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HomeMy WebLinkAbout12-16-2011 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION MEETING AGENDA MOUNDS VIEW CITY HALL FRIDAY, DECMBER 16, 2011 7:30 A.M. 1. CALL TO ORDER 2. ROLL CALL 3. APPROVE DECEMBER 16, 2011 EDC AGENDA 4. APPROVE NOVEMBER 18, 2011 EDC MINUTES 5. EDC BUSINESS A. Review Potential Acquisition of 2832 County Road 10 B. Discuss Possible Demolition Assistance for 8379 Red Oak Drive C. Discuss Possible Change to Regular EDC Meeting Date/Time for 2012 6. REPORTS OF COMMISSIONERS 7. REPORTS OF STAFF 8. NEXT REGULAR EDC MEETING 9. ADJOURNMENT EDC Members: Gary Meehlhause, Jennifer Wagner-Harkonen, Greg Belting, Jason Helgemoe, Torri Johnson, Dan Larson & Jim Paron City Staff: Economic Development Specialist Heidi Steinmetz Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting November 18, 2011 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Torri Johnson called the meeting to order at 7:31am. 2. ROLL CALL Members Present: Chair Torri Johnson, Vice Chair Jennifer Wagner-Harkonen and Commissioners Jason Helgemoe, Dan Larson, Gary Meehlhause and Jim Paron Member Absent: Commissioner Greg Belting Staff Present: City Administrator Jim Ericson and Economic Development Specialist Heidi Steinmetz 3. APPROVAL OF NOVEMBER 18, 2011 AGENDA Motion/Second: Commissioner Larson moved and Commissioner Meehlhause seconded the approval of the November 18, 2011 EDC agenda. Motion Carried: 6 Ayes, 0 Nays 4. APPROVAL OF OCTOBER 21, 2011 EDC MINUTES Motion/Second: Commissioner Meehlhause moved and Commissioner Larson seconded the approval of the October 21, 2011 minutes. Motion Carried: 6 Ayes, 0 Nays 5. SPECIAL BUSINESS There was no special business. 6. EDC BUSINESS A. Review March 2008 Business Toolbox Economic Development Specialist Heidi Steinmetz stated that the EDC should review the Toolbox because it’s outdated. Chair Johnson reminded the Commission that the EDC created the Toolbox document under the direction of former City staff person Aaron Draft EDC Minutes Nov. 18, 2011 Page 2 of 3 Backman and that the EDA approved it as an “internal” document. Chair Johnson said that the document should be used externally, however it needs to be updated. Chair Johnson suggested removing the details of the Chamber events, so that the document doesn’t need to be updated as often. Commissioner Helgemoe added that the SBA section needs updating, including the fact that SPEDCO’s office location has changed. Motion/Second: Vice Chair Wagner-Harkonen moved and Commissioner Meehlhause seconded a recommendation to the EDA that the Mounds View Business Toolbox be placed on the City’s Website after the document is updated. Motion Carried: 6 Ayes, 0 Nays B. Review December 2006 Premium Stop Redevelopment Area Study Ms. Steinmetz reminded the EDC that this study was prompted by the EDA’s purchase of the former Premium Stop gas station site located on County Road 10 near Robert’s Sports Bar. The study was completed by DSU/Bonestroo for the area surrounding the site. Ms. Steinmetz said that the EDC should discuss the City’s past efforts in redevelopment planning. She added that although this particular study is outdated, it is a document that the City can refer back to, especially since it includes several redevelopment concepts. City Administrator Jim Ericson reminded the EDC that the pending Coventry Senior Living project is located in this particular redevelopment area. It could be the project that spurs surrounding redevelopment. Commissioner Meehlhause said that since a high-density senior housing complex was not included in the DSU/Bonnestroo redevelopment concepts, it is important to start thinking about the types of services needed by Coventry Senior Living’s future residents. He also said that as TIF Districts 3, 4 and 5 expire, the City should discuss how the available funds can be used for redevelopment purposes, rather than turning the funds back over to the County. Chair Johnson added that the EDC should discuss this topic at the January EDC meeting. Discuss Status of 2011 EDC Priorities The EDC reviewed the status of their 2011 priorities. Chair Johnson suggested that the EDC begin reviewing their priorities biannually. 