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HomeMy WebLinkAbout05/06/2021 EDAC Packet AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: March 4, 2021 3. DISCUSSION ITEMS A. 5-Year Strategic Plan B. Lake Drive Land Sale C. Project Updates 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, May 6, 2021 8:00 A.M. Meeting to be held electronically Pursuant to MN Statute 13D.021 How to Join the Meeting Phone: Dial 1-312-626-6799 Meeting ID: 847 5458 4703 Web link: https://us02web.zoom.us/j/84754584703 CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES I. CALL TO ORDER Chair Schueller called the Economic Development Advisory Committee meeting to order at 8:01 A.M. on March 4, 2021. II. APPROVAL OF MINUTES Mr. Cravero made a MOTION to approve the January 7, 2021 Meeting Minutes. Motion was supported by Mr. Vojtech, passing unanimously. III. DISCUSSION ITEMS A. YMCA Property Transfer and Feasibility Study Update Mr. Grochala, Community Development Director, discussed the status of the Chain of Lakes YMCA. He informed the board that the preliminary feasibility study will be discussed at a special City Council work session on March 18th. Mr. Grochala informed the board that the YMCA property was transferred back to the City on March 1st and that City Council did purchase some of the equipment from the YMCA. Mr. Grochala highlighted some of the things that will be discussed in the feasibility study and ways the facility could be utilized. Mr. Vojtech asked if the YMCA operates their facilities at a profit. Mr. Grochala stated that the YMCA is a non-profit corporation and therefore has a very different business model. He explained that the YMCA provides a lot of need-based assistance throughout their organization and while some facilities may turn a profit they DATE : March 4, 2021 TIME STARTED : 8:01 A.M. TIME ENDED : 8:49 A.M. MEMBERS PRESENT : Jim Schueller, Andrew Cravero, Nathan Vojtech, Patrick Kohler, Thomas Colgan MEMBERS ABSENT : Don Johnson, Julie Jeffrey-Schwartz, Chad Wagner STAFF PRESENT : Michael Grochala, Janele Waterman, Jessica Eller Economic Development Advisory Committee March 4, 2021 Page 2 DRAFT MINUTES help assist facilities that are less profitable. He stated that the Chain of Lakes YMCA was not making a profit which contributed to its closure. Mr. Cravero asked if the YMCA still maintains that the facility was too small. Mr. Grochala stated that the YMCA has argued that the facility was too large due to a drop in enrollment, therefore their membership levels did not support the size of the facility. Mr. Grochala asked the board how important the facility is to them. Mr. Kohler said the facility is not important to him because it is too far from his residence. Mr. Vojtech commented that his family did not utilize the facility because the price for a YMCA membership was too expensive when compared to other fitness centers in the area. He did reiterate how impressed he is with the Shoreview Community Center. He commented that he thought there are some opportunities for the pool to be utilized more. Mr. Grochala acknowledged that the pool was probably underutilized and therefore would be a great asset to the community. Mr. Cravero commented that he belongs to another fitness center and that facility better suits his needs. Mr. Kohler recommended reaching out to Courage Kenny to see if they have any need for additional pool space. He also commented that he has never been to the facility before and would like to tour it. Mr. Cravero agreed that he would like to tour the facility and also inquired about the child care room at the facility. Mr. Grochala stated that there is a child care room, basketball court, fitness floor, two studios, and the pool. Chair Schueller commented on the fact that other facilities in the area are heavily subsidized and recommended that the City consider leasing out the different components to different vendors. Mr. Grochala commented that City is looking at that as a potential option. Mr. Cravero commented that he liked the idea of people professionally trained in running fitness centers run them. Mr. Vojtech suggested that the City consider a senior drop-off center. Economic Development Advisory Committee March 4, 2021 Page 3 DRAFT MINUTES Mr. Grochala stated that there are space limitations and acknowledged that a master plan should be put together to determine whether or not expansion is an option in order to continue to meet community needs. Mr. Kohler agreed that the City is currently lacking in senior services. Mr. Grochala said that up until last year the City was still programming activities for seniors. He acknowledged that the facility is a perfect place to accommodate that use. B. 77th Street Property Acquisition Update Mr. Grochala, Community Development Director, gave an update on the 77th Street property acquisition. The City is still working through a purchase agreement with the principal buyer. Chair Schueller asked if the realignment of 77th Street is a project the City would like to go forward with regardless of any future tenets. Mr. Grochala stated that the City would like to realign the road as it is a part of the long term plan. Mr. Vojtech asked if the community gardens will be relocated. Mr. Grochala stated the City is interested in relocating the gardens and is in the process of identifying suitable areas. Chair Schueller commented that if the City is really motivated to sell this property maybe the City should acquire the land needed to make the road realignment possible showing future buyers the City is committed to