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HomeMy WebLinkAbout04-18-2008 • CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION MEETING AGENDA MOUNDS VIEW CITY HALL FRIDAY, APRIL 18, 2008 7:30 A.M. 1. CALL TO ORDER 2. ROLL CALL Chair Helgemoe, Vice Chair Meehlhause, Commissioner Belting, Commissioner Entsminger, Commissioner Johnson, Commissioner Larson, Commissioner Wagner and Economic Development Specialist Heidi Steinmetz 3. APPROVE APRIL 18, 2008 EDC AGENDA 4. APPROVE MARCH 21, 2008 EDC MINUTES 5. SPECIAL BUSINESS 6. EDC BUSINESS A. Review First Draft of Public Communications/Marketing Plan B. Continue Discussion Regarding 2008 Targeted Business List C. Continue Discussion Regarding Housing Replacement Program 7. REPORTS OF COMMISSIONERS 8. REPORTS OF STAFF A. April 7th Redevelopment Roundtable Recap B. Totino's Italian Kitchen Grand Opening Ceremony 9. NEXT EDC MEETING: Friday, May 16, 2008 at 7:30 a.m. 10. ADJOUNMENT • • Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting March 21, 2008 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chair Jason Helgemoe called the meeting to order at 7:43 a.m. 2. ROLL CALL: Members Present Chair Jason Helgemoe and Commissioners Greg `Belting, Dan Larson and Jackie Entsminger Members Absent Commissioners Gary Meehlhause, Toni Johnson and Jennifer Wagner Staff Present Economic Development Specialist Heidi Steinmetz • 3. APPROVAL OF AGENDA: Motion/Second: Commissioner Larson moved and Commissioner Entsminger seconded the approval of the March 21, 2008 EDC agenda. Motion Carried: 4 Ayes 0 Nays 4. APPROVAL OF EDC MINUTES: Motion/Second: Chair Helgemoe moved and Commissioner Belting seconded the approval of the February 15, 2008 EDC minutes. Motion Carried: 4 Ayes 0 Nays 5. SPECIAL BUSINESS There was no special business; however Commission Belting asked if anyone attended the Medtronic tour on February 20th. Ms. Steinmetz and Commissioner Larson attended and said it is a nice facility. Ms. Steinmetz mentioned she had toured the building three times and each time she sees something she didn't notice before. Chair Helgemoe reminded the group that there will eventually be another building and an additional parking ramp. He also added that he drives by the facility every day and traffic flow does not seem to be disrupted • in any way. EDC Minutes March 21,2008 Page 2 of 7 • Chair Helgemoe took the opportunity to advertise the Chamber's upcoming annual golf tournament to be held at Majestic Oaks on Tuesday,June 3rd. The event is a fundraiser for the Chamber. He encouraged Mounds View businesses,their employees and residents to support the event by golfing or donating items for the silent auction. He added that he attended the Chamber luncheon yesterday at The Mermaid where the chief economist from Wells Fargo spoke about the economy and how investment houses are lacking assets since there is no market for hybrid securities. Chair Helgemoe also mentioned that the search committee has narrowed down the choices for a new Chamber president. Commissioner Entsminger reminded the group that the Mounds View Town Hall Meeting is scheduled for Saturday, April 19th from 9:OOam until noon. Finally, Chair Helgemoe congratulated Commissioner Belting on moving into a new building (Commissioner Belting's business, Silver View Chiropractic, has a new home in Mounds View City Center Suites). Commissioner Belting added that it was nice to stay in Mounds View. 6. EDC BUSINESS A. Continue Discussion Regarding Internal Public Communications/Marketing Assessment Ms. Steinmetz explained that this discussion began last month. She reminded the EDC • that last month they discussed Mounds View entrance road signs and that the Council is leaning towards the design that is not preferred by the EDC. Ms. Steinmetzposed several questions for the EDC to consider regarding public communications and marketing. The first question was "Is creative and low cost branding something the City should consider'?" She referenced an article she included in the EDC's meeting packet about other cities that have completed branding exercises. Chair Helgemoe responded"Yes". He added that everyone has something to sell. The City wants to sell itself and present itself in the best light possible. He asked "Why wouldn't we want to have some sort of a symbol and/or marketing that is recognizable, creates a positive feeling and is identifiable'?" He can't imagine why the City would not want to do that. He mentioned that Coon Rapids has undertaken branding and they've had decent results. Commissioner Belting concurred with Chair Helgemoe's comments. He thinks it's important to"make yourself relevant/stay relevant and branding is certainly a way to do that;" however he believes we should continue to be conscious about cost. He referenced that staff seems to be conscious of that per the staff report. Chair Helgemoe agreed but posed the question "Can you really afford not to?" He added "in life you need to spend a little bit to get a better return" and although it may be hard to quantify the results, he thinks the benefit would outweigh the costs. • Commissioner Entsminger agreed and pointed out that she doesn't like the road sign design at all. She said it reminds her of something one would see up north near a cabin EDC Minutes March 21,2008 Page 3 of 7 • area. Commissioner Belting added that it's a sign one would see in a smaller town near Brainerd. Commissioner Entsminger doesn't think the design represents Mounds View at all. Chair Helgemoe asked if the design is what the Council is leaning toward. Ms. Steinmetz confirmed and added that Jim Ericson provided the Council with the EDC's input. Commissioner Engsminger added that the Council's preferred design is "not even progressive,since we have Medtronic and new businesses,this shows no progress at all to our community". Chair Helgemoe asked if we've had any input from the citizens or other community leaders. Ms. Steinmetz said "no", which is why staff asked the EDC for input. She added that she is unsure when the Council is going to make their decision or when the signs are going to be ordered so staff will definitely provide the additional input from the EDC. Commissioner Belting added that consistency in branding is important too. He gave the example that large corporations don't have different'logos for different products, so to have road signs that don't match a new newsletter'or Website design doesn't make a lot of sense. Chair Helgemoe added that it wouldn't be cost effective. Commissioner Belting said that perhaps we should ask the community if there are any cost effective branding process options. Ms Steinmetz referenced the article in the meeting packet again about communities that have taken advantage of"free"assistance with branding • exercises. Chair Helgemoe and Commission Entsminger agreed that anyone who would complete