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HomeMy WebLinkAboutAgenda Packets - 2015/10/05 CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Monday, October 5, 2015 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 NYFS Programs and Services - Jerry Hromatka (verbal report) 2. Park/Recreation/Forestry Commission Discussion 3. Review Proposals to Develop Crossroad Pointe Site 4. Other Funds Draft 2016 Budgets 5. Update on Progress Associated with City Council Goals for 2015 Next Work Session: Monday, November 2, 2015, at 7pm Next City Council Meeting: Monday, October 12, 2015, at 7pm March 16, 2016 Current Resident Address City, State Zip RE: Upcoming intersection closure and detour – County Rd. H and Red Oak Dr. Dear Current Resident: Metropolitan Council Environmental Services (MCES), operator of the metro-area wastewater collection and treatment system, is making improvements to aging and deteriorating regional sanitary sewer facilities that serve homes and business in the Cities of Fridley, New Brighton, and Mounds View. Starting on March 28th through mid-May 2016, the intersection at County Rd. H and Red Oak Dr. will be closed to thru traffic. Please refer to the enclosed detour route and follow the marked detour signs near the road closure. Local residents and businesses located within the closed intersection will maintain access to driveways. This intersection closure is anticipated to be in place for approximately six weeks. The sewer improvement work required at this intersection will include excavating a pit to access the sanitary sewer in order to perform some emergency repair and maintenance work. Fencing will be placed around the work area for safety. During construction, some temporary inconveniences may occur as the work takes place: • Large construction equipment • Noise and vibration • Dust • Parking and traffic restrictions • Odors We apologize for the inconvenience and we will do our best to minimize impacts to your residence during construction. If you would like to discuss the upcoming construction or any questions related to the intersection closure or detour, please contact our project team at info@naiphase5.com or 763-392-4648. We appreciate your patience as we complete this important sewer work in your area. For more project information, to sign up for the project e-mail or text updates, or to view past and present project updates, visit the project website at http://www.metrocouncil.org/sewerconstruction/fridley/tricity Sincerely, Tim O’Donnell Tim O’Donnell Project Citizens Liaison Metropolitan Council Environmental Services 2/19/2015 For immediate release. The Spring Lake Park, Blaine, Mounds View (SBM) Fire Department is now accepting applications for Volunteer Firefighters. Applications are available for download on our website and must be submitted by 4:00p.m. on Friday, April 17th, 2015. The SBM Fire Department seeks motivated and hardworking individuals to join our team of highly trained professionals. The 70 men and women of the SBM Fire Department respond to emergencies 24 hours per day, 7 days per week, year- round. Many work full-time jobs, have families, own businesses, coach sports, and enjoy weekend trips away. It is all still possible as a Volunteer Firefighter! If you are looking for a unique, challenging, and rewarding way to serve your community – Join the Trusted Few. No previous experience is necessary and all training and equipment will be provided. Successful candidates: • Live within response time requirements to one of our four fire stations • Must be at least 18 years of age • Must hold a valid Driver’s License • Must have a high school diploma or equivalent Benefits of becoming an SBM Volunteer Firefighter include: • Excellent pension after 10+ years of service • Being a member of a nationally recognized organization • Supplemental Life Insurance • Recruitment bonus after all training is complete • Free annual physicals • Free use of workout facilities • Full medical and injury coverage while on the job Important dates: • Tuesday March 31st or Wednesday April 1st: 7p.m.-8:30p.m. at Fire Station #3, 11920 Ulysses St. NE in Blaine. An informational session will be held for interested members and their families/significant others. Applicants are invited to attend on either date. (Optional) • Saturday April 18th at the Joint Training Center in Fridley, MN. The Anoka Country Recruitment Expo will be held for applicants to try on firefighting gear, use equipment and practice physical ability skill stations. Please RSVP for this event to secure a timeslot by contacting Maddison Zikmund. (Optional) • Friday April 24th from 4-8pm and Saturday April 25th from 8am-12pm both at the Joint Training Center in Fridley, MN: Physical Ability Evaluations will be held by appointment only and can be scheduled by contacting Maddison Zikmund. (Required) • Interviews and additional requirements will be completed by June 2nd. Maddison Zikmund - Recruitment Coordinator  SBM Fire Department  763-767-4003  mzikmund@sbmfire.com www.sbmfire.com  www.mnfirehire.com EOE/ADA Item No. 2. Meeting Date: October 5, 2015 Type of Business: Work Session City Administrator Review: ______ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Erickson, P.E., Public Works Director/City Engineer Item Title/Subject: Park/Recreation/Forestry Commission Discussion Introduction The Park/Recreation/Forestry Commission will be present at the work session to discuss several projects and provide an update to the City Council. Discussion The Park/Recreation/Forestry Commission has been working through a number of projects this year. These projects include: • Splash Pad/City Hall Park • Groveland and Greenfield Parks tennis and basketball courts • Hillview Park hockey rink concept Attached to this report is a draft layout for the Splash Pad. Staff will provide an estimated cost at the work session for the Council and Commission members. Respectfully Submitted, Brian Erickson, P.E. Attachment: Draft Layout for Splash Pad Crossroad Pointe Redevelopment Study 2390 County Road 10 2394 County Road 10 2400 County Road H2 Prepared for: City of Mounds View Prepared by: Stantec Consulting Services Inc. 193802610 April 24, 2014 This document entitled Crossroad Pointe Redevelopment Study was prepared by Stantec Consulting Services Inc. (“Stantec”) for the account of the City of Mounds View (the “Client”). Any reliance on this document by any third party is strictly prohibited. The material in it reflects Stantec’s professional judgment in light of the scope, schedule and other limitations stated in the document and in the contract between Stantec and the Client. The opinions in the document are based on conditions and information existing at the time the document was published and do not take into account any subsequent changes. In preparing the document, Stantec did not verify information supplied to it by others. Any use which a third party makes of this document is the responsibility of such third party. Such third party agrees that Stantec shall not be responsible for costs or damages of any kind, if any, suffered by it or any other third party as a result of decisions made or actions taken based on this document. Table of Contents CROSSROAD POINTE REDEVELOPMENT OPPORTUNITY SUMMARY .......................................... I Traffic Counts ...................................................................................................................... i 1.0 INTRODUCTION ...........................................................................................................1.1 2.0 PLANNING CONSIDERATIONS AND CONTEXT ...........................................................2.3 2.1 SITE CHARACTERISTICS ................................................................................................... 2.3 2.1.1 Description, History, and Ownership ......................................................... 2.3 2.1.2 Environmental .............................................................................................. 2.4 2.1.3 Zoning ............................................................................................................ 2.4 2.1.4 Utilities ............................................................................................................ 2.4 2.2 ACCESS AND CIRCULATION ......................................................................................... 2.5 3.0 PROCESS ......................................................................................................................3.6 4.0 CONCEPT DEVELOPMENT PLANS ................................................................................4.6 4.1 MIXED USE DEVELOPMENT - CONCEPT 1 .................................................................... 4.7 4.2 MIXED USE DEVELOPMENT - CONCEPT 2 .................................................................... 4.8 5.0 MARKET ANALYSIS ......................................................................................................5.9 5.1 INTRODUCTION ............................................................................................................... 5.9 5.2 REGIONAL CONTEXT OF MOUNDS VIEW AND THE CROSSROAD POINTE SITE ........ 5.9 5.2.1 Location ........................................................................................................ 5.9 5.2.2 Development Pattern ............................................................................... 5.10 5.2.3 Important Nearby Development ............................................................ 5.10 5.2.4 Transportation ............................................................................................ 5.11 5.3 DEMOGRAPHIC TRENDS .............................................................................................. 5.12 5.3.1 Median Age ............................................................................................... 5.12 5.3.2 Household Size ........................................................................................... 5.12 5.3.3 Household Type ......................................................................................... 5.13 5.3.4 Homeownership ......................................................................................... 5.13 5.3.5 Income ........................................................................................................ 5.14 5.4 HOUSING ....................................................................................................................... 5.14 5.4.1 Development Patterns .............................................................................. 5.14 5.4.2 Rental Market ............................................................................................. 5.15 5.4.3 For-Sale Market .......................................................................................... 5.15 5.4.4 Senior Housing Market .............................................................................. 5.16 5.5 RETAIL............................................................................................................................. 5.16 5.6 OFFICE ........................................................................................................................... 5.17 5.7 OTHER USES ................................................................................................................... 5.17 5.8 MARKET FORCES........................................................................................................... 5.18 5.8.1 Demographics ........................................................................................... 5.18 5.8.2 Income ........................................................................................................ 5.18 5.8.3 Traffic Counts ............................................................................................. 5.18 5.8.4 Selected Restaurant Minimum Requirements ....................................... 