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HomeMy WebLinkAbout05-19-2017Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting May 19, 2017 City of Mounds View, Council Chambers 2401 County Road 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Jim Freichels called the meeting to order at approximately 7:30 a.m. 2. ROLL CALL Members Present: Chair, Jim Freichels, Commissioners, Jason Helgemoe, Gary Stevenson, Jessica Rieland, Dennis Farmer, & Teresa Muckala Members Absent: Vice Chair, Dan Larson Staff Present: Business Development Coordinator, Brian Beeman Meeting Attendees: Gary Meehlhause 3. APPROVAL OF MAY 19, 2017, AGENDA Motion/Second: Commissioner Helgemoe moved and Commissioner Stevenson seconded the approval of the May 19, 2017 EDC agenda. Motion Carried: 6 Ayes, 0 Nays 4. APPROVAL OF FEBRUARY 17, 2017, EDC MINUTES Motion/Second: Commissioner Stevenson moved and Commissioner Rieland seconded the approval of the February 17, 2017 EDC minutes, as presented. Motion Carried: 6 Ayes, 0 Nays 5. EDC BUSINESS N/A 6. REPORTS OF STAFF Crossroad Pointe Redevelopment Project Business Development Coordinator, Brian Beeman provided the Commission with an update on the Crossroad Pointe redevelopment site stating that on March 13, 2017 the EDA heard a recommendation from the EDC and generally agreed that they would consider some affordability if the subsidy requires it but would be more receptive to an all market rate development. They are also open to a Senior Housing development of EDC Minutes May 19, 2017 Page 2 of 5 some type but will make a determination when those type of projects are brought forward. Beeman informed the Commission that he has met with four developers recently all interested in the Crossroad Pointe site. The first developer who presented at the May 1, 2017 City Council work session presented an affordable independent living senior housing project. Two more developers will be presenting at the Council’s June 5 work session. Both of the developers will be presenting an all market rate mixed use development while another developer may be presenting an all market rate senior living project. Staff has been marketing pretty strong directly to developers which has helped in attracting qualified developers. Commissioner Teresa Muckala asked what the difference is between market and affordable rates. Beeman explained that market rate is what people are willing to pay in a certain geographic area where no subsidy is required or being used and is mainly based off of demand. These rates are sometimes determined from housing market studies. While affordable is a subsidized project based off of the AMI Average Median Income for a specific geographic location as determined by HUD and other agencies. Muckala asked if the June 5th City Council meeting is open to the public. Beeman said most of the City Council meetings are public and anyone is welcome to attend. Commissioner Gary Stevenson asked what the difference is between Affordable and Workforce housing. Beeman said the words affordable and workforce housing are used interchangeably and essentially mean the same thing. When section 8 housing was popular the projects were called affordable. Calling the newer affordable housing projects workforce housing is more politically correct and with the project proposed in Mounds View Section 42 Tax Credits are being sought and not section 8 which would require a voucher. The section 42 housing has no voucher program and tenants pay just as if it was a market rate development only at a lower rate that is subsidized through the tax credits. The typical salary range for the section 42 developments may be similar to a nurse or dental assistant. The rents are lower but to some, the rents are still high. This is another reason why this type of housing is called workforce housing. Ideally, if the development is done right anyone driving by shouldn’t be able to tell the difference between a market rate or workforce housing project. Business Retention & Expansion Visit (BR&E) Updates Next Beeman updated the Commission on the business retention and expansion efforts. Beeman informed the Commission that he has cooperated with Greater MSP who is a nine county regional economic development organization to put together a comprehensive BR&E report for the City of Mounds View. Beeman input data from any formal survey from his many business visits. The data was converted to reveal local trends. Beeman presented the detailed report to the Commission. Some of the main points are the skilled workforce gap created by high schools eliminating shop classes, a higher number of business who are leasing space versus owning their own building, and a general sense that the City has good infrastructure and is supportive of businesses. Commissioner Muckala asked if companies had multiple inputs or only one. Beeman said each company received one input. Commissioner Dennis Farmer stated that there EDC Minutes May 19, 2017 Page 3 of 5 were quite a few companies classified as headquartered in Mounds View. Beeman clarified that the term headquarters is defined broadly and this definition includes businesses that may only have one office but started in Mounds View and doesn’t necessarily mean a large office complex. A better way to describe it is the home office. Muckala asked where the technical schools are located for students to get proper training. Beeman mentioned Anoka Technical College, Dunwoody, others mentioned Century, Alexandria Technical College, North Metro, etc. Of those businesses surveyed, there are 6291 fulltime equivalent employees translating to 90 employees on average per business. I-35 is key for many Mounds View companies in distributing products. The Mounds View School District is also a main attraction for employment opportunities and living conditions for employees. Muckala asked when new surveys will be given to the business owners. Beeman said the average is to revisit about every three years. This is when we