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Home My WebLink About03-17-2006 • j�arb„'s Cc MOUNDS VIEW • ECONOMIC DEVELOPMENT COMMISSION AGENDA March 17, 2006 7:30 A.M. NEW BRIGHTON CITY HALL* - CITY COUNCIL CHAMBERS *Note that the EDC is meeting at the New Brighton location due to city hall renovation in Mounds View. 1. CALL TO ORDER A.M. 2. ROLL CALL (Present = P, Absent = A) Belting ' Entsminger ✓ Field Helgemoe ✓ Jaker Johnson McDonald - Backman (Staff) Ericson (Staff) 3. APPROVE EDC MINUTES March 18, 2005 ,iu- • Motion: Second: Vote: 4. SPECIAL BUSINESS �q ' L �'�/� ✓ ��c , ate, Prtiea 41-”› 447)4 A. None7r5 , 5. EDC BUSINESS 2 A _ Q -/ u/ <<d , A. Discussion of Joint Meeting with City Council on March 20, 2006 and Special Cit 7� Council Meeting regarding TIF Policy on March 29, 2006 (See Jim Ericson's (it"'t`"�"` Report). /frr. /4 - ,74 A- Eli c 6. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON ; _ Noy. >� A. Report of Commissioners -No Materials Attached B. Reports of Staff .A � x'01 1. Update on Medtronic CRM Corporate Campus AZt • City Council approved Phase 2 on February 27, 2006. Www^ /mu, ' • Opus submitted Shell Building Plans for the Medtronic Central and South Buildings on March 8th. 1):04,1,-, pl,A • Medtronic contractor begins earthmoving work for Parking Ramp area on March 10th.*4\ ,42 ,Pt417 iKtfi ao /47 �pvr , ,n y+ 1V :L`Y 1' {`/��''/J A ]1/mu ' ; i4o , h07r "'�.. - ' � ,J � 111..` � 'r� T ( �JII\F <1�Ci� �j � l.. r ' t � , B. Reports of Staff (Continued) 0 • City contractor moved Clubhouse to Random Park on March 11th. • State Legislature approved Revised Legislation for Co. Road J Project on March 13th and Governor Pawlenty signed the bill on March 14th • City Council approved on March 13, 2006 of Feasibility Study and for undertaking Specs and Plans for extending utilities to Medtronic site. • Clear Channel begins removal of Billboard Signs on March 14th. • Building Permits prepared for the North Building and Parking Ramp (See permit fee statement). 2. Silverview Plaza Presentation by Jim Stimmler & Mike Gross, Kraus-Anderson Realty Co. 3. Update on SYSCO Minnesota Parking Expansion 4. Hidden Hollow South Residential Project—Dan Saplis,Coldwell Banker/Burnet 5. Signed Purchase Agreement between CHO Investments (Premium Stop Site) and M.V. EDA on March 13, 2006 6. Environmental Processing Center—Merlin Brisbin, Star Environmental • 7. Other 7. ADJOURN at ? A.M. Next Regularly Scheduled Meeting: April 21, 2006 TroutTommDev\Economic Development\EDC\Agendas\Agenda06\3-17-06.doe , ... Not Approved Minutes of the Economic Development Commission • City of Mounds View Ramsey County, Minnesota Regular Meeting March 17, 2006 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chairperson Torri Johnson called the meeting to order at 7:40 a.m. 2. ROLL CALL: Members Present: Greg Belting, Jackie Entsminger, Tom Field, Jerry Jaker, Torri Johnson Members Absent: Jason Helgemoe, Stan McDonald Staff Present: Economic Development Coordinator Aaron Backman Others Present: None • 3. APPROVAL OF EDC MINUTES: Motion/Second: No Commission action was taken. Field asked if the City could have someone besides Backman take the minutes for the EDC, as that would be a better use of Backman's time and lead to more timely minutes. Backman appreciated the suggestion. He noted that Park & Recreation Commission had asked for the same thing, however, had been turned down by the City Council. Currently only the City Council and the EDA have separate minute takers. 4. SPECIAL BUSINESS A. None. 5. EDC BUSINESS A. Discussion of Joint Meeting with City Council on March 20, 2006 and Special City Council Meeting regarding TIF Policy on March 29, 2006 (See Jim Ericson's Report). Backman described two upcoming meetings pertaining to the EDC. First, on March 20th the City Council will be meeting with various commissions as an opportunity for them to ask questions. Second, on March 29th there will be a one-on-one meeting between the City Council and the EDC to discuss economic development policy, etc. Commissioners are encouraged to attend both. Belting asked if the second meeting was a follow-up to the meetings held last fall. Backman replied affirmatively and that it is intended to clarify policy and goals. For the following EDC meeting Backman will send members the Commission's funding priorities that were prioritized last fall. Johnson indicated that she thinks it's a good idea that the joint meeting is being held. • 6. