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HomeMy WebLinkAbout02-15-2008 Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting February 15, 2008 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chairperson Jason Helgemoe called the meeting to order at 7:40 a.m. 2. ROLL CALL: Members Present: Greg Belting, Jason Helgemoe, Torri Johnson, Dan Larson, Gary Meehlhause and Jennifer Wagner Members Absent: Jackie Entsminger Staff Present: Economic Development Specialist Heidi Steinmetz 3. APPROVAL OF AGENDA: Motion/Second: Commissioner Larson moved and Commissioner Belting seconded the approval of the February 15, 2008 EDC agenda. Motion Carried: 6 Ayes 0 Nays 4. APPROVAL OF EDC MINUTES: Motion/Second: Commissioner Meehlhause moved and Commissioner Wagner seconded the approval of the January 18, 2008 EDC minutes. Motion Carried: 6 Ayes 0 Nays 5. SPECIAL BUSINESS There was no special business. 6. EDC BUSINESS A. 2006 Retail Trade Analysis Presentation — Bruce Schwartau, U of M Economic Development Specialist Heidi Steinmetz provided the EDC with background information as to why staff requested that a Retail Trade Analysis be completed by the EDC Minutes February 15,2008 Page 2 of 6 U of M Extension Office. Ms. Steinmetz explained that since Silver View Plaza is half vacant, the analysis may help explain why a retail use is no longer pertinent there and/or throughout the City as a whole. She added that the analysis also compares the City of Mounds View with Ramsey County. Bruce Schwartau from the U of M explained that he is here today in place of Liz Templin, who is the designated representative from his office that covers the Mounds View area. Mr. Schwartau stated that the main purpose of his presentation is to explain to the EDC how to read and use the analysis. Mr. Schwartau stated that the information used to complete the analysis was generated from the MN Dept. of Revenue's 2006 sales tax data, Census Bureau data and data from the Bureau of Economic Analysis. The analysis includes Mounds View's gross sales data beginning in 1990. He commented that Mounds View's gross sales have not changed that much over time. He did caution the EDC that the analysis is deceiving because the State does not differentiate sales tax data into categories unless there are four of the same type of business within a community(such as four apparel stores). If there are less than four of the same type of business, they get categorized into a "Miscellaneous" category. Commissioner Meehlhause asked if automobile dealerships were included in any of the categories. Mr. Schwartau answered that autos are not included because they fall into a separate category, which is why the Saturn dealership is not included. The "Vehicles & Parts" category includes ATVs, motocycles, auto parts, etc. Mr. Schwartau discussed Mounds View's "pull factor"and he commented that it is probably not a secret to the EDC that most Mounds View residents do not shop in Mounds View. The "Food, Groceries" category had a decline in the 1990s and every other category has remained fairly level. Mr. Schwartau then talked about expectations of gross sales for Mounds View, taking into account Mounds View's income levels, amount of residents and the geographical size of Mounds View. He explained that Mounds View could expect$7.6 million of taxable "Food, Groceries" sales but that $3 million is currently being sold. He said those numbers are somewhat of the equivalent of 7,000 people shopping for groceries elsewhere. Another example he gave was that Mounds View could expect $2.5 million in sales for "Repair, Maintenance". The "Repair, Maintenance" category refers to businesses that return equipment such as cars, lawn mowers, small engines, computers, appliances, etc. to working order. In Mounds View, $1.6 million worth of "Repair, Maintenance" services are being provided. That is the equivalent of 4,000 people receiving repair and maintenance services elsewhere. Commissioner Meehlhause asked if there's a difference between Mounds View, which is part of a large, metro area and Alexandria(as an example)because Alexandria is somewhat self-sustaining. Mr. Schwartau said tourist centers typically have high "pull factors" so Commissioner Meehlhause is correct that Mounds View shouldn't be compared to a tourist center. Mr. Schwartau mentioned that he will discuss Blaine in comparison to Mounds View, per staff's request, as a local "pull factor"comparison. The purpose is to see what types of items people are purchasing in this area. Apparel, leisure goods and electronics seem to be strong sellers in Blaine. EDC Minutes February 15,2008 Page 3 of 6 Mr. Schwartau added that the advantage for Mounds View is that shoppers are being drawn to nearby Blaine, so Mounds View could try and attract those shoppers. Ms. Steinmetz asked "What has changed in the retail sector that has caused Silver View Plaza to be less vibrant?" Mr. Schwartau said it was most likely due to the construction of TH10, however it may be easier for shoppers to get around in Mounds View (rather than Blaine), so more marketing and communications may draw shoppers back to Mounds View. Commissioner Wagner said