HomeMy WebLinkAbout05-25-1995 ECONOMIC DEVELOPMENT COMMISSION AGENDA
MAY 25, 1995
6:00 P.M.
MOUNDS VIEW CITY HALL
COUNCIL CHAMBERS
1. CALL TO ORDER 0,, = ell P.M.
2. ROLL CALL (Present = P, Absent = A)
Goff Schmidt
Malone Seipp
Mountin Welsch
Nelson Hankner (EDA Liaison)
Bennett (Staff)
3. APPROVE EDC MINUTES
• March 23, 1995
Action: Motion P 11
Second
Vote (9 -0
4. SPECIAL BUSINESS
There is no special business
5. EDC BUSINESS
A. Consideration of Proposal for Development of Property Near
Bridges Golf Course
Action: Motion
Second
Vote Qt✓
Comments: ilex 4-L .ok-{_x‘ d , (...:
V k,tA4A-u.
B. Consideration of Part II & Supplements of North Metro Business
Development Survey hoz^-cAs �
• Action: Motion
Second p
Vote OA
Comments:
410 C. Consideration of Recommendations for 1995, 1996 Allotment
for the Business Loan Program.
'Iw
Action: Motion
Second Will"'
Vote e_- 6
Comments: ve)
D. Consideration of Business Loan for Dynex Industries.
Action: Motion
Second K.,Ca
Vote 0J
Comments:
E. Discussion of Retention Meetings
Comments:
ID6. REPORT OF MEMBERS AND STAFF
7. ADJOURN 1 51) P.M.
Next Meeting June 22, 1995
111
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
i
Regular Meeting %C:\)\41C3
March 23, 1995
City Hall
2401 Highway 10, Mounds View, MN 55112
1. Call to Order:
The meeting was called to order at 6:05 p.m. by Chairperson, Phil Seipp.
2. Roll Call:
Members present were as follows: Mark Malone, Dan Nelson, Ron Schmidt, Delane Welsch and Phil
Seipp. In addition, EDA Liaison Sue Hankner and Economic Development Coordinator Cathy Bennett
were present. Members Peg Mountin and Rosemary Goff were absent.
3. Approval Of Minutes:
Motion/Second: Welsch/Nelson moved approval of amended Minutes of EDC Meetings,
January 26 and February 23, 1995
5 ayes 0 nays
• Motion Carried
4. Special Business
A. Presentation of Mounds View Housing Study
Jennifer Bergman, City of Mounds View Housing Intern, gave a brief overview of the findings
and conclusions of the Mounds View housing study for the Commission. In particular,Jennifer
noted the funding mechanisms and the potential use of Tax Increment Financing funds to
begin a housing loan program. The program could essentially be set up similar to the business
loan program whereby the City participates in a portion of the loan at a reduced interest rate
and the bank matches the City's portion at conventional rate. Program proposals will be
brought back to the Commission at a later date.
5. EDC Business:
A. Discuss Procedures for Commission Member Involvement in Business Retention Calls.
Coordinator Bennett outlined the importance of continuing a retention program to meet with
those companies that were unable to participate in the North Metro Business Retention and
Expansion Program. In addition, Coordinator Bennett noted that there are a couple of new
companies and a few at risk companies that may be leaving Mounds View that should be
contacted.
Coordinator Bennett distributed a list of businesses that were not covered under the survey
• process. It was recommended to try and meet with 5 companies per month. Each Commission
Member was asked to designate 2-3 dates in April that would be convenient to meet with the
businesses and Coordinator Bennett would arrange the meetings.
1
Coordinator Bennett would also draft a brief questionnaire to use in the meeting.
III B. Discussion of Strategies to address findings of the North Metro Business Retention and
Expansion Survey(BRE).
Coordinator Bennett presented Part I summary results of the BRE survey for the commission's
review. The EDC will be responsible for making recommended action steps EDA in response to
the findings of the survey process. There was discussion regarding the presentation of the
results to the business community. Staff was directed to arrange a reception for the business
community to unveil the results of the program and action steps adopted by the EDA.
Chairman Phil Seipp offered to host the reception at SYSCO.
The EDC will review the survey results in their entirety at the next meeting and make
recommendations to the EDA at the June work session with the reception to be scheduled later
in June.
