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Home My WebLink About09-18-2009 CITY OF MOUNDS VIEW • ECONOMIC DEVELOPMENT COMMISSION MEETING AGENDA MOUNDS VIEW CITY HALL FRIDAY, SEPTEMBER 18, 2009 7:30 A.M. 1. CALL TO ORDER 2. ROLL CALL EDC Members: Chair Gary Meehlhause, Vice Chair Jennifer Wagner-Harkonen and Commissioners Greg Belting, Jackie Entsminger, Jason Helgemoe, Torri Johnson & Dan Larson City Staff: Community Development Director Ken Roberts & Economic Development Specialist Heidi Steinmetz 3. APPROVE SEPTEMBER 18, 2009 EDC AGENDA 4. APPROVE AUGUST 21, 2009 EDC MINUTES 5. SPECIAL BUSINESS • 6. EDC BUSINESS A. Review & Discuss Burger Time Concept for Former Premium Stop Site 7. REPORTS OF COMMISSIONERS 8. REPORTS OF STAFF A. Former Let's Get Graphic Building Available B. Recap of City Council Mini-Retreat C. City Council Denied Business Registration Program Ordinance on Sept. 14 D. New Businesses: Mounds View Family Dental, Consulting Firm, Right Fit Running E. EDA to Review City Tagline Ideas on October 12 9. NEXT REGULAR EDC MEETING Friday, October 16, 2009 at 7:30am 10. ADJOURNMENT • • Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting August 21, 2009 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Gary Meehlhause called the meeting to order at 7:30am. 2. ROLL CALL Members Present: Chair Gary Meehlhause, Vice Chair Jennifer Wagner-Harkonen (arrived at 7:37am), Commissioners Greg Belting, Jackie Entsminger, Jason Helgemoe (arrived at 7:33am), Torn Johnson & Dan Larson Staff Present: Economic Development Specialist Heidi Steinmetz • 3. APPROVAL OF AUGUST 21, 2009 AGENDA Motion/Second: Commissioner Johnson moved and Commissioner Belting seconded the approval of the August 21, 2009 EDC agenda. Motion Carried: 5 Ayes 0 Nays 4. APPROVAL OF JUNE 19, 2009 EDC MINUTES Motion/Second: Commissioner Johnson moved and Commissioner Entsminger seconded the approval of the June 19, 2009 EDC minutes. Motion Carried: 5 Ayes 0 Nays 5. SPECIAL BUSINESS Economic Development Specialist Heidi Steinmetz mentioned that the EDC's liaison from the Twin Cities North Chamber of Commerce (Tim Roche) was in attendance, along with George Winecki of Win Insurance Agency. 6. EDC BUSINESS There was no EDC business. S Draft EDC Minutes August 21,2009 Page 2 of 3 • 7. REPORTS OF COMMISSIONERS Commissioner Johnson said "I love our new streets". Commissioner Entsminger reminded everyone about Saturday's Festival in the Park. 8. REPORTS OF STAFF A. Proposed Business Registration Program Ordinance & Form Ms. Steinmetz summarized the background of this proposed program and reminded the EDC that they first reviewed this program idea in February 2009. She referenced the Business Registration Form and ordinance language that was included in today's EDC meeting packet. George Winiecki of Win Insurance Agency spoke to the EDC and explained why he does not support the proposed program. Tim Roche (Twin Cities North Chamber President) added that probably 10% of Mounds View businesses do not comply with the City's requests for information and those 10% are ruining it for the rest of the businesses. The EDC then reviewed their February recommendation to the EDA, which was that the program be voluntary but that the City could charge a penalty fee if businesses did not • provide the requested information. Now that the EDC had more details about the programthey decided it was necessary to make a new recommendation to the City,Council objecting to the proposed program. Motion/Second: Commissioner Johnson moved and Commissioner Belting seconded a recommendation to the City Council that the Council not move forward with the proposed Business Registration Program. Motion Carried: 7 Ayes 0 Nays Commissioner Belting stated that if the City Council chooses to move forward with the proposed program that home businesses should not be exempt from the program and that the City should not charge businesses a fee to register with the City. Chair Meehlhause added that the EDC does not agree with charging a fee. Commissioner Entsminger left the meeting at this time (8:25am). B. City Tagline Solicitation Ms. Steinmetz reminded the EDC and the audience watching this meeting at home that she is still accepting new City tagline ideas until September 18, 2009. She added that this deadline would allow the DECA