branding for the City of Mounds View would be a good addition to his or her portfolio. It would provide a "win/win" situation. Commissioner Larson had the idea of asking community members to submit branding proposals and to hold the Council's final vote at the Festival in the Park. Ms. Steinmetz mentioned that she would summarize the EDC's ideas into a draft marketing plan for review next month. A revised plan would eventually be considered by the EDA. Ms.Steinmetz asked the next question,which Commissioner Belting already discussed, which was"Should the City have one consistent logo'?" She referenced that the internal marketing assessment included examples of the different City logos currently being used and that there is not consistency. She asked the next questions "Should the City newsletter be redesigned?" and should be a "go to" person overseeing all of the City's marketing/communications activities'? Currently there are many different staff at City Hall completing different marketing/communication activities and since each person has their own creative opinions, it is difficult to achieve consistency. Chair Helgemoe stated "Yes" to every question. Commissioner Belting said the newsletter is not as relevant as what other cities are distributing in today's market, especially the cover. Chair Helgemoe said it looks like a technical manual. Both agreed that the newsletter should be redesigned. The Commission realizes that the newsletter • is completed "in house" and by no means wants to offend City staff currently producing EDC Minutes March 21,2008 Page 4 of 7 • the newsletter; however newsletters are hard work and perhaps a professional would make the process easier on staff. Commissioner Larson asked how the newsletters are distributed. Ms. Steinmetz believes they are sent directly to the residents; however they are actually distributed with the Sun Focus. He said we need to expand distribution to all Mounds View businesses. Chair Helgemoe said perhaps the U of M could provide assistance with this matter. Commissioner Belting said that there should absolutely be a "go to" marketing/communications person on City staff. Chair Helgemoe added that if there are several staff people doing different marketing/communications jobs,there is not going to be synergy. Chair Helgemoe summarized the discussion by saying that it is the EDC's consensus that it would be a good idea to have a "go to" marketing/communications person at City Hall B. Discuss 2008 Targeted Business List Ms. Steinmetz stated that this agenda item was generated from the Comprehensive Plan Task Force. The Task Force noted that the current Comprehensive Plan contains a phrase that the City's targeted business list should be updated annually. Ms. Steinmetz explained that in years past, the list was updated annually, but since the list never seemed to change, annual updates hadn't occurred lately. Having said that, Ms. Steinmetz recommended that the list be reviewed annually so it is completely clear where staff should be focusing business recruitment efforts. For example, a list should serve the community as a whole rather than one or two residents. She mentioned the current list was based on Jim Ericson's and Aaron Backman's memory and included recommendations from residents and elected and appointed officials. Ms. Steinmetz added that there are related policy questions that the EDC should discuss prior to reviewing or updating the current targeted business list, such as "What is the City's main business recruitment goal?" Chair Helgemoe asked if the EDC should postpone this item until the next meeting when more members are present. Ms. Steinmetz agreed because the related policy questions are important. Chair Helgemoe commented on the lack of restaurants in Mounds View and referenced Commissioner Wagner's comment from the last EDC meeting regarding the lack of a grocery store in Mounds View. He asked Commissioner Entsminger for input. She responded with saying that a large grocery store is not warranted for this size of community. She said Mounds View "doesn't really have anything to draw people to" (an anchor business) and added that she "doesn't mean that in a negative way", however "it's basically a pass-through community". Ms. Steinmetz added that ever since several contiguous properties had become • available for redevelopment (between County Road H2 and Woodale) that developer input is that Mounds View is not going to see a lot of redevelopment interest because EDC Minutes March 21,2008 Page 5 of 7 • there's no anchor or destination-type core to the City. That is why a lot of communities are building downtowns from scratch. Since Mounds View does not have a center or core, business recruitment and redevelopment may be more difficult. Chair Helgemoe asked if the City needs to change its focus regarding the types of businesses it tries to recruit. Ms. Steinmetz mentioned that the City Council will be holding a redevelopment roundtable on April 7th,which may help answer that question. Commissioner Belting mentioned the dynamics of County Road 10 have changed but the speed limit has not. Chair Helgemoe mentioned that he personally drives slower through Shoreview because he thinks it's visually appealing. He feels that the renovation of Mounds View Square may be the start of improving the aesthetics of Mounds View's main corridor. Chair Helgemoe asked staff to send an e-mail reminder about the redevelopment roundtable and wondered the other City Commissions should be invited. Commissioner Entsminger asked for clarification that Robert's is "off the table". Ms. Steinmetz confirmed. Commissioner Entsminger left the meeting for another appointment. C. Discuss Housing Replacement Program Ms. Steinmetz suggested postponing this item as well. She reminded the EDC that the Housing Replacement Program is a City program administered offsite through the Housing Resource Center. The program offers a forgivable loan to be paid back within 10 years. The purpose of the program is to assist people who want to replace blighted • homes. Staff would like the EDCs input regarding whether or not the City and the Housing Resource Center is meeting the needs of the community. This issue has come to light because of the foreclosure crisis. Chair Helgemoe asked how many foreclosures are in Mounds View and what percentage of Mounds View housing stock is in foreclosure. Ms. Steinmetz said there are about fifty foreclosures but she didn't know the percentage. Commissioner Belting asked if the City is getting reimbursed for the City services that result from the foreclosures. Ms. Steinmetz said that this is a discussion point among cities and each city is recouping the costs differently. He asked if the fees should be raised or if there should be a"foreclosure fee?" Ms. Steinmetz said there are two separate issues to discuss "Does the City want to expand its housing program?" and there is also the foreclosure issue. The foreclosure issue spawned from a more global issue of making sure Mounds View housing stock does not deteriorate. Commissioner Larson said that(as a resident)the City should get involved to make sure the housing stock doesn't deteriorate further. As far as foreclosures, he suggested that City officials approach residents who live next door to foreclosures because in most case, they'dbe willing to help because foreclosures affect property values. Chair Helgemoe agreed because it would protect the City's tax base and property values. Commissioner Belting left the meeting for another appointment. EDC Minutes March 21,2008 Page 6 of 7 11111 7. REPORT OF COMMISSIONERS There were no Commissioner reports. 