5.19 LIST OF APPENDICES ........................................................................................................................... A.1 APPENDIX A A.1 Crossroad Pointe Opportunities and Challenges ..................................................... A.1 A.2 Crossroad Pointe Comment Form Responses ........................................................... A.1 i Crossroad Pointe Redevelopment Opportunity Summary Current Owner/Contact: City of Mounds View Jim Ericson City Administrator 763-717-4001 JimE@ci.mounds-view.mn.us Property Addresses: 2390 County Road 10 2394 County Road 10 2400 County Road H2 Lot Size: 4.25 Acres Total (including vacated Greenfield Avenue right of way) Status: Vacant land (buildings have been removed) Zoning: B-3 Highway Business Description: This prime mixed-use development opportunity is located on the southwest corner of County Road 10 and County Road H2, approximately nine miles northeast of Downtown Minneapolis and 11 miles northwest of Downtown St. Paul. The site is situated in close proximity to transportation networks, major employment centers, colleges and universities, regional shopping centers and numerous recreation spots. Demographics 1 mile radius population (2012): 9,384 3 mile radius population (2012): 60,119 5 mile radius population (2012): 176,470 1 mile Growth 2012 – 2017: 1.6% Income 5 mile radius avg. HH income (2012): $77,211 Traffic Counts County Road H2 (2011): 3,500 daily County Road 10 (2012): 21,910 daily 1.1 1.0 INTRODUCTION The City of Mounds View, through its Economic Development Authority (EDA), has purchased three contiguous parcels in the southwest corner of County Road 10 and County Road H2 and has prepared them for redevelopment by removing the previously existing structures. The EDA’s goals with this redevelopment include:  Creating a mixed-use development that is compatible with surrounding area  Attracting business uses and buildings that frame intersection  Providing a buffer for the adjacent residential areas  Incorporating urban design elements to balance pedestrians & vehicles  Constructing amenities through and within the site, such as extending existing trail corridor  Providing adequate, off-street, screened parking for the development Figure 1: Crossroad Pointe Site Context Map 1.2 The image below and the enlargement on the following page show the neighborhood surrounding the site within ¼ and ½ mile radii, including residential areas, parks, Edgewood Middle School, and numerous businesses. The site is indicated by the red polygon. There are a significant number of employees who work in close proximity to the site at MultiTech Systems, the nearby Medtronic facilities, and other area businesses. The enlargement image shows existing views into the site (blue arrows) and existing access point into the site (green circles). The zig -zig line along the south edge of the site indicates the need for buffering from adjacent residences. Existing buildings on the site that are shown in the aerial photo have since been removed. Figure 2: Crossroad Pointe Neighborhood Orientation Map 2.3 2.0 PLANNING CONSIDERATIONS AND CONTEXT The following provides an overview of the planning considerations and context for redevelopment of the Crossroad Pointe site. 2.1 SITE CHARACTERISTICS 2.1.1 Description, History, and Ownership The site is comprised of three parcels: 2390 County Road 10, 2394 County Road 10, and 2400 County Road H2. Including the Greenfield Avenue right of way, which is proposed to be vacated, the Crossroad Point site totals approximately 4.25 acres. Prior to acquisition and demolition of existing structures by the City, the previous uses on the site included Robert’s Sports Figure 3: Crossroad Pointe Neighborhood Orientation Map Enlargement 2.4 Bar, Taiko Sushi Restaurant, and Premium Stop gas station. The City currently owns all three parcels. The adjacent parcel to the southeast, which has historically been a car wash, is currently being redeveloped as a Coventry senior living facility. 2.1.2 Environmental There were two recorded petroleum storage tank releases reported on the 2390 County Road 10 parcel when it was a Brooks Food Store. The first release was reported on January 3, 1990 and the file was closed on December 18, 1992 (Site ID# LEAK00002141). The second release was reported on June 15, 1994 for the former Brooks Food Store on the site, and the file was closed on March 26, 1996 (Site ID# LEAK00007478). The City purchased the 2390 County Road 10 parcel in 2006, demolished the structures, removed the underground storage tanks, and completed Phase I and Phase II Environmental Site Assessments (ESAs). According to the File Closure Confirmation letter from the MPCA dated May 30, 2006, “If future development of the site or surrounding area is planned, it should be assumed that petroleum contamination is present.” 2.1.3 Zoning All three parcels are currently zoned B-3 Highway Business. Zoning of the surrounding parcels includes B-3 to the north and east and R-1, R-2, and R-4 to the west and south. All three parcels are owned by the City of Mounds View. The residential areas to the west and south will require buffering. It is anticipated that the Crossroad Point site could be rezoned and developed as a PUD. The relevant portion of the City’s Zoning Map is included in the figure to the right. 2.1.4 Utilities The site is served by City sewer and water, with trunk utilities in both Edgewood Drive and Greenfield Avenue. Figure 4: Crossroad Pointe Area Zoning Map 2.5 2.2 ACCESS AND CIRCULATION County Road 10 is the primary northwest to southeast transportation corridor within the City. The site has a right-in/right-out access onto County Road 10. If this access were abandoned, it is unlikely that the County would grant a new access onto County Road 10. Therefore, it is recommended to maintain this access in its current location to improve the marketability of the site. County Road H2 is actually a City street, and is not under the jurisdiction of the County. The site currently has one access onto County Road H2, in addition to the Greenfield Avenue connection. It may be desirable to shift this access point further west along County Road H2 when the site is redeveloped to increase intersection spacing from County Road 10. Shifting the access point west would also facilitate restriping a portion of the existing left turn lane on eastbound County Road H2 for vehicles going northbound County Road 10 to be a left turn lane into the site from westbound County Road H2. Greenfield Avenue bisects the site, and planning for the site assumes that this right of way will be vacated through the site. If Greenfield Avenue is vacated, the City will require construction of a cul de sac just south of the site. Based on the concept plans, it appears feasible to construct a modified cul de sac within the existing right of way. Official AADTs for roadways adjacent to the site are shown in the following figure (AADTs are blue or magenta numbers). For example, the AADT for County Road 10 is 20,900. Figure 5: Traffic Data Map 4.6 3.0 PROCESS The planning process for the Crossroad Pointe site included meetings with the EDA and a public open house. The EDA performed a SWOT analysis exercise, and the issues the EDA identified were discussed with the public. Preliminary concept options were presented to assist with visualizing and refining the City’s goals and expectations for redevelopment of the site. A summary of both the SWOT exercise and public comments received at the open house are included as an Appendix to this report. 4.0 CONCEPT DEVELOPMENT PLANS During the course of the redevelopment planning process, a number of different options were developed. These options range from primarily residential, to primarily commercial, to mixed -use. The mixed use concept was selected as the best fit with the City’s redevelopment goals for the site, and two different mixed use development concepts were selected by the City of Mounds View Economic Development Authority for inclusion in this summary report. The Crossroad Pointe site is the potential first stage in the development of a “downtown” Mounds View area. The Concept Plans are intended to be illustrative of the mix and density of uses that the City would prefer to see on the site. Square footages shown are gross, not net. The concepts assume that the site would be developed as a PUD to accommodate a mix of uses, and would require a variance for parking because they are “under-parked” if all the square footage shown on the concepts was built. Another alternative would be for the City to create a City Center or Redevelopment Zoning District with reduced parking requirements. The parking lots are broken up with 20 foot wide islands of green. The more distant parking areas are envisioned as grass pave or other more sustainable surface. Both concepts show the termination of Greenfield Avenue in a cul de sac at the southern edge of the site. There is flexibility in terms of the mix of office and retail that is provided in both concepts. The EDA’s preference is that any approved redevelopment plan would create a strong presence along County Road 10 by orienting buildings closer to the County Road 10 right of way, and incorporating the trail extension with a public identify element, such as a clock tower or signature vertical element. It is anticipated that stormwater quality management would be accomplished through a combination of surface ponds (with a decorative fountain) and subsurface storage and infiltration. 4.7 4.1 MIXED USE DEVELOPMENT - CONCEPT 1 Concept 1 is based on the idea of creating a more focused development around an outdoor pedestrian mall with a pergola that ties together the different buildings in the development. Parking is located in the western half of the site, with additional parking below grade . The multi- story corner building has the potential for retail with office or residential above. Figure 6: Mixed Use Development Concept 1 4.8 4.2 MIXED USE DEVELOPMENT - CONCEPT 2 Concept 2 is based on the idea of maximizing the building facades along the street frontages of County Road 10 and County Road H2. The retail building on the west side of the site could go in the northwest or southwest corner, but it creates a better street presence along H2 if it is located where it is shown. Figure 7: Mixed Use Development Concept 2 5.9 5.0 MARKET ANALYSIS 5.1 INTRODUCTION This following summarizes a market analysis conducted for the Crossroad Pointe redevelopment area located on the southwest corner of the intersection of County Road 10 and County Road H2. Data included in this memo was used to help inform stakeholder s of key market dynamics impacting any future redevelopment. This is an update to a market overview conducted in 2006 for portions of the current Crossroad Pointe site. 5.2 REGIONAL CONTEXT OF MOUNDS VIEW AND THE CROSSROAD POINTE SITE The City of Mounds View holds many highly-marketable qualities. Its central location, stable neighborhoods, and an increasing concentration of highly-skilled employment pique the interest of prospective residents, businesses and developers. Due to limited reserves of developable land, however, new construction of residential or commercial properties has been extremely limited over the past decade. Through the targeting of strategic undeveloped or under developed sites, the City has a unique opportunity to expand its residential and commercial base in order to capture some of the ongoing and renewed energy being created along the Interstate 35W corridor. This section of the memo explains the City’s strategic community assets and describes how these assets strategically enhance Count y Road 10’s redevelopment potential while underscoring the market challenges for some types of development. 5.2.1 Location Mounds View is located approximately nine miles northeast of Downtown Minneapolis and 11 miles northwest of Downtown St. Paul. Mounds View enjoys numerous locational advantages. The City is situated in close proximity to transportation networks, major employment centers, colleges and universities, regional shopping centers and numerous recreation spots. Figure 8: Crossroad Pointe Site Context Map 5.10 5.2.2 Development Pattern County Road 10 is a four-lane divided highway that bisects the City of Mounds View. Until the US Highway 10 bypass was completed several years ago, just north of Mounds View, County Road 10 was designated as US Highway 10 and was the main thoroughfare linking St. Paul and Ramsey County to Anoka County and St. Cloud. Although no longer a US Highway, County Road 10 has an average annual daily traffic volume of almost 22,000 vehicles and is a wide thoroughfare with an approximately 250-foot right-of- way. Therefore, very little development along the highway is conducive to non-automobile access. Most businesses dependent on traffic along the corridor are food establishments, retail stores, or service-retail. Immediately after the US Highway 10 bypass was completed, there was a drop in traffic volumes along County Road 10, which led to sporadic store closings and relocations and conspicuous gaps in an already spread out urban fabric. However, traffic levels have steadily increased, which has led to new investment along the corridor, such as h igh density senior housing and new neighborhood-oriented retail, especially to the north and west of Crossroad Pointe. The area closest to Interstate 35W, which is southeast of Crossroad Pointe, tends to be characterized by more commercial/industrial development rather than traditional neighborhood-oriented retail. The recent change in the business composition along County Road 10 is a reflection of changing demographics and size of achievable trade areas. At one time, businesses along County Road 10 were able to capture the needs of customers from a wide region in search of motels, entertainment, and specialty goods shopping. Now businesses must adapt to smaller trade areas that are increasingly populated by older households with few or no children. 5.2.3 Important Nearby Development Medtronic has a significant corporate campus with approximately 6,000 employees located one mile north of County Road 10 at the intersection of Interstate 35W and US Highway 10. The campus consists of cardiac and disease management units supporting research and development, accounting, sales and marketing, and legal activities. Therefore, most jobs at the Figure 9: Crossroad Pointe Neighborhood Orientation Map 5.11 campus are highly-skilled professional positions. Typical wages at the campus are about $75,000 per year. Although the Medtronic campus is only one mile from County Road 10, connections between the campus and Crossroad Pointe via local streets are poor. Therefore, the most direct connection between the Medtronic Campus and Crossroad Pointe is via Interstate 35W. As a result, daytime employees of Medtronic who may consider traveling outside the campus for goods and services will be accessible to a number of equally convenient business districts in addition to Crossroad Pointe. This lessens the likelihood that businesses located in Cr ossroad Pointe can depend on Medtronic employees as a captive market. The dormant TCAAP site located just east of County Road 10 in Arden Hills is the largest undeveloped contiguous area in the built-up portion of the Twin Cities Metropolitan Area. Over the years various planning efforts for the TCAAP site have indicated as much as 3.5 million square feet commercial space and 2,400 units of housing could be built on the site. One of the key access points to TCAAP would be via County Road H, which also provides excellent access to County Road 10 in Mounds View. Although development of TCAAP would have a profound impact on uses located along County Road 10, planning for TCAAP has yet to progress into any kind of significant new development despite years of e ffort. However, another round of effort at redevelopment may finally realize TCAAP’s potential. If this is the case, significant employment growth in the area would fuel demand for certain day-time uses in Crossroad Pointe. 