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Report of Commissioners -No Materials Attached EDC Minutes �pp �r March 17, 2006 Not Approved, Page 2 • B. Report of Staff: Backman asked to switch the agenda items to move up the Silverview Plaza Presentation by Jim Stimmler and Mike Gross from Kraus-Anderson Realty Co. since they were in the audience. 1. Silverview Plaza Presentation—Jim Stimmler & Mike Gross, Kraus-Anderson Realty Co.: Backman distributed a survey of residents that was conducted by Kraus-Anderson. He noted the top ten types of businesses desired were: restaurant, coffee shop/bakery,grocery store, dry cleaner, salon/barber, clothing store, ice cream parlor,dentist. Backman introduced Mr. Gross and Mr. Stimmler. Mr. Gross indicated that the survey letters (131)were sent to the townhomes located behind Silverview Plaza. He discussed current tenants in the strip mall. Laundry King is a new tenant. Silverview Chiropractic and Appearance Plus will be leaving. KA is negotiating a new lease with Calvin Academy, which was purchased by Nexus. Mr. Stimmler talked about the trends that the property is experiencing and potential future tenants. He sees the property moving away from straight retail to more service-type or destination businesses. Currently he is working with an anchor tenant for about 5,000 sq.ft. of space. It is a national chain that deals with tools and contractor supplies. KA has approached a number of restaurants with national chains, however, they do not find the site attractive due to access concerns. Non-chain restaurants are possible, but harder to find and often financially weaker. Field asked about recruiting more tenants that generate retail traffic for evenings and weekends. Stimmler indicated that the landlord would prefer to have retail businesses, however, they are finding that retail in not working well at this site. Therefore, KA is looking at alternative tenants to fill the vacancies. Backman commented that KA reps met with the City a couple weeks ago to discuss options—one is broadening the types of businesses eligible under the current zoning. Belting inquired if the landlord has • considered undertaking a building facelift. Mr. Stimmler indicated that it has been a topic of discussion and they have considered new signage. The challenge is funding additional investment in a center that is not performing the best. The types of improvements undertaken are impacted by the types of tenants. Given time constraints, Johnson asked Backman if he wished to reprioritize the remaining agenda items. Backman suggested reversing the order for the remaining five items. 2. Environmental Processing Center—Merlin Brisbin, Star Environmental: Backman provided some background. Over the past 30 years the Metropolitan Council, and more specifically the Metropolitan Council Environmental Services(MCES)division has operated up to twelve liquid waste disposal sites in the Twin Cities region. Permitted haulers discharge septage into the interceptor system without pretreatment. This has led to problems of sedimentation, corrosion, and reduced line capacity. The Met Council has had to clean out lines,a cost that is passed onto everyone. A recent study recommends that the private sector could develop an environmental processing facility that would separate solids from the liquid waste and one that would facilitate the closure of one or more liquid waste sites. MCES indicated that the new facility would need to be within 15 miles of existing waste sites. Backman commented that the Skyline Motel location is within the 15-mile radius of several MCES sites. One of the existing haulers, Merlin Brisbin, is interested in pursuing the processing facility in the City. He has hired an architectural/engineering firm (MFRA), lined up financing, and negotiated a purchase agreement with the existing owners of the Skyline. The Brisbins would invest about $5+ million into the project. On March 15, the principals went before the City's Planning Commission seeking a conditional use permit for the project. The Commission recommended approval of the permit. Backman distributed the Heidi Heller's report to the • PC, described the facility's processing steps, and indicated that he was not seeking action by the EDC at this time. Johnson cited this project as a good example of the private sector finding the right location for a project. Field indicated that he liked the design of the plant and redevelopment of this visible site. He was concerned about potential odors. Backman noted that there would be a Biofilter to remove odors. inutes Ma ch�17, 2006 Not Approve Page 3 3. Signed Purchase Agreement between CHO Investments(Premium Stop Site)and M.V. EDA on March 13, 2006: The City of Mounds View has a signed purchased agreement with the owners of the Premium Stop site at the corner of Co. Highway 10 and H2. The purchase price is $625,000 which would be paid out of available TIF dollars. Per the agreement, the seller is responsible for all costs associated with Phase I and 2 environmental assessments, and for removing the tanks. 