HomeMy WebLinkAbout12/07/2023 EDAC Combined PacketCITY OF LINO LAKES
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
MEETING
Thursday, December 7, 2023
8:00 A.M.
Community Room
AGENDA
1. Call to Order and Roll Call
2. Approval of Minutes: October 11, 2023
3. Discussion Items
A. Anoka County Regional Economic Development (ACRED) MOU Extension
B. Land Use, Java Companies Concept Plan
C. Apollo Business Park – Purchase of Tax Forfeit Property
4. Adjournment
DRAFT MINUTES
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT
ADVISORY COMMITTEE
MINUTES
DATE:
October 11, 2023
TIME STARTED: 8:00 a.m.
TIME ENDED: 9:04 a.m.
MEMBERS PRESENT: Andrew Cravero, Patrick Kohler, Steve Marchek,
Nathan Vojtech, Jim Schueller, Keith Hembre
MEMBERS ABSENT: Julie Jeffrey-Schwartz, Blakely LaCroix, Chad
Wagner, Don Johnson
STAFF PRESENT: Michael Grochala, Hannah Lynch & Julie Whitney
1. CALL TO ORDER
Mr. Schueller called the Economic Development Advisory Committee meeting to order at
8:00 a.m. on October 11, 2023.
2. APPROVAL OF MINUTES
Mr. Cravero made a motion to approve the August 3, 2023 meeting minutes. Motion was
supported by Mr. Vojtech Motion carried 6 - 0.
3. DISCUSSION ITEMS
A. Local Affordable Housing Aid (LAHA)
The Local Affordable Housing Aid was created by the 2023 Legislature. The first year it
will be paid is 2024. The purpose of the aid is to help metropolitan local governments
develop and preserve affordable housing within their jurisdictions. The annual
appropriation comes from a sales and use tax imposed within Anoka, Carver, Dakota,
Hennepin, Ramsey, Scott and Washington Counties. Cities with a population of over
10,000 within these counties are eligible to receive aid.
Mr. Grochala introduced Mr. Keith Dahl and Mr. Jason Arsvold from Ehlers & Associates
and explained their purpose for attending the EDAC meeting.
Mr. Dahl stated the State approved a comprehensive package for affordable housing and
will be giving money to the surrounding counties and cities. One part is a sales and use tax
effective in October. Monies will be distributed in July and divided between the seven
County metro. The Counties will receive 50%, the State will receive 25% for rental
housing and the remaining 25% will be distributed between the Cities. Lino Lakes will
receive around $140,000 for the fiscal year 2024 and $248,000 for fiscal year 2025. Mr.
Economic Development Advisory Committee
October 11, 2023
Page 2
DRAFT MINUTES
Dahl said cities would have three years upon receipt of the money to spend it and stressed
that this is a “use it or lose it” type of program. Mr. Dahl said if the City establishes an
affordable housing trust fund and deposits the money. The money would then be
considered spent and would not need to be returned to Minnesota Housing. He stated that
the state statue allows Cities to set up this fund through an ordinance adoption. In doing so,
this stops the 3-year time limit to utilize the funds. Once the program has been set up, the
City will have to report to the state regarding what the program is, where the money is
being spent and who the recipients were. Mr. Dahl also suggested some ways the money
could be used are for administrative expenses, making grants or loans for home purchases,
repairs or upgrades, home buyer down payment assistance or eviction counseling. The
trust does not have to be limited to one program. Mr. Dahl also addressed ways to
replenish the fund, which is not a requirement of the program.
Mr. Kohler asked if the trust fund would be able to borrow to purchase a home. Mr. Dahl
said you could, but whoever moves on to the property or builds on the property will have to
meet eligibility requirements.
Mr. Hembre questioned if the trustee of the trust would be City Council? Mr. Dahl said it
would be or it could be assigned to an Economic Development Authority or Housing
Redevelopment Authority within the City. Mr. Dahl said there are other cities that have
established trust funds through special legislation and used existing TIFF monies to
capitalize those housing trust funds. In addition, they have levied a tax and transferred
funds to this fund. These funds are used for affordable housing and in new construction
and refurbishment. Those who meet the requirements will receive a no interest or low
interest loan.
