HomeMy WebLinkAboutAgenda Packets - 2016/08/01
CITY OF MOUNDS VIEW
CITY COUNCIL WORK SESSION AGENDA
MOUNDS VIEW CITY HALL
Monday, August 1, 2016
7:00 p.m.
ROLL CALL: Flaherty, Gunn, Hull, Meehlhause, Mueller
PUBLIC COMMENT
Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your
full name and address for the minutes. Also, please limit your comments to three minutes.
Agenda Items Discussed by Consensus
1. Review Code Amendment for Breweries, Brewpubs, Distilleries, and Taprooms
2. Tattoo, Body Piercing, Body Branding, Body Scarring and Body Painting
Establishments
3. Review Accessory Dwelling Unit Code Amendment
4. Review EDA Program and Potential EDA Levy
5. Economic Development Update from Brian Beeman
6. Review Police Department Staffing Levels
7. Review Proposal from the YMCA
Next Work Session: TUESDAY, September 6, 2016, at 7 p.m.
Next City Council Meeting: Monday, August 8, 2016, at 7 p.m.
Item No: 1
Meeting Date: August 1, 2016
Type of Business: Work Session
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Desaree Crane, Assistant City Administrator
Item Title/Subject: Breweries, Brewpubs, Distilleries, and Taprooms (Part 2)
Discussion:
Per the City Council’s direction, Staff has been working on amendments to the Zoning and
Liquor Code to allow brewpubs, breweries, microbreweries and taprooms in Mounds View.
As a refresher, below are the definitions:
Brewpub is a restaurant that produces its own beer for onsite and growler sales, while also
selling spirits and the beer of others. Brewpubs can serve their own beer -- and the beer
and liquor of other companies -- to patrons, but they cannot can, bottle, or keg their beer to
sell to bars, restaurants, and stores.
Brewery is a facility that produces beer for distribution to bars and restaurants and can
operate a taproom that sells only their own beer onsite. It takes a separate license to own a
brewpub or a brewery and an individual in Minnesota cannot get both.
Microbrewery is a state licensed facility and may brew no more than 20,000 barrels of its
own brands of malt liquor annually.
Microdistillery means a distillery producing premium, distilled spirits in total quantity not to
exceed 40,000 proof gallons in a calendar year as regulated by Minnesota Statutes.
Taproom is a state licensed brewer permitting the on-sale consumption of malt liquor
produced by the brewer for consumption on the premises of a brewery or an abutting
property in common ownership of the brewer, which may include the sales of malt liquor
produced and packaged at the brewery for off premises consumption as allowed by
Minnesota Statutes.
Currently Section 502.04, subd. 2(b) of the Mounds View City Code relating to Intoxicating
Liquor states:
Subd. 2. Places Ineligible for License:
b. No intoxicating liquor or wine license shall be granted for any premises that
has a property line within five hundred (500) feet of a property line of any
school or church located in Mounds View except that the five hundred (500)
feet restriction shall not apply and a license may be granted for any licensed
premises that receives at least sixty percent (60%) of its annual gross sales
revenue from the sale of food. The licensee must provide evidence to the
City on an annual basis as part of the license renewal process that the
licensee has complied with the minimum sixty percent (60%) food sales
requirement of this Section. Failure to comply with the minimum sixty percent
(60%) food sales requirement of this Section shall be cause for suspension,
revocation or denial of renewal of the license. (Ord. 582, 5-28-96; Amended,
Ord. 843, 5-20-10)
As currently stated in the City’s Liquor Code, this would limit locations for breweries
distilleries microbreweries and taprooms in Mounds View. For example:
Crossroad Pointe: Crossroad Pointe is located within 500 feet of a school building (school
building near the movie theatre). Under the current liquor code, Crossroad Pointe would
only be allowed to have a Brewpub because Brewpubs sell food. Breweries,
Microbreweries, and Taprooms would not be an allowed use under the City’s current liquor
code.
Mounds View Square: Depending on the location of the Brewery, Microbrewery and
Taproom, etc., in Mounds View Square, Sunrise Methodist Church could be considered
within 500 feet of Mounds View Square.
Staff needs direction on:
1. Is the City Council open to revising section 502.04 subd 2(b) to allow
breweries, distilleries, microbreweries and taprooms within 500 feet of any
school or church? On June 8, 2015, the City Council discussed this section
and it was the consensus to change the language. However, neither
direction nor discussion was made on the distance.
2. It is not clear in the City Code of how Staff should measure 500 feet. Is it
property line to property line or front door to front door? On April 9, 2007, the
City Council denied Aldi’s an Off Sale 3.2 Malt Liquor License due to their
location in proximity of Sunrise Methodist Church. However, Big Top Liquor
is located in the same building as Aldi’s (Mounds View Square), and they
have an active liquor license. Attached is the April 9, 2007, City Council
Minutes for your reference. According to the attached Minutes, it was the
City Attorney’s opinion that the measurement is at the discretion of the City
Council.
In addition, Staff would like direction on whether the City Council would be open to allow
brewpubs, breweries and microbreweries to sell growlers, to include selling them on
Sundays. The legislature passed a law to allow growlers to be sold on Sundays.
Currently, for an additional $200 fee, On-Sale Intoxicating Liquor establishments can sell
liquor on Sundays (for example El Loro, Moe’s, and The Mermaid sell liquor on Sundays).
Off- Sale Liquor establishments are not allowed under state law to sell liquor on Sundays.
Cities create an Off-Sale Growler License in order to be able to sell them on Sundays.
Fees
Staff is currently looking at fees for these types of licenses. Staff has research a number
of cities and this is what Staff has found thus far in the chart below.
CITY FEE
Brooklyn Center On Sale Brewer Taproom: $600/year
On-Sale Sunday: $200/year
Delano Growler (Off Sale): $250/year
Taproom (less than $25,000 in sales): $1,000/year
Taproom (greater than $25,000 in sales): $2,500/year
Taproom Sunday Sales: $100/year
Elk River Brew Tap Room: $225/year
Brewpub/Microbrewer Off Sale: $200/year
Lino Lakes On Sale Brewer Taproom: $500/year
Off Sale Growler: $200/year
Minneapolis On Sale Taproom: Varies from $1,175 to $5,384
(depending on size and sales)
Off Sale Liquor – Growler: $1,500/year
Roseville On Sale Brewery Taproom: $3,000/year
Willmar On Sale Taproom: $150/year
Off Sale Taproom: $150/year
Recommendation
The City Council is requested to discuss and provide Staff with direction. Staff in the
Administration and Community Development Departments are working together to revise
the zoning and business license code at the same time. It is the intention of Staff to have a
first reading ready for the City Council at the August 8th City Council Meeting.
Respectfully submitted,
________________________
Desaree Crane
Item No: 1
Meeting Date: August 1, 2016
Type of Business: Discussion
Administrator Review : ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Jon Sevald, Planner
Item Title/Subject: Breweries, Brewpubs, Distilleries, and Taprooms
Introduction:
Since the 2011 “Surly Bill” was passed by the Legislature allowing micro-breweries to
sell alcohol on-site (versus selling through distributors), many micro-breweries with
taprooms have opened across Minnesota. Staff has received two or three inquiries if
one would be allowed in Mounds View. In order for a taproom to be located in the City,
the Municipal Code, Title 500 (Business License Regulations) and Title 1100 (Zoning
Code) must be amended.