4. Hidden Hollow South Residential Proiect—Dan Saplis, Coldwell Banker/Burnet: This residential project, involving six custom-built homes, continues to move forward. One change by the principal, Dan Saplis, is that the new street was widened and the diameter of the cul-de-sac increased to conform to City specifications. Saplis has received five quotes for grading the site and will go before the City Council for final plat approval in April. 5. Update on SYSCO Minnesota Parking Expansion: The City and SYSCO have now executed two documents—the Development Agreement and the Land Exchange Agreement. Construction is expected to begin this spring. 6. Update on Medtronic CRM Corporate Campus: Backman distributed a statement of permit fees for the North Building and the Parking Ramp at the Medtronic Site, and the site plan for the Medtronic campus. The City Council approved the acceleration of Phase 2 of the Medtronic campus on February 27, 2006. Thus, Phase 1 and 2 are now part of the initial phase of construction. Three office buildings will be constructed and a parking ramp with five levels. Opus submitted shell building plans for the North Building in February and plans for • the Central and South Buildings on March 8th. Earthmoving began shortly thereafter. The City contractor, Jay Brothers, moved the Clubhouse from the Medtronic site to Random Park on March 11th. Belting commented that he thought it was a great idea to reuse the Clubhouse for a park building. Backman noted that the Minnesota legislature approved the revised legislation appropriating money for County Road J Reconstruction—reference to the City was removed and references to Ramsey and Anoka Counties were added. This satisfied legal concerns. Clear Channel began removal of the first two billboard signs during mid-March. 7. ADJOURNMENT There being no further business before the Commission, Jelirrson adjourned the March 17th meeting of the Economic Development Commission at 8:58 a.m. Respectfully submitted, Aaron A. Backman Economic Development Coordinator • Not Approved Minutes of the Economic Development Commission City of Mounds View • Ramsey County, Minnesota Regular Meeting March 17, 2006 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chairperson Torn Johnson called the meeting to order at 7:40 a.m. 2. ROLL CALL: Members Present: Greg Belting, Jackie Entsminger, Tom Field, Jerry Jaker, Torn Johnson Members Absent: Jason Helgemoe, Stan McDonald Staff Present: Economic Development Coordinator Aaron Backman Others Present: None 3. APPROVAL OF EDC MINUTES: 0 Motion/Second: No Commission action was taken. Field asked if the City could have someone besides Backman take the minutes for the EDC, as that would be a better use of Backman's time and lead to more timely minutes. Backman appreciated the suggestion. He noted that Park& Recreation Commission had asked for the same thing, however, had been turned down by the City Council. Currently only the City Council and the EDA have separate minute takers. 4. SPECIAL BUSINESS A. None. 5. EDC BUSINESS A. Discussion of Joint Meeting with City Council on March 20, 2006 and Special City Council Meeting regarding TIF Policy on March 29, 2006 (See Jim Ericson's Report). Backman described two upcoming meetings pertaining to the EDC. First, on March 20th the City Council will be meeting with various commissions as an opportunity for them to ask questions. Second, on March 29th there will be a one-on-one meeting between the City Council and the EDC to discuss economic development policy, etc. Commissioners are encouraged to attend both. Belting asked if the second meeting was a follow-up to the meetings held last fall. Backman replied affirmatively and that it is intended to clarify policy and goals. For the following EDC meeting Backman will send members the Commission's funding priorities that were prioritized last fall. Johnson indicated that she thinks it's a good idea that the joint meeting is being held. 0 6. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Report of Commissioners -No Materials Attached 'EDC Minutes March 17, 2006 Not Approved Page 2 B. Report of Staff: • Backman asked to switch the agenda items to move up the Silverview Plaza Presentation by Jim Stimmler and Mike Gross from Kraus-Anderson Realty Co. since they were in the audience. 