6. Reports From Chair, Commissioners and Staff:
There were no reports
7. Adjournment
There being no further business before the Commission, this meeting of the Economic Development
Commission adjourned at 7:30 p.m.
IIIRespectfully Submitted,
Economic Development Coordinator
III
2
i Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Proposal for Development of Property
(5.a) Near Brid•es Golf Course
have been working with a developer interested in building a 31,000 sf building for a
medical distribution company for several months. The company has decided to
pursue this site and has been negotiating a purchase agreement for the land to build
the building. They have approached the City for Tax Increment Financing.
BelAir Builders, Jim Winkles, will be in attendance to give an overview of the company
and their plans for development. Z.:`inji.c4 j Sfe _ ( ' t-;.-., .
i
• The EDC's responsibility would be to evaluate if th'e proposed use of the property
would be one that the City should support and if they have any recommendations in
relation to aesthetics of the building and site plan. This property is very important to
the City since it borders the Bridges.
---37,
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Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Part II and Supplement findings of the
(5.B.) North Metro Business Retention and Development
Surve (BRE)
The attached is a summary of Part II and the supplements from the BRE survey. Please
review and be prepared to discuss trends and proposed action steps in response to
the survey results including Part I which was presented in March. The EDC's proposed
action steps will be presented to the EDA at the June work session.
I have scheduled a reception to unveil the action steps and results of the survey for
June 29th from 5:00-7:00 p.m. at SYSCO.
It is very important that we come prepared with some recommendations for action
steps the City can take in response to the survey.
In addition, I would like your input regarding what type of summary information we
should present at the reception. What would you as a business and resident of the
community like to know?
110
• ,Some examples:
Business Loan Program
—_Target Industries - Continue to pursue attraction of these
Pursue Marketing Program to Improve Mounds View's Image
Buy Mounds View First Campaign
.Review ways to streamline the permit process - Council Goal
—Police to host a safety seminar and robbery presentation for Businesses
^Revise Sign Ordinance
Council & Staff to take a pledge to be business friendly and more customer
service oriented.
NMeet with MTC re: better routes along Highway 10
Contact businesses representatives and solicit input prior to adoption of
regulations which may affect them.
'Continue to work on the redevelopment of Highway 10
Lontact Ramsey County Job Service re: those interested in Summer Youth
Opportunities.
Work closely with developers to market available facility space
•
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Business Retention Program
• March 16, 1995
Part I Summary
Total of 108 companies completed Survey Part L
3.. ,' ,1-sty three perces (68) of the comperes are corporate headquarters.
Market Area Analysis:
7. Only six percent are involved in international sales with fifty one
percent having 100% of their sales in the twin cities metro.
Employment Analysis:
10. A small percentage of companies have a very difficult time recruiting
and retaining employees in all of the categories. �. I
Seined,- r had the e p:6 w' .al � d 66 &Rr SLty int
dais C 14st".} ,` € `%; '.' . by:_. , it -Rra4 �Ba h Y kiaiYi s. :
The breakdown is listed below.
• Employment Category Difficulty Difficulty
Recruiting Retaining
Scientist and Engineering 3 0
Other Professional 3 1
Managerial 3 1
Sales 2 1
Clerical 0 0
Services 6 5
Technical/Skilled Labor 6 1
Unskilled Labor 1 2
11.b Nine companies stated that there was difficulty in recruiting
employees due to the lack of skills and three noted the difficulty
in retaining due to lack of skills.
12. The following are skills that their employees are the.weakest,
4 ct .F r :44 ':----,A4;04",111 •Y.°` and Writing, A+' b1 1:11ir: A, .3 s q In
t'J�
13. Twenty Five percent of the companies are interested in learning more
about technical and community college training.
•
15. In each category, ' .• o;ers will;.0 - . incr` o t.h
• ' five` yearswith O$r4.4 fo.: - `
close seconds from é Managerial, Services and 'Technic.
categories.
Business Changes:
17.F. Thirty five percent (38) of the companies have increased employment
in last 3 years.
17.G. Eleven percent (12) experience a decreased in employment over the
last 3 years.
18.1w• €T i4! @ 4 i s4i - i iyN�' *Folk vie ;A 4 ! ,4.4 ti tC: 1 L. ;1 be/
18.G. Only two percent expect to have a decrease in employment over the
next 2 years.