5.2.4 Transportation Interstate freeways, US highways, state highways and county highways all intersect the City of Mounds View in one way or another, offering immediate access to the remainder of the Metro Area and beyond. Figure 10 highlights these major thoroughfares in red. Less than a quarter-mile to the east, County Road 10 intersects Interstate 35W, the primary artery feeding traffic from the Northern Metro into Downtown Minneapolis. Mounds View is bisected by County Road 10 and US Highway 10, two primary carriers of east-west traffic in the Northern Metro. Figure 10: North Metro Highway Network 5.12 In addition to immediate highway access, the site is located very near the Anoka County/Blaine Airport, which is classified as a minor airport, has the longest runway length within the MAC’s reliever airport system. Last year it had 80,000 take-offs and landings, and could support 200,000+ operations per year. The airport has 20 acres of undeveloped open space within the Key Air leasehold, which could accommodate 130,000 sq. ft. of additional future vertical infrastructure. 5.3 DEMOGRAPHIC TRENDS Long range demographic trends have been affecting real estate demand over the past 40 years because many of these trends will likely continue into the future. Figures 11 through 15 illustrate 40-year trends related to population age, household size, household type, homeownership, and income. The following are key findings from the figures. 5.3.1 Median Age Since 1970, the median age of the population has increased significantly at the local, regional, and national levels. Within Mounds View, however, the rate of aging has been greater than the county, the metro, and the US. The age profile of the population has important ramifications on the market for housing and retail. Younger persons have significantly different demands than older persons when it comes to housing types and shopping habits. 5.3.2 Household Size Household size declined sharply between 1970 and 1980, especially in Mounds View, as the youngest baby boomers moved out of their parents’ homes and started new households. Since 1980, household size has continued to drop, though not at as sharp as during the 1970s. Changes in household size can impact housing and retail markets in a variety of ways. For example, fewer individuals in a household decrease the need for overall space and furnishings, both inside and outside the unit. 28 26 26 21 37 36 35 38 15 20 25 30 35 40 45 US Metro Ramsey County Mounds ViewAge 1970 1980 1990 2000 2010 Source: U.S. Census Figure 11: Median Age 3.1 3.2 3.1 3.9 2.6 2.5 2.4 2.5 1.5 2.0 2.5 3.0 3.5 4.0 US Metro Ramsey County Mounds ViewPersons per Household1970 1980 1990 2000 2010 Source: U.S. Census Figure 12: Household Size 5.13 5.3.3 Household Type Household types have dramatically changed since 1970. In the last 40+ years, as the population has aged, the percentage of households defined as married couples with children has significantly decreased while the percentage of single- parent families and single- person households has increased. This drop has been especially dramatic in Mounds View where the decline in the percentage of married couples with children went from 64% of all households in 1970 to only 19% of all households in 2010. Changing household types influence housing by affecting the styles and layouts of units. For example, families with children prefer housing with private yards, if affordable, along with bedrooms on separate levels from the main living areas. In contrast, households without children often prefer one-level living in which bedrooms are on the same level as the living area. 5.3.4 Homeownership Homeownership in Mounds View has historically been well above the county, metro, and national rates. However, long-term declines now mean that homeownership rates are on par with metro rates, though still above county and national rates. Traditionally, high rates of homeownership are indicative of a more stable population that remains in the community for long periods of time. However, structural change in the for-sale housing market due to the recent housing bust is making homeownership less attractive. This may result in more long-term or “lifestyle” renters who choose to not own their housing, though they may have the means to do so. 39%47%44%64%20%22%17%19%0% 10% 20% 30% 40% 50% 60% 70% US Metro Ramsey County Mounds ViewPercent of Households1970 1980 1990 2000 2010 Source: U.S. Census Figure 13: Married Couples with Children 63%66%62%77%65%70%61%70%50% 55% 60% 65% 70% 75% 80% US Metro Ramsey County Mounds ViewPercent of Households1970 1980 1990 2000 2010 Source: U.S. Census Figure 14: Homeownership Rate 5.14 0% 5% 10% 15% 20% 25% 30% 1939 or earlier 1940 to 1949 1950 to 1959 1960 to 1969 1970 to 1979 1980 to 1989 1990 to 1999 2000 to 2009 2010 or laterPct. of Housing UnitsYear Built Mounds View Metro Area Source: US Census, American Community Survey 5.3.5 Income Although family incomes in Mounds View are consistent with Ramsey County, they have not been able to keep pace with metro area incomes and have been falling relative to national rates. This is often due to a rapidly aging population in which many households begin entering their retirement years. 5.4 HOUSING 5.4.1 Development Patterns Over 70% of all housing in Mounds View was constructed during a forty year period from 1950 to 1990, with the 1970s alone accounting for over one- quarter of all homes. Less than 20% of the City’s housing was built after 1990. Much of the growth in the 1970s and 1980s was driven by Baby Boomers seeking starter housing. With little new construction and limited land development options in Mounds View, many of these original homeowners are choosing to remain in their homes. According to the 2012 Census (American Community Survey), nearly half (46.4%) of all Mounds View households have lived in their homes for at least 12 years. $100$121$118$120$100$131$112$113$50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 US Metro Ramsey County Mounds ViewRatio of Incomes($100 = US Family Median)1970 1980 1990 2000 2010 Source: U.S. Census Figure 15: Median Family Incomes ($100 = US Median Family Income) Figure 16: Age of Housing Stock 5.15 5.4.2 Rental Market The metro area is in the middle of an apartment building boom (20,000 units are in various stages of development; though not all will get built). However, much of the proposed development is focused on downtown Minneapolis and several downtown adjacent neighborhoods, such as Uptown and the University of Minnesota. To some degree, new apartment development is beginning to appear in first ring suburbs, but it is highly concentrated near heavily built up areas with substantial transportation access and nearby shops. Examples include the Southdale area of Edina, the Southtown area of Bloomington, and downtown Hopkins. There currently are no newer market rate apartment buildings in Mounds View. The closest new rental development is the View at Long Lake in New Brighton, developed by Stuart Co. One- bedroom units are 900 square feet and being leased for $1,330-$1,455 per month ($1.48-$1.62 per sf). Two-bedroom units are 1,250 square feet and being leased for $1,615-$1,655 per month ($1.29-$1.32 per sf). Although this property indicates the potential for new suburban apartment development, it is important to note that the location of this property is adjacent to a lake and park with trails and therefore is able to command higher rents than other nearby sites that lack this same level of amenity. According to Marquette Advisors, older existing apartments in Mounds View/Spring Lake Park are averaging $717 per month for a one-bedroom unit and $851 for a two-bedroom unit with very low vacancy (2.0%). These rents are about 10% below comparable older properties throughout the metro area. Market demand is clearly there for new apartment units in Mounds View. However, feasible market rate rents are probably not able to support new development at Crossroad Pointe given modest incomes in the neighborhoods surrounding the site, the smaller size of the site (i.e., smaller projects can’t support marketable project amenities – fitness center, pool, party room, etc.), and limited neighborhood amenity (i.e., not near open space, adjacent to highway, etc.). 5.4.3 For-Sale Market Although the ownership market is starting to rebound, home prices in Mounds View are still 25% off of peak pricing in 2006-2007. Therefore, many local buyers (who would be the primary market for this) still do not have the confidence in the market or the equity in their existing single-family home to commit to a condo, co-op, or even a townhome. As a result, the for-sale still needs to improve before most product types could be viable. $100,000 $120,000 $140,000 $160,000 $180,000 $200,000 $220,000 $240,000 2001200220032004200520062007200820092010201120122013Median Sales PriceMetro Mounds View Source: Minneapolis Area Association of Realtors Figure 17: Home Pricing Trends 5.16 The one exception might be single-level townhomes, which strongly appeal to an older buyer. Given the demographics of Mounds View and the lengthy period of the housing bust, there likely is pent-up demand from older Mounds View households to downsize and simplify their living situation. The challenge with single-level townhomes is that they take significantly more land per unit than other housing types, which decreases the amount of land available for other complementary uses, such as retail and restaurant s, within the Crossroad Pointe site. As for more dense forms of for-sale housing, such as condominiums or two- and three-story townhomes, there are other market challenges that would need to be overcome. First of all, there is a nearby townhome development with two-story product that has been very slow to absorb. Therefore, until the market demonstrates the viability of that product type, it would be recommended to consider other for-sale types. Second, the Crossroad Pointe site is not well positioned for condominium product because it does not have the open space and neighborhood amenity to draw buyers. Suburban condo product almost invariably needs a lake, a view, or some other selling feature to draw buyers. 5.4.4 Senior Housing Market Mounds View is an aging community with demographics very favorable for senior housing. However, the planned assisted living/memory care building adjacent to the property will likely absorb much of the existing pent up demand for those levels of care. Therefore, it would be recommended to wait and see how this property performs before considering similar uses on Crossroad Pointe site. With that being said, there probably is an opportunity to complement the development next door to the site with a concept targeted to more independen t seniors. However, in order to take any advantage of such a synergy, it would require a partnership of some sort with the developer/owner of the assisted living/memory care project. 5.5 RETAIL The small size of the Crossroad Pointe site and its proximity to Rosedale, and to a lesser extent Northtown, limits its potential to support any large-scale retail development. The size of the site also likely limits its size to support community scale retail (i.e., a Target or Wal-mart anchored development). Furthermore, the pending TCAAP development calls for some community-scale retail uses, which will likely out-compete the Crossroad Pointe site. Therefore, neighborhood- scale retail is the most likely option for the site. Nonetheless, placemaking will still be importa nt to attract retailers and customers as the retail market is increasingly becoming dominated by experiential retail in which the shopping experience becomes more important than convenience. Currently, the County Road 10 corridor between I-35W and Hwy 65 has a little over 80 retail properties, most of which are smaller, older and have low rents ($7.72 is the current average per square foot). Vacancy is 6.5%, which is above the metro-wide rate of 5.1%. Although there is some opportunity to introduce new retail space that would be a clear improvement over many of the existing options, one would need to attract chain retailers to the corridor in order to 5.17 support higher rents. If the market is still mostly dominated by non -chain retailers, then the supply of more affordable retail space will continue to limit achievable rents and the ability to support new development. 