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HomeMy WebLinkAbout07-31-2002 Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting July 31, 2002 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chairperson Tom Field called the meeting to order at 7:40 a.m. 2. ROLL CALL: Members Present: Dave Fox, Jason Helgemoe, Tom Field, and Stan McDonald Members Absent: Dr. Greg Belting, Torri Johnson Staff Present: Economic Development Coordinator Aaron Backman Others Present: Community Development Director Jim Ericson EDA Liaison Rich Sonterre 3. APPROVAL OF EDC MINUTES: Motion/Second: Fox moved and McDonald seconded the approval of the June 21, 2002 EDC minutes. Motion Carried: 4 Ayes 0 Nays 4. SPECIAL BUSINESS No Special Business Scheduled. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner Reports: There were no reports. B. Report of EDA Liaison: A City Council Retreat occurred on Monday, July 29th at the Community Center, stated Mayor Rich Sonterre. The brainstorming session, which included council members and management, reaffirmed that community priorities were virtually the same among the attendees. The consensus was that business and housing development were both important, and that an aggressive approach would be taken with development in the City. EDC Minutes July 31, 2002 Page 2 C. NB-MV Chamber of Commerce Update: Dr. Belting was not present for report. Backman will discuss under Staff Report. D. Report of Staff: 1. Twin Cities North Chamber Merger Activities: The general membership of the New Brighton- Mounds View Chamber and the Southern Anoka County (SAC) Chamber voted overwhelmingly on June 25th to approve the merger documents. Backman mentioned that the appropriate legal documents have been sent to the Attorney General’s office and the Secretary of State for approval. SOS approval is expected shortly. On July 23rd the first meeting of the newly constituted Board of Directors of the Twin Cities North Chamber occurred at Kuether Distributing in Fridley. A Board retreat, facilitated by Dennis Egan, formerly Director of the Rochester Chamber, and David Olson, President of the Minnesota Chamber, was held following the Board meeting. Backman distributed to the EDC members a handout regarding Chamber accomplishments for the previous year. On July 25th the new map for New Brighton-Mounds View area was delivered to City Hall. It was begun last spring but was only completed now. It will be used for visitors and new residents, and will complement the existing Chamber map that covers Columbia Heights, Fridley, and Spring Lake Park. 2. Mermaid Retention Pond Redevelopment Grant Activities: Backman briefly described the history of the project. As part of the project to expand the Mermaid to include a hotel and banquet center, three buildings were acquired and demolished in order to provide space for parking, landscaping, a stormwater retention pond and other improvements. In 1998 a Redevelopment Grant Application was submitted by Kevin Carroll to the Minnesota Dept. of Trade & Economic Development. In 1999 the state approved $333,333 for the “Edgewood Jr. High Regional Pond project”. The engineering company SEH undertook the planning and design work for the ponds and lines in early 2001. Veit installed the stormwater line on the south side of County Rd. H and excavated the two ponds in the fall of 2001. The project is about 90% complete at this time. Last week Backman requested nearly $197,000 be drawn from the state grant to reimburse the City for expenditures incurred. The City received the check from the Dept. of Finance on Monday, July 29th. There is approximately $104,700 left in the grant to be dispersed for the retention pond project. Backman commented that he had talked to Cindy Winegarner, Director of Sales, regarding the status of operations at the newly expanded Mermaid. She indicated that occupancy rates at the hotel are running 10 to 15% above projections, however, the banquet sales have been lagging. McDonald asked about the Mermaid’s marketing activities and Backman discussed them. McDonald asked if there was anything we can do to promote the business. Sonterre mentioned that there should be greater cooperation and coordination between the Mounds View Community Center and the Mermaid. Backman will bring this matter up to Dabney Bradley, Community Center caterer, and with Ms. Winegarner. 3. Met Council Livable Community Grant Application: The Metropolitan Council administers two types of grants from its Livable Communities Fund—Opportunity Grants and Development Grants. The Opportunity Grants fund early planning or predevelopment costs to develop project-specific and site-specific land use plans. Backman submitted on May 23, 2002 an Opportunity Grant Application for the Aggregating Amoco Area (or Triple A) adjacent to Hwy 10 and Silver Lake Road. There are seven fragmented parcels in the 5 acre site, several of which are vacant. The funding request was not approved by the Met Council. Christy Stark, Met Council Planner, encouraged the City to re-submit an application for the next round. EDC Minutes July 31, 2002 Page 3 4. Six Month Report to City Council: Members were sent a copy of Backman’s activity report that was presented to the City Council on June 24th. He briefly highlighted the main areas covered in the report: Business visits, business prospects, meetings with developers/property managers, TIF activities/meetings, chamber of commerce activities, I- 35W Corridor Coalition meetings, and other ED activities. Sonterre mentioned that the City Council recognizes and appreciates the work that Backman is doing; and that the economic development work is moving in a positive fashion. 5. EDAM Summer Conference: Backman attended the Economic Development Association of Minnesota (EDAM) Summer Conference at Madden’s Resort near Brainerd (6/26 – 6/28). In addition to the networking opportunities, Backman described the presentations as good and mentioned several to the EDC members. 