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HomeMy WebLinkAbout06/06/2024 EDAC Combined Packet ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA Thursday, June 6, 2024 COMMITTEE MEETING, 8: 00 A.M. Community Room 1. Call to Order and Roll Call 2. Approval of Minutes: May 2, 2024 3. Discussion Items A. Financial Security Requirements B. Proposed Residential Moratorium C. Project Updates 4. Adjournment ADJOURNMENT CITY OF LINO LAKES ADVISORY BOARD MEETING GUIDELINES Advisory boards are fact-finding bodies established to aid the City Council in specific areas. The decisions of any board are considered advisory only and all final decisions rest with the City Council. Board meetings shall operate in accordance with the procedures established by the City Council. The following meeting guidelines are derived from the City Council Rules of Decorum. Members of the Audience – No person in the audience shall engage in disorderly or disruptive conduct such as audible commentary during a meeting, hand clapping, stamping of feet, whistling, using profane language, yelling and similar demonstrations, which conduct disturbs the peace and good order of the meeting. Public Comment– Comments from the public will be accepted on any matter, whether on the agenda or not. Comments will not be accepted during specific agenda items unless a Public Hearing has been noticed. Please remember to be courteous and respectful and abide by the following guidelines: • Sign-in prior to the start of the meeting • Step up to the microphone when recognized by the Presiding Officer (Chair or Vice- Chair) • State your name and address for the record • State the subject to be discussed • Limit comments to 4 minutes • Address comments to the board as a whole, not any specific member • No question may be asked of a board member or staff member without the permission of the Presiding Officer (Chair or Vice-Chair) • Elect a spokesperson for a group of persons who wish to address the board on the same subject Public Hearing – A public hearing is a separate item of business on the agenda. It gives the public an opportunity to comment on the topic identified. Please remember to be courteous and respectful and abide by the guidelines outlined for public comment (although no sign-in required). Typically, a public hearing proceeds as follows: 1. The Presiding Officer (Chair or Vice-Chair) will announce the agenda item and staff will present their report. 2. Board members have the opportunity to ask staff questions about the item. 3. The Presiding Officer (Chair or Vice-Chair) opens the public hearing and will recognize those who want to speak. 4. The Presiding Officer (Chair or Vice-Chair) shall close the public hearing. 5. The Board will then discuss the item. No further public comments are allowed. 6. The Board will make a recommendation and/or decision. After a motion has been made or a public hearing has been closed, no member of the public shall address the board from the audience on the matter under consideration. The Presiding Officer (Chair or Vice-Chair) shall maintain strict order and etiquette at all meetings. DRAFT MINUTES CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: May 2, 2024 TIME STARTED: 8:02 a.m. TIME ENDED: 9:27 a.m. MEMBERS PRESENT: Andrew Cravero, Blakely LaCroix, Chris Spenner, Patrick Kohler, Nathan Vojtech, Jim Schueller, Keith Hembre, Chad Wagner MEMBERS ABSENT: Steve Marchek, Don Johnson STAFF PRESENT: Michael Grochala, Julie Whitney 1. CALL TO ORDER Mr. Schueller called the Economic Development Advisory Committee meeting to order at 8:02 a.m. on May 2, 2024. 2. APPROVAL OF MINUTES Mr. Cravero made a motion to approve the April 4, 2024 meeting minutes. Motion was supported by Mr. Vojtech. Motion carried 8 - 0. 3. DISCUSSION ITEMS A. Industrial Project Approvals. Marshan Industrial Park Two industrial development projects are currently under review in the Marshan Industrial Park. Additionally, Planning and Zoning Board has requested consideration of a Lake Drive Architectural Overlay District. The City Council approved a Conditional Use Permit for Lariat Companies, Inc., to construct a multi-tenant industrial and indoor self-storage building on the south half of the property. The north half is occupied by Lino Lakes Storage (mini storage). The project includes 11 bays available for small business startups or construction related uses. During the review of the Tech Center project, the Planning & Zoning Board proposed the creation of a Lake Drive Architectural Design Overlay District. The intent would be to have an increased design requirements for buildings adjacent to Lake Drive. Staff will be preparing Economic Development Advisory Committee May 2, 2023 Page 2 DRAFT MINUTES a project scope for consideration at a future meeting, but is requesting discussion by the EDAC. Mr. Grochala said potentially a study would be done to look at the industrial and commercial areas to determine design requirements in that area. Mr. Schueller expressed a desire for EDAC to be part of the planning process. B. Project Updates Mr. Grochala updated the committee on current City projects. There was a lengthy discussion on the moratorium and the water situation for new developments. A question was raised regarding financial securities and whether the City had any specific requirements. Mr. Grochala explained that the city require security in the form of cash or letter of credit at 150% of the public improvement costs. He stated he would need to look into any specific bank requirements. 