Loading...
HomeMy WebLinkAbout07/08/2021 EDAC Minutes 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 8:02 A.M. on July 8, 2021. 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. 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 Economic Development Advisory Committee July 8, 2021 Page 2 APPROVED MINUTES 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. Economic Development Advisory Committee July 8, 2021 Page 3 APPROVED MINUTES 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. Economic Development Advisory Committee July 8, 2021 Page 4 APPROVED MINUTES 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. 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. Economic Development Advisory Committee July 8, 2021 Page 5 APPROVED MINUTES 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