18.J :_ ,;3 g `: - :c i . they are considering relocation of
19. Of tho it Wi! 8 i A 4 4 1� aJN r to i '
s # a K } ` t'�1
•
.y
20. Of those companies that are considering relocation, one will be
moving in 6 months, one in one year and the remaining in one to
three years.
Location Factors:
21. ""^' A ��� •,„.• ,F:. f. q a. , e �` x•,r y ors
de al, ief 4 spit, eV it on or exparatirov
r n. Following close behind were State Income Tax and Sales
Tax, Workers Compensation, Unemployment Insurance Costs and the
Permit Process. Other factors noted that were not listed include
visibility and access off Highway 10 and the freeway and positive
business climate.
22. 0, #)8 R.14111 uns .�- eR .A #€ .! IJ .RAW=' 6.s s. pi �� ♦ :i v 'a-'
'Vag*. " ° ri ni E Ali`e' . I E '' 11ietl 4 t ,
. lither factors noted that were not listed include local City
hassles and zoning/land use incompatibility.
Business Outlook:
4110
-�h Y
23. - 10-241 a = ' w� :.�a- 4,. + _os e� •.�r.1 - "v. A A i A ,A :.that I
4", i, -9 ip� ■y'.t` ok over the next two years With"
' iW �:. Vint.
25. Sixteen percent indicated that better facilities would be a high
priority in assisting their company.
Business Service Usage:
26. A W ®,*MI A!' of companies purchase 100% of their services in the
a .. The breakdown of those services that are purchased
'100% in the North Metro is as follows:
Category % of Companies
Accounting 46%
Advertising 43%
Management 36%
Assist.
Employee 47%
Tra' '
`inancing 3g%
Marketing 21%
Production 18%
Transportation 19%
Warehousing 34%
27. The following services were noted that companies would like to see
in the North Metro Area.
• Major grocery store or clothing store
• Large water treatment or waste water treatment plant, power plant or
chemical plant
• Hardware store
• Satellite Office Space
• Catering Service
• Quality restaurant
• Quality Hotel
• Clerical based industries
28. There were twenty companies that are current members of the local
Chamber and there are twelve that may be interested in becoming a
member.
• Business Retention Program
April 20, 1995
Part II Summary
Total of 108 companies completed Survey Part II.
Facilities Analysis:
1. Fifty two percent (56) of the companies own their own facility(
Forty seven percent (50) of the companies lease space.
1.a. Of those that lease space
54% of their leases expire in 0-4 years;
20% expire in 5 or more years;
12% are month to month and 15% percent have open leases.
2. How 1. • • •}ve eu been in your current facility?
-40
22% 6-10 years
22% 11-25 years
% over 25'yr
3. How B'.,, 'ty in Square Feet?
• 8% 5,100 10,000
9% 11,000 - 30,000
9% 31,000 - 60,000
2% 61,000 - 100,000 •
2% over 100,00
4. How long do you plan on staying in the current facility?
5 businesses indicated one year or less (update: one has
already moved and one closed down.)
7 businesses plan on staying 1-3 years.
12 businesses plan on staying 3-5 years.
80 (12%) plan on staying more than 5 years.
6. . •. • arethe main reasons businesses decided to locate Irf
. t7
4 rirf
ry f
" k d\Live in area.
: -44 :c 10
7. What would you do if you needed to expand?
• 11% would build to suit a new building to own or lease.
11% would find existing building to own or lease.
21% would build expansion to existing space.
10% would expand into adjacent space.
6% would establish a satellite facility elsewhere.
3% would divest one or more operations that they currently
perform in house.
9. Current use of space?
9% of the companies are using between 76 and 99 percent of
their current facility.
82% are using 100% if their existing space.
Local Services:
10. j !H ,64 ce!! F 5 PFM !� 6: !FM a r: r A eey��a j ` or favorabletibe
gi 5 G `$ A 6ery k Q $ k ! ° b ! 0r lev
+43! �3Y �.+ 4,.