Discussion:
As of January 2016, there were 75 licensed micro-breweries in Minnesota, including 29
brew pubs, and 21 tap rooms. Alcohol manufacturing and retailers are licensed by the
MN Dept. of Public Safety, and by individual cities.
Key Terms (simplified):
Brew pub: A restaurant with an on-site brewery, licensed for on-sale
and/or off-sale.
Micro-Brewery: A MN licensed manufacturer of up to 2,000 barrels
(62,000 gallons).
Micro-Distillery: A MN licensed manufacturer of up to 40,000 gallons.
On-Sale: Retail sales of alcohol limited to on-site consumption.
Off-Sale: Retail sales of alcohol limited to off-site consumption.
Tap Room / Cocktail Room: A brewery/distillery with an adjacent bar for on-sale
and/or off-sale of growlers.
Title 1100: Zoning Code:
The Planning Commission discussed this topic on April 15, 2015, and July 6, 2016,
recommending approval of an amendment to the Zoning Code. In summary, Brew
Pubs would be treated similar to restaurants; Tap Rooms/Cocktail Rooms would be
treated similar to a bar; and National/Regional breweries/distilleries would be treated
similar to manufacturing.
Bold highlight = proposed
B-1 Neighborhood Business B-2 Limited Business B-3 Highway Business B-4 Regional Business I-1 Industrial PUD Planned Unit Development Brewery, Micro P P P C
Brewery, National P C
Brewery, Regional P C
Brew Pub P P P C
Liquor, off-sale P P P C
Manufacturing, compounding, processing, packaging or
treatment of cosmetics, pharmaceuticals and food
products
C C
Microdistillery P P P C
Restaurants, cafes, tea rooms, taverns, on-sale and off-
sale liquor
P P C
Restaurant (max 24 seats & 2,000sf. No drive-thru) P P P C
Restaurant (more than 24 seats or 2,000sf. No drive-
thru).
C C
Drive-in and convenience food establishments C C
Taproom/Cocktail Room P P P C
P = Permitted Use
C = Conditional Use (CUP)
As an example, if the ordinances are amended as proposed, the process of obtaining a
license for a micro-brewery with a taproom in Mounds View would be as follows:
• The location must be in an appropriate zoning district (permitted use in B-3, B-4,
and I-1 districts; conditional use in PUD district).
• The brewer must obtain a license from the MN Dept. of Public Safety. There are
different types of licenses based on the amount produced, e.g. (1) Micro-Brewer, up
to 2,000 barrels; and (2) Taproom with Sunday on-sale. On-sale sales is limited to
3,500 barrels per year, of which up to 500 barrels may be off-sale.
Location:
A taproom/cocktail room (or liquor store) cannot be on a property within 500’ of a school
or church property (City Code 502.04, Subd 2(b). Exception; an establishment in which
60% or more of its revenue is from food, can be within 500’ (e.g. brewpub, or other
restaurant). The 500’ setback would prohibit a taproom from locating on a number of
properties, including:
Mounds View Square
Snyder’s building
Movie Theater & adjacent (Subway) strip mall
Cars Bike Shop building
Portions of Mounds View North & South industrial park
The intent of the 500’ setback is to provide a distance between non-compatible uses.
The Council may want to consider if this distance should be reconsidered (i.e. what is
the correlation between schools/churches and age-appropriate businesses).
Recommendation:
The City Council is requested to discuss and provide Staff with direction. Staff will bring
forward an Ordinance Amendment for consideration at the August 8th Council meeting.
Respectfully submitted,
________________________
Jon Sevald, AICP
Planner
Attachments
Map of 500’ buffer around schools and churches
Item No: 2
Meeting Date: August 1, 2016
Type of Business: Work Session
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Desaree Crane, Assistant City Administrator
Item Title/Subject: Tattoo, Body Piercing, Body Branding, Body Scarring and
Body Painting Establishments
Introduction:
The City is receiving numerous inquiries for a Tattoo, Body Piercing, Body Branding,
Body Scarring and Body Painting license. Staff wanted to take this opportunity to
review the requirements of this type of establishment with the City Council. Attached is
Chapter 515 of the City Code pertaining to Tattoo, Body Piercing, Body Branding, Body
Scarring and Body Painting Establishments.
Discussion:
In 2010, revisions were made to Chapter 515 of the City Code. Revisions included:
o Definitions made consistent with MN Statutes
o Licensing requirement deleted, since the State will issue the business licenses
o Body art shops prohibited in private residences, no mobile operations
o Health & sanitation regs deleted, defer to state regs
o Suspension & revocation provisions no longer necessary
o Exemptions deleted
o Temporary tattoo & piercing licenses deleted
Currently the City Code does not have provisions for City licensing for these
establishments. Owners of these establishments are required to be licensed through the
Minnesota Department of Health. All Tattoo, Body Piercing, Body Branding, Body
Scarring and Body Painting Establishments must be in a B-2 Limited Business Zoning
District. According to 1113.02, subd. 3 of the Zoning Code, these establishments must
be separated by no less than one thousand (1,000) feet from any other such
establishment within the City of Mounds View, as measured from the property lines of
the property upon which the uses are located.
Many cities have business licensing requirements for this type of business. Fees for
this license range anywhere from $200 to $700 per year. Most cities with this type of
business license require City Council approval by public hearing.
Item 02
Monday, August 1, 2016
Work Session
Page 2
Recommendation:
Please review City Code Chapter 515. If the City Council wishes to establish a
business license, then Staff can start the process of revising this section of the Code
and revising the 2016 Fee Schedule.
Respectfully submitted,
________________________
Desaree Crane
Item No: 3
Meeting Date: August 1, 2016
Type of Business: Discussion
Administrator Review : ____
City of Mounds View Staff Report
To: Honorable Mayor and City Council
From: Jon Sevald, Planner
Item Title/Subject: Accessory Dwelling Units
Introduction:
Accessory Dwelling Units (ADU) are similar to an apartment on the same lot as a
single-family home. An ADU may be attached to, or detached from the home (see
examples below). Staff occasionally receive inquiries if they are permitted (they are
not). This topic was discussed by the City Council on May 9, 2016, and by the Planning
Commission on June 1st, July 6th, and July 20th, 2016.
(proposed Permitted Use) (proposed Conditional Use) (proposed Conditional Use)
Discussion:
The Planning Commission recommends that an ADU converted from an internal area of
the home be a permitted use, and a conditional use (CUP) if requiring an exterior
addition, or if in a detached building. The Planning Commission’s reason for permitted
vs. conditional use is that if the property owner proposes to significantly change the
appearance of the buildings, then the neighbors should be notified of the proposed
change, via a Public Hearing. ADU’s would only be allowed in the R-1 Single-Family
Residential District.
Accessory Dwelling Units are a topic which many cities have considered in recent
years.