this project. Mr. Grochala said that regardless of whether this project moves forward or not the City will look into purchasing some of the land needed for the road realignment. C. Project Updates Mr. Grochala gave a verbal update on Lyngblomsten, the Birch Street Reconstruction project, the Northeast drainage project, Watermark 4th Addition, and Nadeau Acres. IV. ADJOURNMENT Mr. Cravero made a MOTION to adjourn the meeting at 8:49 A.M. Motion was supported by Mr. Kohler, passing unanimously. Respectfully submitted, Jessica Eller, Community Development Intern ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: May 6, 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. Mr. Jim Gromberg, WSB and Associates, will be present to facilitate the process. Our focus will be on identifying the next steps necessary to accomplish the goals outlined in the comprehensive plan. As discussed at the January EDAC meeting, the 2014 Plan identified four main “Areas of Opportunity” which included: § 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. § 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. § 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. § 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 21st 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. Staff has attached for your review the Economic Development section of the 2040 Comprehensive Plan along with the Implementation directives. EDAC Direction None required. Discussion only. ATTACHMENTS 1. 2040 Comprehensive Plan, Economic Development Chapter 2. 2040 Comprehensive Plan, Implementation Plan Lino Lakes Comprehensive Plan Update 5-1 Chapter 5: Economic Development Introduction The City of Lino Lakes is in an enviable economic development position in the metro area� The community has many assets that set it apart from other metro area cities and gives it an advantage in growing the local economy� The city is one of the few cities to have interchange access on two interstate highways and can therefore offer superior transportation convenience and a wide range of commercial and industrial sites� The city has taken steps in recent years to build upon these assets, expand the local economy and upgrade the quality of design in its development. Residents have benefited from a more diverse set of options for goods, services and employment within the city limits. The regional profile of Lino Lakes will increase among the commercial/industrial development community as its population grows and competing sites closer into the Metropolitan Area’s core are developed� This chapter will: • Set goals and policies for economic development • Document some of the key indicators of the city’s economy • Describe available economic development assistance tools • Describe the economic development priorities as established in the City’s Economic Development Strategic Plan Chapter 12, Implementation, includes specific strategies/ action steps that will help the city to achieve the goals and priorities� Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-2 Goals and Policies The vision statement, as described in Chapter 1, defines what Lino Lakes should look like in the future. The goals and policies that follow were established in the 2030 Comprehensive Plan and reaffirmed as part of the 2040 Comprehensive Plan Process. Goal 3: Attract and encourage new light industrial, high tech, business and professional services enterprises and maintain and expand existing businesses in Lino Lakes� Policies: a� Protect designated industrial areas from residential encroachment and marginal land uses that will preclude the highest economic use of land available for commercial and light industrial development� b� Develop strategies and programs to attract high tech and high value industrial and business and professional services enterprises that have an emphasis on job creation� c� Encourage high-end business park development designed to attract medical, technology, and similar industries, which provide quality employment opportunities and have low service demand for municipal services� d� Encourage a comprehensive business center with services such as wi-fi access, office space, copy services, postal and overnight delivery pick up, and telephone services to small and start-up entrepreneurial business owners and telecommuters who can share space and costs� e� Continue to support local business retention and expansion initiatives� f� Recognize the fundamental linkage between housing and economic development and work to match housing availability with community employment� g� Promote the Anoka County Airport as an asset to corporate users� Goal 4: Promote efficient, planned commercial and industrial expansion within the City’s growth areas, accessible to public infrastructure and transportation� Policies: a� Identify key commercial and industrial development opportunities within the City’s planned growth areas in locations with access to major transportation systems� b� Encourage compact commercial development that will make efficient use of infrastructure and resources. c� Require that new commercial, industrial, and developments may only occur in sewered areas in accordance with the staging plan� d� Promote the rehabilitation and redevelopment of existing commercial facilities by continuing to pursue and make available various financial programs and assistance. e� Promote the development of a major regional commercial center which would include various types of restaurants, shopping, and entertainment venues for both adults and children� f� Review and clearly define