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HomeMy WebLinkAbout08/05/2021 EDAC PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, August 5, 2021 8:00 A.M. Community Room AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: July 8, 2021 3. DISCUSSION ITEMS A. 5-Year Strategic Plan B. Lake and Main Redevelopment C. Project Updates 4. ADJOURN CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE : July 8, 2021 TIME STARTED : 8:02 A.M. TIME ENDED : 9:32 A.M. MEMBERS PRESENT : Jim Schueller, Andrew Cravero, Nathan Vojtech, Chad Wagner MEMBERS ABSENT : Don Johnson, Patrick Kohler, Julie Jeffrey - Schwartz, Thomas Colgan STAFF PRESENT : Michael Grochala, Katie Larsen, Jessica Eller I. CALL TO ORDER Chair Schueller called the Economic Development Advisory Committee meeting to order at 8:02 A.M. on July 8, 2021. Ik II. APPROVAL OF MINUTES Mr. Cravero made a MOTION to approve the June 3, 2021 Meeting Minutes. Motion was supported by Mr. Vojtech, passing unanimously. III. DISCUSSION ITEMS A. Lake and Main Redevelopment Mr. Grochala, Community Development Director, presented the staff report. The northwest quadrant of Lake Drive and Main Street currently includes a mix of commercial and quasi industrial uses including an automobile salvage yard. Staff has been working with the property owners and potential developers regarding development options on approximately 10 acres immediately north of Tavern on Main. Oppidan Investment Company has approached the City regarding development of the site with questions regarding density and possible assistance. Staff is requesting EDAC input on the receptiveness to density increases and/or potential fee reductions to provide some guidance to the developers as they continue to evaluate their pro forma. Paul Tucci, Oppidan Investment Company, presented an overview of the proposed development. Mr. Cravero asked what the demographics of the people they are marketing this too is. Economic Development Advisory Committee July 8, 2021 Page 2 Mr. Tucci stated that it is a mix. He commented that typically it is younger families and empty nesters. Mr. Wagner asked how this project compares to projects in Lexington and Hugo. Mr. Tucci stated that rents will be similar to other market rate projects in the area. He added that as far as quality this project would be superior. Mr. Vojtech asked what types of floor plans would be available. Mr. Tucci stated that he was unsure of what the unit mix would be. Mr. Vojtech asked if there would be more of one type of floor plan. Mr. Tucci stated that every market is different and the ratio of units depends heavily on the demographics of the area. In a more suburban setting there may be more 2- bedroom floor plans. Mr. Cravero asked how they would increase the density; would this require a larger building footprint. Mr. Tucci stated that per the City's ordinance with consideration they could go up to 15 units per acre. The building footprint may get slightly larger. Mr. Wagner commented on an apartment complex in Lexington that has experienced large volumes of public safety calls. He asked if the quality and the price of rent would deter some of these problems. Mr. Tucci commented that a market rate project is going to deter some of that activity naturally. He stated that he can't guarantee that there wouldn't be any issues. Mr. Grochala asked Mr. Tucci what the flexibility in design is. If the density were increased the City would like to see higher quality finishes on the exterior. He asked if they would be flexible in tapering down the corners of the building where it is potentially abutting or facing adjacent residential properties. Mr. Grochala commented that height is going to be an issue for surrounding properties and is looking to mitigate some of these concerns. Mr. Tucci stated that tapering the building does cost more. He commented that anything can be done it is all just a matter of cost. Mr. Wagner asked if there was going to be remediation on the site and if there are any grants available. DRAFT MINUTES Economic Development Advisory Committee July 8, 2021 Page 3 Mr. Grochala stated that the Department of Employment and Economic Development still has some redevelopment and remediation grants available. Mr. Tucci commented that the landowner would likely look into these grants. Mr. Wagner asked if the City is looking at creating a TIF district. Mr. Grochala stated that if there was a request for that it is something that the City would consider on that site. Mr. Wagner asked how long construction would take for this project. Mr. Tucci stated that construction would take about 16 months. Ideally, construction would begin in March and open in August. Mr. Grochala asked what the valuation is for this type of project. Mr. Tucci stated that they would have a consultant run a tax analysis but estimated around 20 million. Mr. Vojtech asked what specific goals a project needs to meet in order to get consideration for 15 units per acre. Mr. Grochala stated that the City Council has that flexibility to award that if it's a project they like and is meeting a need within the community. Additionally, it is important to consider the redevelopment of that corner. Mr. Tucci commented about the potential for mixed use on this site. He commented that they are not interested in doing a combination of