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HomeMy WebLinkAbout05/10/2012 EDAC Minutes 1 APPROVED CITY OF LINO LAKES ECONOMIC DEVELOPMENT ADVISORY COMMITTEE MINUTES DATE: May 10, 2012 MEMBERS PRESENT: L. Salzman, J. Stranik, J. Schwartz, M. Kassner, B. Combs MEMBERS ABSENT: L. Thor, D. Johnson, L. Masonik, C. Wagner OTHERS PRESENT: M. Divine, M. Grochala (part) APPROVAL OF MINUTES The minutes of February 16, 2012 were approved with correction to Page 2. April 16, 2012 were approved. REVIEW OF MEETING WITH ANOKA COUNTY Ms. Divine reviewed the results of staff meeting with Anoka County regarding the tax forfeited parcels in the Legacy development. The county has now set a value for pay 2013 and has determined it will not put them up for public auction at this time because it is unlikely to get sold. If the city finds a developer, the city can ask the county to hold a parcel from public sale, and can purchase the property as fair market value. There has been an ongoing guesswork with attempting to attract new development because staff could not tell a developer what a parcel will cost. If a developer must pay for property and assessments, it was unlikely to be financially viable to develop at this point. Staff learned that if there are assessments pending on a property, the county will return what it got for the land to the city, minus what the county spent administering tax forfeited lands for that particular year. Based on past averages, the city must assume that it will not receive the first $100,000 of the land price back for assessment. Ms. Schwartz said there is a risk to a developer not knowing if the $100,000 was coming off his assessments. Likewise, first floor commercial with housing above will no longer sell. Staff agrees and has begun discussion with P&Z regarding the need to change that. It is more likely if apartments/density is developed, commercial will follow. Ms. Schwartz said it’s on average $110,000 to build a unit, and apartment 10,500 units are planned in the next year. Mr. Grochala said the city will look at writing down assessments based on what else a new development brings in, including building permits, property taxes, utility connections, etc. The next step is to have Springsted, the city’s financial consultants, complete an analysis that identifies the city’s options, looks at the cost of doing nothing versus offering discounted assessments or other financial incentives to get development moving. Ms. Schwartz said the large scale projects are getting built, largely financed by the insurance companies. 2 DISCUSSION OF ULI WORKSHOP “NAVIGATING THE NEW NORMAL” Members stated they thought it was a worthwhile workshop. EDAC’s task is to see if there is consensus about what they heard at the workshop, do members accept the assertions the panel made, and what can EDAC do based on the information. Ms. Divine asked, if these demographics are true, are they true for Lino Lakes. Ms. Schwartz said no, Lino Lakes residents want big lots, space and don’t mind driving. These statistics are for the inner rings. Mr. Kassner said other cities will surpass Lino Lakes. There will be a point where the city will lose business. Ms. Schwartz said Lino Lakes will fare better because of its past anti-growth stance, so it doesn’t have as many of the large, expensive homes. Doing nothing is an option. Mr. Stranik said the demographics don’t all apply to Lino Lakes. Mr. Salzman agreed, but said that Lino Lakes can be costly to business developers because of the length of time it takes to get approved or rejected. “a fast no is better than a long maybe” was a key take-away from the night. Ms. Divine said the Comp Plan has been adopted, it needs to be recognized the city has places where higher density is allowed, so why is the argument still there. Mr. Grochala said changing demographics doesn’t mean a wholesale change in the city. Are we providing opportunities to capture some of that market? The city is still planned for predominately single family residential, with some flexibility for higher density in certain hubs. The issue is coming to grips with the kind of high density in those places. Ms. Schwartz asked if the “new normal” want to land in Lino Lakes. Mr. Stranik thinks higher density/rental is okay, and will help build retail base. Is the message to the council that it’s different today, and people want to stay in apartments longer? Apartments generate more taxes per acre, and it’s questionable if they use more services. Ms. Divine noted that school districts are losing enrollment, and higher density can generate more children. If the infrastructure is in place, it hurts school districts to lose students. Mr. Stranik summarized members saying to be open to more high density/rental/townhomes, be flexible and more empathetic to developers, and don’t be afraid of interim development, and have some flexibility in land use. Interim could be 15 years, but if it’s something that provides tax base until quality development come. Ms. Schwartz doesn’t agree with interim zoning, those areas tend to be discounted in market value, since expansion isn’t allowed. New development is less likely to move to these areas. Mr. Combs agrees it complicates future better development. Mr. Grochala said if a property is served by utilities, the assessments would have to be paid. He agrees there really aren’t “interim” uses; they can stay for many years. Interim could be permanent uses that can be easily redeveloped, but they are TIF Districts waiting to happen. Unless the market value skyrockets, it’s expensive to redevelop. Property values will not go up like they used to. Mr. Grochala said a large issue with demographics is fewer people to buy the single family homes, and people don’t have the equity they once had. How does the city attract this shrinking market? How do we put more customers in the market for housing and retail? Ms. Schwartz said small start-up business used to depend on home equity as well. There is also little spec building anymore, so you have to attract the tenants, not just the developers. Ms. Schwartz said medical office is moving into strip centers, and the rent rates are lower than professional buildings. Mr. Kassner noted that big boxes are shrinking, and other companies are actually renting out space within the big box stores. 3 Based on the workshop, what would EDAC members recommend needs to be done differently? 1. Mr. Combs said define what the mayor and council want to do and go with it. Develop a clear message and live with it. 2. Ms. Schwartz said “stay the course” but make a yes or no faster. Developers say they won’t go to Lino Lakes because they spend a lot of money and get a “no” in the end. 3. Mr. Salzman believes in maintaining flexibility, allowing interim uses, getting the wheels of commerce moving and keep regulation simple. BLUE HERON DAYS Ms. Divine stated that the business expo was moving to Lino Park along with other events to in an attempt to grow the expo and provide more exposure. Volunteers are needed to police the area on August 18. FARMER’S MARKET The YMCA is organizing a farmer’s market that will be held from 3 – 7 p.m. on Thursdays from July 12-Sept. 27 on the community green. Meeting adjourned.