design standards to promote consistent application and timely approvals for commercial and industrial development� g� Promote the use of “Green” building and low impact development techniques in new development� h� Ensure, as areas are developed, that a specific development project bears its proportionate share of infrastructure improvement costs to the fullest extent possible� Goal 5: Promote Lino Lakes’ location within the metropolitan region as an advantage in doing business� Policies: a� Work to actively market Lino Lakes as a great place to live and work� b� Collaborate with business support organizations to serve the needs to current and future businesses� c� 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� Goal 1: Expand and diversify the city’s tax base by encouraging commercial and industrial development in the Planned Residential/ Commercial, Office Residential, Signature Gateway and Town Center Areas to lessen the tax burden on residential properties Policies: a� Encourage developers to take advantage of development opportunities especially within designated redevelopment areas� b� Establish guidelines for the appropriate inclusion of green spaces, paths, sidewalks and other people-oriented amenities within commercial areas and throughout the city� c� Ensure commercial development is dispersed appropriately throughout the community and in designated business development areas� d� Develop walkable neighborhoods with commercial nodes and amenities for residents� e� Integrate into neighborhoods those retail and service commercial activities that serve the neighborhood� Goal 2: Work with developers to identify innovative strategies for attracting entry level and smaller entrepreneurial businesses to Lino Lakes� Policies: a� Encourage new business owners and expanding entrepreneurial businesses to locate here by offering available financial incentives when consistent with city policy� b� Work with the current business community, the Quad Area Chamber of Commerce and the city’s Economic Development Advisory Committee to attract new businesses and expand the economic success of existing businesses� c� Promote Lino Lakes’ identity as a business-friendly city� Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-3 Key Indicators This section presents data about employment trends and forecasts, and about commuting and travel patterns, both of which reflect and influence the city’s economic development. Information on some of the other factors affecting the local economy is also found in other plan chapters: for example age, education and income (Chapter 2, Community Background); land use and development (Chapter 3, Land Use); and housing affordability (Chapter 4, Housing)� Employment Trends and Forecasts Table 5-1 and Figure 5-1 illustrate the historic and projected employment numbers since 1970 and through the Table 5-1� Lino Lakes Employment Trends and Forecasts Employment Households Jobs Per Household 1970 430 812 0�53 1980 771 1,388 0�56 1990 1,229 2,603 0�47 2000 2,671 4,857 0�55 2010 3,313 6,174 0�54 2020 4,700 7,000 0�67 2030 5,300 8,600 0�62 2040 6,000 10,600 0�57 Source: Metropolitan Council 2040 planning period� Lino Lakes has experienced a very consistent residential and commercial growth rate with approximately one local job for every two households This ratio is consistent with a suburban community that does not have a large or diversified economy, commonly referred to as a “bedroom community”. As the community grows, the trendline shows a slight improvement, which would provide more opportunity for residents to work within the community and provide residents with a greater diversity of goods and services� 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 - 1,000 2,000 3,000 4,000 5,000 6,000 7,000 1970 1980 1990 2000 2010 2020 2030 2040 Figure 5-1. Lino Lakes Employment Trends and Forecasts Employment Jobs Per Household Figure 5�1 Lino Lakes Employment Trends and Forecasts Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-4 $- $100 $200 $300 $400 $500 $600 $700 $800 $900 $1,000 - 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Figure 5-2. Employment and Wages, 2000 - 2017 Employment Establishments Average Weekly Wage Figure 5�2 Employment and Wages, 2000-2016 A closer look at employment over the last 16 years (2000 – 2016) shows how the number of establishments (businesses or job locations) has fluctuated along with employment and the average weekly wages of Lino Lakes jobs� Table 5-2 and Figure 5-2 show the effects of the Great Recession of 2007 to 2012. The number of establishments, employment and even wages decreased in 2008 through 2010. The trend in the last several years shows that employment and wages were starting to grow again and now exceed pre-recession levels� Table 5-2� Lino Lakes Employment and Wages, 2000-2016 Year Employment Establishments Average Weekly Wage 2000 2,641 247 $ 661 2001 2,740 251 $ 665 2002 3,103 276 $ 685 2003 3,095 298 $ 695 2004 3,188 324 $ 728 2005 3,868 332 $ 723 2006 4,014 349 $ 764 2007 3,922 347 $ 769 2008 3,672 344 $ 776 2009 3,587 329 $ 712 2010 3,353 317 $ 698 2011 3,440 330 $ 732 2012 3,561 312 $ 758 2013 3,800 315 $ 786 2014 3,946 322 $ 788 2015 4,144 312 $ 811 2016 4,245 325 $ 850 2017 4,321 336 $ 869 Source: Minnesota Department of Employment and Economic Development (DEED), Quarterly Census of Employment & Wages (Annual) Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-5 Table 5-3� Employment by Industry, 2017 Lino Lakes Twin Cities Region (7-County) Industry Number %Number % Accommodation and Food Services 301 7%136,687 