4:, i.0 a e' .. #mer b .
rit
y�y,pfi- o y
3k'i
r 6:6
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S +$- £
W
11% are dissatisfied to very dissatisfied(1)
65% satisfied
Solid Waste Disposal
14% very satisfied
50% satisfied
Hazardous Waste Regulations
37% satisfied
Emergency Medical Services
15% very satisfied
50% satisfied
Electricity/natural gas services
82% satisfied
Schools
• 53% satisfied
110
Land Availability
35% satisfied
pment Efforts
g13ed
Postal Service
78% satisfied
Local Capital Services
41% satisfied to very satisfied
`2 sdP _ +a:� e `.ar, ot;, *e from remainiog and expanding
Irrtrt e,8 bir,re f:
5 R..• •n 'n1a-.65
a oa a. s
Mall Vacancy - 8% (5)
Condition of Highway 10 - 4
Sign Ordinance - 4
Land/Building Availability - 3
General Competition - 3
Land\Building Cost and lease rates - 3
Crime - 1
Transportation :
17. Six Percent use airport for business use, three companies use for
personal use and 4 use the Blaine/Anoka airport.
Financing:
21. Five local businesses have applied for SBA financing in the past and
4 received the financing
CEOIGeneral Manager Lifestyle:
22 of—ht :atoviftnager—sTive In the north metro and 15% live
outside the North Metro.
# A N. Metro:
-, = ,` 4,I _ and North
Y{
1111 Fk� k
hat you; a eat;about l 1n KMetro `
•
P‘irg®'� a "a 4ee"Iiii4tig in quit/
itlished suburb/
1 i a r=1q . E=KM
7144 , fug
t a.air,grz4ixtrg, ,,t6Bic in Mounds View.
cox. :tai*
rn � w:q¢�.ox 5i; S.:a;v av +r��
O tv45°, aFxct'"�t?"'.Jtt"'F�*"vsr,.'g5�.. .. �€...... m."i C"":-
.sn r
xt S b R} a o 14104,4
98fka�� z¢ dFF'r,M 3 �xh A3�MEa
,tiontAttt. ea =c .,1K0:11 • 'elo ent on 10
e: ittrt, ;
Education:
24. 38% use technical and community colleges for training and 60% don't
S 26. The following number of companies requested information on:
Business Planning/Management/Marketing - 15 .£ica.[-2
Financial Assistance - 15
high-tech Manufacturing - 3 companies YrLN -ri
Job Training Assistance -12 — L d e."`L / '.0
Government Procurement - 5
Exporting Information - 7 — (i•J
Permits Licensing - 12 --
Environmental Regulations - 11 rye)iuT h1
City Ordinances, Zoning - 16
Employee Benefit Systems - 15
Employees:
30. 41% of the businesses frequently have openings for entry level
positions.
32. f=jr ;msu job- opportunity for ...
35et§ '- ot vely'`affected 14T-tater mass
•
• Business Retention Program
April 20, 1995
Supplements
Distribution:
5 companies answered this section
36. How can City Assist Your Business?
RRed proper `tax a user fees'
37. Major industries you serve?
Credit Unions, metal finishing, restaurants, manufacturing,
wood, public agencies, window mfgs, mining
38. Major raw materials and service use in business:
paper, pumping equipment, transformers, spray finishing
equipment, hazardous waste disposal, silicones, cranes.
39. Primary factors in improving growth of company.
Competition, Industry growth, Economy, government regulations
410 Retail:
41 companies completed this supplement
44. 30% of the companies were not satisfied with their sign.
Would like a lit sign to stand out more.
Current Sign is outdated.
Would like a sign closer to the road.
Would like signs larger than 2 square feet.
A larger reader board.
Would like a directional sign on Highway 10.
Bigger sign.
Would like larger free standing sign greater than 15 feet.
45. 12% were not satisfied with their parking facilities.
Increase parking ratio per square footage of facility space.
47. 30% are affecting by traffic conditions.
Access off and on Highway 10
Long wait at stop lights on Highway 10.
48. A few companies have a problem with shoplifting, bad checks,
. vandalism and theft.
51. 63% of the retail businesses have had to summon the police in the
last year.