8. REPORTS OF STAFF A. Economic Development Component of the Comprehensive Plan Ms. Steinmetz summarized the March 12th Comprehensive Task Force meeting and said she reformatted the Economic Development portion so that it is easier to read. She added that the Task Force asked her to wordsmith the document to be reviewed at the April 9th Task Force meeting. Ms. Steinmetz asked to the EDC to let her know if they had further input and that she would forward any new input to the EDC's Task Force representative, Commissioner Meehlhause. B. Final Version of the Mounds View Business Toolbox Ms. Steinmetz stated that the EDA approved the final version of the Toolbox on March 10th. Chair Helgemoe asked how it would be disseminated. Ms. Steinmetz said that it's only for staff, elected and appointed officials' reference. Chair Helgemoe asked if it is the Council's ideal for staff to distribute the Toolbox to businesses and how the Toolbox would be utilized. If it is not used as a marketing tool or distributed to businesses,what S is the purpose? Ms. Steinmetz stated that she believes the Council does not want businesses to view the Toolbox as a menu of financing options. She added that perhaps this is a policy issue that should be discussed. Are business subsidies something the City no longer wants to provide? Chair Helgemoe added that many or most of the items listed in the Toolbox are not City subsides. He feels that the Toolbox should be mentioned on the City Website but feels that the EDC should discuss this further at a future meeting. C. Premium Stop Redevelopment Area Update Robert's Bar is currently under a purchase agreement and the buyers plan to reopen the facility as a bar/restaurant. The proposed closing date is May 15th, however it could be several months before the business opens because a sprinkler systems needs to be installed. She provided background that Robert's waspart of a 12-acre redevelopment area along Hwy 10 between County Road H2 and Woodale. Robert's and the apartment building are not available,which leaves ten available properties. It is significant and unusual for ten contiguous properties fronting a highway to be available within a community. Chair Helgemoe mentioned the Saturn dealership. Ms. Steinmetz said the Saturn/MultiTech site has received more interest (than the 10-parcel redevelopment area across the Hwy) from the development community. Chair Helgemoe asked if the inquiries have been for the same use (a car dealership)? Ms. Steinmetz said that staff • has received inquires for whether or not the City would be interested in a high density/multi-family residential project, which would require a rezoning. EDC Minutes March 21,2008 Page 7 of 7 S She summarized by saying that the location of the numerous available properties(both areas) at a key intersection within the community puts the City in a good position to create a nucleus, although redevelopment is extremely expensive and complex, so it would take a lot of support and a very strong vision from Mounds View appointed and elected officials to make it possible. The redevelopment roundtable on April 7th may be the beginning of meaningful redevelopment discussions, such as discussing what the City wants the corridor to look like in 20 years. Chair Helgemoe referenced Lino Lakes's town center project. He said their sentiment was that they had open land and wanted to"do it right". They didn't want to jeopardize the long-term health of the community for a short-term benefit. He added that perhaps Mounds View should move slower rather than faster because if we do the right thing it will impact us in years to come. Ms. Steinmetz provided more background information regarding the planning study that was completed for Mounds View's Premium Stop Redevelopment Area and that it is posted on the City's Website. The City does have a vision and a concept for the Premium Stop area but not for the Saturn site. The City's involvement for both areas is to promote the areas to the development community. Although the EDA owns one parcel in the area, the City is not interested in purchasing more property. Ms. Steinmetz concluded by saying that the roundtable will provide more insight on this issue. Chair Helgemoe said that hopefully the results of the roundtable will be for the City to take a more proactive approach rather than"throwing caution to the wind". This is a highly visible and important area. Perhaps after input is received at the roundtable,the • EDC should continue this discussion as high on its priority list. Ms.Steinmetz suggested a joint meeting between the EDC and the Council. She will keep the EDC posted. 9. ADJOURNMENT There being no further business before the Commission, Chairperson Helgemoe adjourned the meeting 8:53 a.m. 1 Respectfully submitted, Ai..,,Z Heidi Steinmetz Economic Development Specialist 4110 • Item Numbers: 6A Meeting Date: April 18, 2008 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Review First Draft of Public Communications/Marketing Plan Background: At the January 18th EDC meeting, staff inquired of the EDC's thoughts regarding the need for a public communications/marketing assessment for the City of Mounds View. Staff completed the attached assessment to save costs and time. Staff presented the EDC with the assessment on February 15th but due to time constraints, the EDC was only able to discuss one portion of the assessment in detail; the Mounds View road • sign design options. On March 21st, the EDC discussed issues related to the assessment in depth and agreed that branding is something the City of Mounds View should consider, that the City newsletter should be redesigned and that the City should have a "go to" person for all public communications/marketing efforts within the City. Discussion/Recommendation: Staff completed the attached draft public communications/marketing plan as a starting point for the EDC to build upon and later use as a basis to developing a Request for Proposals (RFP) for a professional to complete a low-cost branding exercise. Staff recommends that the EDC refine the draft plan by suggesting changes or additions and discussing ideas for an implementation timeline. Respectfully submitted, Heidi Steinmetz Economic Development Specialist Attachments: • • Public Communications/Marketing Assessment • Draft Public Communications/Marketing Plan ------- 0 0S, Tog, con 2 t).9 to u- 4.5... , '6 ... s c6 u> .... 