7. REPORTS OF COMMISSIONERS Chair Johnson reported that students in the DECA program at Irondale High School are leaving for their annual trip New York City today. The purpose of the trip is for the students to learn how major businesses operate in New York City. DECA provides business and marketing curriculum at Irondale. 8. REPORTS OF STAFF Ms. Steinmetz provided the EDA with the following updates: A. Recap of November 7th City Council Work Session B. Recap of November 9th Mounds View Business Council Meeting Draft EDC Minutes Nov. 18, 2011 Page 3 of 3 C. Commissioners Belting and Paron Reappointed to EDC D. TCAAP Development Update E. Mounds View Business News F. Available Business Sites in Mounds View G. Upcoming Urban Land Institute “Navigating the New Normal” Workshop 9. NEXT REGULAR EDC MEETING The next regular EDC meeting was scheduled for Friday, January 20, 2012 at 7:30am. 10. ADJOURNMENT There being no further business, the November 18, 2011 meeting adjourned at 8:50am. Respectfully submitted, Heidi Steinmetz, Economic Development Specialist Item #: 5A Meeting Date: Dec. 16, 2011 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 Potential Acquisition of 2832 County Road 10 Background The “PAK” building is located at 2832 County Road 10 next door CVS Pharmacy. The 10,560-square-foot building was built in 1965. The building has been vacant since early 2005. The vacancy date is based on the last utility bill issued by the City. As indicated on the attachment, Ramsey County’s 2012 estimated value of the structure is $183,600. The County’s estimated value for both the structure and land is $427,500. Below is an image of the front of the building and an aerial image of the property. Front View of 2832 County Road 10 in Mounds View Aerial Photo of 2832 County Road 10 in Mounds View 2832 County Rd 10 CVS Dec. 16, 2011 EDC Meeting Item 5A – 2832 County Road 10 Page 2 of 3 Discussion The property is currently in “court appointed receivership”. Per court order, the process of selling the property was recently authorized. On November 21, 2011, the listing agent for the property told City staff that the asking price is $316,800. This is $110,700 less than Ramsey County’s 2012 estimated market value of $427,500. Attached is the marketing brochure for the property. Due to the reasonable asking price and the fact that the EDA owns a single-family lot adjacent to the property, staff is recommending that the EDC consider recommending to the EDA that the EDA make an offer to purchase the property for redevelopment purposes. The redevelopment of the site would remove a blighting influence on the community and eventually maximize future property taxes on the site. The property is part of an area that has been slated for redevelopment since at least 2002 with the completion of the latest County Road 10 Redevelopment and Revitalization Plan. The redevelopment area includes three parcels (2832 County Rd 10, 2840 County Rd 10 and 7861 Groveland Rd). The 2840 County Rd 10 parcel is not for sale at this time. 2832 County Rd 10 Vacant “PAK” Building $427,500 2012 Est’d Market Value $316,800 Asking Price 7861 Groveland Rd Vacant City-Owned Lot $67,200 2012 Est’d Market Value 2840 County Rd 10 Tenant Occupied Building Royal Supply & ABC Liquor $337,300 2012 Est’d Market Value Dec. 16, 2011 EDC Meeting Item 5A – 2832 County Road 10 Page 3 of 3 Financial Impact The financial impact to the EDA if they choose to purchase this property for redevelopment purposes would consist of the purchase price, demolition costs and a loss of property tax revenue until the property is resold. A conservative estimate to purchase the property at the asking price ($316,800) and for demolition ($33,200) would be $350,000. The EDA most certainly would not offer to pay the asking price and City staff would receive three quotes for demolition (site clearance and/or cleanup). For comparison purposes, in 2006, the cost for demolition, site clearance and abatement of hazardous materials of the former Premium Stop gas station site was $24,910. The property taxes for 2832 County Rd 10 in 2011 were $15,792. If the EDA purchases the property, conceivably the EDA would be losing the City’s portion of the property taxes (not the entire $15,792) per year until the EDA sells the property for redevelopment. 