3 - once a month
5 - once every 2-3 months
8 - once every 3-6 months
8 - once a year
53. 35% of the businesses requested they would be interested in the
following local service:
3 - security survey of premises
4 - robbery presentation
4 - shoplifting presentation
3 - bank deposit safety presentation
1 - CPR training
;:. , « u business grow?';
; ,businew on ,� �, ��
ori. t'+
' 1 ,,. 9 J a ' 'C1
•
•
O Mounds View Supplement:
84 Businesses Completed the Mounds View Supplement
Involvement in Community Activities:
Vest in till'Park % pitticipalk
Community Theater - 4% participate
Focus 2000 - 4% participate
Advisory Commissions - 1% participate
Partnerships with Local Schools - 6% participate
Rating of Mounds View's Amenities
Amenity1 1 t Wig ihigiaist, Zip sia,
Shopping Facilities 5% 27% 37% Ufa, 11%
Recreations Facilities 7% 38% 30% 10% 2%
Local Newspapers 1% 37% 26% 10% 7%
Dining Facilities 7% 36% 25% 18% 8%
Accommodations For Clients 2% 23% 23% 18% al
Community Events 4% 38% 26% 14% 0%
City Image 5% 24% 12% 6%
Housing Costs 4% 35% 6% 0%
• Housing Availability 2% 35% 35% 6% 0%
Land/Bldg Costs/Leases 2% 26% 29% 14% 8%
How High of a Priority should the City Place on the Following:
Topic High Medium Low
Clean up & Maintenance 46% 43% 2%
17% 4%
Housing Rehabilitation 24% 46% 14%
City Image 37% 44% 8%
Improve Labor Force 23% 43% 15%
Commercial Redevelopment 45% 33% 8%
Sign Ordinance 46% 19% 21%
Street, Public Works 30% 50% 8%
Land Use and Zoning:
79% of the businesses are satisfied with their current zoning.
15% would be willing to serve on a zoning advisory committee.
29% felt there was a need to rezone areas of Highway 10 whereas 49%
• answered there was not a need for rezoning.
toe. a o .for . a sway:
All Business Larger Retail Center with Grocery
More Traffic banes Include bikeways and Pathways
Reduce Speed Balance Business & Residential
Get Rid of Apartments Improve the Business Mix
Expand Business Park Development
Better Access to Businesses
City Communication:
61% currently receive the City Newsletter.
61% would be interested in a Newsletter specifically for Business.
38% would be interested in contributing to the newsletter via articles.
•
Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Recommendations for 1995 and 1996
(5.c.) Allotment for the Business Loan Pro• ram
Staff has been working with a financial consultant to accurately estimate the excess
tax increment funds available for economic development programs over the next five
years. If the legislature does not curtail this resource, it is estimated that Mounds
View will have approximate 2.5 million available for all City Development Programs in
1995 and about 1/2 of that in 1996 depending upon the usage in 1995. The
proposed programs to be funded by these dollars include single family rehabilitation,
multi-family rehabilitation, business loan program, highway 10 redevelopment, Retail
Rehabilitation, and School\Community Facility. A spread of the numbers will be
i presented to the EDA at the June work session by Tax Increment Consultants and the
EDA will be presented with recommendations to allocate the funds to the above
programs.
The EDC has been directed to make a recommendation for an amount to be used to
fund the business loan program for 1995 and 1996. Take into consideration that we
are half way through 1995 and there may be more of a need for funds in 1996 once
we are able to market the program.
1111
DRAFT, ®=
DATE PARTICIPATION AGREEMENT
BUSINESS LOAN PROGRAM
Date Amount of Participation
The undersigned lender,
(Name of Issuing Bank)
(herein called "Bank") , hereby certifies that the MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY (herein called "EDA") has a
participation from the date hereof in the amount of
Dollars, said participation
(EDA Participation)
being in that certain indebtedness of
(Name of Debtor)
to the Bank in the total amount of
• (Total Loan)
Dollars (the "Indebtedness") , with the EDA participation bearing
interest at the rate of , all as evidenced
by Note(s) dated , with payments starting
due
and all mortgage or other security therefor and all guaranty or
other instruments, if any, given in connection therewith. The
security for this indebtedness is (describe collateral)
The granting of this participation shall be upon the following
1111 terms:
287902.1 1
4111
delivered by or for the account of the Debtor; release such
payments, collections and proceeds to the Debtor or apply the same
to the payment of the Indebtedness; and enforce rights against
third parties. In carrying out its obligations, the Bank shall act
in honesty and in good faith. Neither the Bank nor any of its
directors, officers, employees or agents shall be liable for any
action taken or omitted by the Bank or any of them except in the
case of failure to perform its obligations under this Agreement or
willful misconduct.