1. Silverview Plaza Presentation—Jim Stimmler & Mike Gross, Kraus-Anderson Realty Co.: Backman distributed a survey of residents that was conducted by Kraus-Anderson. He noted the top ten types of businesses desired were: restaurant, coffee shop/bakery, grocery store, dry cleaner, salon/barber, clothing store, ice cream parlor, dentist. Backman introduced Mr. Gross and Mr. Stimmler. Mr. Gross indicated that the survey letters (131) were sent to the townhomes located behind Silverview Plaza. He discussed current tenants in the strip mall. Laundry King is a new tenant. Silverview Chiropractic and Appearance Plus will be leaving. KA is negotiating a new lease with Calvin Academy, which was purchased by Nexus. Mr. Stimmler talked about the trends that the property is experiencing and potential future tenants. He sees the property moving away from straight retail to more service-type or destination businesses. Currently he is working with an anchor tenant for about 5,000 sq.ft. of space. It is a national chain that deals with tools and contractor supplies. KA has approached a number of restaurants with national chains, however, they do not find the site attractive due to access concerns. Non-chain restaurants are possible, but harder to find and often financially weaker. Field asked about recruiting more tenants that generate retail traffic for evenings and weekends. Stimmler indicated that the landlord would prefer to have retail businesses, however, they are finding that retail in not working well at this site. Therefore, KA is looking at alternative tenants to fill the vacancies. Backman commented that KA reps met with the City a couple weeks ago to discuss options—one is broadening the types of businesses eligible under the current zoning. Belting inquired if the landlord has considered undertaking a building facelift. Mr. Stimmler indicated that it has been a topic of • discussion and they have considered new signage. The challenge is funding additional investment in a center that is not performing the best. The types of improvements undertaken are impacted by the types of tenants. Given time constraints, Johnson asked Backman if he wished to reprioritize the remaining agenda items. Backman suggested reversing the order for the remaining five items. 2. Environmental Processing Center—Merlin Brisbin, Star Environmental: Backman provided some background. Over the past 30 years the Metropolitan Council, and more specifically the Metropolitan Council Environmental Services(MCES)division has operated up to twelve liquid waste disposal sites in the Twin Cities region. Permitted haulers discharge septage into the interceptor system without pretreatment. This has led to problems of sedimentation, corrosion, and reduced line capacity. The Met Council has had to clean out lines, a cost that is passed onto everyone. A recent study recommends that the private sector could develop an environmental processing facility that would separate solids from the liquid waste and one that would facilitate the closure of one or more liquid waste sites. MCES indicated that the new facility would need to be within 15 miles of existing waste sites. Backman commented that the Skyline Motel location is within the 15-mile radius of several MCES sites. One of the existing haulers, Merlin Brisbin, is interested in pursuing the processing facility in the City. He has hired an architectural/engineering firm (MFRA), lined up financing, and negotiated a purchase agreement with the existing owners of the Skyline. The Brisbins would invest about $5+ million into the project. On March 15, the principals went before the City's Planning Commission seeking a conditional use permit for the project. The Commission recommended approval of the permit. Backman distributed the Heidi Heller's report to the PC, described the facility's processing steps, and indicated that he was not seeking action by 110 the EDC at this time. Johnson cited this project as a good example of the private sector finding the right location for a project. Field indicated that he liked the design of the plant and redevelopment of this visible site. He was concerned about potential odors. Backman noted that there would be a Biofilter to remove odors. EDC Minutes March 17, 2006 Not Approved Page 3 • 3. Signed Purchase Aareement between CHO Investments(Premium Stop Site)and M.V. EDA on March 13, 2006: The City of Mounds View has a signed purchased agreement with the owners of the Premium Stop site at the corner of Co. Highway 10 and H2. The purchase price is $625,000 which would be paid out of available TIF dollars. Per the agreement, the seller is responsible for all costs associated with Phase I and 2 environmental assessments, and for removing the tanks. 