8% Administrative and Support and Waste Management and Remediation Services 35 1%96,629 6% Agriculture, Forestry, Fishing and Hunting 38 1%2,871 0% Arts, Entertainment, and Recreation 11 0%32,210 2% Construction 496 12%67,603 4% Educational Services 75 2%130,676 8% Finance and Insurance 70 2%103,801 6% Health Care and Social Assistance 336 8%259,652 15% Information 0%37,253 2% Management of Companies and Enterprises 0%69,709 4% Manufacturing 580 14%169,480 10% Mining 0%654 0% Other Services (except Public Administration)307 7%56,568 3% Professional, Scientific, and Technical Services 206 5%124,928 7% Public Administration 617 14%69,398 4% Real Estate and Rental and Leasing 81 2%26,558 2% Retail Trade 622 15%167,009 10% Transportation and Warehousing 161 4%66,658 4% Utilities 0%6,151 0% Wholesale Trade 323 8%80,389 5% Total, All Industries 4,259 100%1,704,883 100% Source: Minnesota Department of Employment and Economic Development (DEED), Quarterly Census of Employment & Wages (Average of Four Quarters) Table 5-3 and Figure 5-3 show employment by industry in 2016, painting a picture of what sectors of the economy provide jobs in Lino Lakes� The table compares Lino Lakes with the Twin Cities Region and the pie chart illustrates employment in Lino Lakes only� Lino Lakes has many of its jobs in the construction, manufacturing, public administration and retail trade industries, at higher percentages than found in the region� This information provides some insight into how employment in Lino Lakes might be impacted by downturns in certain economic sectors (such as manufacturing) or what types of businesses the city may want to encourage to diversify the local economy (such as health care or information�) Accommodation and Food Services 7%Administrative and Support and Waste Management and Remediation Services 1% Agriculture, Forestry, Fishing and Hunting 1% Construction 12% Educational Services 2% Finance and Insurance 2% Health Care and Social Assistance 8% Manufacturing 14% Other Services (except Public Administration) 7% Professional, Scientific, and Technical Services 5% Public Administration 14% Real Estate and Rental and Leasing 2% Retail Trade 14% Transportation and Warehousing 4% Wholesale Trade 7% Figure 5-3. Lino Lakes Employment by Industry, 2016 Figure 5�3 Lino Lakes Employment by Industry, 2017 15% 8% Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-6 Commuting and Travel Patterns Because Lino Lakes is part of the larger Twin Cities Metropolitan area, city residents can and do take advantage of employment opportunities throughout the region� Most Lino Lakes residents in the labor force work outside of the city� Similarly, Lino Lakes businesses draw their workers from the wider region� Transportation is a key factor for business location� On one hand, the city’s unique location at the intersection of two major interstate highways (I-35E and I-35W) provides access to and from both Minneapolis and St� Paul downtowns and to the rest of the region, allowing employers to draw workers from the wider region and for Lino Lakes residents to access employment opportunities� Good transportation makes the city attractive to new businesses (and new home buyers�) On the other hand, as commute times increase, and as travel time to major regional attractions (such as the two downtowns and the Mall of America and similarly to the international airport) increase, employers may find the community less attractive. Residents desiring shorter commutes, or alternatives to driving alone, may decide to move or not purchase homes in the city if their commute becomes too difficult or transit options are not available� But if the local economy continues to grow and diversify, more opportunities for local employment should be available to residents, which could have a positive impact on overall commute times and ultimately the quality of life� More local jobs would also increase the daytime population of the city, attracting service and retail businesses available to workers and residents alike and further reducing the need to leave the city� Tables 5-4 and 5-5 show the top 10 workplaces of people who live in Lino Lakes (the “Commuteshed”) and the top 10 residences of people who work in Lino Lakes (the “Laborshed”) in 2015� The data illustrates the mobility of Lino Lakes residents; only 4% worked within the city of Lino Lakes� While many of them worked in nearby communities, the greatest numbers commuted to the central cities of Minneapolis or St� Paul� Of the jobs located within Lino Lakes, only 15% were held by Lino Lakes residents� Many of the employees came from nearby communities, but almost half came from “other” locations— residences not in the top 10—indicating that employers draw workers from the wider region� The data in these tables give an approximation of commuting patterns� The Census Bureau counted wage & salary jobs covered by unemployment insurance� Business owners, self- employed persons, some temporary workers, family farmers, military personnel, and others are typically are not covered, and thus not counted� Table 5-4� Lino Lakes “Commuteshed” (2015) Top 10 workplaces of people who live in Lino Lakes, 2015 Workplace Workers % Minneapolis 1,604 16% St� Paul 1,266 13% Blaine 981 10% Lino Lakes 446 4% Roseville 428 4% Fridley 342 3% Shoreview 322 3% Arden Hills 258 3% White Bear Lake 257 3% Plymouth 218 2% Other 3,960 39% Total 10,082 100% Note: Workplaces and residences not in the top 10 are counted in “Other”� Source: U�S� Census Bureau Local Employment-Household Dynamics� Table 5-5� Lino Lakes "Laborshed" (2015) Top 10 residences of people who work in Lino Lakes, 2015 Residence Workers % Lino Lakes 446 15%Blaine 302 10%Forest Lake 167 6%Coon Rapids 135 4%St� Paul 133 4%Hugo 130 4%Minneapolis 103 3%Ham Lake 92 3%Circle Pines 79 3%White Bear Lake 75 2%Other 1,340 45%Total 3,003 100% Note: Workplaces and residences not in the top 10 are count- ed in "Other"� Source: U�S� Census Bureau Local Employment-Household Dynamics� Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-7 Table 5-6� Transportation to Work, 2017 Lino Lakes Twin Cities Region (7-County) Number %Number % Drove alone 9,804 87%1,238,905 77% Carpooled 435 4%131,146 8% Worked at home 604 5%86,570 5% Public transportation 282 3%86,553 5% Walked 65 1%37,166 2% Other means 69 1%30,515 2% Total 11,259 100%1,610,855 100% Source: American Community Survey 5Yr Summary File 2013-2017 Because most residents must leave the city for employment they spend longer than average times commuting to and from work. Table 5-7 and Figure 5-5 show that commute times have been increasing for Lino Lakes residents (and everyone in the region)� Residents of Lino Lakes use private transportation almost exclusively to reach their employment� Table 5-6 and Figure 5-4 show how Lino Lakes residents traveled to work in 2017, and compares it with the Twin Cities Region. Lino Lakes residents were more likely to drive alone (87% vs 77% in the region) and less likely to have carpooled or used public transportation� About the same percentage worked at home as in the region (5%)� Table 5-7� Average Travel Time to Work (Minutes) Lino Lakes Residents Twin Cities Region (7-County) Census 1990 24�8 20�76 Census 2000 26�7 23�03 ACS 2006-2010 26�3 23�56 ACS 2013-2017 26�7 24�57 Source: U�S� Census Bureau Decennial Census and American Community Survey 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Lino Lakes Twin Cities Region (7-County) Figure 5-4. Transportation to Work, 2017 Drove alone Carpooled Worked at home Public transportation Walked Other means Figure 5�4 Transportation to Work, 2015 Figure 5�5 Average Travel Time to Work (Minutes) 0 5 10 15 20 25 30 ACS 2013-2017 ACS 2006-2010 Census 2000 Census 1990 Figure 5-5. Average Travel Time to Work (Minutes) Twin Cities Region (7-County)Lino Lakes Residents Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-8 Table 5-8� Travel Time to Work, 2017 Lino Lakes Twin Cities Region (7-County) Number %Number % Less than 10 minutes 786 7%151,241 10% 10 to 14 minutes 1,016 10%189,332 12% 15 to 19 minutes 1,228 12%246,499 16% 20 to 24 minutes 1,901 18%266,605 18% 25 to 29 minutes 1,023 10%135,292 9% 30 to 34 minutes 1,951 18%234,653 15% 35 to 44 minutes 1,219 11%122,040 8% 45 to 59 minutes 1,114 10%109,835 7% 60 or more minutes 417 4%68,788 5% Total 9,869 100%1,524,285 100% American Community Survey 5Yr Summary File 2013-2017 Table 5-8 and Figure 5-6 break down travel time for 2017, showing that Lino Lakes residents were less likely to have shorter than average (25 minutes or less) commute times, and many residents endure commutes of 45 minutes or longer� More local job opportunities would reduce the need for Lino Lakes residents to leave the city for employment. As commutes become more difficult, Lino Lakes residents may look for alternatives to driving alone, such as transit or carpooling� Housing close to job opportunities will be more desirable and also reduce the need for long commutes� Balancing employment growth with transportation and housing development will help make Lino Lakes more attractive to businesses and residents alike� Table 5-9 and Figure 5-7 show travel time from Lino Lakes to selected destinations in the region. Travel times to the Mall of America and the Minneapolis and St� Paul Central Business Districts have increased since 2005 and will continue to get longer between now and 2030� The Mall of America is included because data for the International Airport is not available but it is nearby the Mall� Travel time to the airport may be important to some businesses, which may be discouraged from locating in Lino Lakes as travel times increase� However, the city’s proximity to general aviation airports (including Anoka County/Blaine) may be seen as an advantage by others� 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 60 or more minutes 45 to 59 minutes 35 to 44 minutes 30 to 34 minutes 25 to 29 minutes 20 to 24 minutes 15 to 19 minutes 10 to 14 minutes Less than 10 minutes Figure 5-6. Travel Time to Work, 2017 Twin Cities Region (7-County)Lino Lakes Figure 5-6� Travel Time to Work, 2017 Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-9 Figure 5-7� Travel Time, Lino Lakes to Selected Destinations, AM Peak (Minutes) 0 10 20 30 40 50 60 70 80 90 100 2005 2010 2020 2030 Figure 5-x� Travel Time, Lino Lakes to Selected Destinations, AM Peak (Minutes) Mall of America Minneapolis Central Business District Saint Paul Central Business District Economic Development Assistance Statutory Authority Minnesota cities have a large array of powers and tools for assisting and encouraging economic development� Some key sources of statutory authority come from the following: • Constructing public improvements and levying special assessments – Chapter 429 • Constructing, operating, and maintaining water, sanitary sewer and storm water utility systems – Section 444.075 • Creating and using special service districts – Sections 428A.01 through 428A.101 • Creating and using housing improvement areas – Section 428A.11 • Establishing and using tax increment financing districts – Sections 469.174 through 469.1791 • Making