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HomeMy WebLinkAbout04-19-2013 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION MEETING AGENDA MOUNDS VIEW CITY HALL FRIDAY, APRIL 19, 2013 7:30 A.M. 1. CALL TO ORDER 2. ROLL CALL 3. APPROVE APRIL 19, 2013, EDC AGENDA 4. APPROVE FEBRUARY 15, 2013, EDC MINUTES 5. EDC BUSINESS A. Continue Discussion Regarding 2394 County Road 10 B. Discuss Economic Development Advertising C. Review Home Improvement Loan Program D. Review Business Improvement Partnership Loan Program 6. REPORTS OF COMMISSIONERS 7. REPORTS OF STAFF A. TCAAP Development Update B. Country Road 10 Name Change Update C. Mounds View Business News D. Available Business Sites in Mounds View E. Annual Town Hall Meeting – Monday, April 29, 2013 F. Spring Clean Up Day – Saturday, May 4, 2013 G. Next Mounds View Business Council Meeting – W ednesday, May 8, 2013 8. NEXT REGULAR EDC MEETING – Friday, May 17, 2013 9. ADJOURNMENT Commissioners: Chair Greg Belting, Vice-Chair Jennifer Wagner−Harkonen, Jim Freichels, Jason Helgemoe, Dan Larson, Jim Paron and Gary Stevenson City Staff: Economic Development Specialist Heidi Steinmetz Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting February 15, 2013 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Greg Belting called the meeting to order at 7:37am. 2. ROLL CALL Members Present: Chair Greg Belting and Commissioners Jim Freichels, Jason Helgemoe, Dan Larson, Jim Paron and Gary Stevenson Members Absent: Vice-Chair Jennifer Wagner-Harkonen Staff Present: Economic Development Specialist Heidi Steinmetz 3. APPROVAL OF FEBRUARY 15, 2013, AGENDA Motion/Second: Commissioner Larson moved and Commissioner Freichels seconded the approval of the February 15, 2013, EDC agenda. Motion Carried: 6 Ayes, 0 Nays 4. APPROVAL OF JANUARY 18, 2013, EDC MINUTES Motion/Second: Commissioner Freichels moved and Commissioner Larson seconded the approval of the January 18, 2013, EDC minutes. Motion Carried: 6 Ayes, 0 Nays 5. EDC BUSINESS A. Oath of Office – Gary Stevenson Commissioner Stevenson read his Oath of Office for term 2013-2015. Draft EDC Minutes February 15, 2013 Page 2 of 3 B. Set 2013 Economic Development Priorities The EDC reviewed their list of 2012 priorities and adjusted their 2013 priorities as follows: 1) Development/redevelopment along the County Rd 10 corridor a) Premium Stop Redevelopment Area b) Implement County Road 10 name change to Northtown Boulevard c) Complete remaining trailway connections to businesses d) Improve the aesthetics of properties located on County Road 10 e) Reconstruction of County Road 10 f) Silver View Plaza g) Simon’s & City-Owned Lot h) Johnson Lot & Related Empty Lot i) Thrifty Car Rental j) Bel Rae Senior Living 2) Monitor Mounds View commercial properties in transition 3) Monitor and assist with Citywide housing issues and projects 4) Refine the plan for using the EDA’s unobligated Tax Increment Financing (TIF) within the City of Mounds View 5) Meet bi-annually with the Mounds View EDA 6) Continue business retention program 7) Skyline Motel redevelopment 8) Support the implementation of the citywide Street & Utility Improvement Program 9) Monitor development plans for the TCAAP site in Arden Hills 10) Continue budgeting to implement the Mounds View Branding Project 6. REPORTS OF COMMISSIONERS Commissioner Larson said that it’s nice to see a couple of new houses being built within the City, one on Red Oak Drive and another on Eastwood. Commissioner Helgemoe reported on the February Mounds View Business Council meeting. The guest speaker discussed Xcel’s rate increases for next year. Chair Belting added that Xcel Energy is the largest property tax contributor in the State of Minnesota. Draft EDC Minutes February 15, 2013 Page 3 of 3 7. REPORTS OF STAFF City staff provided updates on the following items: A. Mounds View Business News The EDC discussed the status of the former Taiko Sushi res taurant building. Chair Belting stated that that he would be in favor of purchasing the property at an appropriate price, which should reflect the land value only since the existing building would be removed. Commissioner Larson agreed. Commissioner Freichels said that it would be important to receive demolition bids, including asbestos testing, prior to purchasing the building. Commissioner Helgmoe mentioned that the Sherriff’s sale price includes attorney’s fees, past due interested, etc. so that particular price is higher than what the property is worth. The EDC requested that City staff provide them with comparable values and or/sales for the parcel (with and without the building) at the next EDC meeting. B. Available Business Sites in Mounds View C. City Hall Closed – February 18, 2013 D. Twin Cities North Chamber Gala – February 22, 2013 E. North Metro Home & Garden Show – February 23, 2013 F. Next Business Council Meeting – March 13, 2013 G. TCAAP Development Update 8. NEXT REGULAR EDC MEETING The next regular EDC meeting was scheduled for Friday, March 15, 2013, at 7:30am. 9. ADJOURNMENT There being no further business, the February 15, 2013, meeting adjourned. Respectfully submitted, Heidi Steinmetz, Economic Development Specialist