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'pow m E J ceF- m City of Mounds View Draft Public Communications & Marketing Plan The purpose of this draft plan is to provide structure, organization and consistency for public communications and marketing efforts in Mounds View. There are several target audiences listed below who have different needs. There are also different goals for public communications vs. marketing efforts. Following the goals, there are different tools listed that could be viewed as the "means" by which the goals are achieved. Prior to heavily utilizing these tools, a consistent brand (logo/tagline/imagery, etc.) should be established. A timeline to implementing a final plan will be established as this is refined. Target Audiences & Goals Target Audience Communications Goal Marketing Goal Mounds View -Inform all residents of key City -Establish an image that residents projects encourages more residents to -Provide a sounding board and tout where they live platform for feedback as issues arise to ensure those issues are addressed • Mounds View -Inform business owners of key -Establish the image that businesses & City projects that directly affect Mounds View is a good place their employees businesses and encourage them to do business and it's to forward the information to their important to keep your employees business here because -Provide a sounding board and Mounds View will continue to platform for feedback as issues prosper arise to ensure those issues are addressed Non-Residents Inform business customers and -Establish the image that it's (those who visit visitors of any inconveniences, easy to get around in Mounds & patronize Mound such as road construction or View and since Mounds View View businesses) construction projects will continue to prosper, please come back &visit to see what's new! Redevelopment -Inform redevelopment -Establish an image that it is professionals such professionals of redevelopment easier to do redevelopment in as partnering opportunities in Mounds View Mounds View than other governmental and communicate the City's clear communities agencies, role with redevelopment businesses, (whether it's only promotion or brokers & more) • developers 4111 Public Communications & Marketing Tools Tool Responsible Staff Frequency Cable Vanessa Ongoing Mounds View Matters Des/Jim (all staff submits articles) Quarterly Business Newsletter Does not exist Bi-annually Website Des/Jim/Heidi H./Heidi S./Mary S. Ongoing City Hall Sign Mary S. Ongoing Home & Garden Show Jeremiah/Everyone Annually Festival in the Park Festival Committee Annually Build Relationships All Staff Ongoing Community Dev. Annual Report Community Development Staff Annually Town Hall Meeting All Staff Annually Entrance Signs Jim/Public Works Letterhead Mary S. Ongoing Return Address Labels Mary S. " Thank You Cards Mary S. " Business Cards Mary S. News Releases Heidi S. As "news" is available Direct Mail to Developers Heidi S. Annually • • Draft 4-17-08 Page 2 of 2 • Item Numbers: 6B Meeting Date: April 18, 2008 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Continue Discussion Regarding 2008 Targeted Business List Background: The 2001 Economic Development portion of the Comprehensive Plan included the following statement: "In order to continuously refine and review its objectives as economic conditions and realities change, the City, through the Economic Development Commission (EDC) and/or the Economic Development Authority (EDA) will annually update its list of targeted businesses and industries." • This statement prompted discussion at the March 12th Comprehensive Plan Task Force meeting upon which the Task Force suggested that residents be surveyed via the City's Website or newsletter regarding what types of businesses residents would like to see in Mounds View. Planning Associate Heidi Heller mentioned there may be a possibility to gather similar input at the April 19th Town Hall Meeting. The City previously reviewed its targeted business list annually but discontinued doing so because the list never seemed to change. Furthermore, a documented targeted business list does not exist; however an unofficial list, based on informal/verbal resident input provided to staff is as follows: • Sit-down restaurant • Grocery store • Medical or dental clinic • Optometrist office • Hardware store • Jewelry store • Funeral home • Florist • Financial institutions (investments, bank, credit union) • Item 6B April 18,2008 EDC Meeting Page 2 of 2 Discussion: Since the City's Comprehensive Plan is meant to be a guiding document or framework for the future of the community, staff does not feel it is necessary to include a specific statement regarding an annual review of the City's targeted business list. It is important, however that the EDC & EDA discuss its targeted business list as the market changes. A documented list is a public communications/marketing tool and will provide staff with a clear business recruitment focus. Recommendation: Staff recommends that the EDC discuss the following questions regarding a 2008 Targeted Business List: 1. Should the EDA/Council have a policy discussion regarding the main goal of business recruitment? 2. What should be the City's main business recruitment goal, according to the EDC? o To increase the City's tax base with highest and best use development o To create high-wage jobs • o To provide residents with goods and services that are not currently available in Mounds View 3. Based on question #2 and the results of the Retail Trade Analysis (presented at the last EDC meeting), are there any changes to the above list of nine targeted businesses? 