that since one of Mounds View's "pull factors" is "Leisure Goods"should Mounds View build on that element? Mr. Schwartau answered that there are surveys that can be conducted to determine where customers are coming from or what their interests are, which may help a community decide what businesses to recruit. Commissioner Wagner gave the example of Wynnsong theater and how it seems to be a regional pull and perhaps entertainment is Mounds View's untapped market. Although Mr. Schwartau usually provides two-hour Retail Trade Analysis presentations,staff limited his presentation to twenty minutes,therefore Mr. Schwartau explained that his twenty minutes were up and asked that the EDC contact him or Liz Templin at his office with further questions. B. Introduce New Property Manager for Silver View Plaza — Katie Viere Ms. Viere introduced herself to the EDC. Ms. Viere will be invited back to a future EDC meeting once she familiarizes herself with the area. Commissioner Johnson asked Ms. Viere what her priority projects will be and if certain Kraus-Anderson properties are viewed as groups of properties. Ms. Viere said that she will be managing ten other properties in the area, which include Blaine Town Center, Blaine Crossing and Brighton Village. She added that each Kraus-Anderson property is viewed as a stand-alone property. Commissioner Belting added that the EDC's concerns are that Silver View Plaza is half empty, that Mounds View Square has received a facelift and that Kraus-Anderson does not seem to provide clear answers regarding their plans for the building. He is wondering if Silver View Plaza is on Kraus-Anderson's radar as part of a five-year plan. Ms. Viere said she would check into that and get back to the EDC. Chair Helgemoe asked if April would be enough time to become familiar with the property and discuss its future with the appropriate people at Kraus-Anderson. He added that the EDC would like to help advance the revitalization of Silver View Plaza and that it has been one of the EDC's goals. Ms. Steinmetz stated that the Retail Trade Analysis was an affordable first step to try and assist Kraus-Anderson to sustain or revitalize the property. She mentioned that staff also solicited market study quotes from three firms and submitted them to the interim property manager back in late December. Ms. Viere asked Ms. Steinmetz to resend the quotes. Ms. Steinnmetz added that she has followed up monthly with Kraus-Anderson regarding Silver View Plaza. EDC Minutes February 15,2008 Page 4 of 6 C. Discuss Business Improvement Partnership Loan Program Interest Rate Ms. Steinmetz mentioned that this item is a continuation of previous EDA discussions regarding the draft Mounds View Business Toolbox document. The EDA asked for the EDC's input regarding the Loan Program's current interest rate of 2%. Commissioner Johnson asked about the typical rate of a business loan. Chair Helgemoe responded that it depends on what the borrower is trying to finance, but if the loan is a five- year equipment loan, the rate will probably be between 6.5 to 7%, however interest rates also depend on the borrower's risk rating. He also completed some research by talking to a collegue who used to work for the Cities of Oakdale and Roseville and reported that most cities charge between 2 and 6% for loans between $25,000 and $50,000. Commissioner Johnson asked why we would raise the interest rate if the loan program isn't being used. Ms. Steinmetz answered that the most recent loan request from The Station was retracted by the applicant, which prompted this discussion. She added that she is unsure if the policy issue of offering financial incentives to businesses is the EDA's overarching concern. Commissioner Wagner asked if this program is being marketed. Ms. Steinmetz explained that none of the City's financial programs are being marketed due to the EDA's wishes. The EDC further discussed the 2% rate and the consensus was that it should cover the costs to administer the loan and that the rate should be reviewed annually. Commissioner Belting left the meeting. D. Finalize 2008 EDC Priorities Ms. Steinmetz displayed the reformatted and reordered 2008 EDC Priorities, which were based on the EDC's January 18, 2008 discussion and the 2007 priorities. The EDC's consensus was that the priorities as listed on the screen are what they discussed on January 18th. Staff recommended that the EDC formally adopt the 2008 Priorities and that she will report them to the EDA. Motion/Second: Commissioner Johnson moved and Commissioner Meehlhause seconded the approval of the 2008 EDC Priorities. Motion Carried: 5 Ayes 0 Nays E. Review Economic Development Component of Comprehensive Plan Since the EDC's input regarding the Economic Development portion of the Comprehensive Plan has not changed for two months, Ms. Steinmetz suggested that Commissioner Meehlhause, who serves on the Comprehensive Plan Task Force, and herself provide the EDC's input thus far to the Task Force on March 12th. The EDC agreed that Commissioner Meehlhause would do a great job representing the EDC at the March 12th meeting. EDC Minutes February 15,2008 Page 5 of 6 F. Internal Public