Mr. Hembre asked if it was the City’s intention to go in the direction of rehabilitation of
homes? Mr. Grochala stated it was. He believes it allows us more flexibility and control
over spending the money. He said putting the money into a trust makes it beneficial to the
City to spend it on our timeline instead of the State’s timeline. Also noted, any interest
earned from the trust fund must go back into the trust fund.
Mr. Grochala said it may be beneficial to start off with a maintenance program then look at
more inclusionary housing later. This may be working with the developer to incorporate
into a development a certain percentage of homes designated to affordable housing mixed
into the development. Due to the cost of this, the City could offer gap financing if funding
were available and the program advances.
Mr. Vojtech questioned if any guidance was given from the legislature as to what the
money could be used for? Mr. Dahl conveyed only to attain the AMI threshold but nothing
specific.
Mr. Hembre wanted to know what the County would be spending their percentage on? Mr.
Dahl said they were going to strengthen the programs they have currently and look at new
programs that will also benefit the Cities. Mr. Grochala said the County has done a
comprehensive housing study and the results will be given in the next couple weeks and
Economic Development Advisory Committee
October 11, 2023
Page 3
DRAFT MINUTES
will show what the needs are, not only for the County but for the City of Lino Lakes as
well.
Mr. Grochala wanted to know if the monies could be used for any studies the City would
like to do or use for infrastructure? Mr. Dahl said it would be eligible for this program.
Mr. Vojtech wanted to know if the City was going to come up with a list of approved
projects? Mr. Grochala said we would need to come up with a program. He thought a
second study may be necessary to pinpoint the needs of our community.
Mr. Vojtech also questioned if there are activities we do not want to become involved in.
Mr. Grochala stated it was ultimately up to the City Council to approve the program.
Mr. Vojtech questioned how many people in the City would qualify for the program? Mr.
Grochala said the medium income for the City is $112,000 so there would be numerous
households that would qualify. Mr. Dahl said that qualification is based on the tax records
for one year.
Mr. Vojtech inquired if the City should be looking at what is best for the City or what is
best for the residents? Mr. Grochala said the City is looking out for the welfare of the
community and this requires looking at the needs of the community and using the funds for
what is most beneficial. Mr. Dahl added that both would need to be considered.
Mr. Schueller said 10% could be used for administrative costs and asked what that might
consist of. Ms. Lynch said it could pay for the additional study or time spent by Mr.
Grochala or herself administering the program. Mr. Grochala said realistically it would not
be more than 40 hours per year for reporting. Mr. Schuller asked if the administrative
allocation is 10% contribution or overall fund. Mr. Dahl said he would need to examine it
more and report back to the Board.
Mr. Hembre requested recommendations to increase the trust fund when the City no longer
receives the money from the State. Mr. Dahl said any interest earned on the fund would go
back into the fund, especially if we did loans instead of grants to create a self sustainable
program. Mr. Dahl said marketing is important in this program to let residents know that it
exists.
Mr. Scheuller questioned how the resident would pay back the loan and whether it would
be through taxes or a payment schedule. Mr. Dahl said there would be no way to assess it
to their taxes, but the home would be security for the loan and the resident would make
payments to the City. Mr. Hembre asked if the loan went into default could it then be
assessed to the resident’s taxes. Mr. Dahl stated that he did not think that was a possibility.
B. Project Updates
Mr. Grochala updated the committee on current City projects.
Economic Development Advisory Committee
October 11, 2023
Page 4
DRAFT MINUTES
4. ADJOURNMENT
Mr. Cravero made a motion to adjourn the meeting at 9:04 a.m. Motion was supported by
Mr. Vojtech. Motion was carried 6 - 0.
Respectfully submitted,
Julie Whitney, Community Development Administrative Assistant
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3A
STAFF ORIGINATOR: Michael Grochala, Community Development Director
EDAC MEETING DATE: December 7, 2023
TOPIC: Anoka County Regional Economic Development Memorandum of
Understanding Extension
Background
In 2018 the City of Lino Lakes, along with 20 other Anoka County communities, Connexus
Energy and Metro North Chamber of Commerce joined together to form the Anoka County
Regional Economic Development (ACRED) partnership. The goal of the partnership is to
promote economic development opportunities throughout Anoka County and assist the
communities in their development efforts.