5.6 OFFICE The overall office market remains somewhat sluggish for a couple of important reasons. First, although economic indicators are improving, employment growth is still relative weak. Second, as companies become healthier and expand, they aren’t necessarily looking for more office space. In some cases, they are downsizing their office space needs despite employment growth because of new workspace standards and increased use of virtual offices. The Crossroad Pointe site is likely not a good candidate for a larger -scale office building anchored by a headquarters or other large user because of its smaller size and the presence of TCAAP, which will likely absorb any of this type of demand due to its higher profile location and ability to accommodate a critical mass of office uses. Within the County Road 10 corridor, there currently are approximately 30 office properties. Most of them are smaller, with an average building size of less than 8,000 square feet. Furthermore, vacancy in the corridor is higher than the metro-wide rate (13.3% vs 9.6%) and rents are well below metro-wide levels ($12.43/sf vs. $16.93). Despite the challenges associated with the traditional office market, one possible exception is a medical office concept. Much of the newer office development in the corridor is occupied by a lot of health care related businesses. Furthermore, the aging population in Mounds View will only increase demand for medical services, particularly in locations proximate to where they live. 5.7 OTHER USES Some uses do not fit nicely into the traditional real estate categories of residential, retail, and office. Therefore, Stantec gathered data on the location of nearby fitness centers, day care centers, and medical clinics to identify whether there may be gaps in the local provision of these uses. The following map displays where these facilities are located relative the Crossroad site. The County Road 10 corridor between I-35W and Highway 65 has several daycare and fitness and facilities, but only one clinic. This may represent a potential viable use for the Crossroad Pointe site. 5.18 Figure 18: Nearby Daycare, Fitness, and Clinic Locations 5.8 MARKET FORCES 5.8.1 Demographics  1 mile radius population (2012): 9,384  3 mile radius population (2012): 60,119  5 mile radius population (2012): 176,470  1 mile Growth 2012 – 2017: 1.6% 5.8.2 Income  5 mile radius avg. HH income (2012): $77,211 5.8.3 Traffic Counts  County Road H2 (2011): 3,500 daily  County Road 10 (2012): 21,910 daily 5.19 5.8.4 Selected Restaurant Minimum Requirements Stantec collected information on the minimum requirements certain types of restaurants have regarding trade area population and traffic counts. These are presented in the table below. This helps determine the level of interest some chain operations may have in the Crossroad Pointe location. Restaurant Min. 5 mile pop.Min.Daily Traffic Applebees 20,000 –50,000 20,000 Buffalo Wild Wings 40,000 (3 mile)25,000 Chipotle 30,000 (2 mile)25,000 Cracker Barrel 80,000 (10 mile)25,000 Famous Dave’s 75,000 (3 mile)30,000 Perkins 25,000-30,000 25,000 Wendy’s 12,000 (2 mile)18,000 Yum! (KFC/Taco Bell/Pizza Hut etc.) 20,000 (2 mile)20,000 Appendix A A.1 CROSSROAD POINTE OPPORTUNITIES AND CHALLENGES A.2 CROSSROAD POINTE COMMENT FORM RESPONSES Crossroad Pointe Redevelopment Study Open House Challenges and Opportunities Results Crossroad Pointe Redevelopment Study What do you think is the best feature or opportunity for redevelopment on the Crossroad Pointe site? 1. Resident–usable/walkable-don’t need to go outside Mounds View for shopping, eating, entertainment, recreation: 15 votes 2. Opportunity for multi-level, multi-use, views, social spaces, apartments, condos, retail: 9 votes 3. City willing to work with developers, which will increase tax base – lessen burden for homeowners: 6 votes 4. Close to 35W & CR10 & H2, with good access to Hwy 65 and Silver Lake Road: 5 votes 5. Good traffic counts/visual image/presentation to interest developers: 5 votes 6. Convenient to schools, shopping, & community center/midpoint for other surrounding uses: 4 votes 7. Close to TCAAP: 3 votes 8. Low crime: 3 votes and 1 negative vote 9. Significant size (4.25 acres) for redevelopment: 0 votes 10. 24-hour gathering place: 0 votes Crossroad Pointe Redevelopment Study What do you think is the biggest weakness or challenge for redevelopment on the Crossroad Pointe site? 1. Doing nothing: 9 votes 2. Access from CR10/H2 needs improvement: 8 votes 3. Greenfield Avenue cuts through property: 6 votes 4. Hiring a bad developer or a developer who doesn’t do what they say they will: 6 votes 5. Size of parcel could be limiting (4.25 acres): 5 votes 6. Lack of enough surrounding commercial/retail to feed off of to support more development: 4 votes 7. Too close to residential: 2 votes 8. Diagonal roadway (CR 10) creates irregular parcel: 1 vote 9. TCAAP development will draw people away from Crossroad Pointe site: 1 vote 10. Economy could go into recession: 0 votes Crossroad Pointe Redevelopment Study Open House Questionnaire 1 Open House Questionnaire Responses Crossroad Pointe Redevelopment Study Do you live, work, or own property or a business in the City of Mounds View? If so, do you live, work, or own property or a business near the Crossroad Pointe site?  Live: 11  Work: 1  Live and Work: 2  Own Property or Business: 1  Near Site: 13  No: 1 Crossroad Pointe Redevelopment Study Open House Questionnaire 2 How did you find out about the meeting tonight?  Letter from Jim Erickson: 6  From a friend/neighbor: 6  Email from Heidi Heller: 2  City Facebook: 1  City Council Member: 1 What type of development (residential, retail, office, etc.) would you LIKE to see on the Crossroad Pointe site? In other words, what would you shop at, work at, visit, or live in at this site?  Stage 1 of a long range, comprehensive plan to create a walkable downtown with amenities for people along the life span  Chiropractic wellness center  May be best to do nothing , until another commercial space is put to use along the immediate Co. Rd. 10 corridor  Mixed use of residential and commercial/office, not necessarily vertical mixed use  Include sizeable green space usable for residents, possibly public space  Maintain N/S access aligned with Greenfield; not convinced vacating street is desirable  Structured parking please, limit surface parking lots  Restaurant will blow up parking, avoid unless you have a quality tenant and long term lease  Prefer residential  I would really like a good, moderately priced restaurant-a Davanni’s would be perfect  Restaurants, office  I would rather have more retail and office space. Things that close at a decent time and won’t produce as much noise as Roberts did.  Greenspace, pond(s), fountain, walking path, garden. Do not over crowd.  Keep high end quick food service, i.e. Chipotle, Starbucks  Restaurant, retail  I like townhomes  Small restaurants—St. Paul has wonderful little shops to eat  Combination of residential and retail. Something like a Whole Foods, Trader Joe’s, or the new “mini” Target  I would like mixed use—nice apartments, business, retail, restaurants, café, ice cream  Senior apartments are good Crossroad Pointe Redevelopment Study Open House Questionnaire 3 What type of development (residential, retail, office, etc.) would you NOT LIKE to see on the Crossroad Pointe site? In other words, what would you NOT shop at, work at, visit, or live in at this site?  Another car-centered plan. We need a pedestrian-centered design that doesn’t discriminate against those without cars-children, elderly  We specifically do not want housing, certainly not high density housing that is going to flood the area with people and traffic  Fast food restaurants  Large surface parking lots  Office space OK with no retail  Senior apartments. We need to attract more young families  I’d be very cautious about an office complex. Townhome/senior living/small restaurant would be much better  I would rather not have multifamily. I feel that will increase crime and decrease my property value. Townhomes wouldn’t be as bad. No more senior living!  No burger fast foot  No low income housing  No small retail tailored to unique markets, i.e. guitar sales, corvette store—keep more broad— floral, gift, cell phone, hair salon  More multifamily units  No more drugstores!  No chain stores  Mounds View doesn’t seem to be able to keep shops more than a few months. Please not another complex or other rental which brings in more crime  Office space does not seem to be occupied  No townhomes  No bars  No health club  No cheap apartments What other types of amenities would you like to see developed on the Crossroad Pointe site?  Underground parking to allow for more green space at ground level  Good sidewalk connections  Well-designed “front door” presence on all public streets  Park, larger community center (similar to New Brighton’s Eagle Nest)  Hardware store  Park & garden for different events, weddings, farmers market, concerts  More community space. No real parks near area. No green space near area either  Seating around fountain  Many trees and gardens Crossroad Pointe Redevelopment Study Open House Questionnaire 4  Something that can be decorated during holidays  A really nice eating place  I like storefront with apartments/condos on top General Comments?  Young families are looking for amenities. The 5-minute walk contains the middle school grounds, movie theatre, drug stores. I especially appreciate the wide view.  Thanks for keeping the neighbors involved.  I like the idea of residential, especially if the senior living building is put in. It seems there are many vacant retail areas already. Would like to see those filled or redeveloped later on before adding more retail that could potentially sit vacant. Since so many retail facilities have failed in the past, it would be nice to see the area have a long term use.  I would like to see something unique with character that would stand out from the rest. Give it a small town feel.  Whatever is done, the entrance should not be on H2. When turning left from 10, if someone decides to turn in, they will stop traffic and cause potential traffic issue as cars try to clear the intersection.  Mounds View Square has become a discount haven—it attracts the wrong shoppers. Any retail store or restaurant should be run by the other chains.  Months ago I learned that Kozlaks Royal Oaks had lost its place in Arden Hills and mentioned to someone at the City (don’t remember who) that City should approach Kozlak about coming to Mounds View. What a great asset. Don’t think City ever followed up.  Whichever developer is chosen needs to have tenants/businesses lined up so the spaces do not sit empty.  I would like Greenfield cut off from this development—makes property larger and reduces traffic on our street. This development will directly impact our street. I am concerned about traffic & H2 intersection. H2&10 needs improvement. The angle makes it difficult to see and the light is slow going from H2 to 10. 4.25 Acres Available Crossroad Pointe Redevelopment Opportunity County Road 10 County Road H2 FOR SALE Description: This prime mixed-use development opportunity is located on the southwest corner of County Road 10 and County Road H2, approximately nine miles northeast of Downtown Minneapolis and 11 miles northwest of Downtown St. Paul. The site is situated in close proximity to transportation networks, major employment centers, colleges and universities, regional shopping centers and numerous recreation spots. The site is adjacent to a new, (under construction) 99 unit senior residential facility. Property Addresses: 2390 County Road 10 2394 County Road 10 2400 County Road H2 Lot Size: 4.25 Acres/185,130 Sq. Ft. Total (including to be vacated Greenfield Avenue right of way) Price: (Please see City Economic Development Staff) Status: Vacant land (buildings have been removed) Zoning: B-3 Highway Business/Mixed Use PUD Demographics 1 mile radius population (2012): 9,384 3 mile radius population (2012): 60,119 5 mile radius population (2012): 176,470 1 mile Growth 2012 – 2017: 1.6% Income 5 mile radius avg. HH income (2012): $77,211 Traffic Counts County Road H2 (2011): 3,500 daily County Road 10 (2012): 21,910 Current Owner/Contact: City of Mounds View Jim Ericson City Administrator 763-717-4001 JimE@ci.mounds-view.mn.us Presented by: 750 Second Street NE Suite 100 Hopkins MN 55343 952-930-0630 Beard Group, Inc. Page 2 FORWARD LOOKING STATEMENTS This Information Packet contains certain forward-looking statements that are based on current expectations, but which are not based on any prior operating history. In light of the numerous factors that can materially affect results, including those set forth in this Information Packet, the inclusion of any such forward looking information herein should not be regarded as a representation by the Developer, their Manager(s) or any other person that the Developers' objectives wi ll be achieved. Beard Group, Inc. Page 3 TABLE OF CONTENTS THE PROJECT & PEOPLE THE LOCATION THE PLANS PHASE 1 PHASE 2 (shown for informational purposes only) THE NEIGHBORHOOD THE DESIGNS AND FINISHES THE PAST PROJECTS Beard Group, Inc. Page 4 THE PROJECT & PEOPLE Beard Group, Inc. Page 5 Beard Group, Inc. Page 6 TRANSACTION SUMMARY The Developer, The Beard Group, Inc., is pleased to present this confidential memorandum to support its request to obtain financing and entitlements for the development of the Crossroad Pointe in Mounds View, MN (the "Property"). OVERVIEW The Property is a to-be-built, Class A, 3 story, 119+/- unit multi-family building with 171,740 +/- gross square feet above ground with underground heated parking and a detached 6,112 square foot garage for 21 vehicles . The site is located at the intersection of Highway 10 and County Road H2 in Mounds View, Minnesota. The site is a redevelopment of three (3) parcels. The apartment project will be 100% market rate. The site is located on Highway 10 which is the main commercial corridor of Mounds View. The site provides for easy access to the retail centers situated both north and south of the Property. This highly desirable location is transit, pedestrian, bicycle, and vehicle friendly. Additionally, Mounds View hosts grocery stores, drug stores, movie theatres, shops and everyday goods and services. Mounds View also has several restaurants which are all in close proximity to the Property. PROPERTY DESCRIPTION Parcels PID Numbers 08.30.23.31.0072 08.30.23.31.0071 08.30.23.31.0005 City: Mounds View, MN County: Ramsey Apartments: 119 Units +/- Building Gross Square Feet: 171,740 +/- Number of Stories : 3 stories along County Road H2 with 1 level of underground parking. Beard Group, Inc. Page 7 Apartment Mix: Apartment Parking: Current Zoning: B-3 Highway Business/Mixed Use PUD Comp Plan Designation: Mixed-Use PUD Land Area: 4.25 acres Phase 2: Phase 2 concept plans are presented onl y for informational purposes. PROJECT ANALYSIS  Vacancy rates have plummeted in the Twin Cities, currently at 2.7% in the 1st quarter of 2015, according to Marquette Advisor's 1st Quarter 2015 Apartment Trends publication . Specifically, the Mounds View area reports a 2.0 % vacancy rate. Looking categorically at the Mounds View market, vacancy rates are as follows: One bedroom 1.8% Two bedroom 2.2% Two bedrooms + den 0.0% TOTAL VACANCY 2.0%  The Project’s prominent location adjacent to Mounds View’s commercial corridor is a highly desirable neighborhood with walk-able neighborhood schools, transit, parks, restaurants, grocery stores, boutique shops, and multiple cultural attractions. The project is just 9 miles from Downtown Minneapolis and Unit Type # RSF Studios 18 600 1-Bed 71 750 1-Bed + Den 1 850 2-Bed 29 1,175 Total Unit 119 832 Stalls Per Unit Per Bed-Rm Underground 125 Garage 21 Surface-Lot 19 Surface-Units 19 Total Unit 184 1.55 1.24 Beard Group, Inc. Page 8 only 11 Miles from Downtown St. Paul .  