Communications/Marketing Assessment At the January 18th EDC meeting, staff inquired of the EDC's thoughts regarding a marketing and/or communications assessment for the City of Mounds View. The EDC suggested having an intern complete the assessment to save costs. Instead, Ms. Steinmetz completed an in-house assessment in order to save costs and time. She presented her assessment and asked for input specifically on the Mounds View road sign design options that were included in the EDC's meeting packet. She asked for input since the City Council would be deciding upon a design soon. Commissioner Johnson stated that road signs should be easily read and that the trees pictured in the design options should not interfere with the City name. She also said that we have to make sure Mounds View clearly appears as two words instead of one,which seems to be a common mistake, especially with the "MW logo. Commissioner Wagner said the design option on the far right on page 2 of the assessment has coniferous trees and should be deciduous instead since Mounds View is not a resort town. Commissioner Johnson mentioned that the "MW logo is dated. Ms. Steinmetz gave the example that New Brighton opted to update their "NB" logo rather than completing a total redesign since the "NB" had been part of the community for so long. Ms. Steinmetz stated that Mounds View could do what New Brighton did and simply update their"MW logo. She commented that branding can become very expensive but there are ways to minimize costs. The EDC's preferred road sign design option is on the "far right" of page 2 of the assessment. The public communications/marketing assessment discussion will be continued next month when more time is available. 7. REPORT OF COMMISSIONERS Chair Helgemoe reported that the Chamber's annual gala is on Saturday, March 1 st at the Mermaid and it's the Chamber's 501h anniversary this year. He encouraged all to attend and mentioned that the event is a major fundraiser for the Chamber. Commissioner Meehlhause mentioned that Irondale student, Nick Stang, won the 2008 State high school boys alpine skiing competition. Commissioner Johnson mentioned that Irondale youth hockey's"B Squirts"are featured on the cover of Let's Play Hockey magazine, a Minnesota-wide magazine. 8. REPORTS OF STAFF A. Medtronic Tour — Wednesday, February 20, 2008 at 8:00 a.m. Ms. Steinmetz reminded the group that another Medtronic tour has been scheduled for February 20th at 8:00 a.m. Commissioner Johnson commented that ever since she toured the facility in January, she can't stop talking about it. Chair Helgemoe concurred. EDC Minutes February 15,2008 Page 6 of 6 B. Premium Stop Redevelopment Staff reported that a grant application was submitted for the area and that the City will find out in mid-March if the grant is received. However the City may not be able to use the funds if Robert's is sold in the meantime. There is an interested party who has received a bid to sprinkler the building, which leads staff to believe that the property will be sold soon. Staff does not know who the potential buyer is but will let the EDC know once the purchase agreement is signed. Master Development continues to market the EDA-owned former Premium Stop gas station site and is still looking into the possibility of completing a stand-along project on that particular parcel, however it is still in the City's best interest to expand the project area. The car wash is for sale and the owners don't plan to reopen the facility, so if Robert's becomes unavailable there could be an opportunity to include the car wash in the first phase of redevelopment instead. Chair Helgemoe inquired of Taiko's involvement with the project. Ms. Steinmetz said that the owner of Taiko has hired a real estate broker and that the details would be negotiated between the property owner and a potential developer. Other Ms. Steinmetz mentioned that the City Council has offered the Clerk/Administrator position to Jim Ericson but that the decision has not been formalized via City Council Resolution. In addition, Chamber president Bruce Nustad is moving to a new position. She said it will be sad to see him go. Finally, it is anticipated that Jim Ericson's replacement (a new Community Development Director) will occur in about three months. Although Jim Ericson was not in attendance, Commissioner Meehlhause wished to congratulate him on his new position and was very pleased to see it finally happen. He said it was well-deserved. Commissioner Johnson stated that Jim is a good man. Chair Helgemoe added that Jim is well-qualified and has done an excellent job for the City. Chair Helgemoe also added that Bruce of the Chamber is a super individual, a super talented guy, that we'll miss him and he's done a lot for this area, however Bruce is moving to a Chamber that is twice the size of ours so we can't fault him for that. Chair Helgemoe encouraged people to call the Chamber with any recommendations for Bruce's vacancy. 9. ADJOURNMENT There being no further business before the Commission, Chairperson Helgemoe adjourned the meeting 9:00 a.m. Respectfully submitted, Heidi Steinmetz Economic Development Specialist