5. All payments received by the Bank after the occurrence of
any Event of Termination (whether such payments are from the Debtor
or out of any collateral or from any other person or out of any
• other property) shall be applied: first, to pay or reimburse the
Bank for expenses incurred; second, Bank's to the Bank s principal portion
and interest (not to exceed one year's interest if a real estate
foreclosure and 120 days' interest if the collection effort is not
a real estate foreclosure) ; and third, the EDA shall be paid its
principal plus interest (not to exceed one year' s interest if a
real estate foreclosure -and 12-0 days' interest if the- collection
effort is not a real estate foreclosure) . Any excess shall be
split in accordance with the proportion of participation. The EDA
is not responsible to pay the Bank for any collection efforts that
the Bank takes.
6. This Agreement shall be governed by the laws of the State
of Minnesota and shall be binding upon and inure to the benefit of
4111 the parties and their respective successors and assigns. This
Agreement may be executed in counterparts, each of which shall
287902.1 3
DATE
APPLICATION FOR BUSINESS LOAN PROGRAM
MOUNDS VIEW
NAME OF BUSINESS
ADDRESS
NUMBER OF YEARS LOCATED IN MOUNDS VIEW
TELEPHONE NUMBER FAX NUMBER
DESCRIPTION OF BUSINESS
OWNER'S NAME(S) AND TITLE(S)
DESCRIPTIONOF:: WORIK NAME OF CONTRACTOR COSI`
PERFORMED
•
SIGNED DATE
EXHIBITS:
• 3 YEARS FISCAL YEAR END FINANCIAL STATEMENTS
MOST RECENT INTERIM FINANCIAL STATEMENT
PERSONAL FINANCIAL STATEMENT
BIDS OR CONTRACTS TO SUPPORT COSTS
PLANS AND SPECIFICATIONS
0 Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Business Loan for Dynex Industries
(5.d.)
In anticipation of the funds being made available for the business loan program and
the legislation does not take away this opportunity, Dynex Industries would like to be
the first applicant for the business loan program. Dynex would like to fund their
expansion through an SBA loan, conventional financing and the City's business loan
program. The EDC is familiar with the project since we had applied for a State
Economic Recovery Grant. Dynex has gone through the proper building process at
the City and have been issued a building permit.
• The EDC is asked to make a recommendation for appoval\disapproval of the
maximum loan amount for Dynex Industries expansion. This includes $25,000 City
participation at 2% and $25,000 bank participation. Dynex has chosen NorthStar
Bank in Roseville.
If approved by the EDC, a final participation agreement for the loan will be signed
and recorded at the City.
•
C. Consideration of Recommendations for 1995, 1996 Allotment •
for the Business Loan Program.
Action: Motion
Second
Vote
Comments:
D. Consideration of Business Loan for Dynex Industries.
Action: Motion
Second
Vote
Comments:
E. Discussion of Retention Meetings
Comments:
6. REPORT OF MEMBERS AND STAFF
7. ADJOURN P.M.
Next Meeting June 22, 1995
•
4
Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
March 23, 1995
City Hall
2401 Highway 10, Mounds View, MN 55112
1. Call to Order:
The meeting was called to order at 6:05 p.m. by Chairperson, Phil Seipp.
2. Roll Call:
Members present were as follows: Mark Malone, Dan Nelson, Ron Schmidt, Delane Welsch and Phil
Seipp. In addition, EDA Liaison Sue Hankner and Economic Development Coordinator Cathy Bennett
were present. Members Peg Mountin and Rosemary Goff were absent.
3. Approval Of Minutes:
Motion/Second: Welsch/Nelson moved approval of amended Minutes of EDC Meetings,
January 26 and February 23, 1995
• 5 ayes 0 nays
Motion Carried
4. Special Business
A. Presentation of Mounds View Housing Study
Jennifer Bergman, City of Mounds View Housing Intern, gave a brief overview of the findings
and conclusions of the Mounds View housing study for the Commission. In particular, Jennifer
noted the funding mechanisms and the potential use of Tax Increment Financing funds to
begin a housing loan program. The program could essentially be set up similar to the business
loan program whereby the City participates in a portion of the loan at a reduced interest rate
and the bank matches the City's portion at conventional rate. Program proposals will be
brought back to the Commission at a later date.
