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HomeMy WebLinkAbout11-17-2017Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting November 17, 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, Vice Chair, Dan Larson, Jason Helgemoe, Gary Stevenson, Dennis Farmer, & Teresa Muckala Members Absent: Jessica Rieland Staff Present: Business Development Coordinator, Brian Beeman Meeting Attendees: Council Member Gary Meehlhause, & Resident Ken Breske 3. APPROVAL OF NOVEMBER 17, 2017, AGENDA Motion/Second: Commissioner Helgemoe moved and Commissioner Stevenson seconded the approval of the November 17, 2017 EDC agenda. Motion Carried: 6 Ayes, 0 Nays 4. APPROVAL OF MAY 19 , 2017, EDC MINUTES Motion/Second: Commissioner Helgemoe moved and Commissioner Stevenson seconded the approval of the May 19, 2017 EDC minutes, as presented. Motion Carried: 6 Ayes, 0 Nays 5. EDC BUSINESS Consider Appointment of Two EDC Members to Comprehensive Plan Task Force Business Development Coordinator Brian Beeman provided background comments on the Comprehensive Plan Task Force stating the time commitments and expectations. Chair Freichels asked the Commission if anyone was interested. Commissioner Teresa Muckala and Dennis Farmer stated that they were interested. Commissioner Stevenson stated that he would serve in an advisory capacity since he has been involved with the Comprehensive Plan in past years and he is currently on the Planning Commission. Motion/Second: Commissioner Larson moved and Commissioner Helgemoe seconded approving both Muckala and Farmer to the Comprehensive Plan Task Force. EDC Minutes November 17, 2017 Page 2 of 6 Motion Carried: 6 Ayes, 0 Nays Consider Recommending Commissioner Appointments to the EDC Chair Freichels informed the Commission that two EDC applications were received. Commissioner Dennis Farmer is reapplying to the Resident Representative opening and Kenneth Breske is applying to the Business Representative opening. Chair Freichels asked Mr. Breske to stand at the lectern to introduce himself. Mr. Breske informed the Commission that he has been a resident since 1976. He has a business in Blaine across the street from Mounds View and he has been in the distribution industry for several years. He is interested in helping businesses to be successful in Mounds View. He was on the MV Planning Commission in the 1980’s and understands the commitment. Commissioner Muckala asked if Mr. Breske is involved in any other activities in the community. Mr. Breske said he is involved in St. John’s Catholic Church in New Brighton. Chair Freichels thanked Mr. Breske for putting in his application and asked the Commission to provide a motion. Motion/Second: Commissioner Stevenson moved and Commissioner Muckala seconded accepting the applications of both applicants and recommending to the EDA to approve the appointments. Motion Carried: 6 Ayes, 0 Nays Coordinator Beeman also informed the Commission that there is one opening on the Planning Commission and if any EDC Commissioner is interested, they should see Beeman after the EDC meeting. Chair Freichels asked if the person had to be a resident. Beeman stated that they did. Stevenson stated that he is the Chair of the Planning Commission and if anyone has any questions they should talk to him. 6. REPORTS OF STAFF Crossroad Pointe Redevelopment Project Coordinator, Beeman provided the Commission with an update on the Crossroad Pointe redevelopment site stating that he had presented the City Council with three developers and the Council has decided to continue working with INH Properties of Waite Park. The developer will be constructing 120-160 units of market rate apartments in a horizontal mixed-use development with a stand-alone building separate from the apartments which will be used as a destination retail concept. In this case, the developers are proposing an indoor-shooting range that would be membership driven as well as certain hours that would be open to the public. The developers are working with the Police Department to provide space for a training simulator that was formerly owned by the FBI. They will work with law enforcement and military in providing discounts and serving as a County-wide law enforcement training center. The developers felt that a destination retail concept is necessary since Ramsey County has denied access to the site from Mounds View Boulevard. The development EDC Minutes November 17, 2017 Page 3 of 6 was supposed to have some units of traditional retail, however the developers are having a hard time getting those retailers interested due to the lack of access off of Mounds View Boulevard. Beeman informed the EDC that a predevelopment agreement has been provided to the City Attorney for review. A predevelopment agreement is a document that allows the developer to have legal access to the site in order to do soil borings and other due diligence like negotiating the land price, etc. for one year. This ensures the developers that the