and using tax abatement levies – Sections 469.1812 through 469.1815 • Powers granted to cities through housing and redevelopment authorities – Sections 469.001 through 469.047 • Powers granted to cities through economic development authorities – Sections 469.090 through 469.1081 • Lease financing for real and personal property – Section 465.71 Every statutory power contains a unique set of authorizations and restrictions� In some cases, the city may have several options. For example, public improvements can be financed with special assessments, special service districts, housing improvement areas, tax abatement, and tax increment financing. The tools are interrelated, and the city may use several for one project. To evaluate the use of potential statutory powers, the city should find the answers to the following questions: • Who can use the powers? Most municipal powers are granted directly to the city council directly, but some may reside only or optionally with another entity, such as a housing and redevelopment authority (HRA) or economic development authority (EDA)� • How do the powers function? Every municipal development power carries different requirements and procedures, which may have advantages or disadvantages in each situation. For example, tax increment financing involves a complex set of statutory requirements� Property owners must petition to start the process for establishing a special service district� Property tax abatement discussions should involve the county and school district� • Does the power provide funding capacity? Some statutes offer access to revenue or debt financing. When evaluating these tools, the city will need to ask: • What revenues are authorized? • How can the revenues be used? • Can the city issue the bonds as “general obligations,” achieving the lowest interest rates? • Do the bonds count against the city’s debt limit? • What approvals are needed to authorize use of these powers? Table 5-9� Travel Time from Lino Lakes to Selected Destinations Destination 2005 2010 2020 2030 AM (6-9) Mall of America 68�61 61�42 81�74 87�95 Minneapolis Central Business District 53�16 51�73 62�42 68�35 Saint Paul Central Business District 39�75 39�92 50�38 55�5 PM (3-7) Mall of America 69�86 72�11 80�35 82�38 Minneapolis Central Business District 41�61 44�24 48�8 50�78 Saint Paul Central Business District 30�89 31�69 35�06 35�56 Source: Metropolitan Council Travel Demand Forecasting Model, 2010 Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-10 Finance Tools The investment of public dollars to achieve economic development objectives should be guided by several key principles: • Financial resources are limited� The city has limited funding to apply to economic development initiatives, so the use of resources must be targeted to achieve the greatest effect on the community� • Financial decisions require long-term perspective� The current use of financial resources may reduce monies available in the future. In evaluating short-term opportunities, it is important to question the long- term impact on community development� • Public funds should lead to private investment� While this section focuses on public finance actions, economic development cannot become reality without private investment� The use of public funds should be targeted to actions that encourage private investment in Lino Lakes� Figure 5-8 lists some of the tools that are available to the City of Lino Lakes. Each finance tool has unique requirements which are subject to constant state and federal law changes� Each one creates different obligations on the part of the city� For example, the city takes the lead with tax increment financing, and will have on-going administrative responsibilities. If certain city assistance qualifies as a business subsidy under state law, the city will need to establish, monitor and annually report on achievement of job and wage goals� Using some other tools (such as an industrial revenue bond) may have minimal city reporting on monitoring requirements once they are established, but may be subject to state allocations administered by the state Department of Employment and Economic Development (DEED) when they are issued� Some of the available tools do not provide direct assistance or subsidies to businesses at all, but can still be used to encourage economic development� For example, the city can invest in its utility and roadway systems to make development possible and spur private investments that further the city’s goals� Economic Development Priorities In 2014 the city evaluated the opportunities for economic growth within Lino Lakes, representing the various types of development currently facing the community: housing, commercial, industrial and redevelopment� The city developed priorities based on a review of each area’s positive aspects and potential challenges. Four areas of opportunity were identified. • Development and implementation of a Business Retention and Expansion Program (BRE) • Lino Lakes Town Center, located at Interstate 35 and Lake Drive • Redevelopment of the intersection of Hodgson Road (CSAH 49) & County Road J (Ash Street) • The Commercial and Industrial Corridor along Interstate 35E and County Road 14 Business Retention and Expansion 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� Figure 5-8� Economic Development Tools Lino Lakes’ Charter places some limitations on using special assessments as an economic development tool compared to other communities� The City Charter contains a process to allow property owners to use petitions to protest a special