4. Hidden Hollow South Residential Project—Dan Saplis, Coldwell Banker/Burnet: This residential project, involving six custom-built homes, continues to move forward. One change by the principal, Dan Saplis, is that the new street was widened and the diameter of the cul-de-sac increased to conform to City specifications. Saplis has received five quotes for grading the site and will go before the City Council for final plat approval in April. 5. Update on SYSCO Minnesota Parking Expansion: The City and SYSCO have now executed two documents—the Development Agreement and the Land Exchange Agreement. Construction is expected to begin this spring. 6. Update on Medtronic CRM Corporate Campus: Backman distributed a statement of permit fees for the North Building and the Parking Ramp at the Medtronic Site, and the site plan for the Medtronic campus. The City Council approved the acceleration of Phase 2 of the Medtronic campus on February 27, 2006. Thus, Phase 1 and 2 are now part of the initial phase of construction. Three office buildings will be constructed and a parking ramp with five levels. Opus submitted shell building plans for the North Building in February and plans for • the Central and South Buildings on March 81h. Earthmoving began shortly thereafter. The City contractor,Jay Brothers, moved the Clubhouse from the Medtronic site to Random Park on March 11th. Belting commented that he thought it was a great idea to reuse the Clubhouse for a park building. Backman noted that the Minnesota legislature approved the revised legislation appropriating money for County Road J Reconstruction—reference to the City was removed and references to Ramsey and Anoka Counties were added. This satisfied legal concerns. Clear Channel began removal of the first two billboard signs during mid-March. 7. ADJOURNMENT There being no further business before the Commission, Johnson adjourned the March 17th meeting of the Economic Development Commission at 8:58 a.m. Respectfully submitted, 12.44r2,- Aaron A. Backman Economic Development Coordinator 1110 om Not Approved Minutes of the Economic Development Commission • City of Mounds View Ramsey County, Minnesota Regular Meeting March 18, 2005 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chairperson Toni Johnson called the meeting to order at 7:39 a.m. 2. ROLL CALL: Members Present: Greg Belting, Jackie Entsminger, Tom Field, Jason Helgemoe, Toni Johnson Members Absent: Jerry Jaker, Stan McDonald Staff Present: Economic Development Coordinator Aaron Backman Others Present: None 3. APPROVAL OF EDC MINUTES: • Motion/Second: The December 10, 2004 minutes were not completed by this meeting. No Commission action was taken. 4. SPECIAL BUSINESS A. None. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner Reports: Entsminger noted that she had attended the steering committee meeting for the County Road 10 Corridor and the potential renaming of the City's main thoroughfare. Backman mentioned that there is now new carpet in the Mounds View Community Center. B. Report of Staff: 1. Update on status of Medtronic Corporate Office Campus/Bridges Redevelopment Project: Backman reviewed the meetings that have been held regarding the Bridges Redevelopment, including transportation, legislative meetings and hearings, and negotiating meetings with Medtronic and Clear Channel. On the morning of March 10m, City staff met with Commissioner Tony Bennett at Medtronic's Shoreview office regarding the transportation improvements needed for Medtronic. He is very supportive of road improvements to County Road J and the seeking of state appropriations to do so. Backman discussed the two primary pieces of legislation the City is seeking the special Tax Increment Financing (TIF) • legislation and the reverter clause legislation. City staff attended and testified at two hearings in the State House. The reverter clause bill passed out of the House Transportation Policy Committee on March 1st, and was heard (but not acted on) in the House Transportation Finance Committee on March 10th. One amendment that was proposed(but • EDC Minutes March 18, 2005 Not Approved Page 2 not adopted) in the first House Committee hearing, was that the City of Mounds View • contribute $1 million to the State Highway Trust Fund as part of the reverter clause legislation. The concern is that too large of a contribution to the state will stymie the deal. Backman was pulled out of the Bennett meeting to meet with Donn Hagmann from Medtronic. Hagmann indicated that Medtronic staff had discussed the reverter clause and the issue