Known cities which allow ADU’s as a permitted or conditional use:
Apple Valley
Andover
Blaine
Bloomington
Chanhassen
Eagan
Eden Prairie
Farmington
Inver Grove Heights
Long Lake
Minneapolis
Minnetonka
Plymouth
Richfield
Roseville
Shoreview
St. Paul
Stillwater
White Bear Lake
Known cities which prohibit ADU’s:
Burnsville
Brooklyn Park
Coon Rapids
Lakeville
Maple Grove
Maplewood
St. Louis Park
Woodbury
It’s important to note that cities permit ADU’s differently. For example, Andover allows
ADU’s only on lots zoned for 2.5+ acres. Plymouth allows ADU’s only if the home was
originally constructed with an ADU. St. Paul allows ADU’s only within carriage houses,
but is considering allowing them along the University Ave. LRT corridor. Roseville
allows ADU’s as a permitted use, but requires notification of all neighbors prior to
administrative approval. New Brighton allows ADU’s only on lots twice the minimum lot
size, and only for use by the homeowners’ employees (i.e. nanny, caretaker, etc.).
Since Minneapolis amended their ordinance in 2015 to allow ADU’s, the city has issued
50 permits. By contrast, nine suburbs queried by Staff stated that they typically issue 0-
1 ADU permits per year (mostly, zero). When Richfield amended their ordinance to
allow ADU’s, a number of property owners with illegal ADU’s applied for permits to
become legal units, but the city has not received any applications for “new” ADU’s.
The Mounds View Planning Commission has discussed ADU’s extensively. Highlights
of these discussions include:
Ownership: Either the home or the ADU is to be owner occupied, and homesteaded.
Homestead may include “Relative Homestead”, in which a relative may occupy the
home instead of the homeowner. To counter this, some cities have required that the
owner record a covenant, requiring homeowner occupation. Staff believe that a
covenant is not necessary, and that requiring a condition of CUP approval, that the
property be owner occupied is sufficient.
Rental License: If the ADU does not have access into the home, the owner will need to
obtain a rental license, and would be inspected by the City every other year.
ADU Size: If the ADU is internal to the existing home (i.e. conversion of a basement or
second floor), then the minimum size is 300 sq ft, and maximum size can be no larger
than the floor above or below the ADU. If the ADU is to be a home addition, or in an
accessory building, then the minimum size is 300 sq ft, and maximum size 800 sq ft.
These size limitations are consistent with many other cities.
It is possible that a small house less than 800 sq ft in area could add on an 800 sq ft
ADU. The Council may want to consider requiring that the ADU cannot exceed the size
of the principal structure (home).
Accessory buildings are limited to a height of 18’ (from ground to roof peak). It is
unlikely that an existing detached garage attic could be converted into an ADU (trusses
are different if for storage vs living area). A new detached garage could have an ADU
above it, but would still need to be 18’ or less in height.
Setbacks: ADU’s are to comply with the same setbacks as homes (10’ side and rear
yard setback).
Appearance as a second dwelling: The intent is for ADU’s to appear subordinate to the
Single-Family Home. Appearance is subjective, and will be determined by the Planning
Commission and City Council through the Public Hearing process, unless permitted as
an internal ADU.
Parking: Within the R-1 district, each property must have two parking stalls. A third will
be required for an ADU.
Tiny Houses: ADU’s must be on a permanent foundation. A “Tiny House” is commonly
a temporary structure, similar to a park trailer or fish house. City Code allows these to
be stored on property, but not inhabited. In June 2016, the City Council “opted out”,
choosing not to permit Temporary Family Healthcare Dwellings, similar to a Tiny House.
What to Expect
Based on the experiences of other suburbs, Staff believes there may be a lot of interest
in ADU’s, but that may not necessarily translate into permit applications. St. Paul is
considering amending their ordinance to allow ADU’s in an area along west University
Ave. During their public comment period, residents were equally divided for and
against ADU’s. Arguments for ADU’s included; options for affordable housing; and
aging in place. Arguments against ADU’s, included; City’s inability of enforcement; too
much density and lost green space; detached ADU’s should not be allowed; parking
concern; and change in neighborhood character.
Recommendation:
Staff recommends that the Council discuss if ADU’s would be appropriate in Mounds
View, and consider any potential concerns. Staff will bring forward an Ordinance
Amendment for consideration at the August 8th Council meeting.
Respectfully submitted,
________________________
Jon Sevald, AICP
Planner
Item No: 04
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: EDA Levy
Introduction:
Mounds View is situated in a highly desirable location along I -35W with great access to the Twin
Cities and surrounding suburban cities. It is also highly desirable for its school district. However,
Mounds View is limited in land availability. This creates a challenge for businesses needing to
expand and/or locate to Mounds View. A similar situation can be seen with residential housing as
almost all of the lots have been built upon and much of the housing stock is aging with v ery few
residential lots available to build new housing.
In order to continue to improve upon and provide opportunities for growth in the form of newer
buildings, better aesthetics, an increase in property tax values, and an overall better quality of life in
the City of Mounds View, land will need to be purchased, older buildings need to be demolished,
soils need to be remediated, and the parcels need to be assembled and marketed in such a way
that it is attractive to private developers.
The City of Mounds View has had several opportunities in the past to purchase dilapidated buildings
and distressed properties. However, funds have been limited or nonexistent and many opportunities
have been lost. While there currently exists several opportunities for redevelopment, redevelopment
will not occur or is highly unlikely to occur without funds to purchase and package parcels together.
Other issues with the lack of funding are explained in the discussion section of this staff report.
Minn. Stat. 469.107 authorizes a city, at the request of the EDA, to levy a tax for the benefit of the
EDA. The tax must be not more than 0.01813 percent of estimated market value. The amount
levied must be paid by the city treasurer to the treasurer of the authority, to be spent by the authority.
Statute does not expressly limit the proceeds to any particular use, but the implication is that they
may be used for any activity an EDA is authorized to carry out under the EDA Act. Those uses
include any and all housing and redevelopment activities permitted via the HRA Act . As well as the
broader economic development activities permitted in Chapter 469.
Discussion:
In order to address several economic development issues, the City is considering an EDA levy as a
mechanism to provide much needed funding in support of its program goals. On July 15, 2016 , the
EDC discussed the possibility of establishing an EDA levy. As a result, the EDC believes having a
source of funds dedicated towards economic development would be beneficial and is
recommending that the Council review and consider an EDA levy for 2017.
Summary of Mounds View Program Goals Being Proposed :
Specifically, this program will provide the resources necessary to purchase land, demo buildings and
package parcels as redevelopment projects that, when completed, will add to the tax valuation and
Reports of Staff
Council Work session
August 1, 2016
Page 2 of 2
ultimately the tax base. Some projects may assist in creating additional jobs as well as the attraction,
retention, rehabilitation and preservation of commercial, industrial, retail, residential, recreational,
and public service centers.