4. Based on the result of question #3 and the results of the Retail Trade Analysis, how would the EDC prioritize their targeted business list? Staff will report the EDC's input to the EDA on April 28th Respectfully submitted, Ahe---- 144fiwg Heidi Steinmetz Economic Development Specialist • Item Numbers: 6C Meeting Date: April 18, 2008 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Continue Discussion Regarding Housing Replacement Program Background: The City's Housing Replacement Program policy was last updated in July of 2007 and is attached for the EDC's reference. The program is geared toward providing demolition assistance through Tax Increment Financing (TIF), which is provided as a ten year/forgivable deferred loan. • The program is administered by the Housing Resource Center, which is a program of the Greater Metropolitan Housing Corporation. GMHC's mission is to preserve, improve and increase affordable housing for low and moderate income families, as well as assist communities with housing revitalization. There are five Housing Resource Center service areas throughout the Metro. Mounds View is part of the "North Metro" service area. Attached is a list of programs available to those who wish to improve Mounds View's housing stock. Issue: Housing rehabilitation assistance is not available through the City's Housing Replacement Program but it is available through the Housing Resource Center. Recommendation: Staff recommends that the EDC consider the following questions regarding the Housing Replacement Program: • Does the EDC believe that the Housing Replacement Program policy should be expanded to help address the current housing market? • Does the Housing Replacement Program and the Housing Resource Center programs meet the needs of the community? Item 6C April 18,2008 EDC Meeting Page 2 of 2 Respectfully submitted, Heidi Steinmetz Economic Development Specialist Attachments: • Housing Replacement Program policy, July 2007 • Housing Resource Center program information ©uTY or I1 © City of Mounds View P � Housing Replacement Program (Revised July 2007) °detest,Partnets'As A. Statement of Purpose The Mounds View Economic Development Authority Housing Replacement Program ("Program") is established to reduce blight, improve residential neighborhoods and increase the tax base. B. Program Objectives • Replace deteriorating substandard housing on scattered sites throughout the City with larger,higher value housing designed for owner-occupied families. • Eliminate the blighting influence of substandard housing. • Increase the availability for quality housing for families. C. Program Funding The Program is funded through Tax Increment Financing and administered by the Mounds View Economic Development Authority(the "EDA"). D. Data Privacy All files and information, which identifies property and persons, is private and cannot be released. All information secured through the Program is subject to the Data Privacy Act. E. Pro2ram Options The Program offers two options for participation. Option 1 — Demolition Assistance: The primary component of the Program involves providing financial assistance to cover the cost of demolishing substandard or blighted property with an agreement that it will be replaced within a specified time frame with a new home that meets certain minimum design standards and area requirements as articulated in Attachment A, Minimum Standards and Requirements. Option 2 -Acquisition: This secondary option involves the purchase of a substandard single- family home and land by the EDA from a willing seller. The EDA will coordinate the site clearance activity and market the site to a developer/owner with an agreement that a new home would be constructed within a specified time frame that meets certain minimum design standards and area requirements as articulated in Attachment A, Minimum Standards • and Requirements. City of Mounds View Housing Replacement Program • F. Publicizing the Program; Making Application 1. EDA staff, or their appointees ("Program Staff"), will solicit participants by direct mail, advertisement, or other method. The number of applications accepted for participation in the Program will be determined by the availability of personnel and financial resources. 2. Participation in the Program is voluntary. Interested participants must be able to furnish proof of ownership or documented intent to acquire the property, and are required to submit a letter of application to the EDA indicating: a. For Option 1 (Funding for Demolition): (1) An interest in obtaining funding for demolition from the EDA to replace existing housing with new housing that meets the expressed minimum guidelines of the EDA. (2) Consent to hold the EDA harmless for demolition activities. (3) Consent to enter into a legal development agreement with the EDA regarding redevelopment of the property. (4) Ability to produce proof of construction financing. b. For Option 2: (Sale of Property to EDA): (1) An interest in selling their property to the EDA. • (2) A willingness to waive relocation benefits. (3) Statement affirming that the property is either vacant or owner-occupied at the time of offer. (4) Consent to the release of relevant information to potential developers and end buyers. 3. Individuals who have expressed an interest in participating will be contacted by Program Staff to inform them of the estimated project time line and to obtain complete information on the items noted under F.2. above. G. Property Eligibility Criteria Program Staff will evaluate each property for which an application is received to determine Program eligibility based on the criteria in this section. Program Staff will prepare property fact sheets for each property for which an application has been received and will conduct an interior and exterior inspection of each property. Properties will be evaluated based on the criteria outlined below. To be eligible for participation, the house must be previously identified by the EDA as a potential acquisition (Option #2 only) and the property must have one of the characteristics noted in 1, 2, 3, 4 or 5 below: 1. Substandard as to condition, code compliance, size or usage. 2. Obsolete and having a faulty design for block and area in which it is located. 3. Deterioration which has caused blight to other adjoining properties. • 4. Detrimental to the safety or health of abutting properties in the block. 5. Foreclosed upon or notice of foreclosure has been served on occupant. Page 2 City of Mounds View Housing Replacement Program 111) If it is determined that the property is eligible for participation based on the condition of the house as expressed in characteristics 1-5 above, it must also meet the following criteria as outlined in 6-8 below. 6. The site can be developed with a single family home within city code requirements, including zoning and conformance with the Comprehensive Plan. 7. The property must be owner-occupied or vacant before the owner or owner's designee makes application to the Program. Non-homesteaded vacant property will be considered for demolition assistance or acquisition. Tenant-occupied properties will not be considered for participation. 8. Prior to approval by the EDA for participation in the Program, properties over 50 years old must be evaluated for historical significance. This will be accomplished by forwarding general property information and a property photo to the Minnesota Historical Society for review. The EDA will not enter into a purchase agreement or award funding for demolition of a property which qualifies for the National Registry of Historical Structures. H. Program Priorities If more than one application for demolition funding or acquisition has been received during a given month, the Program Staff shall rank the applications to determine the best candidates for Program participation based on the information and criteria noted below and in the following order: • 1. Properties that can meet established guidelines and time frame will be considered first. 