Transportation options are abundant with immediate access to local and regional bus lines, County Road 10 as well as State Highway 35W.  Stable sub-market. Rents are rising in the Twin Cities due to pent-up demand for new product. These dynamics support upward pressure on rents and on-going demand for new rental housing. Flats at Crossroad Pointe is well positioned to benefit from this demand. The final factor in determining the success of this project is:  Experienced principals with a track record of successful completion of mixed-use and multifamily developments. It is important that the developer have a long proven track record of obtaining difficult entitlements and delivering successful projects on time and on budget. The Beard Group, Inc. has worked with numerous Cities to successfully complete similar projects. A summary of these projects appears on the following pages. In addition, the project team from the highly successful Marketplace & Main project in Hopkins and the 5 Central apartments in Osseo are working together on Flats at Crossroad Pointe and include: Developer: The Beard Group, Inc. Bill Beard, Principal Paul Gamst, Principal Ben Beard, Project Manager www.Beardgroupinc.com Design/Architectural: Momentum Design Group, LLC. Jeff Wrede, Principal Jesse Hammer, Principal www.alwaysbuilding.com Engineering: EOR Civil Engineering Consulting Services Jay Hill www.eorinc.com Construction Manager: Building Construction Management, Inc. Jon Gumbrill, Principal Beard Group, Inc. Page 9 Leasing & Property Management: Steven Scott Management, Inc. Brenda Hvambsal www.steven-scott.com Financial Consultant: Grandbridge Real Estate Capital Dave Rasmussen www.gbrecap.com Beard Group, Inc. Page 10 THE LOCATION Beard Group, Inc. Page 11 Neighborhood The Community Beard Group, Inc. Page 12 Mounds View’s Place in the TwinCities Beard Group, Inc. Page 13 THE PLANS Beard Group, Inc. Page 14 Beard Group, Inc. Page 15 Beard Group, Inc. Page 16 Beard Group, Inc. Page 17 THE NEIGHBORHOOD Beard Group, Inc. Page 18 Beard Group, Inc. Page 19 THE DESIGN AND FINISHES Beard Group, Inc. Page 20 PROJECT DESIGN 5 Central and Marketplace & Main Apartments provide a template for a highly successful package of amenities and floor plans. The same amenities and concepts will be used at Flats at Crossroad Pointe and include: heated/enclosed parking, club quality exercise room, key fob entry security system, fireside lounge, local art w ork and outdoor grill patios. Apartment features include over -sized windows, balconies, granite countertops, quiet wall systems, stainless steel appliances, and full size front load washers and dryers in all units Beard Group, Inc. Page 21 CONSTRUCTION FEATURES Foundation Cast in place foundation walls with post and beam support on spread footings Flooring Concrete decking with 3" topping at 1st floor; 24" floor joists with T&G sheeting, acoustimat, and floating faux vinyl plank on floors 2, 3, & 4 Construction Underground is concrete, 1st-2nd-3rd-4th floors wood frame Windows Vinyl Roof Membrane with R50 Insulation Exterior Walls Rock-Face CMU, Brick, precast and resin/cement panels Interior Walls Flat and hand troweled finished sheet rock HVAC Electric and gas forced-air heating and cooling Elevators 2 centrally located high-speed energy efficient elevator Security Electronically controlled key fob access and security cameras Fire Protection Sprinkler system Beard Group, Inc. Page 22 UNIT FEATURES Transom windows on Floors 1&4 Great Room living areas with open floor plans Kitchen Islands with Granite Counter Tops 9 foot ceilings Stainless Steel Energy Star kitchen appliances In-unit full size front load washer/dryer Solid wood cabinets Faux wood flooring in the kitchen, entry and great-room Vinyl flooring in the bathrooms Dual flush toilets and low flow fixtures Walk-in showers Walk-in closets Individual heating and cooling for each unit Accent Walls: kitchen and bedrooms BUILDING AMENITIES Electronically-controlled access Exercise Room with Club Quality Equipment Yoga Studio Business Center and Conference Room Roof Top Deck with Downtown Minneapolis views Patio Gas Grilling Area Community Lounge with fireplace, Free Wi-Fi, Food service area and TV and Game Zones Trash and organics recycling Secured, Heated, Underground Parking Bike Hook at each Underground Parking Stall Patio Fire Pit Pet Relief Area Dog Wash Station Bike Repair Station Car-Wash in Garage Water Softener Recirculating Hot Water GREEN FEATURES Low E windows Gen E low maintenance energy efficient elevator On-site rain gardens Infiltration basins Pervious asphalt pavement Energy Star appliances Beard Group, Inc. Page 23 Marketplace & Main, Hopkins & 5 Central, Osseo Similar Finishes Walkouts on First Floor Units Beard Group, Inc. Page 24 Marketplace & Main, Hopkins & 5 Central, Osseo Beard Group, Inc. Page 25 Marketplace & Main, Hopkins & 5 Central, Osseo Beard Group, Inc. Page 26 Beard Group, Inc. Page 27 THE PAST PROJECTS Beard Group, Inc. Page 28 The Beard Group, Inc. The development firm, The Beard Group, Inc. ("Beard"), is a local firm with a successful, proven track record in mixed-use redevelopment. PORTFOLIO (Partial) 5 Central In the Fall of 2014, Beard opened Phase 1 of the 5 Central Apartments in Osseo, MN. Phase 1 consists of 71 Apartment units and Phase 2 will consist of 69 Apartment units for a total project of 140 units. Phase 2 construction started in May of 2013 opened in the spring of 2015. Marketplace & Main In the Fall of 2012, Beard opened Marketplace & Main Apartments, Retail and Townhomes in Hopkins, a redevelopment project consisting of a 53 unit market-rate apartment building, located at 7th and Mainstreet in downtown Hopkins. Marketplace & Main also includes 6,000 leasable square feet of retail and seven “for-sale” townhomes. Beard Group, Inc. Page 29 Village Creek Townhomes Village Creek In 2010, Beard completed the Village Creek redevelopment project in Brooklyn Park that consists of 260 “for-sale” townhomes (with Ryland Homes) and a 26,000 office/retail building, anchored by Hennepin County Medical Center. The project included revitalization of Shingle Creek Park from a blighted area of high crime to safe residential neighborhood. Village at Circle Pines In 2005, Beard completed master development of the Village at Circle Pines, a 30 acre mixed-use redevelopment. The project included development of 292 homes (Ryland Homes) and 98,000 SF of commercial space. Village Townhomes & Shops, Circle Pines Village Shops Office & Retail Beard Group, Inc. Page 30 Hopkins Entertainment Center is a 34,000 SF shopping center in Hopkins, MN which is 100% Leased. The property was developed in partnership with the City of Hopkins and is anchored by the Mann Theatres and the Big Ten Restaurant. These anchors, along with Papa John’s Pizza, are the original tenants and began with the center in December 1995. Excelsior Tech Center is 380,000 SF mixed-use office/warehouse building. The City approached the Beard Group to creatively develop this former Alliant Tech/Honeywell facility that sat vacant for three years. The building is anchored by Minikahda Mini Storage, and Batory Sugar Distributors. The project was developed in 2002 and won national acclaim from the Sierra Club as one of the best redevelopments of 2005. The parking lots were returned to their original residential zoning and sold Ryland Homes which developed 58 units of housing. The former defense building was repositioned into a 380,000 mixed-use business center. Beard Group, Inc. Page 31 Broadway Court Broadway Court is a mixed use, senior residential and retail, project in downtown Robbinsdale located just 4 blocks from the proposed Robbin’s View location. City leadership wanted to accommodate the growing senior population who wanted to downsize their residences but not leave the community. Beard planned and built a 57 unit active senior apartment complex with 7,000 square feet of retail at street level. Item No: 3 Meeting Date: October 5, 2015 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: Review Crossroad Pointe Proposal Introduction: Crossroad Pointe is a 4.25 acre city owned redevelopment site. At the July work session, the Council met with the Planning Commission, and Economic Development Commission discussing observations and general feedback from the developer’s site tour held June 29, 2015. The Council concluded that since the city actively has developers who are interested in the Crossroad Pointe site, staff should gather the developer proposals and bring them forward for Council review. Discussion On April 24, 2014 Stantec, an engineering consulting firm hired by the city, completed a study of the Crossroad Pointe site which included concept development plans, demographics, market trends, and resident responses from an open house. That report is attached. The concept development plans show a mixed-use development. However, when visiting with developers on the July 2015 developer tour, it was evident that in the current market, mixed-use facilities are struggling. Since the July work session staff has corresponded with over 40 developers, with approximately seven that have shown serious interest in the site. The site offers 4.25 acres of vacant land located near the intersection of County Road H2 and County Road 10. Staff has received one proposal from The Beard Group detailing a three story market rate apartment building with underground parking and green space. Phase II of the proposal shows a commercial building along County Road 10. The proposal is attached. Should the Council decide to move forward in the development of Crossroad Pointe, a pre- development agreement with the developer of interest, may be appropriate. A predevelopment agreement outlines the basic terms and conditions of a contract for private redevelopment to be entered into by the redeveloper and seller. The pre-development agreement would not be deemed conclusive or binding upon either party except the section regarding due diligence or Exclusive Period, and fees. It would define the parties, specify the property to be developed, outline the conditions, purchase price, due diligence, closing date, covenants, debt, fees, miscellaneous items, and termination. Crossroad Pointe Staff Report October 5, 2015 Page 2 Recommendation: Review the Crossroad Pointe development proposals and provide direction to staff as to the next steps including: 1. Is the City Council generally supportive of the type of development proposed, both from a use and density perspective? 2. Is the City Council agreeable to the staging of the development as proposed? 3. Is the City Council comfortable moving forward with one proposal and signing a pre- development agreement? 4. Is the City Council generally willing to consider the use of TIF or other qualifying incentives to assist the development? Respectfully submitted, ________________________ Brian Beeman Business Development Coordinator Attachments: 1. Stantec Report 2. Crossroad Pointe Redevelopment Brochure 3. The Beard Group Proposal Item No: 3 Meeting Date: October 5, 2015 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: Review Crossroad Pointe Proposal Introduction: Crossroad Pointe is a 4.25 acre city owned redevelopment site. At the July work session, the Council met with the Planning Commission, and Economic Development Commission discussing observations and general feedback from the developer’s site tour held June 29, 2015. The Council concluded that since the city actively has developers who are interested in the Crossroad Pointe site, staff should gather the developer proposals and bring them forward for Council review. Discussion On April 24, 2014 Stantec, an engineering consulting firm hired by the city, completed a study of the Crossroad Pointe site which included concept development plans, demographics, market trends, and resident responses from an open house. That report is attached. The concept development plans show a mixed-use development. However, when visiting with developers on the July 2015 developer tour, it was evident that in the current market, mixed-use facilities are struggling. Since the July work session staff has corresponded with over 40 developers, with approximately seven that have shown serious interest in the site. The site offers 4.25 acres of vacant land located near the intersection of County Road H2 and County Road 10. Staff has received one proposal from The Beard Group detailing a three story market rate apartment building with underground parking and green space. Phase II of the proposal shows a commercial building along County Road 10. The proposal is attached. Should the Council decide to move forward in the development of Crossroad Pointe, a pre- development agreement with the developer of interest, may be appropriate. A predevelopment agreement outlines the basic terms and conditions of a contract for private redevelopment to be entered into by the redeveloper and seller. The pre-development agreement would not be deemed conclusive or binding upon either party except the section regarding due diligence or Exclusive Period, and fees. It would define the parties, specify the property to be developed, outline the conditions, purchase price, due diligence, closing date, covenants, debt, fees, miscellaneous items, and termination. Crossroad Pointe Staff Report October 5, 2015 Page 2 Recommendation: Review the Crossroad Pointe development proposals and provide direction to staff as to the next steps including: 1. Is the City Council generally supportive of the type of development proposed, both from a use and density perspective? 