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Item No: 05 Meeting Date: August 1, 2016 Type of Business: Work Session Administrator Review: ____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Business Development Coordinator Item Title/Subject: Local Business Update Introduction: The Business Development Coordinator has regular contact with local business owners and reports to the EDC monthly on business retention and expansion updates as well as other project updates affecting Mounds View businesses. Since the EDC meetings occur at 7:30 a.m. many Council Members are not able to attend. As a result, the Business Development Coordinator has been asked to provide an update to the City Council on local business happenings. Discussion: A. Crossroad Pointe Redevelopment Project On January 25, 2016 the EDA approved the predevelopment agreement between The Beard Group and the City of Mounds View. The purpose of the predevelopment agreement is to allow for a period of time to complete the due diligence on the site. If it is determined that The Beard Group and City wish to move forward with the project, a formal development agreement will be completed. The Beard Group recently was awarded an $85,000 grant from Ramsey County for the Mounds View housing project. The market study came back very strong and as a result, they are doubling the size of the project from 119 units to 205 units with 251 bedrooms. The Beard Group has indicated to staff that they are seeking Tax Credits rather than a Housing TIF and this is taking time. Much of the funds for Tax Credits have dried up due to the popularity of the program. They are waiting to contact staff until they can fully understand the Tax Credit program and they are comfortable with the details of their design etc. Their intentions have been to build all market rate apartments, however the Tax Credit program requires them to have at least 20% of the project affordable. This requirement makes the project more expensive and they are working through their financing options. If building 205 units, then approximately 41 units would be required to be affordable with the remaining 164 units to be at market rates. They are still hoping to break ground late fall 2016 or spring of 2017. B. Business Retention & Expansion (BR&E) Visits Nearly all businesses in Mounds View have been visited. The few remaining businesses have not returned phone calls or emails. Some have said they wish not to participate. The Business Development Coordinator will continue to attempt to schedule more visits. Dunkin Doughnuts: The company was looking at the endcap where Tom’s Collectibles is currently located next to the movie theater. It was an ideal spot for them and they had talked about removing the trees along County Rd 10 for more visibility. However, Subway has a non-compete clause and they felt that Dunkin Doughnut’s croissants and breakfast sandwiches would be competing with their business. Therefore, Dunkin Doughnuts is looking elsewhere. Staff is looking for other options to try and keep them in Mounds View. Retail Development: A broker called last month who is working with a undisclosed developer at the possibility of purchasing the five parcels along County Rd 10 and Woodale Drive which is located on the southeast side of the Bel Rae Senior Living facility. Since there are currently three homeowners in the area, the developer would need to negotiate with the home owners to purchase those parcels then demo the site for a potential retail center. Staff has not heard back from the caller.