Funding for the partnership has been shared by with nominal assistance from the membership
for programming and marketing. ACRED’s annual budget has remained fairly flat at
approximately $23,000 annually. Staffing costs are borne by Anoka County. The City’s
contribution for 2024 is $1,235 and included in the Economic Development budget. The
partnership is governed by an executive committee comprised of City and County officials along
with representatives from Connexus Energy and Metro North Chamber.
Funding is used for county wide marketing activities including the Anoka County Real Estate
Summit (Up River event), Real Estate Journal event sponsorships, website hosting, and MnCAR
exchange access. In 2024 ACRED will be working with Rapp and Associates to prepare an
updated strategic plan to guide future efforts of the partnership.
ACRED operates under a Memorandum of Understand (MOU) between the member
communities. The original MOU is set to expire on January 10, 2024. The Executive Board is
proposing to extend the MOU for a period of one year to allow for completion of the updated
strategic plan. Based on the outcome of the strategic planning process a modified MOU will be
prepared for consideration.
Requested EDAC Direction
Staff is seeking EDAC recommendation to extend the MOU.
Attachments
1. MOU Anoka County Regional Economic Development
AGREEMENT EXTENDING AND AMENDING
the
MEMORANDUM OF UNDERSTANDING FOR ANOKA COUNTY
ECONOMIC DEVELOPMENT
By and Among
THE COUNTY OF ANOKA, CONNEXUS ENERGY, METRONORTH
CHAMBER OF COMMERCE, AND PARTICIPATING MUNICIPALITIES OF
ANOKA COUNTY
THIS AGREEMENT is by and between the County of Anoka County (the “County”),
a political subdivision of the State of Minnesota, by and through its Housing and
Redevelopment Authority (“HRA”), Connexus Energy, a Minnesota corporation in
Ramsey, Minnesota, MetroNorth Chamber of Commerce, a Minnesota nonprofit
organization, and those participating municipalities located within Anoka County,
Minnesota, identified on Exhibit A.
Recitals:
1. In 2017, a research consultant produced a report and market analysis of
business opportunities, targets, and strategies for economic development
within Anoka County.
2. Following the 2017 study, the parties signed the “Memorandum of
Understanding By and Among The County of Anoka, Connexus Energy,
MetroNorth Chamber of Commerce, and Participating Municipalities of
Anoka County” (the “2019 Memorandum of Understanding”) for the purpose
of forming an executive committee (the “Executive Committee”) to develop
and implement an economic action plan (the “Final Action Plan”).
3. The original 5-year term of the 2019 Memorandum of Understanding will
expire on January 10, 2024, or upon the determination by the Executive
Committee that the Final Action Plan had been fully implemented.
4. The Executive Committee has not determined that a Final Action Plan has
been implemented.
5. The parties are engaged in active strategic planning efforts with multiple
studies and projects in progress.
6. The parties find that the economic development purposes served by the 2019
Memorandum of Understanding warrant extending the 2019 Memorandum
of Understanding for an additional one-year period.
- 2 -
7. With the exception of the contract term, the parties have agreed to continue
all other terms, conditions, and covenants of the 2019 Memorandum of
Understanding.
Therefore, the parties agree as follows:
1. The above recitals are true and correct and are hereby incorporated in their
entirety into this agreement.
2. The parties hereby renew and extend the 2019 Memorandum of
Understanding for one additional year.
3. Paragraph B of the 2019 Memorandum of Understanding, entitled “Term,” is
hereby deleted in its entirety and is replaced with the following:
B. Term. This Memorandum of Understanding is effective upon
execution and will terminate upon the earlier of (1) January 10, 2025,
(2) three-months’ written notice by any entity who is part of this
agreement, or (3) a determination by the Executive Committee that a
Final Action Plan has been completed and implemented.
4. Except as expressly set forth herein, all other terms and conditions of the
2019 Memorandum of Understanding shall continue in full force and effect,
and the 2019 Memorandum of Understanding is hereby ratified, reaffirmed,
and confirmed by the parties as hereby amended.