2002 County Road 10 Redevelopment and Revitalization Plan The latest County Road 10 Redevelopment and Revitalization Plan was completed in 2002. The plan did not include a redevelopment concept for this particular site. However, page 12 of the plan referred to the “old, unattractive commercial properties” on the site and “numerous small lots with direct and/or undefined access” to County Road 10. A single- parcel redevelopment project occurred on the site in 2004 (the former Amoco station was replaced by a new CVS Pharmacy). EDC’s Redevelopment Concept What is the EDC’s redevelopment concept for the site? City staff will forward the EDC’s vision for the site to the EDA along with the EDC’s recommendation regarding the potential acquisition of 2832 County Road 10. Recommendation Staff recommends that the EDC recommend to the EDA that the EDA submit a purchase offer for a specific amount below the asking price for 2832 County Road 10. Respectfully submitted, ____________________________ Heidi Steinmetz, Economic Development Specialist Attachments  Ramsey County Tax & Property Information  CBRE Marketing Brochure Home Site Map Contact Us Home || Information || Property Look Up || Record Look Up || Contact Us New Property Search Back to Search Results Quick Info Property Information Taxpayer Name and Address Value Information Value History Structure Description Sale Information Special Assessments Property Tax Payment Information Property Tax Payment History 2011 Value Notice 2011 Property Tax Statement 2011 Payment Stubs 2010 Value Notice 2010 Property Tax Statement 2009 Property Tax Statement 2008 Property Tax Statement/Value Notice >Quick Information Go to E-Pay (US Bank Browser Requirements) Property Identification Number (PIN) 06.30.23.34.0089 Property Address Municipality Watershed School District Number 2832 Hwy 10 Mounds View Rice Creek W/S 621 Assessment Date 01-02-2010 01-02-2011 Tax Payable Year 2011 2012 Total Estimated Market Value $450,000 $427,500 Total Taxable Market Value $450,000 $427,500 Total Estimated Land Value $243,900 $243,900 Total Estimated Building Value $206,100 $183,600 Property Tax $15,792.00 Special Assessments $0.00 Total Property Tax + Special Assessments $15,792.00 Property Class Description Comm/Ind Comm/Ind Year Built # of Stories Residential Finished SQ Feet/Comm, Ind, Apt Bldg Area Foundation Size 1965 2.00 10560 The Plat or Section / Township / Range and Legal Description listed below may be an abbreviated legal description - Do not use to prepare legal documents Section / Township / Range 6-30-23 Plat Velmeir Cvs Addition Legal Description To determine whether your property is Abstract or Torrens, call (651)266-2000 That Part Of Lot 1 Blk 1 In T.i. 90 0 Tax & Property Look Up Information - Quick Info Page 1 of 2Tax and Property Look Up Information - Quick Info 11/17/2011http://rrinfo.co.ramsey.mn.us/public/characteristic/Parcel.aspx?scrn=Quick&pin=063023340089&cnt=0 John Ryden 952.924.4641 john.ryden@cbre.com Matt Oelschlager 952.924.4848 matt.oelschlager@cbre.com Dan Curry 952.924.4869 dan.curry@cbre.com FEATURES: • Great owner/user opportunity • • Excellent visibility and access to Co. Hwy. 10 • Flexible B-3 zoning 2832 CO. HWY. 10, MOUNDS VIEW, MINNESOTA 55112 2832BUILDING FOR MORE INFORMATION PLEASE CONTACT www.cbre.com FOR SALE OR LEASE TOTAL BUILDING SF: 10,560 SF LAND AREA: .70 acres OFFICE SF: +/- 2,000 SF WAREHOUSE/SHOP: +/- 