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HomeMy WebLinkAbout02/03/2022 EDAC PacketCITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MEETING Thursday, February 3, 2022 8:00 A.M. Community Room AGENDA 1. CALL TO ORDER AND ROLL CALL 2. APPROVAL OF MINUTES: January 6, 2022 3. DISCUSSION ITEMS A. Strategic Plan Implementation – Redevelopment & Land Acquisition B. Strategic Plan Implementation – Marketing C. Project Updates 4. ADJOURN 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 8:05 A.M. on January 6, 2022. II. APPROVAL OF MINUTES Mr. Kohler amended the November 4, 2021 meetings minutes to include, with the motion to recommend denial, the recommendation to move the Take 5 Car Wash and Oil Change facility to an alternate location. Mr. Cravero made a MOTION to approve the November 4, 2021 Meeting Minutes as amended. Motion was supported by Mr. Vojtech, passing unanimously. III. DISCUSSION ITEMS A. Discuss Strategic Plan Implementation Mr. Grochala, Community Development Director, presented the staff report. He reviewed the draft implementation schedule with the committee. Regarding the Woods Edge property, Mr. Grochala recommended preparing a market study and then revising the master plan accordingly. Mr. Wagner recommended the market study examine the population levels necessary to attract certain levels of commercial development, if possible. Mr. Vojtech asked if the Robinson Sod Farms are developed for residential purposes, where would there be space for commercial development on the west side of town. DATE: January 6, 2022 TIME STARTED: 8:05 A.M. TIME ENDED: 9:23 A.M. MEMBERS PRESENT: Jim Schueller, Andrew Cravero, Nathan Vojtech, Patrick Kohler, Chad Wagner MEMBERS ABSENT: Don Johnson, Julie Jeffrey-Schwartz STAFF PRESENT: Michael Grochala, Janele Waterman Economic Development Advisory Committee January 6, 2022 Page 2 DRAFT MINUTES Mr. Grochala explained there is ten acres of commercial land available north of 35W near Casey’s gas station. He also stated the land between Apollo Dr. and 77th Street is guided commercial. Mr. Vojtech asked Mr. Grochala what he thought would be the best plan for the vacant acreage near City Hall. Mr. Grochala explained the original plan was to create a town center with higher density residential and commercial similar to Maple Grove’s Main Street. He said it may be in the City’s best interest to retain the vacant land for a few years. Mr. Vojtech asked if there is a plan for the empty Fairview Medical Clinic. Mr. Grochala said Fairview is trying to either lease or sell the building. He stated the building will likely continue to be used for medical purposes because the building is set up to accommodate such use. Mr. Kohler questioned, once the Rookery is open to the public, if there will be enough parking space. Mr. Grochala said the City owns two acres of empty land in front of the rec center and parking lot expansion will be considered. Regarding the remaining 7 acres, he said the City ultimately wants to construct something that will complement the Rookery and give residents a reason to come to this location. Regarding the Business Retention and Expansion Program, Mr. Grochala said he would like to begin identifying businesses to visit and then establish a schedule to visit two businesses per month. Concerning the Workforce Development Plan, Mr. Grochala stated he would like to invite a representative from Anoka County CareerForce to present to the committee and detail what services they can provide to businesses in the City and what they are currently doing. He said there are a number of programs available for businesses to utilize. Regarding potential redevelopment areas and strategic acquisitions, Mr. Grochala said the first step would be to identify areas for redevelopment and infrastructure expansion. Then, the second step would be to develop a strategy for land acquisition and determine the funding source. Mr. Kohler recommended the commission determine the funding source before identifying redevelopment areas. Economic Development Advisory Committee January 6, 2022 Page 3 DRAFT MINUTES Mr. Grochala explained there are different funding sources available depending upon what redevelopment areas are identified. He said there are programs available for acquiring road right-of-ways as well as funds available from MET Council. Overall, since there are various funding source options depending on the types of land acquisition, this will be discussed further with the Finance department. B. 35E Master Plan and Grant Application Mr. Grochala, Community Development Director, presented the staff report. He informed the commission a master plan will be developed for the northeast quadrant of the I-35E and Main Street corridor. The master plan will help determine storm sewer connection to the north and road alignment for Otter Lake Road. C. Project Updates Mr. Grochala provided verbal updates to the Board on current City projects. IV. ADJOURNMENT Mr. Cravero made a MOTION to adjourn the meeting at 9:23 A.M. Motion was supported by Mr. Kohler, passing unanimously. Respectfully submitted, Janele Waterman, Community Development Administrative Assistant 1 