2. Is the City Council agreeable to the staging of the development as proposed? 3. Is the City Council comfortable moving forward with one proposal and signing a pre- development agreement? 4. Is the City Council generally willing to consider the use of TIF or other qualifying incentives to assist the development? Respectfully submitted, ________________________ Brian Beeman Business Development Coordinator Attachments: 1. Stantec Report 2. Crossroad Pointe Redevelopment Brochure 3. The Beard Group Proposal Item No: 5 Meeting Date: October 5, 2015 Type of Business: Work Session City of Mounds View Staff Report To: Honorable Mayor and City Council From: James Ericson, City Administrator Item Title/Subject: Update on Progress Associated with City Council Goals for 2015 Introduction: On February 10, 2015, the City Council and department heads met for a joint strategic planning and goal setting retreat at the Mounds View Community Center. Subsequent to this retreat and goal setting session, the Council adopted a series of priorities for 2015 which would serve as guiding principles for City staff. In addition, the Council requested periodic updates on the progress being made on the priorities. This report shall serve as such an update. Discussion: The Council reviewed its list of goals and priorities at the February 23, 2015, City Council meeting. Finding that the list captured the essence of the issues discussed at the retreat, the Council approved Resolution 8378 (attached for your reference.) The following updates shall provide the City Council with a better understanding of where we are with each priority. The previous updates provided at the June 1, 2015, Work Session have been greyed out, the new updates are shown in black. While progress has been made in many areas, other goals and priorities will require ongoing efforts of staff to build momentum and make headway. Recommendation: Review the individual priorities and the action steps completed, underway and planned in support of the Council’s priorities. Respectfully submitted, ________________________ James Ericson City Administrator Attachment: 1. Priority Updates 2. Resolution 8378 3. 2015 Priorities 2015 Priorities Update Report October 5, 2015 Page 2 Consider targeted property acquisitions on a case-by-case basis to eliminate blight and to encourage redevelopment and land assembly; promote programs and opportunities to improve neighborhoods • Staff continues to look for suitable residential properties that would be good candidates for targeted redevelopment utilizing grant dollars, however the funds aren’t adequate to acquire a home, let alone acquire and demolish a home. • Staff is exploring opportunities to better market housing programs available through the Housing Resource Center, Greater Metropolitan Housing Corp, Minnesota Housing Partnership, and our own loan program. • The City participated in the 17th annual North Metro Home and Garden Show held in Blaine this past February, attended by many Mounds View residents. • Staff has been meeting with developers in an effort to create some interest in possible redevelopment areas along the County Road 10 corridor, in addition to the City-owned Crossroad Pointe site. • There are a few commercial properties available on the corridor that would fit within the City’s redevelopment vision; however the listing prices are not consistent with the City’s limited dollars available to support such an acquisition. • Explore opportunities to purchase foreclosed properties and accept donated bank-owned properties through the National Community Stabilization Trust. • Work with Ramsey County on possible availability of CDBG dollars for housing renovation and reinvestment Actively recruit new businesses, encourage business development and work with existing businesses for purposes of retention and expansion • Through the first five months of the year, Staff has conducted 28 Business Retention and Expansion (BR&E) visits • Maintain list of available properties in Mounds View, respond to listing inquiries • Schedule meetings with developers, provide Ramsey County officials with tour or available sites • Attend Twin Cities North Business Expo, Twin Cities Gateway meetings, Mounds View Business Council Meetings • Attend public finance conference, EDAM Conference, Greater MSP BR&E meetings and Ramsey County BR&E meetings • Through the first nine months of the year, Staff has conducted 45 Business Retention and Expansion (BR&E) visits. • Staff is working on a Code amendment that would allow taprooms, microbreweries and brew pubs in the city. 2015 Priorities Update Report October 5, 2015 Page 3 Actively recruit new businesses, encourage business development and work with existing businesses for purposes of retention and expansion (Continued) • Maintain regular contact with property owners and their real estate agents regarding land for sale • Help promote Ramsey County Library Jobs Program with local businesses • Work with Ramsey County to promote “Economic Gardening Program” with local businesses • Assist multiple local businesses find larger lease spaces and expansion options in Mounds View Focus on corridor maintenance, aesthetics, landscaping and appearance; pursue completion of corridor trailway segments and linkages to promote regional connectivity • Staff will be scheduling a median clean-up utilizing Shoreview work crew • Staff exploring costs / benefits or taking over median maintenance from Ramsey County • City Council approved engineering work and preparation of bid docs for trail segments #6 and #11 for 2016 construction • Participate in Ramsey County Comprehensive Pedestrian and Bicycle System Plan meeting to talk about Mounds View's needs and opportunities. (The County solicited cities to determine the overall need and level of funding needed to apply to a grant that would help fund pedestrian projects.) • Work with County regarding pedestrian accommodations on County Road H project • Ramsey County has included pedestrian accommodations in the design for both the I-35W bridge and County Road 10/County Road H intersection improvement. • Participate in Ramsey County Comprehensive Pedestrian and Bicycle System Plan meeting to talk about Mounds View's needs and opportunities. (The County solicited cities to determine the overall need and level of funding needed to apply to a grant that would help fund pedestrian projects.) • Survey work is complete and preliminary design layout has begun for trail segments #6 and #11. • Segment #6 was reduced in scope and will now extend between Red Oak Drive and Groveland Road due to budget constraints. Additionally, connection to the city limit would result in a dead end trail until Spring Lake Park constructs trail along County Road10, which is not planned at this time. • Possible use of contract maintenance for the County Road 10 median and boulevard planters is being explored. 2015 Priorities Update Report June 1, 2015 Page 4 Promote the redevelopment vision associated with Crossroad Pointe and pursue other redevelopment opportunities • Have met with a number of developers interested in the site • Contacted more than 50 developers, providing site data and expectations • Coordinating a tour of recent developments to get a better sense of what the City would like to see on the site • Create listings for the site on various development and redevelopment focused online real estate databases • Consult with financial advisor to improve marketability and visibility of the site, gather detailed demographic to include with property listings • Of the original 50 developers contact, seven have shown strong interest • Communicated response deadline to interested developers to submit proposals • Met with a developer to refine redevelopment proposal for Crossroad Pointe site • Renewed and updated public listings for the Crossroad Pointe site. Explore technology enhancements to expand access and availability to residents, businesses and City departments; provide for greater security in parks and City buildings • Inventory of camera needs at City Hall, the Community Center, Public Works and parks buildings is in progress • Police Department staff conducted an evaluation of City Hall for possible security enhancements • Card key access installed to all work area access doors, Employee ID badges will be updated • Working with Roseville concerning connectivity at park sites • Considering possible exemption for utility provider to open the door to higher Internet speeds (Gigabit service) • On June 8, 2015, City Council approved an exemption to CenturyLink to deploy fiber upgrades within the City • Antennas for Silver View Park have been ordered and received and will be installed within the next 30 days, four cameras to be installed • Automated door locks at Silver View park shelter will be added in the future along with additional cameras in parking lot • Four new cameras will be added to the water treatment plant this year • Police department staff conducted an evaluation of the Community Center and public works facility for possible security enhancements • Install panic buttons and remote door release buzzers in City Hall • Camera removed from water tower position, as it was damaged in storm. If salvageable, it will likely be installed at alternative location • Continuing regular police patrols of park locations 2015 Priorities Update Report October 5, 2015 Page 5 Implement renewable energy and energy efficiency improvements; pursue Green-Step City designation • Staff has signed the equipment lease and financing agreements to begin work on a number of energy savings improvements such as solar energy panels, LED lights, energy-efficient RTUs, etc. • Staff has made arrangements with CERT staff to complete the GreenStep City checklist and apply for certification • RTU #3 and Kitchen MAU starting 9/28/15 • RTU #6 (Gym) and #7 (Common Area & Office) starting 9/28/15 • Community Center lighting retrofit started, estimated completion date 10/15/15. • City hall lighting retrofit started, estimated completion date 10/15/15, trail lighting started, estimated completion date 10/15/15. • Community Center solar installation start date of 10/5/15, estimated completion date 11/13/15. • City Hall solar array installation start date of 10/12/15, estimated completion date 11/20/15. • The entire project should be completed by mid-November Plan for the design and reconstruction of the Public Works maintenance facility • Due to a vacancy in the department, planning for the new facility has been delayed and funding deferred to 2016. It is anticipated that the new public works director will assess our needs in this regard and reinitiate the necessary planning design work later this year. • Incorporate funding for the project into the 2016 Budget, discussions relative thereto in 3rd and 4th quarters, 2015 • On September 14, 2015, City Council authorized sending out RFP to consultants to conduct space needs study • On Sept 15, 2015, Staff forwarded the RFP to five consultants having the requisite experience • Staff has met with three of the five consultants; proposals are due by 9/30/15. • Incorporate funding for the project into the 2016 Budget, discussions relative thereto in 3rd and 4th quarters, 2015 2015 Priorities Update Report October 5, 2015 Page 6 Ensure Mounds View’s interests are protected and promoted relating to the TCAAP redevelopment • Staff has been attending all project management team meetings hosted by the County and its consultants • Staff has been in communications with County staff regarding access issues to businesses near the County Road 10 and County Road 10 intersection, succeeded in securing a new design feature for the County Road H reconstruction that will maintain access to NB 35W. • Attend meeting with the County and MnDOT regarding impacts to certain properties within the Mounds View Manufactured Home Park due to construction of a sound wall. • Maintain communication with affected businesses as to project updates and possible traffic impacts • City Council reviewed the nearly complete project plans at their August 3 Work Session • City Council granted municipal consent for project on August 24, 2015 • Staff continues attending all project management team meetings hosted by the County and its consultants • Staff is reviewing possible city amenities to be included as part of this project Investigate the feasibility and funding opportunities associated with a “Splash Pad” • Present possible site locations to Parks, Recreation and Forestry Commission for discussion and consideration • Include funding in the Special Projects Fund to cover construction costs • Further work on the Splash Pad feasibility delayed due to vacancy in the public works department • City Council