Other goals of the EDA levy is the support of senior/mature adult and /or other housing development
partnerships or other multi-use housing projects and facilities, other public utilities (including
telecommunications), business incubator loan and other business programs, and transportation
systems. Through programs funded by an EDA levy, more emphasis will be placed on those items
which increase the tax base, eliminate blight, and meet the City’s economic and redevelopment
goals. The remaining goals of the EDA levy will be to assist in funding operational costs associated
with economic development activities.
Authority:
The City of Mounds View has granted to the EDA pursuant to Minnesota Statutes, Section 469.09,
subdivision 1, specific authority to exercise all powers granted to a Housing and Redevelopment
Authority under Minnesota Statutes, Sections 469.001 to 469.047. This power was gran ted to the
EDA on November 23, 2015 , through Resolution 8467; a resolution amending and restating
resolution 4532, an enabling resolution establishing the Mounds View Economic Development
Authority under Minnesota Statutes, Sections 469.090 through 469.108 .
For a list of items and programs the city has been restricted or hasn’t been able to support due to
lack of funding please see Attachment Item 03-EDC Staff Report from July 15, 2016. Included in this
attachment is a spread sheet listing the current EDA /HRA/Port Authority levy’s and the amounts
levied, as well as responses from those cities explaining what these cities are accomplishing with
their EDA levies.
Recommendation:
Discuss and review the possibility of establishing an EDA lev y for 2017. By general consensus
provide a recommendation to staff whether to move forward with formal approval of an EDA levy at
its next City Council meeting August 8, 2016. If approved by the City Council at its next regular
meeting to move forward in the EDA levy process, the City’s Charter requires that the EDA levy is
listed as a Referendum vote at the next general election to held November 8, 2016. If the
Referendum is passed, it would go into effect January 1, 2017. If opposed, the EDA levy would not
be implemented in 2017 and the economic development programs would remain unfunded. The City
Council could add it as a referendum vote to the residents again next year and if passed the second
time, it would go into effect January 1, 2018.
Respectfully submitted,
_______________________
Brain Beeman
Business Development Coordinator
Attachments:
Item 02 – Attachment 1, EDA Levy, EDC Staff Report from July, 15, 2016.
Item 02 – Attachment 2, Sample Tax Impact EDA Levy 2017.
Item #: 5A
Meeting Date: July 15, 2016
Type of Business: EDC
City of Mounds View Staff Report
To: Economic Development Commission
From: Brian Beeman, Business Development Coordinator
Item Title/Subject: EDA Levy
Background
Mounds View is situated in a highly desirable location along I-35W with great access to
the Twin Cities and surrounding suburban cities. It is also highly desirable for its school
district. However, Mounds View is limited in land availability. This creates a challenge
for businesses needing to expand and/or locate to Mounds View. A similar situation can
be seen with residential housing as many of the lots have been built upon and much of
the housing stock is aging with very few residential lots available to build ne w housing.
In order to continue to improve upon and provide opportunities for growth in the form of
newer buildings, better aesthetics, an increase in property tax values, and an overall
better quality of life in the City of Mounds View, land will need to be purchased, older
buildings need to be demolished, soils need to be remediated, and the parcels need to
be packaged and marketed in such a way that it is attractive to private developers.
The City of Mounds View has had several opportunities in the past to purchase
dilapidated buildings and distressed properties. However, funds have been limited or
nonexistent and many opportunities have been lost. While there currently exists several
opportunities for redevelopment, redevelopment will not occur or is highly unlikely to
occur without funds to purchase and package parcels together. Other issues with the
lack of funding are explained in the discussion section of this staff report.
Minn. Stat. 469.107 authorizes a city, at the request of the EDA, to levy a tax for the
benefit of the EDA. The tax must be not more than 0.01813 percent of estimated
market value. The amount levied must be paid by the city treasurer to the treasurer of
the authority, to be spent by the authority. Statute does not expressly limit the proceeds
to any particular use, but the implication is that they may be used for any activity an
EDA is authorized to carry out under the EDA Act. Those uses include:
1. Housing and redevelopment activities under the HRA Act
2. Broader economic development activities.
July 15, 2016 EDC Meeting
Item 5A – EDA Levy
Page 2 of 8
If an EDA levy is imposed under the authority granted in Minnesota Statutes, section
469.033, subdivision 6, it is a levy for housing and/or redevelopment purposes under
the EDA’s authority to exercise the powers of an HRA.
Discussion
In order to address several economic development issues, the City is considering an
EDA levy as a mechanism to provide much needed funding in support of its program
goals.
Summary of Mounds View Program Goals Being Proposed:
Specifically, this program will provide the resources necessary to purchase land, demo
buildings and package parcels as redevelopment projects that, when completed, will
add to the tax valuation and ultimately the tax base. Some projects may assist in
creating additional jobs as well as the attraction, retention, rehabilitation and
preservation of commercial, industrial, retail, residential, recreational, and public service
centers.
Other goals of the EDA levy is the support of senior/mature adult and /or other housing
development partnerships or other multi-use housing projects and facilities, other public
utilities (including telecommunications), business incubator loan and other business
programs, and transportation systems. Through programs funded by an EDA levy, m ore
emphasis will be placed on those items which increase the tax base, eliminate blight,
and meet the City’s economic and redevelopment goals. The remaining goals of the
EDA levy will be to assist in funding operational costs associated with economic
development activities.
Authority:
The City of Mounds View has granted to the EDA pursuant to Minnesota Statutes,
Section 469.09, subdivision 1, specific authority to exercise all powers granted to a
Housing and Redevelopment Authority under Minnesota Statutes, Sections 469.001 to
469.047. This power was granted to the EDA on November 23, 2015 through
Resolution 8467; a resolution amending and restat ing resolution 4532, an enabling
resolution establishing the Mounds View Economic Development Authority under
Minnesota Statutes, Sections 469.090 through 469.108.
Due to lack of funding, the city has been restricted or hasn’t been able to support
the following:
Marketing: Currently there are no funds budgeted in marketing. Normally, marketing
funds are used for new signage, branding, marketing redevelopment sites, and
promoting the city in the attraction of new businesses. Many cities pay their staff to
July 15, 2016 EDC Meeting
Item 5A – EDA Levy
Page 3 of 8
travel with DEED to trade shows, complete the Shovel Ready Certification Program,
market the city in several publications through articles and sponsorships, and participate
in recruiting events. With limited or no funding, marketing efforts have been limited.
Advertising: Currently, there are no funds budgeted for advertising. Advertising is
accomplished by placing ads in business publications that reach key personnel in
targeted corporations. Articles are used to promote the city’s redevelopment sites, i ts
business friendly atmosphere, as well as community events like the Festival in the Park,
through Mounds View Matters, and other venues. Advertising has been limited.
Small scale incentives: Cities across Minnesota are offering many variations of small
business loans set up to be revolving loans. This means that when one business pays
back their loan another business can benefit with the continuous replenishing of funds.
Each program has its own policy and has different purposes. For example, some loan
programs target job creation; others target property valuation, while others qualify the
project by the community benefit in relation to its social value. Still others focus on the
aesthetics like improving the façade of small businesses. All these programs make it
easier for business to get over the hump so that they are sustainable and create long -
term value to the community.