start seeing some turnover in CEO’s and other key positions. Some businesses don’t want to be bothered and some require several months’ notice to schedule visits. Most of the 140 businesses have been visited. Rice Creek Commons Beeman informed the Commission that the over under pass along I-35W is nearing completion and the thumb road and other infrastructure is expected to be substantially complete by the end of 2017. According to the Master Developer, a few housing starts might be possible if the development is completed on-time or ahead of schedule. Ramsey County Commissioner Blake Huffman made a presentation at the March 27 City Council meeting in order to provide an update on the project which was distributed to Commissioners about a month ago. They are looking at attracting some anchor grocery stores, about 40 acres in light industrial and 4100 new jobs and housing units. Farmer asked if any businesses adjacent to the project had any comments on the site and access to the site. Beeman said he initially received questions about the roundabouts and how they would be able to get their trucks through but new innovations in engineering design has corrected this issue and those concerns have dissipated. Generally, the business are supportive of the project, however they are ready for it to be completed. Website Beeman reported that staff has met several times to review the details for the new City website. The website task force is on their second round of design revisions and has one more round of feedback before finalizing the design phase. The next phase is the staff training and launch. When completed, the website will consist of a responsive display meaning the screen will automatically resize to any devise for ease of use. EDC Minutes May 19, 2017 Page 4 of 5 North Metro Business Council The last North Metro Business Council meeting was held at the Mermaid Event Center March 8 with the theme of community policing and engagement. Mounds View’s Police Chief Nate Harder and two Ramsey County Deputies presented and answered several good questions especially as it related to business security and the upcoming NFL Super bowl events. Commissioner Helgemoe said the topic for June is still being considered. He had called the State Demographers office and they are all booked for 2017. Commissioner Farmer said he may have some ideas and would pass along some information after the meeting. Helgemoe said there is also a new Twin Cities North Chamber Manager. Beeman said he could pass along some information on possible presenters to address the workforce housing issues if needed. MWF Developers Beeman said MWF properties is proposing a 60 unit workforce housing project on the west side of town and the City is working with them to purchase two tax forfeiture properties. The developers will be asking for a Housing TIF and the preliminary TIF run is showing around $560,000 in increment for a 15 year term. This is not a hard number as many variables can change with the sources and uses, construction material costs, etc. In June we will find out if they have been awarded their tax credits. The developers are currently working with Ramsey County on access from Mounds View Boulevard but the County staff is indicating that they access from Mounds View Boulevard may have to be denied and instead reconfigure access from Groveland Road. The developer would prefer access off of Mounds View Boulevard. Other Upcoming Events/Reports Beeman informed the Commission that he met with a brewery and also a tap room business that would like to locate to Mounds View. Both businesses are in the fundraising stage and working through the large amount of paperwork. Carmike Theater was bought out by AMC and the Federal Government decided that AMC was a monopoly and needed to divest several locations. Therefore, New Vision Entertainment was created to own and operate the Mounds View site. AMC will be providing training to New Vision Entertainment until they are ready to take over. It is not expected that any employees would need to be terminated. If this were the case, then the local manager would be the likely person to be relocated. 7. REPORTS OF COMMISSIONERS Commissioner Helgemoe mentioned that he was at a recent meeting with MNDOT and they had indicated a new MNPASS lane was being discussed and construction could start as soon as this fall or next year depending on the funding. MNDOT is watching the legislature to determine if the project will be funded in this budget cycle. Helgemoe also mentioned that there is a new Twin Cities North Chamber of Commerce President and to try to get out and meet him if given the chance. EDC Minutes May 19, 2017 Page 5 of 5 Chair Freichels mentioned that Verizon is doing testing on their south cell tower. Construction has been completed but a live date has not been determined. 9. NEXT REGULAR EDC MEETING Chair Freichels reminded everyone that the next EDC meeting will be held June 16, 2017 at 7:30 a.m. if needed. Freichels informed the new members that the EDC may not meet throughout the summer if there are not enough agenda items due to people going on vacation etc. Commissioner Stevenson said he would not be available for the June meeting. Beeman and Freichels will decide and let the rest of the Commissioners know. Commissioner Rieland wasn’t sure if she would be available for the June meeting. Beeman informed the Commission that the Festival in the Park is scheduled for August 19. The City is also working on a redesign of the City Newsletter and it will be smaller due to the YMCA having their own advertisement for activities and the City wishing to be more efficient in the costs to design, print, and mail. In the coming months residents may be seeing a new look for the Mounds View Matters. 10. ADJOURN There being no further business, Chair Freichels adjourned the May 19, 2017, meeting at approximately 8:25 a.m. Respectfully submitted, _______________________________ Brian Beeman Business Development Coordinator