students at Irondale High School time to submit ideas before the EDA reviews all of the ideas in October. Draft EDC Minutes August 21,2009 Page 3 of 3 C. Future Dental Office Ms. Steinmetz said that a new dental office would be moving into Mounds View City Center Suites, across the street from City Hall, in about a month. Commissioner Belting added that the owners realized that Mounds View needed a dental office after reading the results of Risdall Marketing Group's recent survey of Mounds View residents. He said that the new office will include one dentist and that the owners hope to hire a dental hygienist who lives in Mounds View. D. New Americlnn Owners Ms. Steinmetz announced that the hotel at The Mermaid (the Americlnn) has new owners as of last month. She added that the Halls will continue to ownthe rest of The Mermaid facility. E. Upcoming City Council Mini-Retreat—August 31, 2009 Ms. Steinmetz said that the Council will discuss goals for the City, including Economic Development goals, at this retreat. 9. UPCOMING EDC MEETING The next regular EDC meeting is scheduled for Friday, September 18, 2009 at 7:30am. • 10. ADJOURNMENT There being no further business before the Commission, Chair Meehlhause moved and Commissioner Belting seconded the adjournment of the meeting at 8:29am. Respectfully submitted, dAte4;061 Heidi Steinmetz Economic Development,Specialist • Item No: 6A • Meeting Date: September 18, 2009MOUNDff IEV Type of Business: EDC Administrator Review: City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Review & Discuss Burger Time Concept for Former Premium Stop Site Background The attached Finance & Commerce article states that fast food restaurant, Burger Time, will be aggressively seeking new site locations in the Metro area over the next four years. Shown below, there are currently four non-Metro Burger Time locations in Minnesota and six locations in North & South Dakota. Home Menu About Us Store Finder Feedback Employment �i +° . ;, 4,w;al-+�^ krrz Jks'" .' k af^ r a 411 OSIVA ' z ^z r ae � `A'^r ; ;a+� w More Good Food for Your Money Store Finder Minnesota North Dakota 1620 1st Avenue North Moorhead,MN 56560 1900 Main Avenue Fargo,ND 58103 (218)233-9641 (701)241-9572 410 West Division Waite Park,MN 56387 1320 East Main Avenue Bismarck,ND 58501 (320)654-0912 (701)222-2458 214 East Holmes Detroit Lakes,MN 56501 2651 Demers Avenue Grand Forks,ND 58201 (218)847-2974 (701)775-2776 601 Frontier Drive Fergus Falls,MN 56537 1520 South Broadway Minot,ND 58701 (218)739-6265 (701)839-4549 South Dakota 2300 West 12th Street Sioux Falls,SD 57104 (605)332-7732 200 South Lewis Avenue Sioux Falls,SD 57103 (605)332-1513 • September 18,2009 EDC Meeting Item 6A—Burger Time Concept Page 2 of 3 • Burger Time sites are typically 3/acre with a 620-square foot building. There is no indoor seating and sometimes two drive-throughs. Below are images of existing Burger Time buildings. Discussion City staff recently contacted Josh Huempfner, the local commercial real estate broker who is assisting Burger Time in their site selection process. Mr. Huempfner thinks that the former Premium Stop site located at 2390 County Road 10 would be a "great site for Burger Time". Below are renderings of what a new Burger Time might look like. • •, Naw 11474 '•„:4• • Potential Site in Southern Suburbs Potential Site in Southern Suburbs—Aerial View i « Vit' Lar dew 6. it 0 • * Potential Site in Northern Suburbs Potential Site in Northern Suburbs—Aerial View September 18,2009 EDC Meeting Item 6A—Burger Time Concept Page 3 of 3 • Mr. Huempfner suggested that Mounds View City officials review and discuss the Burger Time concept. Input from the EDC and Planning Commission will provide value to the City Council when they discuss this concept at their October 5, 2009 Work Session. If the EDA is receptive to Burger Time's concept, Burger Time may submit to the EDA an offer to purchase the former Premium Stop site. Currently, the EDA does not have an asking price for the property. City staff asked the EDA on May 12, 2008 to establish an asking price for the property because most commercial real estate brokers and buyers are more receptive to discussing a site when the property owner has an asking price. At that time, the EDA preferred not to establish an asking price and wanted to wait to sell