City won’t sell the land to another developer during the period of the agreement. Commissioner Muckala mentioned that she had attended the public open house for INH Properties and had also toured a competing gun range and talked to the owners to learn more about this type of project. Muckala found that the sound was similar to taping fingers on a desk and when she walked across the street to the residential side she was not able to hear any ambient noise. Commissioner Freichels asked about the issue surrounding Ramsey County denying access to the development from Mounds View Boulevard. Beeman responded by informing the Commission that Mounds View Boulevard is a County road and therefore they control the access from that road. The County is essentially denying access all along Mounds View Boulevard for any access that is less than 660 feet from the main intersection. This is the County’s policy and although there are instances where the County has not followed this policy, the County is choosing to adhere to their policy for Mounds View Boulevard. Beeman informed the Commission that the result of having no access from Mounds View Boulevard is that it is causing difficulty for the current developers to attract any traditional retail. The same issue will exist for the entire Mounds View Boulevard corridor. This means that it will be very difficult to attract retail all along the corridor and forces the developers and the City to focus on more residential developments and destination type developments. The Council liked the idea of an all market rate project with destination retail in a mixed-use product partly because a mixed-use development has been the vision for the site and partly because INH Properties is not asking for any public subsidies. Although, they have indicated that they may ask for a Housing TIF. The senior living developer was asking for a Housing TIF, a land write-down, a waiver of City fees, and other types of public subsidies. The Council felt that this developer, although a good developer, was asking for too many subsidies. The third developer was a mixed-use development and would also be asking for public subsidies. This is why INH Properties is a more attractive fit. Commissioner Freichels asked if there were other options for access to the site. Beeman said the developers are looking at the possibility of access from County Road H2 and also from Edgewood Drive. The access issue is still being considered by INH Properties and their architect. EDC Minutes November 17, 2017 Page 4 of 6 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 completed a BR&E visit with Nlikanth, a neighborhood convenience store. They are from Florida and they are applying for a liquor license. Rice Creek Commons Beeman informed the Commission that the County Road I project is nearing completion and is expected to be completed by the end of the year. Because of the well monitoring the entire Rice Creek Commons project has been delayed by one year giving the City of Mounds View a short window of opportunity to get Crossroad Pointe developed. Website Beeman reported that staff had expected to launch the new website earlier in 2017 but the website company has experienced several employees leaving their organization and they have spent much time training new employees. Mounds View staff has worked with nearly 26 different website employees and three project managers. In fact, the original project manager who sold the project to the City is no longer with the company. The website company apologized and they are now on track again and will be providing training to City staff soon. The new website could be launched in December or at the beginning of 2018. Commissioner Muckala asked about the tree removal happening along Silver Lake Road. Council Member Meehlhause who was in the audience responded by informing the Commission that this is a County project where they are trying to clear the ditch so water flows more easily in an effort to reduce the amount of water to the park. North Metro Business Council The last North Metro Business Council meeting was held at the Mermaid Event Center September 13 where the President of the National Retailer’s Association presented and several small businesses from the area were present. Commissioner Helgemoe said he is working with the Chamber to get the owner of Rydell Auto to speak on the trends in the transportation industry for the next meeting December 13 from 7:30 – 9:00 a.m. at the Mermaid. MWF Developers Beeman said MWF properties is proposing a 60 unit workforce housing project on the west side of town and this project has been delayed due to Ramsey County denying access from Mounds View Boulevard. After several meetings, the County has agreed to compromise by allowing one access for the project off of Mounds View Boulevard with the condition that this access be shared with both MWF Properties and any new development that goes to the west of MWF Properties. The County is recommending