higher density residential and commercial services stating that it is going to be difficult to lease and will devalue the property over time. Mr. Grochala stated that the district is intended to allow for the most flexibility. Mr. Cravero asked if the Lake Drive and Main Street intersection would need to be built out. Mr. Grochala stated that he did not think they would need to do anything to the intersection beyond creating a dedicated turn lane into the site. Mr. Vojtech asked who would manage the facility. Mr. Tucci stated that they work with an equity partner that handles the management. Mr. Vojtech asked how they determined the need for this type of product. DRAFT MINUTES Economic Development Advisory Committee July 8, 2021 Page 4 Mr. Tucci stated that they worked with consultants that did a market study which determined there is a need for this type of product. Mr. Cravero asked Mr. Grochala what the increased number of people would cost the City in terms of city services. Mr. Grochala stated that it has hard to estimate without doing a detailed study. Mr. Cravero commented that he thought this was a good project however would like to see more numbers. Mr. Wagner commented that this project is worth investigating. This project would ultimately fix a blighted space in the City. Mr. Vojtech commented that we can't guarantee who will move into these apartments. He agreed that there is a need for this type of product but stated that the City should consider what we want and don't want especially if we are considering increasing the density. Mr. Tucci reiterated that the board seems open to continuing the conversation but would like to see more information and that starts with a market study. Mr. Wagner concurred and stated that it would be foolish to not gather more information. X Chair Schueller asked what the Cities position is on this project. Ms. Larsen stated that redevelopment of this property has been in our comprehensive plan for over 20 years and it is an opportunity to fix a blighted area in the City. Mr. Vojtech asked what the difference is between this pitch and the Woods Edge developer forum where they were asking for public assistance. Mr. Grochala stated that they are not that different. They wanted to build high -end luxury apartments but there was a gap between what they could build them for and what they could rent them for. They were asking for assistance in order to close that gap. Additionally, the City was the landowner. Chair Schueller stated that the board is interested in the project and would like to put it back on the agenda for the next meeting. B. Project Updates Mr. Grochala provided verbal updates to the Board on current City projects. DRAFT MINUTES Economic Development Advisory Committee July 8, 2021 Page 5 IV. ADJOURNMENT Mr. Cravero made a MOTION to adjourn the meeting at 9:32 A.M. Motion was supported by Mr. Vojtech, passing unanimously. Respectfully submitted, Jessica Eller, Community Development Intern &i DRAFT MINUTES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala MEETING DATE: August 5, 2021 TOPIC: Economic Development Strategic Plan BACKGROUND EDAC is in the process of updating the 5 Year Economic Development Strategic Plan. The attached memo includes a list of the existing industries in the City and their Standard Industrial Classification. Discussion will focus on reviewing these, identifying additional industrial categories to attract, and determination of what industrial areas to focus on. While we are trying to support all existing industries, limited resources will require us to focus on a core group for our initial phase of the program. Additional action items include: Developing a work force assistance program. Staff anticipates a presentation with representatives from Anoka County CareerForce office as a first step. Identifying potential redevelopment areas and strategic acquisitions. Updating marketing materials EDAC Direction None required. Discussion only. ATTACHMENTS 1. WSB Memo, dated July 30, 2021 Z 73 U) J 0 a Q w Z Z 0 0 co LU U) T w D Z w a a z w x 0 ws b Memorandum To: Lino Lakes EDAC Michael Grochala, Community Development Director From: Jim Gromberg, WSB Date: July 30, 2021 Re: EDAC Strategic Plan WSB Project No. 017644-00 WSB is currently assisting the Economic Development Advisory Committee (EDAC) in the development of a strategic plan to allow for the continued successful economic development initiatives in the city. The strategic plan will be used to create action items for the EDAC to complete over the course next few years that work in conjunction with the goals included in the recently updated comprehensive plan. At the May meeting, the EDAC confirmed the following list of goals. • 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. • Work with developers to identify innovative strategies for attracting entry level and smaller entrepreneurial businesses to Lino Lakes. • Attract and encourage new light industrial, high tech, business and professional services enterprises and maintain and expand existing businesses in Lino Lakes. • Promote efficient, planned commercial and industrial expansion within the City's growth areas, accessible to public infrastructure and transportation. • Promote Lino Lakes' location within the metropolitan region as an advantage in doing business. One of the