the property when the real estate market improved. Last week, Burger Time's president/corporate real estate person inquired of the EDA's asking price for the former Premium Stop site. Based on the attached May 12, 2008 EDA minutes, staff responded that the EDA would probably begin negotiations using Ramsey County's estimated market value as a starting point, which is $446,000. Mr. Huempfner stated in an e-mail last week that Burger Time usually pays $250,000 for their land; however, land prices are different in cities outside of the Metro area. Recommendation Staff recommends that the EDC provide input to the EDA/City Council about the Burger • Time concept as it specifically relates to the former Premium Stop site located at 2390 County Road 10. Staff also recommends that the EDC provide input to the EDA/City Council about an asking price for the property. Staff will forward the EDC's input to the City Council for discussion at their October 5, 2009 Work Session. Respectfully submitted, Heidi Steinmetz, Economic Development Specialist Attachments 1. "Burger Time Enters the Local Burger Wars", Finance & Commerce, September 2, 2009 2. May 12, 2008 EDA Minutes • Finance and Commerce -Burger Time enters the local burger wars Page 1 of 1 • FINANCEANDCOMMERCE Business News September 2, 2009 Burger Time enters the local burger wars by Scott Carlson Staff Writer Hold the pickles. In fact,hold everything:Yet another burger chain is coming to the • Minneapolis-St. Paul metro region. Burger Time,a quick-serve,primarily drive-through burger joint,is bringing its restaurant concept to the Twin Cities,with a first store slated to open this fall in Burnsville—with plans for many more to follow. "We plan to open 40 stores over the next 48 months,"said Dan Shrader,CEO of Food Shacks Inc.,the corporate parent of Burger Time."We are looking to do both build-to-suit,free-standing buildings and direct-lease deals." Food Shacks, in partnership with Minneapolis-based Upland Real Estate Group,expects its planned Twin Cities rollout to cost about $32 million. Founded 23 years ago in Fargo, N.D., Burger Time currently operates four stores in outstate Minnesota and six others in the two Dakotas.Burger Time is expected in November to open a store in the food court at the Burnsville Center shopping mall. Burger Time is the latest among several new chains and local burger eateries to enter the Twin Cities market in about the last year. Other players include Smashburger,Sonic and Five Guys. Although the burger bonanza seems counterintuitive given the national economic recession, industry observers asserted that the trend makes perfect sense because consumers are looking to stretch their dining dollars and the burger restaurants are giving them that option. "The burger segment is one of the few segments that continues to enjoy increasing market share,"said Kevin Moll,CEO of Denver- • based National Restaurant Consultants Inc. He added that Burger Time's menu is"attractively priced and with short cook times,(so)it would appear as though the average location should enjoy some outstanding sales." Burgers on a budget Burger Time touts itself as value-conscience purveyor of big beef: Its smallest burgers are a third of a pound,and the french fries and drinks only come in one size:big. Burger Time's website(www.itsburgertime.com)lists its one-third pound burger combo meal at $4.69. In a press statement,Upland and Food Shacks said the typical Burger Time store is a 620-square-foot building with a double drive- through,one on each side of the building,and no indoor seating. "This allows us to get the best product possible to our customers in the shortest amount of time,"said Denis Brunk,Food Shacks president and head of real estate.The burgers are cooked in one minute and thirty seconds using double-sided broilers. Due to the small footprint and focus on efficiency, Burger Time is able to price its food lower than other competitors,company officials contended. Upland Real Estate said it is working with numerous landowners and shopping center owners to find the right sites for Burger Time stores. "The smaller size of their buildings allows them to be placed on smaller sites that owners have had challenges finding uses for in the past,"said Keith Sturm,CEO of Upland Real Estate Group. Moll noted that