure construction and lower densities that surround the area. The site has been highlighted in past Lino Lakes’ economic development plans. Recently, neighboring Shoreview has studied the area for redevelopment potential as part of a transitional corridor study. Collaboration with Shoreview is critical to effectively r edevelop the area. Additionally, there are outside financial resources that can be researched and grant funds sought to help facilitate investigation, acquisition and site improvements. KEY Actions Evaluate a proactive or reactive approach to development  Proactive- approach past potential developer; engage discussions with potential new smaller scale developers  Reactive – respond when interest in made by private sector Research pre-planning grants from the Met Council and Mn/Deed Prepare necessary documentation for infrastructure improvements and analyze level of private investment needed to consider City participation through tax increment Coordinate with the City of Shoreview when developer interest and a redevelopment project emerge 5 Lino Lakes | 6/1/2014 Priority Four –Interstate 35E and County Road 14 Corridor Summary Development in this area will be predominantly market driven. The construction of the Park and Ride in conjunction with the proposed housing development opens up commercial opportunities. Industrial development in the area will occur more slowly due to inactive land owner participation. Key to future development will be dependent on the build to suit market; speculative development is unlikely to occur due to adjacent lower densities. EDAC considered the commercial development more attainable in the nearer future than the industrial market. Lino Lakes can create a marketing strategy to attract attention to the sites development potential. KEY Actions Evaluate the potential for commercial development on the site adjacent to proposed housing development  Meet with property owner(s) to establish an agreement for land value  Solicit feedback from potential developers and engage in project planning Industrial activities  Maintain inventories, contacts and pricing on industrial properties for inquiry responses  Generate marketing piece  Continue responding to DEED and Greater MSP requests for information  Developer email blast that provides updates on Lino Lakes projects ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: January 7, 2021 REQUEST: Project Updates Background A number of new commercial projects are going through the review process. Year End Report Even with the economic impact of the pandemic, 2020 was still a year of growth for the City. Attached is the draft summary report of development activity. Anoka County Relief Grants To support businesses and nonprofits impacted by COVID-19, the state of Minnesota will be issuing funds to counties to disperse in 2021. Anoka County will receive $6,982,490.49 for businesses and nonprofits members negatively impacted by COVID-19. The County Board established criteria to distribute these funds. Applicants impacted directly by EO 20-99 and did not receive any Cares Act grants will be prioritized for review first. 19 local businesses received funding through the County’s prior grant program totaling approximately $340,000. The relief grant guidelines are attached. YMCA Update The City Council retained the services of Isaac Sports Group (ISG) to assist us with evaluation of options regarding operation of the YMCA as a community center. The study is planned for completion in March. Lyngblomsten Staff is working with Lyngblomsten on the project development agreement. They continue to work toward securing optimal financing for the project and anticipate a spring 2021 construction start. Staff is also working with Anoka and Ramsey Counties along with the City of Shoreview regarding a more long term roadway project for both Hodgson and County Road J. Attachments 1. Draft Year End ED Report 2. Anoka Relief Grant Guidelines This Annual Report is designed to showcase the commercial and residential development that took place in Lino Lakes in 2020. The goal of the Lino Lakes Economic Development Au- thority is to create a thriving community and to expand the city’s tax base and lessen the tax burden on residential properties. Despite the COVID-19 pandemic, development activities continued and commercial develop- ment showed signs of recovery as new construction activities and development planning emerged. 2020 EDA Report Lino Lakes Incredible Spaces. Outstanding Opportunities. St. Paul Minneapolis THE CITY OF LINO LAKES The applicant, Lyngblomsten at Lino Lakes, LLC has sub- mitted a land use application for PUD Final Plan/Final Plat for development of Phase 1, the senior living commu- nity. Lyngblomsten is proposing a 4 phased approach to redevelopment of 7 parcels totaling 20 acres located in the northwest quadrant of Hodgson Road (CSAH 49) and Ash Street (CR J). 