5. This agreement may be executed in any number of counterparts, each one of
which shall be deemed to be an original, but all such counterparts together
shall constitute one and the same instrument.
[Signature Page Follows]
- 3 -
IN WITNESS WHEREOF, the parties have signed this agreement on the dates
written below.
ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY:
By: ___________________________________________ Date: ________________
MIKE GAMACHE,
Chair, Board of Trustees
ANOKA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY:
By: ___________________________________________ Date: ________________
KAREN SKEPPER,
Executive Director
CONNEXUS ENERGY:
By: ___________________________________________ Date: ________________
Name:
Title:
NORTHMETRO CHAMBER OF COMMERCE:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF ANDOVER:
By: ___________________________________________ Date: ________________
Name:
Title:
- 4 -
CITY OF ANOKA:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF BETHEL:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF BLAINE:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF ANOKA:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF CENTERVILLE:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF CIRCLE PINES:
By: ___________________________________________ Date: ________________
Name:
Title:
- 5 -
CITY OF COLUMBIA HEIGHTS:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF COLUMBUS:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF COON RAPIDS:
By: ___________________________________________ Date: ________________
Name:
Title
CITY OF EAST BETHEL:
By: ___________________________________________ Date: ________________
Name:
Title
CITY OF FRIDLEY:
By: ___________________________________________ Date: ________________
Name:
Title
CITY OF HAM LAKE:
By: ___________________________________________ Date: ________________
Name:
Title:
- 6 -
CITY OF HILLTOP:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF LEXINGTON:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF LINO LAKES:
By: ___________________________________________ Date: ________________
Name:
Title:
LINWOOD TOWNSHIP:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF NOWTHEN:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF OAK GROVE:
By: ___________________________________________ Date: ________________
Name:
Title:
- 7 -
CITY OF RAMSEY:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF ST. FRANCIS:
By: ___________________________________________ Date: ________________
Name:
Title:
CITY OF SPRING LAKE PARK:
By: ___________________________________________ Date: ________________
Name:
Title:
- 8 -
Exhibit A:
CITY OF ANDOVER
CITY OF ANOKA
CITY OF BETHEL:
CITY OF BLAINE:
CITY OF ANOKA:
CITY OF CENTERVILLE:
CITY OF CIRCLE PINES:
CITY OF COLUMBIA HEIGHTS:
CITY OF COLUMBUS:
CITY OF COON RAPIDS:
CITY OF EAST BETHEL:
CITY OF HAM LAKE:
CITY OF HILLTOP:
CITY OF LEXINGTON:
CITY OF LINO LAKES:
LINWOOD TOWNSHIP:
CITY OF NOWTHEN:
CITY OF OAK GROVE:
CITY OF RAMSEY:
CITY OF ST. FRANCIS:
CITY OF SPRING LAKE PARK:
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3B
STAFF ORIGINATOR: Michael Grochala, Community Development Director
EDAC MEETING DATE: December 7, 2023
TOPIC: Anoka County Regional Economic Development Memorandum of
Understanding Extension
Background
The City entered into a purchase agreement with Java Companies for the purchase of City
property located, in part, at the northwest corner of Lake Drive and 77th Street and at 7685
Lake Drive. The properties total 2.24 acres.
The sale is conditioned on a number of items, most notably a restriction that the Property,
north of the new street, shall not be used for Automobile or Truck Repair, car wash or as Motor
Fuel station. The agreement also includes requirements that the buyer acquire the property at
7691 Lake Drive (“Broker” property), and Buyer must acquire 7681 Lake Drive (“Hylander”
property) within 36 months of closing or ownership of the 7685 remnant reverts back to the
City.
Since execution of the purchase agreement the buyer has worked diligently to acquire rights to
the Broker and Hylander properties, identify users, and prepare an initial concept plan. Java
has presented a concept for city review that includes:
• Day care facility
• Oil change facility
• Drive thru coffee shop
• Car wash (south of new street)
As proposed the oil change facility would violate the restriction included within the purchase
agreement. For reference the Zoning Ordinance defines both Auto Repair – Major and Minor
as follows:
AUTOMOBILE REPAIR-MAJOR. General repair, rebuilding or reconditioning engines,
motor vehicles or trailers; collision service, including body, frame or fender straightening or
repair; overall painting or paint job; vehicle steam cleaning.