Colorado-based Good Times Hamburgers has a concept similar to that of Burger Time,with a small footprint,drive- through and lower overhead."It's a proven format that works,"he said. Still,Moll added,"to grow by another 40 stores in four years in such a tight market is quite a commitment.To successfully maximize their brand in Minnesota,they'll want to fully utilize manufacturer deviations,the opportunities to bulk-buy product,and centralize their training for maximum efficiency." Copyright 2009 Finance and Commerce All Rights Reserved U.S.Trust Building Suite 100,Minneapolis,MN 55402(612)333-4244 • http://www.finance-commerce.com/print.cfm?recID=13305 9/14/2009 • 1 PROCEEDINGS OF THE MOUNDS VIEW EDA 2 CITY OF MOUNDS VIEW 3 RAMSEY COUNTY,MINNESOTA p OVOID4 P R 5 Regular Meeting 6 May 12,2008 7 Mounds View City Hall 8 2401 Highway 10,Mounds View,MN 55112 9 6:32 P.M. 10 11 12 1. CALL MEETING TO ORDER 13 14 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Hull, 15 Commissioner Flaherty, and Commissioner Mueller, and Acting Executive Director 16 Crane. 17 18 NOT PRESENT: None. 19 20 3. APPROVAL OF AGENDA 21 22 MOTION/SECOND: Mueller/Flaherty. To Approve the Monday, May 12, 2008 Agenda as 23 Presented. 24 25 Ayes - 5 Nays—0 Motion carried. 26 27 4. PUBLIC INPUT 28 29 None. 30 31 5. APPROVAL OF MINUTES 32 33 A. February 11,2008,EDA Minutes 34 35 Commissioner Mueller under reports, she attended with Economic Development Specialist 36 Steinmetz. 37 38 MOTION/SECOND: Mueller/Hull. To Approve the February 11, 2008 EDA Minutes as 39 Amended. 40 41 Ayes—5 Nays —0 Motion carried. 42 43 B. March 10,2008 EDA Minutes 44 • 45 Commissioner Flaherty,Page 3, Line 98 should be Commissioner Flaherty. • Mounds View EDA May 12,2008 Regular Meeting Page 2 46 47 Mayor Marty, Page 1, Item 3, check if the Agenda was amended. 48 49 MOTION/SECOND: Mueller/Marty. To Approve the March 10, 2008, EDA Minutes as 50 Amended. 51 52 Ayes—5 Nays -0 Motion carried. 53 54 6. CONSENT AGENDA 55 56 None. 57 58 7. EDA BUSINESS 59 60 A. Discuss Marketing Preferences for EDA-Owned Property Located at 2390 61 County Road 10. 62 63 Economic Development Specialist Steinmetz asked the EDA how aggressive Staff should be at 64 marketing 2390 County Road 10. The reason the question is asked, is because the agreement ei 65 with Master Development will be expiring and that leaves Staff to market the property. 66 67 Economic Development Specialist Steinmetz reviewed potential ways to market the property. 68 69 Commissioner Flaherty said he does not want to spend money for public relations but does want 70 to market this property aggressively. He then said that when the property was purchased in 2006, 71 Staff informed the EDA that the City would be made whole. The City should not buy property to 72 take a loss and he would prefer to leave the property as green space, if the City cannot be made 73 whole,until the market turns around. 74 75 Commissioner Flaherty said that he wants to market the property and get the value out of the 76 property otherwise he wants to sit on it. 77 78 President Marty indicated that he was under the impression that the City would be made whole 79 eventually, by putting something new on the site that will bring in taxes. 80 81 Economic Development Specialist Steinmetz indicted that the acquisition price was $625,000 82 and that is what the EDA paid. The current Ramsey County 2008 estimated market value is 83 $446,000. 84 85 Commissioner Mueller said that she thinks that there are people who travel down Highway 10 86 that would see that sign and the sign could bring in inquiries. She then recommended taking out 87 the acreage size and just put the telephone numbers for contact information. • Mounds View EDA May 12,2008 Regular Meeting Page 3 88 89 Commissioner Hull would like to hold off and see how it goes. He then said that he would like 90 to bundle some of these properties together. 91 92 Vice President Stigney said that this is the wrong time to sell property if you do not have to. He 93 then said that he does not think that the sign will buy anything other than inquiries and the EDA 94 is discussing that this is not the time to sell in this market. 95 96 President Marty said that he likes Commissioner Mueller's approach to get a sign on the 97 property. He then said that there are 20,000 to 25,000 cars passing through there each day and 98 that may generate a lead that would want to bundle some parcels together for redevelopment. 