Item #: 5A Meeting Date: April 19, 2013 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: Continue Discussion Regarding 2394 County Road 10 Introduction Foreclosure The former Taiko Japanese restaurant property, located at 2394 County Road 10, is in foreclosure. The Ramsey County Sheriff’s sale occurred on January 4, 2013. The Sheriff’s sale price was $252.059.45. The property will revert back to US Bank when the redemption period expires on July 5, 2013. EDA Investment The EDA owns the adjacent parcel. Combining the two parcels would create a 1.76-acre lot to better accommodate a redevelopment project. The two parcels are part of the City’s “Premium Stop Redevelopment Area”. Conceptual redevelopment planning was completed for the area in 2006 as documented in the EDA’s “Premium Stop Redevelopment Area Study”. Below is a map showing the location of the two parcels: EDA-Owned Parcel 2390 County Rd 10 1.28 acres Former Taiko 2394 County Rd 10 .48 acre County Rd 10 County Rd H2 April 19, 2013 EDC Meeting Item 5A – 2394 County Road 10 Page 2 of 2 Property Description/History The former Taiko building is one-story, 1,663 square feet and sits on .48 of an acre. It was built thirty years ago in 1983 as a Mister Donut and later became a Donut Connection. In September 2005, the current owner, Krystal Maintenance, purchased the property for $310,000 and began operating Taiko Japanese r estaurant in early 2006. Discussion In early February 2013, City staff inquired with US Bank regarding their interest in possibly selling the mortgage note for 2394 County Road 10 prior to the expiration of the redemption period. On March 15, US Bank responded to City staff that they are completing “additional due diligence” in regards to the City’s inquiry. The EDC discussed 2394 County Road 10 at their February meeting. Some of the items discussed were as follows:  Purchase price should reflect land value only  Obtain demo bids prior to purchase offer  Obtain comparable sales in the area if available A comparable property in Mounds View is the former Thrifty Car Rental site located at 2975 County Road 10. A sale of the property is pending but the sale price will not be available until after the closing. Below is a side-by-side comparison of the two properties: Former Thrifty Car Rental Former Taiko Japanese Parcel Size: .58 acre Parcel Size: .48 acre Building Size: 1,421 square feet Building Size: 1,663 square feet Year Built: 1959 Year Built: 1983 Zoning: Hwy Business Zoning; Hwy Business Asking Price: $250,000 Asking Price: N/A Recommendation City staff recommends that the EDC provide a recommendation to the EDA regarding the possible purchase of the 2394 County Road 10 mortgage note from US Bank. The intent of the purchase would be to combine the parcel with the adjacent EDA-owned parcel to better accommodate a future redevelopment of the site. Respectfully submitted, ____________________________ Heidi Steinmetz, Economic Development Specialist Item No: 5B Meeting Date: April 19, 2013 Type of Business: EDC Administrator Review : ____ City of Mounds View Staff Report To: Economic Development Commission (EDC) From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Discuss Economic Development Advertising Introduction The City Council and EDC discussed Economic Development advertising at the April 1, 2013, Work Session. The discussion resulted in some uncertainty about the City’s advertising message. Therefore, the City Council asked the EDC to further review the possibility of advertising. Background As shown in the attached April 1st staff report, City staff had suggested advertising messages such as: Mounds View is a great place to do business and/or Mounds View is a great commercial redevelopment location. Staff also suggested the target audiences of business owners and commercial realtors/developers. Those audiences can be reached through four publications: 1. Finance & Commerce 2. Minnesota Real Estate Journal 3. Minneapolis/St. Paul Business Journal 4. Twin Cities Business The main type of advertising discussed during the April 1st Work Session was an advertorial, which is a paid article. An example of an advertorial for the City of Fridley is attached for your review. Staff will provide Fridley’s feedback on their advertorial during the EDC meeting. The cost of a four-page advertorial in Twin Cities Business magazine would be approximately $17,500. Twin Cities Business staff would prepare the arti cle and solicit local businesses to sponsor the article to help cover the cost of the project. Twin Cities Business would then provide the City with approximately 100 copies of the magazine and an online version of the article that the City could post on its own Website. April 19, 2013 EDC Meeting Item 5B – Advertising Page 2 of 2 Recommendation City staff recommends that the EDC provide a recommendation to the EDA with answers to the following questions: 1) Should the EDA advertise? 2) What type of advertising (i.e. print ads, print advertorials, online)? 3) What is the City’s message? 