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: February 3, 2022 TOPIC: ED Strategic Plan Implementation – Redevelopment & Land Acquisition BACKGROUND The ED Strategic Plan Priority 4, Identification of Potential Redevelopment Areas and Strategic Acquisitions identifies the need to develop a strategy for City acquisition of land when available. Identifying potential funding sources is one of the largest considerations. Options for Funding Redevelopment and Strategic Acquisitions The City has a number of tools available to assist with land acquisition. A list of possible resources and a brief description are listed below: Tax Increment Financing (TIF). As development occurs, the additional taxes generated from new development are used to assist the developer with infrastructure, land acquisition, and other eligible costs. The City’s Financial Assistance Policy establishes guidelines for use. Tax Abatement. Similar to tax increment, but only the City portion of taxes are available to assist with Redevelopment. The City’s Financial Assistance Policy establishes guidelines for use. Pooled TIF. The City may designate up to 20% of a TIF districts revenue for pooling purposes and use those revenues for eligible economic development costs outside the TIF district. Interfund loans. An interim funding program could be developed using cash balances of certain city funds such as the Trunk Utility Area and Unit fund. This would be subject to identification of a permanent funding source that would repay the fund. Anoka County HRA. The County has economic development authority to levy for economic development purposes. This is a property tax increase on all Lino Lakes taxpayers. At existing rates, this would generate approximately $380,000 annually. Lino Lakes Economic Development Authority (EDA) levy. The City has an existing EDA with statutory authority to levy for economic development purposes. An EDA levy up to .01813 percent of taxable market value. This would be approximately $377,000 annually. 2 EDAC CONSIDERATION Discuss and prioritize potential tools. Based on the discussion, staff will begin development of a policy/strategy for implementation. ATTACHMENTS 1. Financial Assistance Policy Financial Assistance Policy for Tax Increment Financing & Tax Abatement City of Lino Lakes June 2018 Financial Assistance Policy Page 2 I. POLICY PURPOSE The purpose of this policy is to establish the City of Lino Lakes’ position relating to the use of financial assistance programs, for private development above and beyond the requirements and limitations set forth by State Law. This policy shall be used as a guide in the processing and review of applications requesting tax increment financing or tax abatement assistance. The fundamental purpose of financial assistance programs in the City of Lino Lakes is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided. The City of Lino Lakes is granted the power to utilize Tax Increment Financing and Tax Abatement by the Minnesota Statute. It is the intent of the City to provide the minimum amount of financial assistance, as well as other incentives, at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case by case basis, taking into consideration established policies, project criteria, and demand on city services in relation to the potential benefits from the project. Meeting policy criteria does not guarantee the award of financial assistance to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. II. DIFFERENCE BETWEEN TAX ABATEMENT & TAX INCREMENT FINANCING The primary difference between Tax Abatement and Tax Increment Financing (TIF) is the way in which the dollars are awarded to the project. When TIF is awarded to a project by the city, the other political subdivisions (the school district and the county) are required to contribute their portion of the increased taxes to the project. Conversely, when Tax Abatement is requested, each political subdivision has the option of granting its portion of the increased taxes to the project. Subsequently, the dollars generated for the project with Tax Abatement are generally less than the dollars generated with TIF. III. OBJECTIVES OF FINANCIAL ASSISTANCE As a matter of adopted policy, the City will consider using Tax Increment or Tax Abatement to assist private development projects to achieve one or more of the following objectives: • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. • To enhance and diversify the City of Lino Lakes’ economic base. • To facilitate the development process and to achieve development on sites which would not be developed without financial assistance. • To remove blight and/or encourage redevelopment of commercial and industrial areas in the city that result in high-quality redevelopment and private reinvestment. • To offset increased costs of redevelopment (i.e., contaminated site clean up) over and above the costs normally incurred in development. Financial Assistance Policy Page 3 • To create opportunities for life cycle housing. • Construction of public improvements that benefit the City of Lino Lakes, its residents and businesses. • To contribute to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality urban or architectural design, energy conservation, and decreasing capital and/or operating costs of local government. IV. POLICIES FOR THE USE OF FINANCIAL ASSISTANCE a. Tax Increment or Tax Abatement assistance will be provided to the developer upon receipt of taxes by the City, otherwise referred to as the pay-as-you-go method. Requests for up-front financing will be considered on a case-by-case basis, for project related public improvements. b. Any developer receiving financial assistance shall provide a minimum of fifteen percent (15%) cash equity investment in the project. c. Developer shall be able to demonstrate a market demand for a proposed project. d. Assistance may not be utilized in cases where it would create an unfair and significant competitive financial advantage over other projects and/or existing businesses in the area. e. The developer must provide adequate financial guarantees to ensure completion of the project, including, but not limited to: assessment agreements, letters of credit, personal guaranties, et cetera. f. The developer shall adequately demonstrate, to the City’s sole satisfaction, an ability to complete the proposed project based on past development experience, general reputation, and credit history, among other factors, including the size and scope of the proposed project. g. For the purposes of underwriting the proposal, the developer shall provide any requested market, financial, environmental, or other data requested by the City or its consultants. h. Financial commitments should not exceed 16% of the estimated market value of the project. V. PROJECT QUALIFICATIONS All Tax Increment or Tax Abatement projects considered by the City of Lino Lakes must meet each of the following requirements: a. The project shall meet at least one of the objectives set forth in section III of this document. b. The project shall meet the policy requirements set forth in section IV of this document. Enhancing or diversifying the City’s tax base cannot be the sole grounds for assistance. Financial Assistance Policy Page 4 c. The developer shall demonstrate that the project is not financially feasible but-for the use of financial assistance. d. The project shall comply with all provisions set forth in the state’s Tax Increment Law, statutes 469.174 to 469.1794, as amended or the Tax Abatement Law, statutes 469.1812 to 469.1815, as amended. e. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan, and Zoning Ordinances. VI. SUBSIDY AGREEMENT & REPORTING REQUIREMENTS All developers/businesses receiving financial assistance in the form of Tax Increment or Tax Abatement from the City of Lino Lakes shall be subject to the provisions and requirements set forth by state statute 116J.993 and summarized below. All developers/businesses receiving financial assistance shall enter into an agreement with the City of Lino Lakes that identifies: the reason for the subsidy, the public purpose served by the subsidy, and the goals for the subsidy, as well as other criteria set forth by statute 116J.993 and in accordance with the City’s Business Subsidy Criteria, as amended. The developer/business shall file a report annually for two years after the date the benefit is received or until all goals set forth in the application and performance agreement have been met, whichever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City of Lino Lakes no later than March 1 of each year for the previous calendar year. Businesses fulfilling job creation requirements must file a report to that effect with the city within 30 days of meeting the requirements. The developer/business owner shall maintain and operate its facility at the site where Tax Increment or Tax Abatement assistance is used for a period of five years after the benefit is received. VII. APPLICATION PROCESS FOR FINANCIAL ASSISTANCE A. City of Lino Lakes 1. Applicant submits the completed application and completes the Application Review Worksheet. 2. City staff reviews the application and completes the Application Review Worksheet. 3. Results of the Worksheet are submitted to the appropriate governing authorities for preliminary approval of the proposal. 4. If preliminary approval is granted, all necessary notices, resolutions and certificates are prepared by City staff and/or consultants. Financial Assistance Policy Page 5 5. Public hearing(s) on the proposed project are held. 6. The EDA or HRA recommends approval or denial of the proposal to the City Council. 7. The City Council grants final approval or denial of the proposal. B. Applications to other political subdivisions It is recommended that applicants intending to seek Tax Abatement from the affected County or School District make their applications to those bodies concurrent with their application to the City of Lino Lakes 1 ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Michael Grochala, Community Development Director EDAC MEETING DATE: February 3, 2022 TOPIC: ED Strategic Plan Implementation - Marketing BACKGROUND The first step identified for updating our marketing is to review our current materials and update the community profile. Our community profile handout is used as a supplemental piece attached to any land inquiries. Also attached for your review is the 2020 EDA Report (2021 is not completed yet). This is completed annually and posted on the website and made available to the development community. EDAC CONSIDERATION Discussion only. Staff will incorporate comments into future revisions. ATTACHMENTS 1. Community Profile 2. 