2. Properties considered the most substandard will be considered first. 3. Requests submitted by Mounds View residents will be considered first. 4. Applicants who have expressed a funding "need" shall be considered first over applicants with little to no "need". 5. Properties should be equally distributed by location and value throughout the City when possible, and provide a viable financial mix of properties to support Program financial requirements. I. Option 1: Funding of Demolition: 1. Blight Qualification: Properties being considered for demolition funding must meet blight qualifications as outlined in Section G. Applicants shall demonstrate proof of construction financing in a form acceptable to the City. 2. Need for Variances: If a variance is required to redevelop the property, the homeowner must obtain the variance prior to the approval of demolition funds. If a variance is not granted, demolition funds shall not be awarded. • 3. Comprehensive Plan/Zoning: The Comprehensive Plan designation and the zoning on the property must allow for its redevelopment as a single-family residence. Page 3 City of Mounds View Housing Replacement Program • 4. pp Development Agreement: The applicant must enter into a Demolition and Redevelopment p g Agreement with the EDA which will stipulate housing design and site development features consistent with the guidelines attached in Exhibit A (Housing Design and Site Criteria) and identify the time frame for completion. The development agreement will include an estimate of the minimum value of the home to be constructed. 5. Demolition Contract: The applicant must obtain three estimates for demolition from qualified demolition contractors which will assist in determining the amount of demolition funds to award for the project. The total amount of assistance provided shall not exceed the lowest responsible estimate received not to exceed $10,000. The selected demolition contractor must be able to meet project deadlines as outlined by City Staff. The demolition contractor will be required to obtain all necessary City permits, pay applicable fees and provide for appropriate handling and abatement of any hazardous materials encountered. Overall demolition supervision will be provided by a designated Program Staff in conjunction with the interested participant. 6. Funding Mechanism: The assistance will be provided to the applicant upon conclusion of the demolition activity and satisfactory final inspection of the demolition permit, in the form of a ten year forgivable interest-free loan, with a 10% incremental reduction in principal upon each successive year the participant lives in the new home, with complete forgiveness after the tenth year in the home. The annual reduction in principal is tied to the date of completion/owner- • occupancy of the new home and not to the loan closing. If the participant sells or rents the home to a third party prior to the tenth year,the following loan repayment schedule shall apply: If the home is sold before The amount to be repaid upon closing shall be End of the first year, 100% of the loan amount End of the second year, 90% of the loan amount End of the third year, 80% of the loan amount End of the fourth year, 70% of the loan amount End of the fifth year, 60%of the loan amount End of the sixth year, 50%of the loan amount End of the seventh year, 40%of the loan amount End of the eighth year, 30%of the loan amount End of the ninth year, 20%of the loan amount End of the tenth year, 10%of the loan amount After the end of the tenth year, the applicant will be provided with a lien release and the necessary paperwork to record at Ramsey County. The loan shall be administered by the Housing Resource Center, NorthMetro Office, a division of the Greater Metropolitan Housing Corporation (GMHC). The Housing Resource Center or GMHC shall prepare lien release and satisfaction documents as needed. • Page 4 City of Mounds View Housing Replacement Program • J. Option 2: Acquisition of Property by EDA 1. Blight Qualification: Once an offering letter is received from the interested participant, Program Staff will arrange, by appointment, an inspection of the interior of the home to establish blight qualification as outlined in Section G. In addition, Program Staff will make a determination as to the potential presence of hazardous materials on the property and will obtain a statement from the interested participant regarding any knowledge of the property's use for production, storage, deposit, or disposal of any toxic or hazardous wastes or substances or asbestos products whatsoever, during the time the interested participant owned the property and prior to the date of interested participant purchased property. Properties with recognized environmental conditions or hazards may be considered if the purchase price is reduced sufficiently to cover increased site clearance and preparation costs. If a property satisfies the blight conditions as outlined herein, acquisition procedures can continue. If the blight test cannot be met, the interested participant will be notified in writing indicating the reasons why the property cannot be considered for acquisition. 2. Need for Variances: If a variance is required to redevelop the property, the EDA may, at its sole discretion, choose not to acquire the property. This determination will be made based on the project time lines, available resources, and availability of other properties which do not require a variance. If the EDA chooses to pursue a variance to enable the acquisition of the property, an application shall be filed following the usual procedures. If a variance is not i approved,the property cannot be considered for acquisition. ! 3. Appraisal: Determining Purchase Price: If the EDA chooses to continue with the acquisition, a fee appraisal shall be ordered at the EDA's expense and the result shall be used in determining the amount of the purchase price to offer to the interested participant. The independent fee appraiser shall be carefully instructed to document in specific terms the conditions of the property including details regarding structural condition and floor plan. The acceptance of these conditions in the market place should be discussed in the report. The appraiser's value judgment should reflect these conditions. A negotiated price considerably below the assessor's market value may be accepted without an appraisal on a case by case basis if the interested participant concurs. 