of a payment to the Trunk Highway Fund, and that Medtronic was willing to offer up to $1 million as a contribution to the Fund to make this deal happen. Backman communicated this offer to the City Council at its meeting on March 14th. He remains concerned that legislators could ask for more money to resolve the reverter clause issue. Overall there are two main transportation elements—first element entails improvements to County Road J and replacement of the Bridge; second element involves construction of a new Interchange for 35W and Lake Drive/Co. Road J. Funding for the first is being sought now, funding for the second could come five years later. Earlier this month the three cities reviewed design options for the second element and made recommendations to MnDOT, Backman distributed the latest version of the Medtronic Traffic Study. Negotiations with Medtronic have been going well regarding the terms and the Development Agreement. The challenge will be dealing with the signs. There have been four negotiating sessions with Clear Channel. Currently the City awaits a response to its latest counterproposal. 2. Laport Meadows Housing Development—Coldwell Banker/Skyline Builders(Minneapolis) & Rick Boschee Homes (Roseville): Backman distributed a map about this potential residential development. Primarily there are two developers that have shown continued interest in a housing project in Laport Meadows—Skyline Builders from Minneapolis and Rick Boschee Homes from Roseville. Both mentioned the Medtronic campus as a driver for their interest. Homeowners may or may not choose to sell their land to a developer. Field asked how the • builders were selected. Backman replied that the City was approached by the developers (not the other way around, and unlike other projects). Backman went before the City Council on March 14th to discuss the City undertaking a wetland delineation study in 2005. Regardless of whether a residential project happens, it would be beneficial to do the study. It is useful information for existing homeowners and the City would control the information. The successful developer will have to deal with wetlands, a mixed ownership pattern, and the need for a sound wall. The type of units will depend on the proposal. 3. Potential Sale& Redevelopment of Gas for Less Site (2525 Co. Hwy 10): The Gas for Less site is up for sale again, eight months after it last sold. The current owners are very motivated and have signed a purchase agreement. Backman revealed that the end user is Synder's. They have been working on the site for the past several months. What does the new location accomplish for them? The lease with Synder's in Moundsview Square expires this September. The company wants greater visibility on Co. Road 10 and seeks to own their own facility. Their architect has submitted building plans for a structure half the size of CVS or Walgreen's (6,000 sq. ft. vs. 12,000+ sq. ft.). Backman noted that they are retaining a store, not adding a store. 4. Woodale & Co. Road 10; Donut Connection, Oasis, etc.—Potential Redevelopment: Backman met with a developer regarding these redevelopment locations. The Woodale location could potentially be used for medical businesses,clinics, specialty grocery store,etc. Jim Ericson arrived at meeting. 6. EDC BUSINESS A. Discussion with Ken Henk, Director of Development and Construction, Paster Enterprises regarding Caribou Coffee Development and Potential Assistance. Backman introduced Ken 11 EDC Minutes March 18, 2005 Not Approved Page 3 Henk from Paster Enterprises. Backman presented correspondence regarding the Hardee's Restaurant building. The conversion to Caribou Coffee (western end of the building)represents a sizeable investment on Paster's part. Backman also distributed to the members building schematics showing the renovated building. Paster was able to get a settlement with Hardee's for$150,000 (Hardee's had a ground lease until 2011). Henk asked for financial assistance from the City as part of this project. Backman inquired about building valuations—the old value was estimated to be $50 a sq. ft., and the new value $130 a sq. ft. Henk indicated that from the 1/18/05 letter to the 2/25/06 project costs increased from $376,000 to $517,000. Entsminger asked about the higher costs. Henk indicated that while they would be able to save the slab, utilities, mechanical systems, curb and paving,the renovation costs were coming in higher. Field asked about the payback calculations. Henk responded saying it was based upon the difference in rent. Backman asked about other potential users of the building, and noted that in other projects the City has participated in site clearance activities or in stormwater management activities. Henk provided some cost estimates for demolition, excavation, landscaping. Ericson indicated that the City could contact RCWD about potential ponding changes and if there could be overflow to the road right-of-way. Backman asked about the financial gap needed. Henk indicated that the gap was at least$125,000. Backman will discuss the numbers with Field and other EDC members and come back to the next EDC meeting with more information. 