8,560 SF CLEAR HEIGHT: 14’ in warehouse LOADING: 2 drive-in doors YEAR BUILT: 1965 ASKING PRICE: $316,800 LEASE RATE: $4.00 PSF 2011 RE TAXES: $15,792.00 ($1.50 PSF) PID#: 06-30-23-34-0001 2832 BUILDING 2832 CO. HWY. 10, MOUNDS VIEW, MINNESOTA 55112 ©2011 CBRE, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. CBRE | 4400 West 78th Street | Suite 200 | Minneapolis, MN 55435 www.cbre.com FOR SALE OR LEASE Matt Oelschlager 952.924.4848 matt.oelschlager@cbre.com John Ryden 952.924.4641 john.ryden@cbre.com Dan Curry 952.924.4869 dan.curry@cbre.com FOR MORE INFORMATION PLEASE CONTACT Item #: 5B Meeting Date: Dec. 16, 2011 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: Discuss Possible Demolition Assistance for 8379 Red Oak Drive Background A representative of the property owner of two single-family homes located at 8379 and 8373 Red Oak Drive contacted City staff on November 9, 2011, to inquire if the City had funding available to demolish the home located at 8379 Red Oak Drive. The one-story, 580-square-foot home was built in 1938. The City declared the structure “unfit for human occupancy” in May 2010 because the City water and sewer has been disconnected. As indicated on the attachment, Ramsey County’s 2012 estimated value of the structure is $2,000. Below is an aerial image of the property. 2009 Aerial Photo of 8379 Red Oak Drive in Mounds View 8379 8373 Red Oak Drive Dec. 16, 2011 EDC Meeting Item 5B – 8379 Red Oak Drive Page 2 of 4 There is a history of code violations at the property. For instance, in May of 2010, the City issued a notice of code violation to the property owner regarding the exterior accumulation of junk and debris and the peeling paint on the garage. Corrective actions were completed in June 2010. Below are “before and after” photos of the code violation and corrective actions taken by the property owner. Code Enforcement Photos: Before May 2010 – debris, peeling paint and outdoor sink with hoses connected to 8373 Red Oak Drive May 2010 – debris at rear of house Code Enforcement Photos: After June 2010 – garage painted and sink removed June 2010 – debris removed from rear of house Dec. 16, 2011 EDC Meeting Item 5B – 8379 Red Oak Drive Page 3 of 4 There is currently an “open” code violation case on the property. On December 12th, the City Council authorized an abatement of the property, which allows the property owner five days to clean the property. If the owner does not do so, the City’s contractor will clean the property at the expense of the property owner. Below are photos taken at the property on October 24th and November 30th: . October 24, 2011 – inoperable vehicle and debris October 24, 2011 – debris in front of garage November 30, 2011 – debris October 24, 2011 – front of home/two inoperable vehicles October 24, 2011 – yard full of debris November 30, 2011 – yard full of debris Dec. 16, 2011 EDC Meeting Item 5B – 8379 Red Oak Drive Page 4 of 4 City staff and the Greater Metropolitan Housing Corporation staff immediately responded to the home demolition inquiry from the property owner’s representative by providing her with information about the Mounds View Demolition Home Loan program. The program provides loans up to $10,000 at a 3% fixed rate of interest. City staff placed a follow up phone call to the property owner’s representative on November 30, 2011, to inquire of the status of her potential Demolition Home Loan application. The representative informed City staff that the property owner might postpone demolition until Spring 2012, if at all. Discussion Due to the history of police calls, code enforcement cases and condition of the home located at 8379 Red Oak Drive, staff is recommending that the home be demolished. Listings of the police calls and code enforcement cases are attached to this report for the EDC’s information. In order to increase the probability of home demolition in this case, City staff would like to offer the property owner a 0% deferred loan to become due upon sale, transfer