2020 EDA Report Page 2 Watermark 3rd and 4th Addition Watermark 3rd Addition located in the northwest quadrant of I-35E and Main Street (CSAH 14), PUD Final plan was approved. The plat proposes 96 single family lots, 79 townhome lots and 1 outlot. Watermark 4th Addition which proposes 91 single family lots, 1 HOA clubhouse lot and 5 outlots will be going through the approval process in 2021. Development Lyngblomsten Senior Living Community Otter Crossing Nadeau Acres The City entered into a development agreement with BL Holdings, LLC for approximately 33 acres located north of Birch Street (CSAH 34) and west of 20th Ave- nue (CSAH 54). BL Holdings, LLC is proposing to con- struct approximately 68 single family lots on the site. The development is proposed to occur in two phases; the first phase would include 35 lots and the second phase, 33. The preliminary plat has been approved for Otter Crossing located at Main Street (CSAH 14) and Otter Lake Road. The applicant, Tyme Properties, LLC, is creating a 1.43 acre parcel for the purpose of con- structing a 7,800 sf commercial retail building. The name of the preliminary plat is Otter Crossing. Restaurants Despite COVID-19 impacting the service industry espe- cially hard we had several new restaurants open up in 2020. Campanelle Restaurant and Bar offers beer on tap and signature handmade pasta dishes, appetizers, salads, and sandwiches located at 7114 Otter Lake Rd. Right next door Jersey Mikes offers jumbo subs filled with cold cuts and toppings. El Zocalo Grill and Cantina serves authentic Mexican food as well as unique drinks located at 566 Lilac St. Page 3 The COVID–19 pandemic has had tremendous im- pacts at a local, regional, and national level. City staff has continued to try and provide updated infor- mation and resources to local business when availa- ble. Web links are available on the City’s website to a host of state and federal agency assistance pro- grams. Unfortunately, the Chain of Lakes YMCA and the Fairview Lino Lakes Clinic notified the City and residents that they would not be reopening as a result of the COVID-19 impacts. COVID-19 Impact on Businesses Laborer’s Training Center Expansion New Businesses A Conditional Use Permit and Site Improvement Perfor- mance Agreement have been approved for Laborer’s Training Center located at 2350 Main Street. They are proposing to construct a 37,284 sf training facility to the east of the existing facility. The proposed project will include a new building with working/training bays, classrooms, offices, and an auditorium. The expansion will also include additional parking, an access road, utilities, and stormwater ponds. 2020 EDA Report City of Lino Lakes Michael Grochala, Community Development Director 651-982-2400 mgrochala@linolakes.us 600 Town Center Pkwy, Lino Lakes MN, 55014 The 2040 Comprehensive Plan was adopted on November 9th, 2020. The City’s Comprehensive Plan Update will provide a frame- work to help guide City decision making for the next 20 years. The comprehensive plan is an opportunity for the community to create a vision for what you desire to see where and how residents live, learn, work and relax, and how they get around in 2040. The comprehen- sive plan will serve as a guide on how to best achieve the goals that are deemed the most important by residents. 2040 Comp Plan Adopted Other Updates 2020 Residential & Commercial Construction The city issued a total of 867 building permits in 2020. Of that total, 158 permits were for new residential construction. There were no per- mits issued for new commercial construction/ additions. The value of all new permits issued in 2020 to- taled $49.1 million. Of that total, the new resi- dential valuations totaled $41.8 million. Page 4 2020 EDA Report Rob Rafferty, Tony Cavegn, Chris Lyden, Michael Ruhland, Dale Stoesz Jim Schueller, Thomas Colgan, Andrew Cravero, Julie Jeffrey-Schwartz, Don Johnson, Patrick Kohler, Nathan Vojtech, Chad Wagner 2020 EDA Members 2020 EDAC Members 2020 Building Permits Issued Single Family Townhome Commercial Institutional Industial Agricultural 2020 Building Valuation Residential Commerci al Approved 12/22/20 1 | Page Anoka County Business and Nonprofit Relief Grant Program State Funding Amended Guidelines Anoka County will offer a business and nonprofit relief grant program to support local businesses and organizations impacted by COVID-19. Grants will be awarded in an amount based on the criteria set forth below. Applications will open in early January and will remain open as applications will be reviewed on a first come first serve basis. Applicants that were impacted directly and indirectly as a result of Executive Order 20-99 (EO 20-99) will be prioritized first in review. Directly impacted is defined as a business