4. Purchase Agreement: Closing Procedures a. When both parties have verbally agreed upon a purchase price, Program Staff and Legal Counsel shall prepare a Purchase Agreement to be presented to the interested participant. The purchase price contained in the Purchase Agreement shall be within the range authorized by the EDA. The purchase agreement shall be contingent on the completion of an environmental evaluation suggesting no evidence of hazardous waste on the property. The interested participant shall receive a copy of the purchase agreement including the following information: • Page 5 City of Mounds View Housing Replacement Program • (1) The purchase price (2) How the purchase price was determined (3) The amount of earnest money (4) A date to sign the Purchase Agreement (5) A closing date b. To enable the acquisition process to continue, the interested participant must execute the purchase agreement and a "waiver of relocation benefits" form. The waiver of relocation must be clearly explained by City staff to the interested participant at this time, if not explained previously. c. The EDA Executive Director and President shall be signatories on the purchase agreement. d. The acquisition and disposition of the property must be in conformance with the Mounds View Comprehensive Plan. e. Following EDA authorization of these agreements, interested participants and/or Program Staff will be requested to assemble and supply all required documentation prior to closing as outlined below. (1) Title documentation acceptable to City staff must be furnished to the • Program Staff to facilitate the rendering of a title opinion. The interested participant will bear the cost of updating the Abstract or RPA as part of the closing procedures. (2) EDA Legal Counsel shall review the submitted title documentation and will provide Program Staff and interested participant with a written opinion of title. EDA Legal Counsel will also secure title insurance. (3) If the title opinion indicates the property has marketable title, purchase procedures may continue. If the title opinion does not indicate marketable title, the EDA, at its sole discretion, may choose not to acquire the property. The EDA may determine remedies and evaluate their resolution, including the additional time and expense to provide marketable title. It shall be the seller's responsibility to correct title deficiencies to effectuate the sale of the property dependant upon the additional time and expense incurred. (4) Simultaneously with the title opinion, an environmental evaluation will be obtained from an independent environmental engineering firm or other firm performing such service. If environmental hazards are found on the site,the EDA may choose not to acquire the property. S Page 6 City of Mounds View Housing Replacement Program • f. The seller must be prepared to vacate the property on the day of closing unless other arrangements have been made with Program Staff. g. If the interested participant decides not to sell the property after execution of the purchase agreement then the interested participant must provide the EDA with the following: (1) A letter expressing their desire not to proceed with selling the property (2) The full amount of earnest money received upon execution of the purchase agreement, and (3) Full payment of legal and consulting fees incurred by the EDA after the execution of the purchase agreement in preparation for the closing of the property. 5. Selection of Demolition Contractor and Procedures: After the closing, Program Staff will select a demolition contractor by sending Requests for Proposals (RFP) to at least three demolition contractors. The proposal received with the lowest price will have priority. The demolition contractor must be able to meet project deadline as outlined in the RFP. The demolition contractor will be required to obtain all necessary City permits and pay applicable • fees. A Program Staff person will provide demolition supervision. 6. Marketing: Program Staff will advertise the sale of the property by contacting the St. Paul Realtors Association, area residential developers, interested buyers and by posting signs on the property. 7. Selection of Developer: Program Staff will negotiate the purchase of the property with an acceptable buyer/developer or buyer/builder team. If a buyer/developer or buyer/builder team cannot be obtained, the EDA may consider selling property to a developer or builder for sale to the open market after completion. As part of the sale of the property,the buyer/developer team purchasing party must sign a purchase and redevelopment agreement with the EDA, which will stipulate minimum standards, housing design and time frame for completion. (Refer to Exhibit A, Housing Design and Site Criteria guidelines, attached.) 8. Development Agreement: Closing Procedures a. When a redevelopment proposal submitted by a buyer/developer or buyer/builder team has been approved by the EDA, Program Staff and Legal Counsel will prepare a Purchase and Redevelopment Agreement. The selected developer will receive a copy of the Purchase and Redevelopment Agreement which will include, but not be limited to, the following information: • Page 7 City of Mounds View Housing Replacement Program S (1) Construction of minimum improvements (2) Estimated market value of the property and improvements (3) Purchase price (4) Completion date (5) Financial guarantee submitted by the developer with a minimum amount equal to 100% of the minimum improvement value (6) Revesting of Title. Subject to unavoidable delays, if the Developer fails to carry out its obligations with respect to the construction of the Minimum Improvements, the Authority will have the right to re-enter and take possession of the property. The Authority at its option may declare a termination in favor of the Authority of the title and that the title and all rights and interests of the Developer will revert to the Authority. Economic Development Authority By: EDA President By: EDA Executive Director Revised: July 2007 S Page 8 EXHIBIT A. 411/ HousingReplacementProgram Pro ram HOUSING DESIGN AND SITE CRITERIA (July 2007 revisions) The Mounds View Economic Development Authority (EDA) established the Housing Replacement Program to reduce blight and increase the tax base. The purpose of the program is to replace deteriorating lower value housing on scattered sites throughout the City with larger, higher value housing designed for families. The program promotes these goals through two different mechanisms— providing demolition assistance to remove sub-standard, blighted and distressed properties, and acquisition of substandard, blighted or distressed homes. In either case, the subject property is demolished and a new, larger, higher-value home is constructed in its place. The program will assist in eliminating the blighting influence of substandard housing and increase the availability of quality housing for families. 