6. Manufactured Home Park Revitalization Public Meeting: Backman distributed a sample letter that was sent inviting all Moundsview MHC residents to a public meeting at the Community Center on July 10th to discuss the program. In addition to the City, Ramsey County and Durand & Associates had presenters. Attendance at the meeting was excellent—about 40 people came. More importantly, all but two had manufactured homes in the target age (1976 or earlier). Field asked about verifying the age and numbers of units. Backman mentioned a survey that indicated there were approximately 55 units (out of 153) in the targeted age category. The next steps are finalizing the application format for homeowners (hopefully ready by mid-August) and the role of the Housing Resource Center (income verification and other administrative activities). The HRC will hold an open house in their new north metro office in Shoreview on August 3rd. 6. EDC BUSINESS A. City Council Action re Everest Request for Revised C.G. Hill Development Agreement: Following the meeting with the City on May 30th where they agreed overpayments were made over six years regarding C.G. Hill (totaling $12,073.76), Everest requested that the TIF Note for C.G. Hill be extended for 10 ½ years. This request was considered at the City’s July 1st Work Session. Backman presented four possible courses of action for the City Council: 1) approve the Everest request; 2) make a lump sum payment on principal balance at end of the TIF Note; 3) extend the term of the TIF Note by three years; or 4) leave the agreement as-is (expiring on 8/1/03 with unpaid principal balance). The consensus of the Council was to go with Option 4. Backman noted that with all “Pay-as-you-go” TIF Notes, developers are reimbursed for eligible development costs over time. They do so with the knowledge that they are “at risk” if increment does not materialize as expected. He sought the legal advice of Jim O’Meara, our TIF attorney, who concurred with our interpretation of the Agreement. Backman notified Everest on July 7th. B. Abbey Carpet—Prospect Activities: Backman has been interacting with Abbey Carpet, a floor covering business located in New Brighton, over the past six months. The EDC at its 6/21/02 meeting approved a resolution directing Backman to explore financial assistance that would be TIF funds allocated for demolition of the old Perkins Restaurant building, and/or a tax abatement with a graduated rate over five years. On July 17th John Kopas provided a written offer to Dan Hall of $700,000 for the purchase of the property. The purchase agreement was signed the next day (and a copy provided to the City). Mr. Kopas indicated that the greatest need was for demolition assistance. It would be paid on a reimbursement basis up to $25,000 and anything above that figure would be borne by the developer. Backman prepared a resolution that was considered and approved (4 to 1) by the City Council on July 22nd. Mr. Kopas is working with an architectural firm on the building site plan for the 20,000 sq. ft. building. EDC Minutes July 31, 2002 Page 4 C. Colonial Craft—Prospect Activities: On July 2nd John Boich, a broker with RREEF, notified Backman of a business prospect interested in Building I in the M.V. Business Park. The business, Colonial Craft, is one of the world’s largest producers of wooden door and window grills, mouldings, and picture frames. It provides wood component products to Andersen, Pella, and other window/door companies. The company’s headquarters is located in Roseville, and it has production facilities in Hanover, MN; Luck, WI; and Opelika, AL. About one year ago the company was sold to Quanex, a large building products company based in Houston, Texas. Colonial Craft has inadequate space in Roseville and would like to consolidate/relocate its Minnesota operations to Mounds View. The Company would lease 120,000 sq. ft of office and production space, and would employ approx. 200 people. Boich inquired about noise regulations since the company would use three outside dust collectors. Backman borrowed a sound meter from MPCA to measure decibel levels around a comparable machine at Herbst & Sons (south of Building I). It appears that the issue can be dealt with proper placement and perhaps shielding. D. Culver’s Restaurant—Prospect Activities: Backman has been interacting with franchise owners of Culver’s Family Restaurants. On June 24th Backman and Ericson met with Steve Sparks and Julie Chien regarding possible locations in Mounds View. Sparks and Chien continue to interact with St. Anthony on adding a restaurant there, however, the process is taking longer. Backman suggested this week that an informational meeting between the owners and Wendell Smith, representing property near the Carmike Theater, occur in August. Backman will work out a time. Field stated that he would like to see more of a sit down restaurant in town instead of a Culver’s. Sonterre indicated that Culver’s is a step up in service for our residents, and its development could help attract other restaurants to the community. Backman also discussed developments regarding the closed Hardee’s Restaurant building E. Herbst & Sons Expansion: Backman met with Russ Herbst in mid-July. He is considering expanding his operations by building an additional manufacturing building to the west of his existing facility. His initial plans call for a 15,000 sq. ft. building that could be partially leased out. F. Other: No other item discussed. 8. ADJOURNMENT There being no further business before the Commission, Chair Field adjourned the July 31st meeting of the Economic Development Commission at 9:14 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator \\Ntserver\CityHall\DATA\GROUPS\ECONDEV\EDC\Minutes\Min02\7-31-02.doc