5. EDC Business:
A. Discuss Procedures for Commission Member Involvement in Business Retention Calls.
Coordinator Bennett outlined the importance of continuing a retention program to meet with
those companies that were unable to participate in the North Metro Business Retention and
Expansion Program. In addition, Coordinator Bennett noted that there are a couple of new
companies and a few at risk companies that may be leaving Mounds View that should be
contacted.
. Coordinator Bennett distributed a list of businesses that were not covered under the survey
process. It was recommended to try and meet with 5 companies per month. Each Commission
Member was asked to designate 2-3 dates in April that would be convenient to meet with the
businesses and Coordinator Bennett would arrange the meetings.
1
Coordinator Bennett would also draft a brief questionnaire to use in the meeting.
B. Discussion of Strategies to address findings of the North Metro Business Retention and I
Expansion Survey (BRE).
Coordinator Bennett presented Part I summary results of the BRE survey for the commission's
review. The EDC will be responsible for making recommended action steps EDA in response to
the findings of the survey process. There was discussion regarding the presentation of the
results to the business community. Staff was directed to arrange a reception for the business
community to unveil the results of the program and action steps adopted by the EDA.
Chairman Phil Seipp offered to host the reception at SYSCO.
The EDC will review the survey results in their entirety at the next meeting and make
recommendations to the EDA at the June work session with the reception to be scheduled later
in June.
6. Reports From Chair, Commissioners and Staff:
There were no reports
7. Adjournment
There being no further business before the Commission, this meeting of the Economic Development
Commission adjourned at 7:30 p.m.
Respectfully Submitted, •
Economic Development Coordinator
•
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Staff Memo
�
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Proposal for Development of Property
(5.a) Near Brid•es Golf Course
I have been working with a developer interested in building a 31,000 sf building for a
medical distribution company for several months. The company has decided to
pursue this site and has been negotiating a purchase agreement for the land to build
the building. They have approached the City for Tax Increment Financing.
BelAir Builders, Jim Winkles, will be in attendance to give an overview of the company
and their plans for development.
• The EDC's responsibility would be to evaluate if the proposed use of the property
would be one that the City should support and if they have any recommendations in
relation to aesthetics of the building and site plan. This property is very important to
the City since it borders the Bridges.
Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Part II and Supplement findings of the
(5.B.) North Metro Business Retention and Development
iniumumSurvey (BRE)
The attached is a summary of Part II and the supplements from the BRE survey. Please
review and be prepared to discuss trends and proposed action steps in response to
the survey results including Part I which was presented in March. The EDC's proposed
action steps will be presented to the EDA at the June work session.
I have scheduled a reception to unveil the action steps and results of the survey for
• June 29th from 5:00-7:00 p.m. at SYSCO.
It is very important that we come prepared with some recommendations for action
steps the City can take in response to the survey.
In addition, I would like your input regarding what type of summary information we
should present at the reception. What would you as a business and resident of the
community like to know?
Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Recommendations for 1995 and 1996
(5.c.) Allotment for the Business Loan Pro•ram
Staff has been working with a financial consultant to accurately estimate the excess
tax increment funds available for economic development programs over the next five
years. If the legislature does not curtail this resource, it is estimated that Mounds
View will have approximate 2.5 million available for all City Development Programs in
1995 and about 1/2 of that in 1996 depending upon the usage in 1995. The
proposed programs to be funded by these dollars include single family rehabilitation,
multi-family rehabilitation, business loan program, highway 10 redevelopment, Retail
• Rehabilitation, and School\Community Facility. A spread of the numbers will be
presented to the EDA at the June work session by Tax Increment Consultants and the
EDA will be presented with recommendations to allocate the funds to the above
programs.
The EDC has been directed to make a recommendation for an amount to be used to
fund the business loan program for 1995 and 1996. Take into consideration that we
are half way through 1995 and there may be more of a need for funds in 1996 once
we are able to market the program.
S
• Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Consideration of Business Loan for Dynex Industries
(5.d.)
In anticipation of the funds being made available for the business loan program and
the legislation does not take away this opportunity, Dynex Industries would like to be
the first applicant for the business loan program. Dynex would like to fund their
expansion through an SBA loan, conventional financing and the City's business loan
program. The EDC is familiar with the project since we had applied for a State
Economic Recovery Grant. Dynex has gone through the proper building process at
the City and have been issued a building permit.