accepted $5,542.50 donation from Bethlehem Baptist Church for Splash Pad • Joint work session scheduled with City Council and Parks, Recreation and Forestry Commission on 10/5/15 to discuss location and funding • Staff is reviewing potential grant funding possibilities • Vendor has prepared a budgeting estimate for construction of the Splash Park. 2015 Priorities Update Report October 5, 2015 Page 7 Promote positive partnerships and outreach efforts between the Mounds View Police Department and the community it serves • Police Chief attending on-going “Building Trust and Cooperation between Law Enforcement & Community Roundtable” meetings held in North St Paul at North Haven Church • Planned involvement with Community Partners with Youth (CPY) later in summer and fall for assistance with meal servings at Abiding Savior Church. CPY provides after school programs to at-risk school age children • Police representation at Teen Safety Camp at the Mounds View Community Center on June 18th • Planned partnership with Ramsey County Sheriff for Prescription Drug Abuse Forum at local schools in the Fall of 2015 • Proposed “Shop with Cop” upcoming holiday season • Continuous appearances through NNO, Festival in Park, cyberbullying presentations to young student groups, K-9 appearances • Police Chief continuing to attend on-going “Building Trust and Cooperation between Law Enforcement & Community Roundtable” meetings held in North St Paul. • Police Department hosted a NFL Punt, Pass & Kick competition on Sept 19th, at Edgewood Middle School. This was a successful event involving nearly 60 kids participating. • Community Forum event set for Oct 29, 2015, at Mounds View High School; an Educational event for drug abuse issues in partnership with the Ramsey Co Sheriff’s Dept., the Ramsey Co Attorney’s office, the New Brighton PD and other orgs working with Know the Truth from MN Adult & Teen Challenge RESOLUTION NO. 8378 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION APPROVING THE CITY COUNCIL’S IDENTIFIED PRIORITIES FOR 2015 WHEREAS, the City Council and department heads held a planning and goal setting retreat on February 10, 2015, at the Mounds View Community Center; and, WHEREAS, at the retreat, the City Council reviewed and discussed the many issues and challenges presently faced by the City; and, WHEREAS, the City Council identified their most important priorities for 2015, which are identified on the attached Exhibit A. NOW, THEREFORE BE IT RESOLVED THAT the Mounds View City Council does hereby approve its identified Priorities for 2015 as referenced in Exhibit A. Adopted this 23rd day of February, 2015. _______________________________ Joe Flaherty, Mayor ATTEST: _______________________________ James Ericson, City Administrator (seal) 2015 City Council Priorities On February 10, 2015, the Mounds View City Council and members of the management team held a planning and goal-setting retreat at the Mounds View Community Center. The City of Mounds View provides a variety of core and essential services to its residents, property owners and business owners. Each of these service delivery areas is an acknowledged and supported priority and each supports the City’s Mission, Vision and Values statements. Recognizing that important services such as Code Enforcement, Street and Infrastructure Improvements, the Community Center, Parks, Public Safety, Sewer and Water delivery are ongoing priorities which strengthen and enhance the City’s livability and social fabric, the City Council has chosen to focus particular attention this year to the following identified priorities: • Consider targeted property acquisitions on a case-by-case basis to eliminate blight and to encourage redevelopment and land assembly; promote programs and opportunities to improve neighborhoods • Actively recruit new businesses, encourage business development and work with existing businesses for purposes of retention and expansion • Focus on corridor maintenance, aesthetics, landscaping and appearance; pursue completion of corridor trailway segments and linkages to promote regional connectivity • Promote the redevelopment vision associated with Crossroad Pointe and pursue other redevelopment opportunities • Explore technology enhancements to expand access and availability to residents, businesses and City departments; provide for greater security in parks and City buildings • Implement renewable energy and energy efficiency improvements; pursue Green-Step City designation • Plan for the design and reconstruction of the Public Works maintenance facility. • Ensure Mounds View’s interests are protected and promoted relating to the TCAAP redevelopment • Investigate the feasibility and funding opportunities associated with a “Splash Pad”, and • Promote positive partnerships and outreach efforts between the Mounds View Police Department and the community it serves. The City Council considers the County Road 10 corridor to be a key component in the City’s ability to grow and prosper well into the future. A healthy and vibrant commercial corridor, easily accessible and aesthetically pleasing, will be Mounds View’s foundation upon which our other amenities will be strengthened and reinforced. (Approved Feb 23, 2015, Res. 8378) EXHIBIT A City of Mounds View Business Subsidy Policy Amended November 2015 Page 1 of 8 Business Subsidy Policy Amended: November 2015 City Council Adopted: November , 2015 EDA Adopted: November , 2015 Original Adopted: City Council May , 2003 Economic Development Authority May, 2003 City of Mounds View 2401 County Road 10 Mounds View, MN 55330 763.717.4029 Formatted: Centered Formatted: Centered Formatted: Indent: Left: 1.56" Formatted: Indent: Left: 1.56", First line: 0" Formatted: Centered Formatted: Centered, Indent: Left: 0", First line: 0" [City of Mounds View Business Subsidy Policy Amended November 2015 Page 2 of 8 Formatted: Normal, Indent: Left: 0.01", Line spacing: Exactly 11.15 pt, Don't allow hanging punctuation Formatted: Font: (Default) Garamond Table of Contents I. Purpose 3 II. Definition of “Business Subsidy” 3 III. Public Purpose Objectives of Business Subsidies 5 IV. General Policies for the Use of Business Subsidies 5 V. Guidelines for Commercial/Industrial Business Subsidies 6 VI. Subsidy Application Process and Procedure 7 VII. Subsidy Agreement and Reporting Requirements 7 City of Mounds View Business Subsidy Policy Amended November 2015 Page 3 of 8 CITY OF MOUNDS VIEW POLICY AND PROCEDURES RELATING TO THE USE OF BUSINESS SUBSIDIES I. PURPOSE For the purposes of this document, the term “City” shall include the Mounds View Economic Development Authority (EDA). This revised Business Subsidies Policy was adopted at a joint meeting of the EDA/City Council on May 12, 2003. The purpose of this policy is to establish guidelines and criteria regarding the use of business subsidies, such as tax increment financing (TIF), tax abatement, rebate financing (TRF), otherwise referred to as tax abatement, and other business subsidies for private development projects within the City of Mounds View. This policy shall be used as a criteria for providing subsidies, and shall be in addition to the requirements and limitations set forth by provisions of Minnesota State Statute 116J.993 to 116J.995 (Minnesota Business Subsidy Law), and by the City’s policy and guidelines of the particular form of subsidy. These guidelines shall be used in processing and reviewing applications requesting business subsidies assistance. The fundamental purpose of business subsidies in the City is to encourage desirable development or redevelopment that would not otherwise occur “but for” the assistance provided through business subsidies. It is the intent of the City to provide a minimum amount of business subsidies, as well as other incentives that the City may deem appropriate, at the shortest term required for the project to proceed. The City reserves the right to approve or reject projects on a case-by-case basis, taking into account established policies, specific project criteria, and demand on city services in relation to the potential benefits to be received from a proposed project. Meeting policy guidelines or other criteria does not guarantee the award of business subsidies. Furthermore, the approval or denial of one project is not intended to set precedent for approval or denial of another project. Whenever possible it is the City’s intent to coordinate the use of business subsidies with other applicable taxing jurisdictions. II. DEFINITION OF “BUSINESS SUBSIDY” “Business subsidy” means a local government agency grant, contribution of personal property, real Formatted: Font: 12 pt Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: Gill Sans MT [City of Mounds View Business Subsidy Policy Amended November 2015 Page 4 of 8 Formatted: Normal, Indent: Left: 0.01", Line spacing: Exactly 11.15 pt, Don't allow hanging punctuation Formatted: Font: (Default) Garamond property, infrastructure, the principal amound of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment udner any loan, lease, or other obligation, or any preferential use of government facilities given to a business. The following forms of financial assistance are not considered a business subsidy that would require a public hearing: 1. a business subsidy of less than $150,000; 2. assistance that is generally available to all businesses or to a general class of similar businesses, such as a line of business, size, location, or similar general criteria; 3. public improvements to buildings or lands owned by the state or local government that serve a public purpose and do not principally benefit a single business or defined group of businesses at the time the improvements are made; 4. redevelopment property polluted by contaminants as defined; 5. assistance provided for the sole purpose of renovating old or decaying building stock or bringing it up to code and assistance provided for designated historic preservation districts, provided that the assistance is equal to or less than 50 percent of the total cost; 6. assistance to provide job readiness and training services if the sole purpose of the assistance is to provide those services; 7. assistance for housing; 8. assistance for pollution control or abatement, including assistance for a tax increment financing hazardous substance subdistrict as defined; 9. assistance for energy conservation; 10. tax reductions resulting from conformity with federal tax law; 11. workers' compensation and unemployment insurance; 12. benefits derived from regulation; 13. indirect benefits derived from assistance to educational institutions; 14. funds from bonds allocated under chapter 474A, bonds issued to refund outstanding bonds, and bonds issued for the benefit of an organization described in section 501(c)(3) of the Internal Revenue Code of 1986, as amended through December 31, 1999; 15. assistance for a collaboration between a Minnesota higher education institution and a business; 16. assistance for a tax increment financing soils condition district as defined; 17. redevelopment when the recipient's investment in the purchase of the site and in site preparation is 70 percent or more of the assessor's current year's estimated market value; City of Mounds View Business Subsidy Policy Amended November 2015 Page 5 of 8 18. general changes in tax increment financing law and other general tax law changes of a principally technical nature; 19. federal assistance until the assistance has been repaid to, and reinvested by, the state or local government agency; 20. funds from dock and wharf bonds issued by a seaway port authority; 21. business loans and loan guarantees of $150,000 or less; 22. federal loan funds provided through the United States Department of Commerce, Economic Development Administration; and 23. property tax abatements granted under section 469.1813 to property that is subject to valuation under Minnesota Rules, chapter 8100. Notwithstanding the definitions listed above under 1 and 21, "business subsidies" as defined also includes the following forms of financial assistance and is subject to this policy, with the exception of a public hearing as the amount of assistance is less than $150,000, with limited reporting forms required: 1. a business subsidy of $25,000 or more; and 2. business loans and guarantees of $75,000 or more. The definition of a “business subsidy” is in compliance with the current Minnesota Business Subsidy Law and is subject to any law changes that may occur. The following types of assistance having a value equal to or in excess of $25,000 are defined as a “business subsidy” within the Minnesota Business Subsidy Law: • State and local government agency grants; • Contributions of personal property, real property, or infrastructure; • The principal amount of a loan that exceeds $75,000 at rates below those commercially available; • Reductions or deferrals of taxes or fees; • Guarantees of any payment under any loan, lease, or other obligation; and, • Preferential use of government facilities. III. PUBLIC PURPOSE OBJECTIVES OF BUSINESS SUBSIDIES In accordance with the Minnesota Business Subsidy Law, the City will consider using business subsidies to assist private development projects to achieve one or more of the following public purpose objectives: • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. • To enhance and diversify the City of Mounds View’s economic base and to increase the tax base. • To achieve development on sites which would not be developed without business subsidies assistance. • To remove blight and/or encourage development of commercial, industrial or high priority areas in the city that result in higher quality redevelopment and private investment. • To encourage the revitalization and redevelopment of the County Highway 10 Corridor. Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: Gill Sans MT • To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development. • To offset increased costs of redevelopment (i.e. contaminated site cleanup, demolition expenses, etc.) over and above the costs normally incurred in development and when the unique physical characteristics of the site may otherwise preclude private investment.. • To finance the costs associated with public infrastructure and public facilities. • To create opportunities for the construction, operation and maintenance of affordable housing. IV. GENERAL POLICIES FOR THE USE OF BUSINESS SUBSIDIES A. Business subsidy assistance will be provided from the City, by a “pay-as-you-go” note method, to the developer if the business subsidy is tax increment financing or tax abatement. Requests for up front financing will be considered on a case-by-case basis. B. It is the intent of the City to provide the minimum financing, as well as other incentives, at the shortest term required for the project to proceed. C. C. A developer requesting business subsidy assistance must demonstrate, to the satisfaction of the City, sufficient cash equity investment in the project as required within the City’s policy for the particular form of subsidy. D. Business subsidy assistance will not be provided in circumstances where land/or property price is demonstrated by the County Assessor to be in excess of fair market value. This would normally be where the acquisition price is more than 10% in excess of market value. D. A developer must be able to demonstrate to the City, or, if applicable, to the underwriting authority, a market-demand for a proposed project. E. Business subsidy will not be used in cases where the subsidy would create an unfair and significant competitive financial advantage over other similar projects in the area. F. Business subsidy will not be used for projects that would place extraordinary demands on city infrastructure and services. Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: Gill Sans MT Formatted: Numbered + Level: 1 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.5" + Indent at: 0.5" Formatted: Font: Gill Sans MT, 12 pt Formatted: List Paragraph, Left, No bullets or numbering Formatted: Font: Gill Sans MT Formatted: Numbered + Level: 1 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.5" + Indent at: 0.5" G. If requested by the City, the developer shall provide adequate financial guarantees to ensure completion of the project, including, but not limited to: minimum assessment agreements, letters of credit, cash escrows, and personal guaranties. H. Each developer must be able to demonstrate to the City’s satisfaction, an ability to construct, operate, and maintain the proposed project based on past experience, general reputation, and credit history. I. I. If requested by the City, or its consultants, the developer shall provide sufficient market, financial, environmental, or other data relative to the successful operation of the project. J. Projects receiving business subsidy approval from other affected taxing jurisdictions will be more favorable received by the City. V. GUIDELINES FOR COMMERCIAL/INDUSTRIAL/RETAIL BUSINESS SUBSIDIES A. Business subsidies may be considered for retail or service businesses if it will result in will not be used for commercial, retail or service businesses unless it satisfying a clear strategic goal of the City, including, but not limited to substantial increase in tax base and a significant improvement in a redevelopment project, and quality employment.is a development or redevelopment project that demonstrates that it will result in a significant increase in tax base. B. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan, and Zoning Ordinances. B. The project must result in the retention of existing jobs that would be lost “but for” the proposed development or result in an increased and diversification in local jobs. Business retention jobs will be considered on a one-for-one match to job creation only in cases where job loss is specific and demonstrable in accordance with the Minnesota Business Subsidy Law. C. Specific wage and job goals will be determined by the City giving consideration to the particular form of the subsidy, nature of the development, the purpose of the subsidy, local economic conditions and similar factors. The recipient will have up to two years from the benefit date, which is the date the recipient receives the subsidy, to meet the job and wage Formatted: Numbered + Level: 1 + Numbering Style: A, B, C, … + Start at: 8 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.5" + Indent at: 0.5" Formatted: Font: Gill Sans MT, 12 pt Formatted: List Paragraph, Left, No bullets or numbering Formatted: Font: Gill Sans MT Formatted: Numbered + Level: 1 + Numbering Style: A, B, C, … + Start at: 8 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.5" + Indent at: 0.5" Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt, Bold Formatted: Indent: Left: 0", Hanging: 0.5" Formatted: Font: 12 pt Formatted: Font: 12 pt, Bold Formatted: Indent: Left: 0" Formatted: Font: Gill Sans MT, 12 pt, Bold Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT Formatted: Indent: Left: 0", First line: 0", Numbered + Level: 1 + Numbering Style: A, B, C, … + Start at: 2 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.5" + Indent at: 0.5" Formatted: List Paragraph, Left, No bullets or numbering Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT goals established by the City. The City’s job goal is that each commercial/retail business receiving assistance will create at least one new fulltime job through the implementation of the project. A retention project must result in the retention of existing jobs that would be lost “but for” the proposed development or result an increase and diversification in local jobs. Business retention jobs will be considered on a one-for-one match to job creation only in cases where job loss is specific and demonstrable in accordance with the Minnesota Business Subsidy Law. D. The minimum wage for a job with a commercial/retail business to be considered a new or retained job shall be the greater of $15.00 per hour or 150% of state or federal minimum wage, whichever is greater, exclusive of benefits required by law. Deviations from the job and wage goal may be considered for projects that will result in a significant increase in tax base. equal to at least 125% of the federal minimum wage or currently $6.44 per hour exclusive of benefits. Deviations less than the wage floor will be considered on a case-by- case basis and in accordance with the requirements of the Minnesota Business Subsidy Law. E. Business subsidies will not be used for commercial/industrial/retail projects that have a history of inconsistent compliance with applicable environmental rules and regulations. VI. GUIDELINES FOR INDUSTRIAL BUSINESS SUBSIDY IES APPLICATION PROCESS AND PROCEDURE A. Application for business subsidies shall be made on the City’s forms for the particular type of assistance. The application for business subsidies shall request information required within the City’s policies on the particular form of subsidy including but not limited to; a detailed description of the project; a preliminary site plan; the amount of business subsidy requested; the public purpose of the project; the number and types of jobs to be created; the wages and benefits to be paid new employees; and verifiable funding sources and uses. Business subsidies will not be used for industrial businesses unless it is a development or redevelopment project that demonstrates that it will result in a significant increase in tax base. B. Following a review by appropriate City Staff the application shall be referred to the Economic Development Authority for recommendation to the City Council for denial or approval. The project must be consistent with the City’s Comprehensive Plan, Land Use Plan, and Zoning Ordinances. Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt, Bold Formatted: Font: 12 pt, Bold Formatted: Font: Gill Sans MT, 12 pt, Bold Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT C. Before granting a business subsidy that exceeds $150,000, the City shall provide public notice and hold a hearing on the subsidy unless a hearing and notice on the subsidy is otherwise required by law.Specific wage and job goals will be determined by the City giving consideration to the particular form of the subsidy, nature of the development, the purpose of the subsidy, local economic conditions and similar factors. The recipient will have up to two years to meet the job and wage goals established by the City. The City’s job goal is that each industrial business receiving assistance will create at least one new fulltime job through the implementation of the project. A retention project must result in the retention of existing jobs that would be lost “but for” the proposed development or result an increase and diversification in local jobs. Business retention jobs will be considered on a one-for-one match to job creation only in cases where job loss is specific and demonstrable in accordance with the Minnesota Business Subsidy Law. D. The minimum wage for a job with an industrial applicant to be considered a new or retained job shall be equal to at least 140% of the federal minimum wage or currently $7.21 per hour exclusive of benefits. Deviations less than the wage floor will be considered on a case-by-case basis and in accordance with the requirements of the Minnesota Business Subsidy Law. E. Business subsidies will not be used for industrial projects that have a history of inconsistent compliance with applicable environmental rules and regulations. VII. SUBSIDY AGREEMENT AND REPORTING REQUIREMENTS Each company receiving a business subsidy shall be subject to the subsidy agreement and reporting provisions and requirements set forth by the Minnesota Business Subsidy Law and summarized below: A. Progress Reports The recipient shall file a report annually for two years after the receiving the subsidy or until all goals set forth in the subsidy agreement have been met, which ever is later. Reports shall be completed using the format drafted by the State of Minnesota and shall be filed with the City no later than March 1 of each year for the progress made the previous year. Formatted: Font: Gill Sans MT Formatted: Numbered + Level: 1 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.5" + Indent at: 0.5" Formatted: List 2, Justified, Numbered + Level: 1 + Numbering Style: A, B, C, … + Start at: 1 + Alignment: Left + Aligned at: 0.25" + Tab after: 0.5" + Indent at: 0.5" Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt, Bold Formatted: Font: Gill Sans MT B. Maintain Facility The recipient agrees to maintain and operate its facility at the site where the subsidy is used for a period of five years after the date the subsidy is provided. C. Failure to Comply Businesses failing to comply with the subsidy agreement will be subject to the terms of the individual agreement, fines, repayment requirements, at the rate established within the Minnesota Business Subsidy Law, and be deemed ineligible by the State to receive any loans or grants from public entities for a period of five years. VIII. SUBSIDY APPLICATION PROCESS AND PROCEDURE A. Application for business subsidies shall be made on forms for the particular form of assistance provided by the City of Mounds View Economic Development Coordinator, or designee. A deposit fee of $ 5,000.00 shall accompany any Tax Increment Finance request application to cover the City’s initial legal, administrative, and planning costs. A fee of $1,000.00 shall accompany any Tax Rebate (or Abatement) Financing to cover the City’s legal, administrative, and planning costs. Following a review by appropriate City Staff the application shall be referred to the Economic Development Authority for recommendation to the City Council for further action. B. The application for business subsidies shall request information required within the City’s policies on the particular form of subsidy including but not limited to; a detailed description of the project; a preliminary site plan; the amount of business subsidy requested; the public purpose of the project; the number and types of jobs to be created; the wages and benefits to be paid new employees; and verifiable funding sources and uses. Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT, 12 pt Formatted: Font: 12 pt Formatted: Font: Gill Sans MT Formatted: Font: Gill Sans MT, 12 pt \\Trout\CommDev\Economic Development\TIF\Business Subsidies\M.V. Business Subsidy Policy 5.12.03 Final.doc CITY OF MOUNDS VIEW OFFICE OF THE MAYOR PROCLAMATION WHEREAS, the manufacturing industry is a dynamic segment of Minnesota’s economy, and an integral part of Minnesota’s economic development strategy; and WHEREAS, manufacturing has the second largest total payroll among business sectors in Minnesota, providing $20 billion in wages; and WHEREAS, manufacturing contributed almost $48.2 billion to the Minnesota economy in 2015, and is the second-largest industry (16 percent) contributing to our private gross domestic product; and WHEREAS, manufactured exports brought $18.9 billion into the Minnesota economy in 2015; and WHEREAS, Manufacturing provides over 317,200 highly skilled, high paying jobs, which significantly contribute to Minnesota’s high standard of living and economic vitality. NOW THEREFORE, I Joe Flaherty, Mayor of Mounds View, do hereby proclaim that, the week of October 2 to October 8, 2016 shall be observed as: “MINNESOTA MANUFACTURING WEEK” Given under my hand and Seal of the City of Mounds View, this 26th day of October, 2016. (SEAL) ________________________ Joe Flaherty, Mayor