AUTOMOBILE REPAIR-MINOR. An establishment providing goods or services related to
passenger motor vehicles such as car washes; repair businesses limited to minor engine repair,
fluid changing, tire service and muffler repair; and other uses of similar character, but not
including uses defined as a major automobile business or automobile sales.
The City Council has the authority to amend the agreement and strike that condition. However,
it doesn’t appear that the balance of uses proposed would substantiate such a change.
Additionally, the oil change location, drive thru coffee shop and car wash properties would
require a rezoning from NB, Neighborhood Business to GB, General Business or PUD, Planned
Unit Development to allow for those uses. While this change would match existing zoning both
north and south of the subject site, the City is not obligated at this time to make that change.
The City Council will be reviewing this request at the December 4, 2024 work session. Staff will
provide an update at the EDAC meeting.
Requested EDAC Direction
Staff is seeking EDAC comments on the proposed site plan and uses.
Attachments
1. Site Location Map
2. Java Concept Plan
3. Zoning Map
77th St W
698
675
695
7726
7716
7722
7710
7702
7681
7713 7731
700
7691
7685
7675
MA
R
K
E
T
MARILYN DRCSAH 23 (LAKE DRIVE)PL
A
C
E
D
R
77TH ST W S
S
E
E
E
OH OH OH OH OH OH OH
OH OH OHG G GGGGGGOHOHOHOHOHS
203+00 204+00100+00101+001
0
2
+
0
0
10
3
+
0
0
104
+
0
0
105
+
0
0
105
+
6
7
K:\017210-000\Cad\Exhibits\017210-000-C-AERIAL-PLAN.dwg 7/24/2023 9:59:34 AMN
SCALE IN FEET
0
H:
40 80
FIGURE 1
WSB PROJECT NO.CITY OF LINO LAKES, MN017210-0002022 MARKET PLACE DRIVEREALIGNMENT PROJECT
77th St MarilynDrBarbara Ln
Apollo Dr
Prairie View Pl
CountryLnUnnamed12
23
77th St
A p o llo D r23
Legend
Parcels
Zoning
R - Rural
R-1 - Single Family Residential
R-1X - Single Family Executive
R-4 - High Density Residential
GB - General Business
NB - Neighborhood Business
PSP - Public Semi-Public
PUD - Planned Unit Development November 29, 2023
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1 in = 500 Ft
Zoning Map
ECONOMIC DEVELOPMENT ADVISORY COMMITTEE
AGENDA ITEM 3C
STAFF ORIGINATOR: Michael Grochala, Community Development Director
EDAC MEETING DATE: December 7, 2023
TOPIC: Apollo Business Park - Acquisition of Tax Forfeit Property
Background
In August the EDAC discussed and supported the acquisition of tax forfeit properties in the
Apollo Business Park to support industrial expansion opportunities. These properties were
originally created as borrow pits for fill material in the development and subsequently used for
stormwater runoff. We believe there is capacity in the lots that would allow for some building
expansion and/or use for additional stormwater from new construction.
Since August staff has continued to work with Mountain Manufacturing on their potential
facility expansion. While expansion options are still being evaluated both parties believe
acquisition of the parcel located southwest of Mountain Manufacturing is desirable.
Under state law governmental subdivisions may purchase the tax forfeit property from the
county for an authorized public purpose. The City’s Economic Development Authority (EDA) is
authorized to acquire and sell property for economic development purposes. Staff is proposing
that the EDA acquire the property from Anoka County and convey it, at cost, to Mountain
Manufacturing. The County has established a market value of $900.
Prior to the conveyance the City will retain a drainage and utility easement over a portion of the
property to maintain drainage rights for adjacent properties. The sale may also include a right
of reverter that provides the city with an option to repurchase at the sale price if no
improvements are undertaken. The EDA is scheduled to consider the request at the December
11, 2023 meeting.
Requested EDAC Direction
Staff is seeking EDAC recommendation to purchase the tax forfeit property.
Attachments
1. Site Location Map
Legend
Address Labels
Parcels
December 1, 2023
±
Map Powered By Datafi
1 in = 200 Ft
Tax Forfeit Property