The City of Mounds View has a Business Improvement Loan Program and we have had
businesses that have asked for this loan. However, the program has been unfunded for
several years and therefore, the City has not been able to use the business loan
program to help our local businesses.
Property acquisitions: The city keeps an inventory of vacant and distressed properties
with the idea of purchasing these properties then packaging them together for
redevelopment. Several opportunities have come up that the city has been forced to
pass on because there hasn’t been a funding mechanism to purchase the properties
without issuing bonds to cover the debt. If Mounds View wishes to continue its growth, it
must concentrate on purchasing and redeveloping properties with the cooperation of
private developers.
Surveys: When redeveloping property it is sometimes necessary to conduct surveys of
the parcels. With limited funding, completing surveys is an added cost that puts a strain
on the city’s budget. An EDA levy could help solve this problem.
Appraisals: When purchasing property, appraisals are sometimes required in order to
negotiate a fair price. Appraisals are normally only good for 6 months and are an added
tool in the negotiation process.
July 15, 2016 EDC Meeting
Item 5A – EDA Levy
Page 4 of 8
Professional Fees: When redeveloping property to increase the long-term benefit to the
community, attorneys must review the legal documents and be involve d in the
transactions. Financial consultants also review economic development projects and
conduct their financial analysis to determine the feasibility of each project and if
subsidies are appropriate and legal for each proposed development. An EDA levy c ould
help cover these types of costs.
Training & professional development: In order to stay current on state statu tes and
economic development programs, cities must continuously send their staff to training
and professional development. Current training helps in preventing missteps and
violations and ultimately law suits which can be costly to cities. Adequate training also
helps staff stay abreast of the new economic development programs available and any
changes to the policies of each program. A knowledgeable staff is good for business.
The chart below, sourced from the Minnesota Department of Revenue, outlines the
organizations that have an EDA/HRA levy.
EDA's Port Authorities, & Development Commissions
Certified Special Taxing District Levy Changes for CY 2015
February 27, 2015
HOME Pay 2014 Pay 2015 $ Change
%
Change
COUNTY Final Certified Levy Levy
SPECIAL TAXING DISTRICT NAME ID ID Levy Levy
TOTALS
90,348,467
91,678,374
1,329,907 1.5%
VICTORIA EDA 017 10 0 188,000 188,000 #DIV/0!
COLUMBUS EDA/HRA 059 02 75,267 81,375 6,108 8.1%
EAST BETHEL EDA 063 02 123,022 123,022 0 0.0%
ST CLOUD ECONOMIC DEV AUTH 065 73 333,000 353,000 20,000 6.0%
RENVILLE COUNTY HRA-EDA 099 65 276,000 270,000 (6,000) -2.2%
DAKOTA COUNTY CDA 113 19 6,643,476 6,829,714 186,238 2.8%
SCOTT COUNTY HRA/CDA 164 70 2,445,823 2,517,278 71,455 2.9%
WATERTOWN EDA 185 10 41,386 42,237 851 2.1%
CARVER CO CDA (FKA HRA) 190 10 1,850,205 1,954,904 104,699 5.7%
DAYTON EDA 216 27 10,867 10,867 0 0.0%
NORTH BRANCH EDA/HRA 230 13 242,005 241,802 (203) -0.1%
ARROWHEAD REG DEV COMM 301 69 550,133 566,637 16,504 3.0%
July 15, 2016 EDC Meeting
Item 5A – EDA Levy
Page 5 of 8
REGION 5 REG DEV COMM 303 77 283,595 292,103 8,508 3.0%
HEADWATERS REG DEV COMM 305 04 280,435 288,848 8,413 3.0%
ST CHARLES ECON DEV AUTH 306 85 33,497 34,086 589 1.8%
REGION 9 REG DEV COMM 307 07 519,682 535,272 15,590 3.0%
REGION 1 REG DEV COMM 309 57 249,503 256,988 7,485 3.0%
REGION 6E REG DEV COMM 311 34 307,195 307,195 0 0.0%
LAC QUI PARLE COUNTY EDA 314 37 165,000 147,500 (17,500) -10.6%
REGION 8 REG DEV COMM 315 51 330,732 340,654 9,922 3.0%
UPPER MINN VALLEY RDC 317 76 280,435 288,848 8,413 3.0%
EAST CENTRAL REG DEV COMM 319 33 275,016 283,266 8,250 3.0%
METRO LIVABLE COMM FUND 502 62 11,194,036 11,342,458 148,422 1.3%
BECKER ECON DEV DIST 506 71 110,300 113,280 2,980 2.7%
BIG LAKE ECON DEV DIST 508 71 70,000 20,000 (50,000) -71.4%
ELK RIVER ECON DEV DIST 512 71 561,154 616,467 55,313 9.9%
ST PAUL PORT AUTHORITY 513 62 2,835,000 2,795,400 (39,600) -1.4%
WINONA PORT AUTHORITY 515 85 548,290 538,200 (10,090) -1.8%
RURAL DEV FINANCE AUTH 523 49 75,000 75,000 0 0.0%
ECONOMIC DEVELOPMENT AUTH 526 16 210,000 223,550 13,550 6.5%
NORTHFIELD EDA 531 66 203,591 214,180 10,589 5.2%
NEW ULM EDA 534 08 117,000 117,000 0 0.0%
CHAMPLIN EDA 535 27 310,439 306,000 (4,439) -1.4%
NEW HOPE EDA 537 27 0 150,000 150,000 #DIV/0!
MONTEVIDEO EDA 539 12 26,200 29,568 3,368 12.9%
BROOKLYN PARK EDA 541 27 918,460 916,487 (1,973) -0.2%
FARIBAULT EDA 544 66 193,354 218,551 25,197 13.0%
BECKER COUNTY EDA 545 03 160,748 160,748 0 0.0%
ST MICHAEL EDA 546 86 90,000 90,000 0 0.0%
PRIOR LAKE EDA 548 70 150,000 159,000 9,000 6.0%
ROBBINSDALE EDA 551 27 155,778 0 (155,778)
-
100.0%
HANOVER EDA 552 86 44,927 49,000 4,073 9.1%
BURNSVILLE EDA 562 19 542,500 567,500 25,000 4.6%
DULUTH SEAWAY PORT AUTH 566 69 898,555 919,718 21,163 2.4%
DULUTH TRANSIT AUTHORITY 567 69 1,391,900 1,391,900 0 0.0%
RED WING PORT AUTHORITY 569 25 307,409 334,177 26,768 8.7%
WASECA CITY EDA 581 81 78,918 78,159 (759) -1.0%
KANDIYOHI / WILLMAR EDC 582 34 455,000 455,000 0 0.0%
JORDAN EDA 591 70 60,072 67,200 7,128 11.9%
LAKES AREA ECON DEV AUTH 593 21 194,000 213,000 19,000 9.8%
WADENA PORT 595 80 25,739 26,495 756 2.9%
HUTCHINSON EDA 596 43 150,450 152,442 1,992 1.3%
NORWOOD YOUNG AMERICA EDA 598 10 34,995 39,300 4,305 12.3%
July 15, 2016 EDC Meeting
Item 5A – EDA Levy
Page 6 of 8
What are these cities accomplishing with their EDA/HRA levies? Staff polled
organizations listed on the previous chart. Below is a list of their responses.