• The EDC is asked to make a recommendation for appoval\disapproval of the
maximum loan amount for Dynex Industries expansion. This includes $25,000 City
participation at 2% and $25,000 bank participation. Dynex has chosen NorthStar
Bank in Roseville.
If approved by the EDC, a final participation agreement for the loan will be signed
and recorded at the City.
•
Staff Memo
To: Economic Development Commission Members
From: Cathy Bennett, Economic Development Coordinator
Date: May 19, 1995
Agenda Item: Discuss Business Retention Calls
(5.e.)
I will give a report on the following retention calls in April\May
Print Wise (Division of Deluxe)
Medtronics
First Team Sports
SIMS Deltec
Community Credit
Tyson Trucking
41111
Next 5 businesses to meet in May\June
Hirschbach Motor Line
C.G. Hill & Sons
Onan Corporation
Bestline
The Pak Company
•
Minutes of the Economic Development Commission
• City of Mounds View
Ramsey County, Minnesota
Regular Meeting
May 25, 1995
City Hall UNAPPROVED
2401 Highway 10, Mounds View, MN 55112
1. Call to Order:
The meeting was called to order at 6:07 p.m. by Chairperson, Phil Seipp.
2. Roll Call:
Members present were as follows: Rosemary Goff, Mark Malone, Peg Mountin, Dan Nelson, Ron
Schmidt, Delane Welsch and Phil Seipp. In addition Economic Development Coordinator Cathy Bennett
was present. EDA Liasion, Sue Hankner was absent.
3. Approval Of Minutes:
Motion/Second: Mountin/Welsch moved approval of Minutes of March 23, 1995 Meeting
• 6 ayes 0 nays
Motion Carried
4. Special Business
There was no special business
5. EDC Business:
A. Consideration of Proposal for Development of Property Near Bridges Golf Facility.
Jim Winkles of BelAir Builders and Owners of Midwest IV, Larry Lindberg and Steve Peterson
gave an overview of their proposal to build a 33,000 sq.ft. building on Lot 3 of property directly
abutting the Bridges Practice Range. In addition, they are negotiating to purchase lot 2 for
future expansion. The building would be owned by Midwest IV, a home care pharmaceutical
company. Midwest IV would be the primary occupant of the building and they are working
with other technologically advanced companies to occupy the remaining square feet.
01\ p�yt�p( Cyt
t is proposed to call the building the Bridges Technology Center. The building wo�7fd be
`, office/showroom space and would consist of decorative block materials with glass entryway
along the entire front of the building. Owners of the property plan to keep a natural setting by
incorporating the vast oak trees into the landscaping.
Midwest IV will have an estimated 20 employees and expect to hire an addition 8-10 more
• position within 6 months.
Members of the commission strongly encourage Midwest to purchase the adjacent lot to allow
a Planned Unit Development. This allows more flexibility with the current city code.
t
{
D. Consideration of Business Loan For Dvnex Industries
• Coordinator Bennett explained that Dynex Industries approached the City for assistance in the
expansion of their current headquarters facility 4751 Mustang Circle. After discussions with
Dynex on structuring their financing, it was decided that they would fund the project through
the SBA 504 program. Through this program SBA will provide 40% of the project costs, the ;
bank will prov. /o of the project costs and Dynex will fund the remainder with equity. C� "-
Under A guidelines a City revolving loan can be considered as the equity portion of the
financing. Therefore, Dynex is requesting the maximum loan of $50,000 of which the City's
participation would be $25,000 at 2% interest for 10 years. North Star Bank will provide the
remaining balance at 9 and 5/8 percent for 5 years with an adjusted rate for the remaining 5
years.
Dynex has been approved by SBA and North Star Bank.
Motion/Second: Goff/Welsch moved to approve a business loan MVBL-1, in the amount of
$50,000, for exterior improvements of Dynex Industries.
6 ayes 0 nays
Motion Carried
E. Discussion of Retention Meetings
Coordinator Bennett gave a brief overview of the business retention calls in April and May and
discussed the targeted companies to meet in June. Each commission member gave coordinator
Bennett four dates in June when they would be available to participation in interviews.
• 6. Reports From Chair, Commissioners and Staff:
There were no reports
7. Adjournment
There being no further business before the Commission, this meeting of the Economic Development
Commission adjourned at 7:55 p.m.
Respectfully Submitted,
i..L.
Economic s e •pmentCoordinator
•
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