primary ways that the EDAC identified to promote and advance these goals was to develop and implement a strong Business Retention and Expansion (BRE) program. The development of this program assists the EDAC in the achievement of several the goals identified in the strategic plan. It also allows for the EDAC to continue to strengthen those relationships with local companies to reduce the likelihood of problems in the future with the city. The EDAC previously identified the attached list of 38 businesses to visit in starting the program. It would be anticipated that this list will be expanded and changed as businesses change and new businesses are added to the community. The currently identified business list accounts for 1,099 employees in the community of the total community employment of 5,042. In addition, these business account for over $500 million in revenue. In addition to sales and employees, another consideration for the EDAC is the industry that the businesses are categorized as by their Standard Industrial Classification (SIC) code. Based on the past discussions, the EDAC has indicated that they want to focus on "technology and Lino Lakes EDAC July 30, 2021 Page 2 manufacturing" businesses. Using base SIC codes the list of businesses is broken down as follows: SIC Code Industry Number of Businesses 15-17 Construction 2 20-39 Manufacturing 17 40-49 Transportation, Communication, Gas, Electric services 1 50-51 Wholesale Trade 12 52-59 Retail Trade 2 70-89 Services 3 This indicates a good mix of the businesses/industries that the EDAC has identified for targeting in future growth. The city currently has 20 firms (per ESRI) that are categorized as manufacturing with 17 of those represented in the business visitation list. The next largest group is wholesale trade which does not just include distribution but includes firms that may assemble components for final distribution or create components for distribution and final assembly. In addition to research from ESRI identifies there are 37 businesses that have Professional, Scientific and Tech services using the NAICS codes. These businesses may warrant being included in the BRE program to work in conjunction with the targeted industries of the EDAC. The second goal that the EDAC identified as a primary focus was the assisting with workforce development for the businesses in the community that are experiencing worker shortages. The list could be used to create an invitee list to host a meeting with county workforce development to help create and expand programs for the development of talents required for the businesses to continue to expand. The EDAC may want to consider having the Anoka County Workforce representative attend an upcoming EDAC meeting to talk about their services and how a program could be developed to help the identified businesses. This could be completed prior to the meetings with the businesses allowing for a better understanding of the potential services. Lino Lakes Business Retention List Company Name Employee Size Sales Volume SIC NAICS Code Business Background Primary NAICS Description PIN Asmodee 3944 339930 Toy and Game manufacturing 173122230022 Badger Magnetics 24 $3,151,000 3677 334416 electromagnetic coil and wound electromagnetic products manufacturing 083122340007 Boe Ornamental Iron Inc 6 $1,560,000 3446 332323 structural steel, metal and ornamental iron shop Site Preparation Contractors 173122220022 Bramstedt Surgical Inc 11 $50,339,000 3841 339112 Sharpen and repair surgical instruments Surgical & Medical Instrument Manufacturing 173122210028 Capital Label Inc 18 $3,188,000 2672 322220 Flexographic Printer and Converter 17312222004 Carroll Distributing & Construction Supply 10 $11,629,000 3272 327390 Construction material manufcturing Other Concrete Product Manufacturing 173122220011 Contract Hardware Co Inc 23 $53,240,000 5072 423710 1 Building material supplier Hardware Merchant Wholesalers 183122410010 CTV Fire 3711 336211 Firetruck drawer unit manufacturing 303122240002 Custom Manufacturing 80 $10,818,000 3544 333514 Boardwalk, bridge and picnic table frame manufacturing Industrial Mold Manufacturing 173122220008 Custom Remodelers Inc 140 $79,297,000 1521 236118 Residental home remodeling Residential Remodelers 173122220042 Distribution Alternatives 128 $4,214,000 4225 493110 3rd Party logistics- receive, process orders and ship General Warehousing & Storage 173122230022 Emergency Apparatus Maintenance Inc 36 $7,075,000 3569 333999 Fire apparatus repair and testing 173122220031 GNW Machine 40 $6,427,000 3599 332710 CNC milling, tuning, screw machining and assembly Machine Shops 243122430013 Hillyard, Inc 5039 423990 Cleaning product distributor and manufacturer 18312241020 M C Metal Fab 10 $23,286,000 5084 423830 Sheet metal facbrication Industrial Machinery & Equipment Merchant Whlsrs 173122210028 Marmon/Keystone LLC 8 $20,661,000 5051 423510 Metal Service and Sales Metal Service Ctrs & Other Metal Merchant Whls 183122420007 Minnesota Robotics Inc. 7 5084 423830 Design/Build automated equipment Molin Concrete Products Co 150 $19,250,000 3272 327390 Precast Concrete Building Component Other Concrete Product Manufacturing 083122330003 Mountain Manufacturing Technologies 25 $2,590,000 3089 326199 Isubcontract manufactring of medical devices All Other Plastics Product Manufacturing 