99 100 President Marty said that there are two locations (examples) in the staff report that sold for about 101 the assessed price and two other locations were sold for considerably lower amounts. He would 102 like the property look up information to be registered somewhere that this property has 103 redevelopment potential. President Marty asked whether this property is on metromsp.org. 104 Economic Development Specialist Steinmetz indicated that the property is already on 105 metromsp.org. 106 el 107 President Marty indicated that he would like to hold off until something comes together for the 108 whole area but be open to a good offer in the meantime that would fit the City's vision. He then 109 said that he feels that the sign should be a minimal investment for the passive marketing. 110 111 Commissioner Flaherty said that he did not look at this as the whole area but approved the 112 purchase to remove a blighted property from the City. The prices that were laid out are so far 113 from what was spent that he would be willing to market the property, but he is not willing to lose 114 money on the deal. 115 116 President Marty indicated that he is not willing to settle for anything less than the assessed value. 117 118 Vice President Stigney said that right now values are down and he has no intention of selling for 119 the present value unless it would be a business that would increase the tax base immediately, and 120 that is not likely to happen. He further said that he wants the EDA and the City to be made 121 whole on the purchase price. 122 123 Economic Development Specialist Steinmetz indicated that Staff received an inquiry on the sales 124 price for the property. The interested party does not want to go public until the Agreement with 125 Master Development is expired, which is this Wednesday. She then said that it is a local 126 business that wants to expand. Staff did let the interested party know that the price is negotiable 127 but that was not good enough as they want a ballpark for what the City is interested in, or they 128 will come back with an offer based on comparable sales. 129 Mounds View EDA May 12,2008 Regular Meeting Page 4 130 President Marty indicated that he would not entertain an offer of anything less than the assessed 131 value of$8.00 square foot. 132 133 Commissioner Hull said he would like to wait until the market turns around. 134 135 Vice President Stigney said that he would not wholesale the land and this is not the time to sell. 136 He then said that he would not agree to market the property at this value. 137 138 Commissioner Flaherty agreed with Hull and Stigney that this is not the time to sell. The City 139 has an investment in the property and he is looking at the figure that the City has paid for the 140 property and he is not interested in selling the property for a loss. 141 142 There was consensus not to take any action at this time. 143 144 Commissioner Mueller said she would like to see the sign installed at the site. 145 146 Vice president Stigney said he sees no point to the sign because those in the market are in the 147 market to purchase at low prices. 148 149 Economic Development Specialist Steinmetz indicated that staff received two quotes for signs 150 one was $250.00 without installation and the other was for$389.00 including installation. 151 152 Commissioner Flaherty said he could compromise on the sign. 153 154 President Marty asked Staff to bring back the quotes and the proofs at the next EDA meeting. 155 156 8. REPORTS 157 158 A. Expiration of Preliminary Development Agreement with Master 159 Development 160 161 Economic Development Specialist Steinmetz explained that the EDA entered into an Agreement 162 with Master Development on November 13, 2007, which expired in six months. Master 163 Development has not requested an extension. 164 165 9. NEXT EDA MEETING: Tuesday,May 27,2008 at 6:30 p.m. 166 167 10. ADJOURNMENT 168 169 President Marty adjourned the meeting at 7:17 p.m. 170 171 Respectfully submitted, SMounds View EDA May 12,2008 Regular Meeting Page 5 172 Recorded and transcribed by: 173 Joan Lenzmeier, Recording Clerk. TimeSaver Off Site Secretarial, Inc. 174