7. ADJOURNMENT There being no further business before the Commission, Johnson adjourned the March 18th meeting of the Economic Development Commission at 9:03 a.m. Respectfully submitted, Oiten, , Aaron A. Backman Economic Development Coordinator S Not Approved Minutes of the Economic Development Commission • City of Mounds View Ramsey County, Minnesota Regular Meeting March 18, 2005 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: Chairperson Toni Johnson called the meeting to order at 7:39 a.m. 2. ROLL CALL: Members Present: Greg Belting, Jackie Entsminger, Tom Field, Jason Helgemoe, Toni Johnson Members Absent: Jerry Jaker, Stan McDonald Staff Present: Economic Development Coordinator Aaron Backman Others Present: None 3. APPROVAL OF EDC MINUTES: 411) Motion/Second: The December 10, 2004 minutes were not completed by this meeting. No Commission action was taken. 4. SPECIAL BUSINESS A. None. 5. REPORT OF COMMISSIONERS, STAFF AND EDA LIAISON A. Commissioner Reports: Entsminger noted that she had attended the steering committee meeting for the County Road 10 Corridor and the potential renaming of the City's main thoroughfare. Backman mentioned that there is now new carpet in the Mounds View Community Center. B. Report of Staff: 1. Update on status of Medtronic Corporate Office Campus/Bridges Redevelopment Project: Backman reviewed the meetings that have been held regarding the Bridges Redevelopment, including transportation, legislative meetings and hearings, and negotiating meetings with Medtronic and Clear Channel. On the morning of March lot , City staff met with Commissioner Tony Bennett at Medtronic's Shoreview office regarding the transportation improvements needed for Medtronic. He is very supportive of road improvements to County Road J and the seeking of state appropriations to do so. Backman discussed the two primary pieces of legislation the City is seeking—the special Tax Increment Financing (TIF) • legislation and the reverter clause legislation. City staff attended and testified at two hearings in the State House. The reverter clause bill passed out of the House Transportation Policy Committee on March 1st, and was heard (but not acted on) in the House Transportation Finance Committee on March 10th. One amendment that was proposed(but IN\ EDC Minutes March 18, 2005 Not Approved Page 2 • not adopted) in the first House Committee hearing, was that the City of Mounds View • contribute $1 million to the State Highway Trust Fund as part of the reverter clause legislation. The concern is that too large of a contribution to the state will stymie the deal. Backman was pulled out of the Bennett meeting to meet with Donn Hagmann from Medtronic. Hagmann indicated that Medtronic staff had discussed the reverter clause and the issue of a payment to the Trunk Highway Fund, and that Medtronic was willing to offer up to $1 million as a contribution to the Fund to make this deal happen. Backman communicated this offer to the City Council at its meeting on March 14th. He remains concerned that legislators could ask for more money to resolve the reverter clause issue. Overall there are two main transportation elements—first element entails improvements to County Road J and replacement of the Bridge; second element involves construction of a new Interchange for 35W and Lake Drive/Co. Road J. Funding for the first is being sought now, funding for the second could come five years later. Earlier this month the three cities reviewed design options for the second element and made recommendations to MnDOT. Backman distributed the latest version of the Medtronic Traffic Study. Negotiations with Medtronic have been going well regarding the terms and the Development Agreement. The challenge will be dealing with the signs. There have been four negotiating sessions with Clear Channel. Currently the City awaits a response to its latest counterproposal. 