2020 EDA Report Incredible Spaces. Outstanding Opportunities. Community Profile THE CITY OF LINO LAKES MinneapolisMinneapolis Lino LakesLino Lakes St. PaulSt. Paul Incredible Spaces. Outstanding Opportunities. Community Snapshot 21,399 $255,178 Lino Lakes Population6,903 Households Median Home Value 21 City Parks “Among Best U.S. Cities to Live” by: Money Magazine Rice Creek Chain of Lakes Regional Park $115,368 Median Household Income 62 Miles of Trails 39.6 years Median Age 5,550 Total Population Percent Change 2010 2020 2030 2040 2010-2020 2010-2040 330,844 361,170 402,420 440,900 9.2%33.2% Population Projections for Anoka County Source: Metropolitan Council (2019) Educational Achievement Graduate degree Bachelor degree Associate degreeSome College 15 Miles of Canoe Trails Air: Located 28 miles northwest of the Minneapolis/St. Paul International Airport and 9 miles from the Anoka County Regional Airport. Interstate/Highway: Lino Lakes is located between 35W and 35E providing ample vehicular accessibility to both Minneapolis and St. Paul metropolitan centers Acres of Connected Regional Parkland Source: Zillow Real Estate Network Drive Time Data 10 Minute Population 69,729 Households 25,729 Median Age 40.0 20 Minute Population 549,833 Households 212,292 Median Age 38.0 30 Minute Population 1,698,275 Households 671,489 Median Age 35.5 Centennial School District White Bear Lake School District Forest Lake School District 8 out of 10 31% 22% High school graduate Source: ACS (2018) 19% 14% 12% Additional Site Information Water Service Designed and constructed to specific project needs. The City has 16" trunk water main avaiable to service the property. Sewer Service Designed and constructed to specific project needs. The City has a 21" trunk gravity sewer with a capacity of 3.2 MGD avaialbe to service the site. Data Service Bandwith - Greater than 100 MPBS Electric Service Designed and constructed to specific project needs Provider: Connexus Energy/Great River Energy) Lino Lakes Top 10 Employers Company Name # of Employees State of Minnesota Corrections 447 Centennial School District 391 Target Corp 200 Anoka County 130 Molin Concrete 130 Rehbein Transit 130 Kohls 123 Distribution Alternatives 120 City of Lino Lakes 86 Source: City of Lino Lakes (2021) Incredible Spaces. Outstanding Opportunities. Development Opportunities abound in Lino Lakes. Local Assistance Programs Assistance for land write-down and/or site improvements for qualified businesses. Assistance may include: •Acquisition of land •Preparation of sites for development •Construction or reconstruction of public improvements •Removal of polluted lands as needed •Tax increment financing, tax abatement, or other financial tools available to the city Regional Assistance Programs Minnesota Investment Fund Low interest loans to industrial, manufacturing and technology businesses. Small Business Development Loan Program This loan is through the Minnesota Agricultural and Economic Development Board who issues industrial development bonds. Small Business Administration (SBA) Assistance with SBA loans. Michael Grochala, Community Development Director mgrochala@linolakes.us (651)982-2427 Lino Lakes Welcomes YOU! The City of Lino Lakes’ Community Development Department provides comprehensive services to prospective and existing businesses by assisting with site and building information, financial assistance, and guidance through the regulatory and development process. Helpful Links: Economic Development in Lino Lakes- www.linolakes.us Anoka County Regional Economic Developmentwww.anokacountysuccess.org Greater MSP- www.greatermsp.org Quad Area Chamber of Commerce- www.quadchamber.org Twin Cities Gateway - Convention and Tourism Bureau-www.tcgateway.com Incredible Spaces. Outstanding Opportunities. 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, received PUD Final Plan/Final Plat approval for Phase 1 of the senior living community. Lyngblomsten is proposing a multi -phased approach to redevelopment of 7 parcels total- ing 20 acres located in the northwest quadrant of Hodg- son 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 Mike’s 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 Laborers Training Center Expansion New Businesses A Conditional Use Permit and Site Improvement Perfor- mance Agreement have been approved for Laborers 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 878 building permits in 2020. Of that total, 166 permits were for new residential construction. There were no per- mits issued for new commercial construction/ additions. The total valuation for all permits issued in 2020 totaled $51.5 million. Of that total, the residential valuations totaled $48.4 million. Commercial valuations totaled $3.1 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 Commercial