EDC Minutes November 17, 2017 Page 5 of 6 that the entire area to the west of MWF all the way to Spring Lake Road be one redevelopment area. This area is approximately five parcels with two parcels owned by the City. Beeman said MWF did get their tax credits, which is very difficult to get and they will also be asking the City for a Housing TIF. MWF needs to provide some more documents to the City before the TIF process begins. Muckala asked how a TIF works. Beeman explained that the developer continues to pay the current property taxes on the property throughout the development and indefinitely. The County sets the current valuation. Therefore the school district and County are not losing any current tax value and will continue to receive payments on the current value. Any new structure or development that occurs on the parcels is assigned a value. This value is the increment. The increment can be redirected back into the City through the project for specific items defined by State Statue. Therefore, the money is being invested back into the community for infrastructure improvements, etc. as it relates to the development project. The City is also allowed to take a small percentage to help pay for staff time and other administrative functions. Once the term of the increment has terminated, the increment plus the original tax base is redistributed to the City, County, and School district. Other Upcoming Events/Reports Beeman informed the Commission that Carmike Theater was bought out by AMC and then renamed under a new business structure as New Vision Entertainment. New Vision Entertainment is proposing to do a $4-5 mill renovation by installing 1000 luxury leather reclining seating, new carpeting, paint, aisle lighting, new wall coverings, new concession stand, upgraded restrooms, and a new bar & lobby. New Vision has applied for their liquor license and the City is excited to see this type of investment in the community. Beeman informed the Commission that if the theater is reducing the number of seats then this reduces the parking ratio which may be attractive for another retail type of development in the theater parking lot. This could be constructed along the Mounds View Boulevard side near the walking trail. Staff continues to brainstorm ideas for development projects city-wide. Beeman provided an update on the new Public Works building stating that they are currently working on asphalt, fence, electrical, plumbing, HVAC, concrete, overhead door, mechanical, tiling restrooms, sheet rocking the offices, etc. Substantial completion is expected around Jan 15 and final completion in 2018 where they will complete landscaping and asphalt. Beeman talked with the Public Works Director who is willing to Setting up tour with EDC, Planning Commission, etc. once everything has been completed sometime in 2018. 7. REPORTS OF COMMISSIONERS Commissioner Larson mentioned that he has noticed that many of the lots near the Lutheran Church have been developed with new homes and he is encouraged by this infill development activity. Helgemoe encouraged the commission and residents to attend the North Metro Business Council meeting December 13 at the Mermaid. EDC Minutes November 17, 2017 Page 6 of 6 Helgemoe asked for an update on the Snyder’s building. Beeman said he referred another prospect to the owner who lives in Canada and the offer was refused. Larson asked if the City can do anything with vacant buildings. Beeman said staff has looked into that very issue and as long as the owner continues to maintain the property, there is little a City can do because the building isn’t considered blight or substandard. It is still a usable building in good structural condition and the owner has the grass mowed, and a property manager maintains the site. If there is not illegal activity going on and the building is in compliance with all codes, then the owner has a right to allow the building to sit vacant and there is very little cities can do about it. Commissioner Stevenson informed the Commission that the Lion’s Club is having a community waffle breakfast & pictures with Santa Dec 3 at Edgewood Park. Helgemoe asked about the status of the El Loro property. Beeman said he brought the property owners about a half dozen prospects and none of them worked out. Several businesses have complained that the lease rates are too expensive and the owners won’t negotiate. There are currently about six vacancies at Mounds View Square. Silver View Plaza is one hundred percent full mainly because the school is leasing about half of the space. 9. NEXT REGULAR EDC MEETING Chair Freichels wished everyone a Happy Thanksgiving and reminded the Commissioners that the next EDC meeting will be held December 15, 2017 at 7:30 a.m. 10. ADJOURN There being no further business, Chair Freichels adjourned the November 17, 2017, meeting at approximately 8:25 a.m. Respectfully submitted, _______________________________ Brian Beeman Business Development Coordinator