City of Columbus: Advertise/Branding, Marketing, Attracting New Development &
Businesses-Retaining Current Businesses, Shovel Ready Program, and website.
City of Dayton: small incentives; a business summit that we hope will be an annual event;
and other city marketing improvements to encourage new businesses.
City of Hutchinson: Our EDA levy supports the operations area of our budget. We typically
don’t use any of those dollars to support program activities (those are operated through
separate funds). Consequently, levy dollars pay for staffing primarily, along with our
marketing. Salaries, Office Supplies, Operating Supplies, Professional Development,
Travel, Software & Licensing, Advertising, Dues & Subscriptions, Business Retention &
Expansion, Downtown Improvement, Industrial Park Recruitment, Skilled Workforce
Development, Fund local loan programs, update policies, etc.
City of North Branch: In 2009 we issued bonds for land purchases that the City made for a
multi-use development (housing, commercial and industrial). Our HRA/EDA levy is solely
used to pay the bonds for the industrial land purchases. Our operational budget for EDA
activities is through our general fund levy.
City Brooklyn Park: The City of Brooklyn Park created its EDA in 1989 and set EDA/HRA
levies in the early 1990s. The EDA oversees both levies as we do not operat e an
HRA. The EDA/HRA levies are two funding sources that contribute to the funding of a
number of programs. Marketing, Video Promotion, print advertising campaign, launching
merchandise sales in City Hall. Vision of Light Rail Transit Station: artistic renderings for
planning purposes, DEED Site Selector Program, Open to Business Program, funding of
the SAC/WAC Deferral Program, Business Forward Forum, Annual Banker Breakfast, and
Redesign Newsletter.
City of Prior Lake: The largest piece of the budget pays for ½ salary/benefits for two staff
persons (myself and the Community Development Specialist). Another piece relates to the
operation of a small business incubator program. The City created a Targeted Commercial
Assistance Program to support retention of existing gateway center businesses, Salaries,
Training & Professional Development, legal fees, dues, SAC Deferred Loan Program, etc.
City of Watertown: The EDA currently supports a building façade and Revolving Loan Fund
(RLF) program in addition to downtown free downtown WIFI. One of our most recent items
is the acquisition of a former county public works site that we are working to redevelop. The
July 15, 2016 EDC Meeting
Item 5A – EDA Levy
Page 7 of 8
EDA also provides some staff support and marketing. We have primarily used the EDA levy
to fund property acquisition and redevelopment activities like demolition, environmental,
etc. We are exploring a housing stock rehabilitation program as well.
City of Becker: Overall, the EDA levy goes towards staffing, training/professional
development, dues/subscriptions and promotional activities. Becker is proactive with
professional development and is very supportive of staff furthering their education. Specific
expenditures examples: Attendance of the National Development Council (NDC) course for
the Economic Development Finance Professional (EDFP) certification, participation in the
Site Selectors Guild to connect to site selectors working worldwide, rebranding, dues to two
different regional development organizations, dues to the Economic Development
Association of Minnesota (EDAM) and American Planning Association (APA), DEED’s
shovel ready process to certify approximately 70 acres in our industrial park, purchase old
homes to be demolished. We are also looking into implementing a revolving loan fund or
smaller incentives, updating the website, participation with the Ch amber of Commerce,
BR&E’s, Broadband Initiative, community videos, update marketing brochures, hire broker
to market the city, trade shows, update maps & newsletters, marketing plan, Twin Cities
business articles, demographic studies, traffic counts, policy updates, etc.
EDA Program Goals: Creation of a strong and diverse tax base, higher quality
commercial/industrial development with a higher tax base density per acre , a mix of wage
rates which meet or exceed the livable wage as per the City’s municipal subsidies policy,
depending upon the types of businesses that locate here, development and redevelopment,
professional, medical and technology oriented business/office, heavy and light
manufacturing/office warehouse/rail users, business/office park with higher development
standards, commercial/retail centers, appropriately zoning industrial land when annexed
into the City.
City of Robbinsdale EDA: The HRA/EDA levy goes into the Robbinsdale EDA General
Fund to be used for staff time working on economic development projects including
attorneys and consultants. The EDA has a long standing scattered site residential program
– we acquire severely blighted homes, demolish them, and sell the lot for new construction.
New construction is not for a starter home – the homes are typically 3-4 bedrooms, with lots
of kitchen upgrades. The difference between acquisition plus demolition and sale of the
home averages around $50,000; depends on asbestos removal. The EDA has a downtown
loan program and has also been involved in larger scale downtown redevelopment
involving administration of funds from other agencies – County, Tax Base Revitalization
Account (TBRA) through the Metropolitan Council for the cleanup of polluted soils, and TIF.
City of Hanover: If an incentive program is approved by our EDA, the Council gives final
approval. Our levy covers a consultant fee, member salaries, and website costs on an
annual basis. In the past they have also funded studies to determine growth of the city and
specific needs for businesses, traffic studies, etc. They also donate to the annual town
July 15, 2016 EDC Meeting
Item 5A – EDA Levy
Page 8 of 8
celebration, we offer three local incentive programs (low interest loan, rent reimbursement,
and a matching grant/0% interest loan program), Our EDA did issue bonds for a lease to
buy on the City’s Fire Hall.
City of Staples: The state sets our tax levy and we use the funds for staff time on planning
& program delivery such as; municipal comp planning, transportation, broadband,
managing our EDA revolving loan funds, (we have 4 lending programs at Region Five)
business, transportation, energy, local foods, and much more! The Regional Development
Commissions (RDC’) across the state do not have levy authority beyond what the state
offers. Per state statute the only property RDC’s can own is the property on which our
offices reside. Our tax levy contribution is less than 1/3 of our annual budget. The levy
share of MN RDC budgets vary among the 9 MN RDCs.
City of Northfield: The EDA purchases property and assists with TIF and Tax Abatement
Districts and manages a Revolving Loan Fund. The Micro-Grant program is an annual
budget appropriation of $25,000 for up to $5,000 grants that are available to local
entrepreneurial businesses for expansion projects. A business must be in operation for at
least 1-year, have a qualified project, and be awarded funding from this program one time
per business. The Northfield Enterprise Center (NEC) is a local entrepreneurial support
program funded primarily by the Northfield EDA. The NEC has been in business for 15
years and has assisted with over 100 local business start-ups in Northfield.
City of Champlin: The EDA levy pays for operating costs including salary, benefits,
insurance, marketing, consulting expenses for our development activities. Salaries &
Benefits, operating supplies, minor equipment, Consultants, Auditing & Accounting
Services, Engineering fees, Legal Services, Contract Services, Travel Expenses,
Marketing, Advertising & Publishing, Insurance & Bonds, Electric Utilities, Sewer Utilities,
Subscription & memberships, taxes & Licenses, Special Events.
Staff Recommendation
Discuss and make recommendation to the EDA highlighting the EDC consensus regarding
adopting an EDA levy for 2017. The EDC recommendation will be presented to the City
Council at its August 1, 2016 Council Work Session.