assessment project and prevent it from occurring if there is sufficient opposition. In addition, if the proposed special assessment is for less than 100% of the cost of the improvement, a citywide vote is required� Tax Increment Financing Property Tax Abatement Special Assessments Special Service Districts Housing Improvement Area Utility Revenues DEED Grant and Loan Programs Street State Aid Street Reconstruction Lease Revenue Bonds Capital Improvement Bonds EDA/HRA Tax Levies Industrial Revenue Bonds Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-11 Figure 5-9� Lino Lakes Town Center Lino Lakes Town Center The I-35W/Lake Drive interchange represents the city’s Town Center� Within the Town Center, commercial land uses are proposed at all four quadrants of the freeway interchange� The city intends the Town Center area to become a commercial and civic focal point for the community� The SE quadrant of I-35W/Lake Drive interchange I-35W/Lake Drive interchange represents the Lino Lakes Town Center� This area, developed in 2004 as Legacy at Woods Edge, is intended to integrate a mixture of commercial, medium and high density residential, and public land uses in an attractive and cohesive design� City Hall, a YMCA, and a community green emphasize the community focus� A complete “Design and Development Guide” has been adopted to support the community’s vision and establish standards for all development within the area� The project was a causality of the Great Recession and the property reverted to the State of Minnesota due to tax delinquency� In 2013 the City’s Economic Development Authority (EDA) obtained ownership of the remaining 20 acres through special legislation, allowing for greater authority in determining the type and timing of development� 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 facilitate a development plan that meets the city’s goals� In 2015 the EDA facilitated the sale of 11 acres to a national builder for the completion of the town home area in the northeast quadrant of the site consistent with the development master plan� Approximately nine acres remain� The city may wish to consider rebranding the site as part of its continued marketing efforts� Interstate 35E and County Road 14 Corridor The Interstate 35 Corridor, centered on County Road 35E represents the City’s largest potential for commercial and industrial development� With over three miles of interstate frontage on both sides of the interstate the site offers excellent visibility and access for commercial and industrial development� Located equal distance from existing market hubs of Vadnais Height (County Road E) and Forest Lake, the interchange area provides principal access to growing markets of Lino/Centerville and Hugo/south Forest Lake� The city has previously undertaken both planning and infrastructure improvements in the area to prepare for and facilitate commercial and industrial development� The 35E Corridor Alternative Urban Areawide Review (AUAR) was completed in 2005 and continues to be updated� The city partnered with Anoka County to reconstruct the I-35E/Main Street interchange in 2010� The city completed the Northeast Lino Lakes Drainage Area Comprehensive Stormwater Management Plan to address storm water management deficiencies in the corridor covering approximately 1,300 acres. The 2040 Land Use plan also includes the establishment of a Business Campus designation to provide for the high-quality, integrated development of a wide range of business uses� Town Center PkwyLake DrVillage Dr Lino Lakes Comprehensive Plan Update Chapter 5: Economic Development 5-12 Master Planning Study for County Road J & Hodgson Road Lino Lakes, MN November 1, 2006 LN04004 C ONCEPT P LAN connect to existing and proposed trails realign Ware Road intersection manage and filter storm water runoff with ponds, dry creeks and raingardens provide green buffers around residential connect residential streets conserve & protect natural resources wetlands, water ways, habitat and vegetation connect neighborhoods to local commercial, with trails, sidewalks welcoming plazas and open space enhance the corners to create a gateway into Lino lakes 0 100 200 400 road and intersection improvements will include wider right-of-way, new traffic signal and access management with medians and limited entry points design new streets and intersections to be safe and pedestrian-friendly plan for a mix of housing types Figure 5-10� Hodgson Road & Country Road J Master Plan, 2007Hodgson Road (CSAH 49) & County Road J (Ash Street) Redevelopment of this area would have several community benefits. Suited toward smaller scale neighborhood development, the site is located at the southern gateway to Lino Lakes� Positive aspects to 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 redevelop the area� Additionally, there are outside financial resources that can be researched and grant funds sought to help facilitate investigation, acquisition and site improvements� The Hodgson Road & CR J Master Planning Study was approved by the City Council in 2007. The plan establishes a general land use design, but does not mandate the exact site layout or specific uses of individual parcels. The design of individual development projects must accommodate the infrastructure needs for the larger study area� Future amendments of the Plan may be appropriate to address evolving community needs, market forces, and regulatory requirements� The city has completed a master utility plan for the development area in 2014 and is proceeding with planning for trunk utility