183122410004 Natra Electronics 3 $511,000 8711 541330 Electronics repair shop 173122220045 Nol-Tec Systems Inc 3 $7,075,000 5084 423830 Material handling and air pollution control systems Industrial Machinery & Equipment Merchant Whlsrs 173122230014 North American Composites 19 $16,203,000 5031 423310 Composite raw material and equipment distributer 183122410016 Northern Wholesale Supply Inc 60 $24,916,000 5271 453930 Mobile home supply Manufactured (Mobile) Home Dealers 243122430011 Progressive Engineering Technology 15 $2,045,000 3599 332710 Machine shop? 173122230018 Relay Networks, Inc 15 $1,339,000 7379 541519 Used Network hardware and wireless equipment sales 173122210030 Rice Industries Inc 12 $28,303,000 1 5084 423830 metal casting distrubtor Industrial Machinery & Equipment Merchant Whlsrs 173122230020 Schwan's Home Service 34 $50,577,000 5142 454390 Grocery delivery service Mobile Food Services Star Equipment Inc 51 $81,664,000 5088 423860 Loading dock equipment and maintenance Sterling Plastics 3 $296,000 5162 424610 Plastics Distributor Plastics Materials and Basic Forms and Shapes Merchant Wholesalers Superl Inc 50 $8,664,000 1742 238310 commercial air barrier, insulation and firestopping contractor Drywall & Insulation Contractors Teknapack, Inc 30 $3,000,000 2621 322121 Light industrial manufacturing Paper (except Newsprint) Mills Terra Technologies LLC 35 $5,962,000 8711 541330 Engineering Services Twin City Fab Inc 14 $3,641,000 3441 332312 Metal structure fabrication Fabricated Structural Metal Manufacturing Twin City Powder Coating 12 $2,835,000 3471 332813 Plating, Polishing, Anodizing, and Coloring Electroplating, Plating, Polishing, Anodizing, and Coloring Udor USA Inc 10 $21,227,000 5084 423830 Agricultural pumps Industrial Machinery & Equipment Merchant Whlsrs Underground Tools Inc 10 $1,510,000 5251 444130 Manufacture & Distribute wear parts for underground const. Hardware Stores 173122320010 183122420012 183122410006 183122420009 173122220045 173122220047 183122420006 173122210030 173122220033 303122240002 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala EDAC MEETING DATE: August 5, 2021 TOPIC: Lake and Main Redevelopment BACKGROUND The EDAC received a presentation from Paul Tucci, Oppidan Investment Company, regarding potential redevelopment of the NE Quadrant of Lake and Main. Located immediately north of the Tavern on Main, the property is currently used for auto sales, repair and salvage along with some addition quasi industrial uses. The EDAC requested additional discussion on the topic and background on the City's plans for the area. As noted in the City's 2040 Comprehensive Plan the area is guided as a Signature Gateway District. The Signature Gateway District is reserved for high visibility, high traffic corridors serving as an entrance to the Community. The district allows residential at a density of 8.0 to 10.0 units per acre with 15 units per acre allowed if the project meets the City's housing goals. The district allows for development of multiple complementary uses on a single site including a combination of higher density residential, commercial services, and employment opportunities. The Comprehensive Plan also provides specific planning district guidance regarding the Main/Lake area: A Signature Gateway district is located around the intersection of Lake Drive and Main Street. Located at a major crossroads in the community the intersection was the original "downtown" of Lino Lakes. Opportunity exists to redevelop both underutili.Zedproperty and outdated land uses. A masterplanning study should be prepared of the area to examine existing land use, future land use compatibility, right-of- way needs, access management, stormwater management, and other appropriate issues. This study area should extend south to include James Street, Vicky Lane, and Kelly Street intersections. The district allows for both residential and commercial uses. A 75125 residential to commercial area ratio was assumed for planning purposes. However, commercial development is not required and individual parcels may develop with a single land use. The city will require strong emphasis on high quality architecture and design standards. The proposed use is generally consistent with the land use plan. Multi -family residential is allowed within the district. The site could also contain commercial uses but those are not required. The specific site contains an outdated land use that is the main focus of the City's redevelopment efforts. While the guidance recommends completion of a master planning study for the area, many of the transportation components are addressed in Anoka County's 2020 Lake Drive (CSAH 23) Corridor Study. Based on forecasted 2040 traffic volumes no major improvements are projected for the Lake and Main intersection. The intersection is projected to operate at a Level of Service (LOS) C which is a not congested condition. Staff would recommend that site design focus on the transition from single family uses north and west of the property by moving the building toward Lake and Main. We would also recommend consideration of options to integrate the site with Tavern on Main. EDAC CONSIDERATION None required. Discussion Only. ATTACHMENTS 1. General Location Map 2. Land Use Map 3. 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