Respectfully submitted,
____________________________
Brian Beeman, Business Development Coordinator
MVM Sample Home Tax Impact Report 07/18/2016 1:11 PM
Sample EDA Tax Impacts
City of Mounds
Estimated Residential Tax Impact
2016 2016
Market Taxable 50,000 100,000 168,140
Value Value Tax Levy Tax Levy Tax Levy
55,942 33,542 2 4 9
111,884 84,584 4 10 23
167,825 145,625 8 17 39
223,767 206,567 11 23 55
279,709 267,609 14 30 71
335,651 328,551 17 37 88
391,592 389,492 21 44 104
447,534 447,534 24 51 120
503,476 503,476 27 57 134
Estimated C/I Tax Impact
500,000 500,000 31 66 155
750,000 750,000 48 102 239
1,000,000 1,000,000 64 138 323
2,000,000 2,000,000 131 281 659
5,000,000 5,000,000 331 710 1,667
10,000,000 10,000,000 664 1,425 3,347
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.
Reports of Staff
Council Workshop
August 1, 2016
Page 2 of 6
Flea Market: City staff received a request to host a flea market in Mounds View. Since they were not interested
in a parking lot location, and the city parks are reserved for other activities such as soft ball, Festival in the
Park, etc. they are trying to find another location. They originally wanted to locate at Crossroad Pointe,
however, this land is locked up in a contract and the developer will be needing access to the site to conduct
soil borings etc. They indicated that they will also be looking at surrounding cities.
Bio Tech Company: A broker called looking for 3-6 acres of vacant land for a company to build a facility that
can house a clean room that would test medical equipment. Coordinator Beeman provided them information
on the vacant land north of Bio Life and also mentioned the possibility of contacting Rydell Auto for additional
acreage. They are also looking for sites near Edina.
Magazine Distributors: They have gone out of business. Their business model is to distribute phone books,
newspapers, magazines, and mailers. All of these media tools have experienced a downturn in the market, as
more customers are using eBooks and the internet to find their information. As a result, their space is now
available.
2402 County Rd I: The office building next to Snap Market is for sale. The realtor is having a difficult time
finding interested buyers and it was recently vandalized as well as the Snap Market building.
Snap Market: Spray paint was painted over twice in April on the Snap Market building. Mr. Ankur Chopra of
Keshav Enterprises, Inc. will be moving into the old Snap Market space. His intent is to open an off sale liquor
store. Their Liquor license was approved May 23, 2016, however the State has not yet finalized the license
due to problems with their insurance certificate.
Dynex/Dymax: These two businesses have left Mounds View to find another lease space. FedTech owns the
building and needs the space to continue to grow their business.
Bio Clean: They are still looking to build a new building to assemble their franchise trucks equipped with power
washers. They tried negotiating a deal with the Skyline Motel and the owners of the Motel wouldn’t negotiate
enough on the price to make the deal work. As a result, they are still looking for land to build a new facility or
an existing building to refurbish. They would like to stay within 5 miles of their existing site if possible.
Central Transport: They are moving to their new location in Blaine in September. Saia will take over the
building and remodel it before moving into the building sometime in the Spring of 2017.
Dell-Comm: Has received a permit to install a new cell tower which has been constructed.
MFI Metal Finishers Inc.: They have contacted city staff looking into the possibility of expanding their existing
building to another 3,000 sf. They are still contemplating how this would be designed and if they will proceed or
not.
Mounds View Chiropractic: They have signed a long-term lease in their existing building but will be looking for
another space as their lease comes due. Ideally, they would like to own their building and custom design it to
fit their specific needs.
Albert’s Organics: This space is still vacant. The area has a commercial kitchen and they are looking for a
user that would have a need for this use. The available space is about 46,000 sf.
Mounds View Square: They still have six vacancies. They have talked about a possible tap room but would
need the city to update their ordinance on this type of use. City Planner, Jon Sevald is working on this
ordinance. The ordinance would address brew pubs, tap rooms, microbreweries, distilleries, wineries, etc. The
City Council is expected to consider the Ordinance August 22, 2016, with the intent to go into effect by the end
of September.
Reports of Staff
Council Workshop
August 1, 2016
Page 3 of 6
Silver View Plaza: They will be doing some minor parking lot patching this spring and they are still looking at
their options for a new sign along County Road 10.
Apple Tree Dental: Coordinator Beeman arranged a verbal agreement between Apple Tree Dental and the
Wynnsong Theater for any additional employees added by the expansion of the dental office to be able to park
in the movie theater’s parking lot along the north side of the building or along the walking trail. The new
employees will be moving from Coon Rapids to Mounds View this fall. Another parking option is to park along
Mounds View Drive.
Dr. Helgeson said,
“The availability of parking along the north side of the parking lot is terrific news. We just finished a 7 year
lease for the space our leadership team is currently using in Coon Rapids and are now on a “month-to-month”
extension. We plan to use the projected rent savings when we move out to finance new office equipment for
the second floor at our Mounds View Center. That will likely happen late in the fall or early winter of this year.
At that time, about a dozen administrative staff, (including me!) will move to the Mounds View Center. It would
be terrific if we could park our cars along the north side of the parking lot and wa lk along the path to our
office.”
Empire House: The company was trying to build a new building in Mounds View and decided to stop any and
all negotiations on the land north of Bio Life because the land owner has many shell companies and their
attorneys were busy trying to determine who actually owned the property. Once it was determined who owned
the property, the land owners decided that they wanted to sit on the land in case Bio Life needed it for future
parking. As a result, Empire House has put the project on hold and may be leaving Mounds View to build their
new building.
Arepa Bite: There is a new Latin American food restaurant in Mounds View. Arepa Bite opened their doors
April 26, 2016. Arepa Bite is a family restaurant that offers authentic Venezuelan food. They are open Monday
–Friday 7:00 am-8:00 p.m. and Saturday from 8:00 a.m.-8 p.m. and Sunday from 9:00 a.m.-2:00 p.m.
www.arepabite.com.
Arepa Bite is an independently owned family business and Mounds View is its first and only location. The
owner, Vannessa Fazio, lives in Mounds View and wanted to have a business location that was near her home
where she could spend more time with her family. Vannessa said she really likes her neighborhood and the
Mound View people.
So what is an Arepa? According to their website, the predecessor of the arepa was a staple of the Timoto-
cuicas, an Amerindian group that lived in the northern Andes of Venezuela. Other Amerindian tribes in the
region, such as the Arawaks and the Caribs, widely consumed a form known as casabe made from cassava
(yuca). With the colonization by the Spanish, the food that would become the arepa was diffused into the rest
of the region, known then as Viceroyalty of New Granada and later became La Gran Colombia (Colombia,
Venezuela, Ecuador, Panama) at the time of Independence.
The term arepa is pre-Columbian and most probably comes from the word arepa which means corn in the
language of the Cumanagotos, indigenous people of Venezuela, whose descendants inhabit today the eastern
regions of the country.