improvements to service the area� The city also worked with a property owner to facilitate demolition of an existing substandard building in the northwest quadrant to help set the stage for future development� Lino Lakes Comprehensive Plan Update Chapter 12: Implementation 12-5 Economic Development To implement the goals and polices of the Economic Development Plan, the city will consider the following actions: 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 and business and professional services 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� Transportation To implement the goals and polices of the Transportation Plan, the city will consider the following actions: 1� The city should periodically review and update the Transportation Plan and its traffic forecasting model, based on estimates of future development, population trends, changing financial resources, and citizen and local government input. Depending on the speed and degree of change, it is recommended that the plan be reviewed at least every five to ten years. 2� The City of Lino Lakes will continue to coordinate with adjacent jurisdictions (i�e�, Blaine, Hugo, North Oaks, Shoreview, and Circle Pines) as well as Anoka County, Ramsey County, Washington County, and MnDOT when planning future improvements� Coordination among jurisdictions will provide opportunities for collaboration that could benefit all agencies and the public. This may result in financial and time savings through economies of scale, as well as potentially reducing construction impacts to residents through the coordination of projects� 3� Recommended changes to the functional classification system will be adopted by the city as part of the adoption of the overall Comprehensive Plan Update� Changes that involve “Other” Minor arterials, Major Collectors or Minor Collectors may be made without the approval of another agency, provided these changes are consistent with state and county plans� However, the changes and the resulting functional classification should be officially reported to the Metropolitan Council under separate communication to ensure that the Metropolitan Council has the opportunity to update their records� Any proposed change to a Principal Arterial or ‘A’ Minor Arterial designation will need to be approved by the Transportation Advisory Board (TAB) of the Metropolitan Council� Since these changes are likely to involve either state or county roadways, the city should work closely with these agencies to ensure that the process of approval is carried forward� 4� The City of Lino Lakes will work to support the access management guidelines of other jurisdictions� The city is aware that both Anoka County and the Minnesota Department of Transportation (MnDOT) have access guidelines managing their Timing Timing Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing Ongoing Short Ongoing Ongoing Ongoing ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala MEETING DATE: May 6, 2021 TOPIC: Sale of Lots 12-13, Block 2, Carole’s Estates 2nd Addition BACKGROUND City staff has continued to negotiate the sale of 2.01 acres of property (12-16, Block 2, Carole’s Estates), with Vaquero Ventures Management. There have been three major sticking points related to the discussions: 1. Restrictive Covenants. We have required as a condition of sale that the property cannot be used for automobile or truck repair or as a motor fuel facility. We are receptive to a retail store selling automotive parts may provide services ancillary to operation such as battery replacement. 2. Reconveyance. Our main goal in selling the property is to further economic development efforts to generate additional tax base for the community. We do not want to sell the property and have it held for investment or other purposes. We have included a clause that allows the City to reacquire the property if no permit is issued or if no construction begins within two years of closing. The acquisition price is the same as the sale price. 3. Road Relocation. Buyer has requested completion of the road realignment of 77th prior to closing. The City will not agree to that provision. As an alternative, both buyer and seller have agreed to negotiate a Road Relocation Escrow Agreement (RREA). The agreement will identify the scope of work to be undertaken, a schedule for improvements, cost allocation and any necessary conveyances, land use approvals and vacation proceedings. The agreement must be completed within 120 days of execution of the purchase agreement or either party may terminate the agreement. RECOMMENDATION Staff is requesting EDAC input on the proposed conditions of sale. ATTACHMENTS 1. General Location Map 2. Street Realignment and Concept Exhibit 387.8 Feet290. 2 F e e t 213.2 Feet77th and Lake Property November 3, 2020 Map Powered By DataLink 1 in = 188 ft ± 77th St W 590 698690 675 633 695 7726 7716 7722 7710 7702 7681 7725 7713 7731 7671 7691 7685 7675 77th St W MA R K E T P L A C E D R .MARILYN DRIVELAKE DRIVEN31°52'34"E540.00S5 8 ° 0 7 ' 2 6 " E 29 0 . 4 0 S31°52'34"W138.69L=222.11Δ=2°11'53"R=5789.58N89°26'22"W 344.91 14'12'14'80'80'43'80'20'8'2'SCALE IN FEET 0 H: 50 100 WSB PROJECT NO.:REVISIONSNO.DATEDESCRIPTIONK:\017210-000\Cad\Exhibits\017210-000 Exhibit 1.dwg 1/27/2021 6:17:34 PMN #### SCALE: PLAN BY: DESIGN BY: CHECK BY: #### #### #### ####I HEREBY CERTIFY THAT THIS PLAN, SPECIFICATION,OR REPORT WAS PREPARED BY ME OR UNDER MYDIRECT SUPERVISION AND THAT I AM A DULYLICENSED PROFESSIONAL ENGINEER UNDER THELAWS OF THE STATE OF MINNESOTA.LIC. NO:DATE:######################## SHEET OF #### ####