2. Laport Meadows Housing Development—Coldwell Banker/Skyline Builders(Minneapolis) & Rick Boschee Homes(Roseville): Backman distributed a map about this potential residential development. Primarily there are two developers that have shown continued interest in a housing project in Laport Meadows—Skyline Builders from Minneapolis and Rick Boschee Homes from Roseville. Both mentioned the Medtronic campus as a driver for their interest. Homeowners may or may not choose to sell their land to a developer. Field asked how the • builders were selected. Backman replied that the City was approached by the developers (not the other way around, and unlike other projects). Backman went before the City Council on March 14th to discuss the City undertaking a wetland delineation study in 2005. Regardless of whether a residential project happens, it would be beneficial to do the study. It is useful information for existing homeowners and the City would control the information. The successful developer will have to deal with wetlands, a mixed ownership pattern, and the need for a sound wall. The type of units will depend on the proposal. 3. Potential Sale & Redevelopment of Gas for Less Site (2525 Co. Hwy 10): The Gas for Less site is up for sale again, eight months after it last sold. The current owners are very motivated and have signed a purchase agreement. Backman revealed that the end user is Synder's. They have been working on the site for the past several months. What does the new location accomplish for them? The lease with Synder's in Moundsview Square expires this September. The company wants greater visibility on Co. Road 10 and seeks to own their own facility. Their architect has submitted building plans for a structure half the size of CVS or Walgreen's (6,000 sq. ft. vs. 12,000+ sq. ft.). Backman noted that they are retaining a store, not adding a store. 4. Woodale & Co. Road 10; Donut Connection, Oasis, etc.—Potential Redevelopment: Backman met with a developer regarding these redevelopment locations. The Woodale location could potentially be used for medical businesses,clinics, specialty grocery store,etc. Jim Ericson arrived at meeting. 0 6. EDC BUSINESS A. Discussion with Ken Henk, Director of Development and Construction, Paster Enterprises regarding Caribou Coffee Development and Potential Assistance. Backman introduced Ken EDC Minutes March 18, 2005 Not Approved, Page 3 • Henk from Paster Enterprises. Backman presented correspondence regarding the Hardee's Restaurant building. The conversion to Caribou Coffee(western end of the building)represents a sizeable investment on Paster's part. Backman also distributed to the members building schematics showing the renovated building. Paster was able to get a settlement with Hardee's for$150,000(Hardee's had a ground lease until 2011). Henk asked for financial assistance from the City as part of this project. Backman inquired about building valuations—the old value was estimated to be $50 a sq. ft., and the new value $130 a sq. ft. Henk indicated that from the 1/18/05 letter to the 2/25/06 project costs increased from $376,000 to $517,000. Entsminger asked about the higher costs. Henk indicated that while they would be able to save the slab, utilities, mechanical systems, curb and paving,the renovation costs were coming in higher. Field asked about the payback calculations. Henk responded saying it was based upon the difference in rent. Backman asked about other potential users of the building, and noted that in other projects the City has participated in site clearance activities or in stormwater management activities. Henk provided some cost estimates for demolition, excavation, landscaping. Ericson indicated that the City could contact RCWD about potential ponding changes and if there could be overflow to the road right-of-way. Backman asked about the financial gap needed. Henk indicated that the gap was at least$125,000. Backman will discuss the numbers with Field and other EDC members and come back to the next EDC meeting with more information. 7. ADJOURNMENT There being no further business before the Commission, Johnson adjourned the March 18th meeting of the Economic Development Commission at 9:03 a.m. 1111 Respectfully submitted, 4'arttn,Aaron A.A. Backman Economic Development Coordinator • ^a _ i .4, � :VE�OPTE1 a .4..; `. Lake Dr m' -ire Lexington A 3 - .. 1^ f, _ -- r ,. 1-0 g PRIMARY STUDY 'p . pr k . . , A RF A r A_.* ` j MEDTRONIC ,. County Rd d , " my Rd l County Rd. H a . 0 my Rd 10 .„;_- # ., TCAAP fi, slit`.- a► gip. r Z. +7i' i _ s gI NW 1 ' * ` _ r —___ - - QUADRANT -% _._.: ---*,-, -'— -----: ,4...F'-1 - ,"' ' ' - '-' . „..7 .-/,.....i. - ,L ' Lexington Ave , a} x f k � f • ;- 3 r k •. Data Sources: 2003. ..,.. I if i i'''''' - , --- ., FSA Photo I 4 = t - 4 New Brighton GIS N i ' +: 4 State fiwy 36 ,t, _ - 1 0.5 0 1 r I . _