4. ADJOURNMENT Mr. Cravero made a motion to adjourn the meeting at 9:27 a.m. Motion was supported by Mr. Hembre. Motion was carried 8 - 0. Respectfully submitted, Julie Whitney, Community Development Administrative Assistant ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3A STAFF ORIGINATOR: Mike Grochala, Community Development Director EDAC MEETING DATE: June 6, 2024 TOPIC: Financial Securities – New Development BACKGROUND During the May 2, 2024 meeting the EDAC questioned what requirements the City has to make sure that improvements are completed for development projects. The City, through our “Official Controls”, has the authority to require the deposit of a financial security to assure the City that the improvements will be constructed or installed according to the specifications of the City. The City’s subdivision and zoning ordinance include requirements for the posting of securities. The city requires a cash escrow, surety agreement, irrevocable letter of credit, in the amount of 35% of the cost of work for private improvements and 125% for public improvements. A surety agreement is an agreement between a bank, a developer and City in which the construction funds are placed in an escrow account and cannot be released without approval by the City, upon satisfactory completion of improvements. In the event of default by the developer, the City can access the funds to complete the improvements. An irrevocable letter of credit (ILOC) is a financial instrument guaranteeing payment for goods and services purchased by the party requesting the letter. It cannot be canceled or modified in any way without the consent of the affected parties involved. In the event of default, the City has the right to draw upon the cash deposit or letter of credit for the purpose of guaranteeing the terms and conditions of the agreement. A letter of credit must be in a form, and from a bank, as approved by the City. Letters of credit must be automatically extended for a period of one year unless the City is notified 60 days prior to the expiration date that the letter will not be extended. Bank approval is typically granted to national banks and regional or local banks located within Minnesota. We do not have requirements for minimum holdings of banks. However, as a matter of practice, the City Attorney advises that, for smaller banks, the City verifies how much a bank has on hand. Typically, the City has received an ILOC from national or regional banks, but the size of the project can impact that. An ILOC could range from $25,000 on a small commercial project with no public improvements to $5 million for a larger residential project. EDAC CONSIDERATION Discussion on security requirements and need for further review. ATTACHMENTS 1. None ECONOMIC DEVELOPMENT ADVISORY COMMITTEE AGENDA ITEM 3B STAFF ORIGINATOR: Mike Grochala, Community Development Director EDAC MEETING DATE: June 6, 2024 TOPIC: Interim Ordinance (Moratorium) Update BACKGROUND The northwest quadrant of the City, generally referred to as “the Sod Farms”, has received significant development interest over the past two years. Two development interests have recently presented or submitted concepts for discussion with the City Council. These concepts include development of approximately 400 acres and 900 residential housing units along the Main Street corridor. The City’s 2040 Comprehensive Plan identifies Main Street, at Sunset, as a key “Gateway” into the City. The plan also recommends that a master plan be completed for the Main Street Corridor from 4th Avenue to Sunset Avenue. No master plan has been completed to date. Prior development concepts have not moved forward for development approvals. On May 28, 2024 the City Council directed staff to initiate the process to consider adoption of an interim ordinance that would establish a moratorium on residential development in a geographic area between 4th Avenue on the east, Sunset Avenue to the west, Pine Street on the north, and Carl Street/Century Trail on the south. A moratorium would allow time for the City to complete a master planning process and environmental review within a larger geographic area to address land use, transportation, environmental resources, parks and open space, surface water management and utility issues. Preparation of an Alternative Urban Areawide Review (AUAR) will be considered as part of the study process. The AUAR is an environmental review document that would allow more in- depth analysis of the Master Plan and provide a mitigation document for implementation. The planned schedule for consideration of the interim ordinance is as follows: Planning and Zoning Board Public Hearing June 17 City Council Public Hearing and 1st Reading of Interim Ordinance June 24 City Council 2nd Reading of Interim Ordinance July 8 Moratorium in Effect August 15 EDAC CONSIDERATION None Required. Update Only. ATTACHMENTS 1. Project Area Map. EXHIBIT A