Venezuelans prepare arepas depending on personal taste or preference and the region in which they are
made. The stuffed arepas butter and cream cheese, assorted meats, chicken and avocado salad, eggs and
beans are part of the typical breakfast of Venezuela. Vannessa said, the bread of the arepa is made of white
corn bread and it is handmade each day, grilled, then placed in the oven to get the perfect texture. The bread
is cut and filled with traditional or custom ingredients. There are eleven versions of the traditional arepa and
customers may also request custom arepas. Their most popular arepa is the shredded beef and cheddar and
the black beans with white cheddar cheese. They also serve sugar cane juice with lemon. They have a
machine that will release a whole orange, cut it, and squeeze it to form fresh orange juice.
Reports of Staff
Council Workshop
August 1, 2016
Page 4 of 6
The restaurant was originally supposed to be a sit down atmosphere similar to a Chipotles. However, the ir
building options were limited in Mounds View and they decided to morph the business into semi-fast food
model. This is why it may take slightly longer than a traditional fast-food restaurant but it is faster than a sit-
down restaurant. You order your food and either take it with you or sit at one of the many tables provided.
El Loro: The owners have decided to close the business in Mounds View in about two months. They said they
have experienced a decline in customers and they won’t be able to recover unless they can reduce their lease
payment and/or somehow pick up the customer base. They are encouraged by the new proposed apartment
development at Crossroad Pointe, but they don’t believe they can hold on for another year. If the apartments
had been built a year earlier, they may have been able to survive. This brings to light a common theme. Many
people who I’ve talked to mention they want a better variety of restaurants in Mounds View, particularly during
lunch time. However, historically they have not supported our local restaurants and they end up leaving to find
a better location or close down all together. Hopefully with the new apartments getting built this will change the
trend for the better.
Bel Rae: According to Kelly Royten, Executive Director for the Bel Rae Senior Living, their second Memory
Care community is now open and they have 10 apartments left for Memory Care. They still have availability for
Assisted Living with one bedroom and Studio apartments. There current staffing is approximately 50
employees. Overall, they are over 70% filled.
Private Event Center: City Planner Jon Sevald and Business Coordinator Brian Beeman met with a group
wanting to purchase the Tires N More building and the adjacent EDA owned lot. They wanted to hold
weddings and gatherings on the weekends and catering throughout the week. They would have had around
200 vehicles on the weekend events. However, they have notified staff that they have decided to continue to
look elsewhere and are no longer interested in the site.
Miscellaneous: Business Coordinator Beeman has received numerous calls for land to build
manufacturing/industrial buildings. Mounds View doesn’t have any more industrial land available. Some have
asked about the Tires N More building however, the owner received two very good offers and turned them
both down then took the building off of the listing. The owner is now using the building as a warehouse. The
only other possibility is the land parcel north of Bio Life. Otherwise, the city or a private developer would have
to purchase and demo potential sites for redevelopment.
Reports of Staff
Council Workshop
August 1, 2016
Page 5 of 6
C. Rice Creek Commons (TCAAP) Development Update
Construction on Rice Creek Commons and County Road 10 & H has begun. Final completion is expected
early 2017. Information on the project and an explanation of roundabouts was posted to the website and
Facebook. The building development is expected to begin in 2017.
Alatus has been chosen as the master developer who beat out Opus and Ryan Companies. Alatus will be
negotiating a development agreement soon then it will begin plans for Phase I construction calling for 200
homes. In addition, Alatus will begin its search for a large grocery store and medical facility to serve as an
anchor in the hopes that it will spur more commercial development.
D. Mounds View Project Updates
Website: The City Council will be discussing the possibility of upgrading the existing website or installing a
completely new website. The current website is very manually intensive and doesn’t allow some of the
features that more modern websites have to offer. They will discuss forming a task force and bringing in web
companies to present their proposals at an upcoming work session.
Silver View Park Trail: The Silver Lake Park Trail is expected to be installed this summer. The trail was
supposed to be completed last year; however the project was delayed due to problems obtaining easements
from the property owners.
Trail Segments: The city plans on completing the final trail segments this year. Segment 6 will be placed from
the County Rd 10 & H2 intersection in front of Moe’s to the corner of County Rd 10 & Woodale Drive. Segment
11 will run from Red Oak Drive near Western Bank to Groveland Road near Steve’s Appliances and will tie in
with the newly constructed sidewalk at Groveland Road. With the completion of the new bridge over I-35 this
fall, Mounds View will have continuous access to the county regional trail system.
Community Center Sign: The city is in the preliminary stages of contracting with a sign company to install a
new Community Center monument sign across from City Hall. This project is expected to be completed this
year.
E. Snyder Building
Staff is in regular contact with the realtor offering ideas and leads. The main issue is the price and lack of
parking. The asking price has been reduced from $2.5 mill to somewhere between $1 to $2 mill. The lease is
over $14 p/sq. ft. Many businesses like the location but can’t afford the price and/or require more parking
spaces. The owner has been forced into paying the loan payments without income from the building and has
indicated that he is accepting reasonable offers and is open to creative financing. Staff may be discussing the
possibility of addressing parking in the city. If parking ratios were reduced then this could potentially open up
the possibility of recruiting a restaurant to this location.
F. Mounds View Business Council Meeting
The next meeting will be held September 14, at 7:30 a.m. at the Mermaid Event Center. The speaker for the
next meeting will be a company representative from Alatus which is the Master Developer for the Rice Creek
Commons project. The Twin Cities North Chamber of Commerce would like to join Mounds View, Arden Hills,
and Shoreview to the Business Council meetings. Jason Helgemoe would continue to chair the meetings and
the group will need to agree to a new name. Some ideas have been North Metro Business Council or
Northwest Ramsey County Business Council. If any Council Member has ideas on the new name or
comments on joining the cities please make Jason Helgemoe or Brian Beeman aware of your comments and
either of them will bring those forward at the next Business Council meeting.
Reports of Staff
Council Workshop
August 1, 2016
Page 6 of 6
G. Other Upcoming Events/Reports
Music & Movies in the Park: Held at Silver View Park, the band, “Church of Cash” will be
performing Thursday August 18 from 7:00-8:00 p.m. Their music pays tribute to Johnny Cash. The
movie, “The Good Dinosaur”, rated PG, will begin after the band has finished and it is dark enough.
National Night Out: Will be held Tuesday, August 2. It’s a great way to meet your neighbors, enjoy
some good food, and become familiar with members of your Police Department. If you would like to
host a party on your block please call Officer Nate Garland at 763-717-4092.
Filing for Municipal Elections: August 2 at 8:00 a.m. – August 16, at 5:00 p.m. for Mayor and two
Council Members. All Mounds View residents are welcome to file. Filing fee is $20.00.
Festival in the Park 5K Run: Registering before July 22 is just $20, if registering before August 18
the cost is $25, and if registering the day of race then the cost is $35. Proceeds go to support the
YMCA scholarship program that directly supports Mounds View area families in need of assistance
and allows them to participate in programs at a discounted rate.
Festival in the Park: August 20. For more information please go to:
http://www.mvfestivalinthepark.com/
Respectfully submitted,
_______________________
Brain Beeman
Business Development Coordinator