organization that was forced to close or reduce occupancy due to EO 20-99. Indirectly impacted by EO 20-99 is defined as a business organization that primarily derives income from sales of goods and services to businesses that were directly closed as a result of EO 20-99. Applicants that did not receive Cares Act grant relief will also receive priority in the state grant review process. In the event funds remain, all other applicants will be reviewed for eligibility based upon demonstrated economic impact from the pandemic. Grant funds must be distributed by March 15, 2021. Application technical assistance will be available through Anoka County Regional Economic Development Department and additional technical assistance providers listed on www.anokacountysuccess.org. Eligibility Criteria: • Applicants must have a physical establishment in Anoka County. If there is a parent organization/company or a second location outside of Anoka County, only the entity located in Anoka County can apply to receive a grant. • Eligible nonprofits will include 501(c)(3) and 501(c)(9) veteran’s organizations. • 501(c)(6) nonprofits are ineligible, with the exception of chambers of commerce organizations with a physical establishment in Anoka County, which are eligible. • Applicants must be able to demonstrate and document a financial hardship as a result of the COVID-19 pandemic. • Applicants must be in good standing with the Minnesota Secretary of State with no outstanding tax liens filed against the organization. • If required, Applicants must be licensed, in good standing with all local city ordinances. • Organizations that opened during the pandemic are eligible. However, the applicants will need to provide clear documentation of how the pandemic impacted the operating expenses of the organization/company. No start-up costs will be considered. • Organizations must have generated at least $10,000 in revenue through the end of 2020 to be eligible. • Applicants must disclose all federal, state or local grants received in 2020 and grants for which applicant has applied, which remain pending at the time of application. • Applicants must certify in good faith that all documentation submitted is accurate and that any misrepresentations or fraudulent information will require recoupment of funds. Approved 12/22/20 2 | Page • Home-based businesses or nonprofits are eligible so long as they have at least one or more W-2 employee in addition to the principal. Home-based businesses are defined as businesses where the primary office is registered and located at the owner’s residence/property. • Freelance or organized musicians and performing artists in Minnesota, who work or reside in Anoka County, are eligible to apply for grants under the solo business employee category, or home-based business category (if applicable) with no requirement of having one or more W-2 employees. Ineligible Businesses or Nonprofits • Businesses/nonprofits that primarily derive income from gambling or adult entertainment are ineligible. • Corporate chains, multi-state chains are ineligible. • Businesses/nonprofits that derive more than 50% of income from other real estate related services, such as sales/brokerage, property management, etc., are ineligible. • 501 (C)(6) nonprofits are ineligible, with the exception of chambers of commerce organizations. Grant Amounts: Eligible businesses and nonprofits will receive a grant payment based on their number of employees prior to closure. Applicants will need to show number of employees as of February 1, 2020 with their application. Newer businesses may disclose number of employees at time of opening. Grants received from all sources must not exceed the amounts of operating expenses the applicant incurred since the pandemic, nor exceed their total losses since the pandemic. The grant payments are considered taxable income and will be calculated as shown below: • Businesses/nonprofits with 1-20 FTE employees up to $15,000 • Businesses/nonprofits with 21-100 FTE employees up to $25,000 • Businesses/nonprofits with 101-300 FTE employees up to $35,000 • Businesses/nonprofits with 300 or more FTE employees up to $45,000 Chambers of Commerce nonprofits located in Anoka County grant amounts will be calculated as shown below: • Chambers with 200 or less members up to $15,000 • Chambers with 201 or more members up to $25,000 Home-based businesses will be eligible for: up to $10,000 Approved 12/22/20 3 | Page The information outlined above is intended to be general guidance. Final grant decisions will be made by the Application Review Panel in consultation with the County Administrator after a thorough review of all application materials. After the initial funding round, the County reserves the right to amend any criteria for eligibility as needed to best address the impact of the current pandemic.