of title or refinancing of the property, whichever comes first. This offer would be a diversion from the Demolition Home Loan criteria. Recommendation Staff recommends that the EDC recommend to the EDA that the property owner of 8379 Red Oak Drive be offered a 0% deferred Mounds View Demolition Home Loan contingent upon a qualifying application. Respectfully submitted, ____________________________ Heidi Steinmetz, Economic Development Specialist Attachments  Ramsey County Tax & Property Information  Police Calls from May 2007-Present  Code Enforcement Cases since 2009 (when the City’s Code Enforcement records management system went into effect) Text Only: On | Off | Site Index | Policies and Practices | Contact Us | Home Home Site Map Contact Us Home || Information || Property Look Up || Record Look Up || Contact Us New Property Search Back to Search Results Quick Info Property Information Taxpayer Name and Address Value Information Value History Structure Description Sale Information Special Assessments Property Tax Payment Information Property Tax Payment History Proposed Tax Notice 2011 Value Notice 2011 Property Tax Statement 2011 Payment Stubs 2010 Value Notice 2010 Property Tax Statement 2009 Property Tax Statement 2008 Property Tax Statement/Value Notice Minnesota State Form M1PR > Quick Information Go to E-Pay (US Bank Browser Requirements) Property Identification Number (PIN) 06.30.23.12.0103 Property Address Municipality Watershed School District Number 8379 Red Oak Dr Mounds View Rice Creek W/S 621 Assessment Date 01-02-2010 01-02-2011 Tax Payable Year 2011 2012 Total Estimated Market Value $103,800 $94,900 Total Taxable Market Value $103,800 $94,900 Total Estimated Land Value $101,800 $92,900 Total Estimated Building Value $2,000 $2,000 Property Tax $1,590.00 Special Assessments $0.00 Total Property Tax + Special Assessments $1,590.00 Property Class Description Res Non-Hstd Res Non-Hstd Year Built # of Stories Residential Finished SQ Feet/Comm, Ind, Apt Bldg Area Foundation Size 1938 1.00 580 580 The Plat or Section / Township / Range and Legal Description listed below may be an abbreviated legal description - Do not use to prepare legal documents Section / Township / Range 6-30-23 Plat Moe Homestead Addition Legal Description To determine whether your property is Abstract or Torrens, call (651)266-2000 Lot 9 Blk 1 Database Last Refreshed 12-13-2011 05:21:00 Copyright 2003 Ramsey County Email: AskPropertyTaxandRecords@co.ramsey.mn.us Tax & Property Look Up Information - Quick Info Page 1 of 1Tax and Property Look Up Information - Quick Info 12/13/2011http://rrinfo.co.ramsey.mn.us/public/characteristic/Parcel.aspx?scrn=Quick&pin=063023120103&cnt=0 Item #: 5C Meeting Date: Dec. 16, 2011 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: Discuss Possible Change to Regular EDC Meeting Date/Time for 2012 Background The regular meeting date and time for the EDC is the third Monday of each month at 7:30am. Discussion In order to create more cohesiveness and regular contact with the EDA, the EDC may want to consider changing the regular EDC meeting date and time to occur directly prior to regular EDA meetings. Regular EDA meetings occur every 2nd and 4th Mondays of each month at 6:30pm. The EDC would need to revise their bylaws if this change is made. Currently, Section 2 of the bylaws read “The regular meetings of the Commission shall be held on the third Friday of each month as established by resolution of the Economic Development Commission.” The EDC could review its bylaws at the January 2012 EDC meeting. The bylaws were last amended in 2002. Recommendation Staff recommends that the EDC consider changing their regular meeting time to the 2nd or 4th Monday of each month at 5:30pm. If the EDC wants the change to be effective for the January meeting, the EDC Chair may establish the January meeting as special meeting. Respectfully submitted, ____________________________ Heidi Steinmetz, Economic Development Specialist