1. General a. The developer must enter into a Contract for Private Development with the EDA which will specify design, set site criteria and establish value based upon new home construction in the surrounding area. b. The builder must be a licensed contractor. All sub-contractors must also be licensed. Homeowner sweat-equity labor on interior finishes may be permitted. c. Home design must comply with all federal, state and local building codes. d. The house must be able to be built within six (6) months from the time the Contract for Private Development is executed. An extension may be granted with the permission of the EDA. e. Each home must be single-family, owner occupied. 2. Building Standards a. All building plans must have been prepared in consultation with a licensed Architect or Architectural Designer. Housing design is a critical concern. b. A minimum of three finished bedrooms is required. c. Two full bathrooms are required. • d. A minimum two-car attached garage is required. Side-loaded or rear-loaded garages are preferred. If front-loaded, the garage shall not be the dominant feature of the building facade. City of Mounds View Housing Replacement Program 411 e. Exterior materials (siding, doors and windows) should be low maintenance. _Brick, stone, aluminum and vinyl are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are not acceptable. f. Plans must present a balanced distribution of wall and window areas from all views. A variety of exterior architectural features will be desired. g. A full basement shall be provided in the house unless the selected design results in a split level, garden level type of basement. 3. Site Standards a. The entire grounds must be landscaped to be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend with adjoining properties. The landscape plan must be reviewed by the City Forester. b. Existing trees must be preserved when possible. Care should be taken to preserve existing root systems. Construction fencing around the root system must be provided on trees directly adjacent to active grading and construction areas. The City Forester can assist in recommending methods of protecting existing trees and shrubs. c. Site drainage must be accommodated on the site so that water is directed away from the new home and the neighboring properties. The developer must comply with any federal, state or local drainage requirements. Construction and the finished structure must not have a detrimental impact on storm water drainage patterns in the neighborhood. d. All air conditioning units must be located in the rear yard of the house. e. Utility meters must be screened from street view; locations must be specified on plans. f. The neighboring property and adjacent public streets must be kept free of construction debris at all times. The construction site must be managed so not to become a nuisance. Under no circumstance during the construction period may construction workers, construction equipment or construction materials enter, disturb, or damage neighboring properties. 4. Builder Requirements a. Demonstrate financial capability by providing all of the following: Page A-2 City of Mounds View Housing Replacement Program 410 (1) A statement from a financial institution of sufficient construction capital (2) A letter of credit of the value of the lot (3) A summary of the financial conditions of the company (4) Evidence of a construction loan or ability to secure one b. Possess adequate Builder's Risk, Comprehensive General Liability and Worker's Compensation insurance coverage. c. Possess a Home Owners Warranty insurance or equivalent to perform warranted repairs required by Minnesota State Statute. d. Provide references from all of the following: (1) Five customers; (2) Three major suppliers, one being the construction lumber supplier; (3) Building Inspectors from two cities in which the builder has constructed new housing within the past three years. e. Provide information on inventory of homes that builder currently has under construction. 5. Buyer Requirements, if applicable a. Must be pre-approved for permanent financing prior to allow signing of Contract for Private Development. S Page A-3 11111 Housing Resource Center Programs Mounds View Manufactured Housing Program: This program contains two deferred loans for the Mounds View Manufactured Home Community: 1)for the borrower's down payment and/or closing costs for the mortgage being used to finance the purchase of a new manufactured home and 2)for the borrower's rehabilitation of an existing manufactured home.A 0%interest loan for a maximum of$5,000 is available for purchasing a home, and a 0%interest loan for a maximum of$3,000 is available for rehabilitating the home.The loan is forgiven after 5 years unless the property transfers ownership before 5 years.To qualify for a loan the borrower must be at or below 80%of the area median income. MHFA Fix Up Fund Loan: This is a home improvement loan for a maximum of$35,000 and a maximum term of 20 years,with a fixed rate for the term of the loan. Please contact the HousingResource Center for the current interest rate.The Fix Up Fund loan is available to credit worthy owner-occupied single-family homes,duplexes,triplexes and fourplexes.The maximum income to qualify for the loan is$89,000, and most home improvements qualify except for luxury items, such as swimming pools.This is a program of the Minnesota Housing Finance Agency(MHFA). MHFA Rental Property Loans: Maximum loan up to$100,000 to finance rental property. ($25,000 for a single-family home or duplex; $10,000 per unit in a multiple-unit dwelling.)Interest rate is 6%for up to 15 years. MHFA Rehabilitation Loan: This loan is a 0%interest,30-year loan for financing up to$15,000 for permanent repairs to the home.The loan is deferred so homeowners have no interest or monthly payments. Eligible homeowners must have incomes at 30% 41114 area median, and eligible properties include single-family homes,duplexes and manufactured housing taxed as real or personal property. In addition, homeowners with a disability and/or lead abatement issues can qualify for a maximum loan of$20,000.This is a program of the Minnesota Housing Finance Agency(MHFA). Home Improvement Advice: Our construction managers provide free construction consultations to residents of partnering communities.These services include: . Site Visits with Homeowners . Contractor Information . Create a list of work for contractors to bid from . Review contractor bids, proposals,estimates . Accessibility Modifications . Health and Safety issues Housing Information: We provide information on a variety of housing related topics.They include: . Home Maintenance and Safety Topics . Home Improvement Financing . First Time Homebuyer Classes . Limited Rental Information . Mortgage Foreclosure Prevention Programs . Energy Assistance Programs . Purchase and Rehabilitation Mortgages