4) Who are the target audiences? Economic Development advertising could be paid for through a combination of funds donated to the EDA by Bethlehem Baptist Church and sponsorships provided by Mounds View businesses who would like to be featured in the advertising. Respectfully submitted, ___________________________ Heidi Steinmetz, Economic Development Specialist Attachments  City of Mounds View Staff Report, April 1, 2013, 2 pages  City of Fridley Advertorial, Twin Cities Business, 8 pages Insert proposed image, description and quoted price here Item No: 3 Meeting Date: April 1, 2013 Type of Business: Work Session Administrator Review : ____ City of Mounds View Staff Report To: Honorable Mayor and City Council Cc: Economic Development Commission (EDC) From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Discuss Economic Development Advertising Background Recently, City staff has researched the possibility of advertising the City of Mounds View as a great place to do business and a commercial redeve lopment location. The two target audiences for this effort are business owners and commercial realtors/developers. There are many types of advertising (TV, radio, billboard, online, print, etc.), but the City could best target business owners and comme rcial realtors/developers by placing ads (online or print) in local business and commercial real estate publications. Those four publications are Finance & Commerce, Minnesota Real Estate Journal, Minneapolis/St. Paul Business Journal and Twin Cities Business. Twin Cities Business is a magazine and the other three publications are newspapers. Discussion Print Advertising Costs Attached are the 2013 print advertising rates for each publication. Below is a comparison of pricing for an 1/8 page, black and white print advertisement in each of the four publications. Publication Circulation Cost Per Ad Cost Per Ad (for 6 ads) Finance & Commerce 1,200 $500 $400 MN Real Estate Journal 5,000 $675 $500 Mpls/St. Paul Business Journal 13,000 $1,720 $1,355 (for 7) Twin Cities Business 30,000 $1,930 $1,650 April 1, 2013 City Council Work Session Item 1 Another type of print advertising is what is called an advertorial. An advertorial is a paid article. An example of a neighbor city’s advertorial is attached for your review. Although the advertorial is from 1997, current advertorials in Twin Cities Business magazine would appear the same. Advertorials are identified as such with header text such as “Special Advertising Section”. The cost of a four-page advertorial in Twin Cities Business magazine would be approximately $17,500. Twin Cities Business staff would prepare the article and solicit local businesses to sponsor the article to help cover the cost of the project. Twin Cities Business would then provide the City with approximately 100 copies of the magazine and an online version of the article that the City could post on its own Website. Online Advertising Costs Below is a comparison of pricing for online adverting on the home pages of each of the four publications. For your information, an online advertising impression is the number of times an ad is displayed on a Website, whether the user clicks on the ad or not. Website Impressions per Month Cost Finance & Commerce 40,000 $3,240 for 6 weeks MN Real Estate Journal 27,000 $1,000 per month Mpls/St. Paul Business Journal 82,500 $9,160 per month Twin Cities Business 30,000 $1,650 per month Recommendation Staff recommends that the City Council discuss the different advertising options available to the City and provide staff with direction if there is a specific option of interest to the City Council. Economic Development advertising could be paid for through a combination of funds donated to the EDA by Bethlehem Baptist Church and sponsorships provided by Mounds View businesses who would like to be featured in the advertising. Respectfully submitted, ___________________________ Heidi Steinmetz, Economic Development Specialist Attachments  2013 Print Advertising Rates, 4 pages  City of Fridley Advertorial, Twin Cities Business, 8 pages Insert proposed image, description and quoted price here Item No: 5C Meeting Date: April 19, 2013 Type of Business: EDC Administrator Review : ____ City of Mounds View Staff Report To: Economic Development Commission (EDC) From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Review Home Improvement Loan Program Background The Home Improvement Loan Program was created by the EDA in late 2010 to provide additional home improvement loan options to Mounds View residents. Shown below, the program offers four types of loans, three of which cater to low-income residents who may not qualify for traditional home improvement loan financing. Loan Name Loan Amount Interest Rate Payment Type Home Demolition Up to $10,000 3% Fixed Code Enforcement Up to $7,000 0% Fixed General Home Repair Up to $10,000 3% Fixed Emergency Deferred Up to $7,000 0% Deferred Attached is the loan criteria for each of the four loans. Since the program’s inception, two loans have closed; one for a bathroom remodel an d another for a new roof. A third loan (a home demolition loan) is expected to close on Tuesday. Including the third loan, the total loan funds used will be about $24,000. The total loan fund budget for 20 13 is $150,000. Side Note: The Housing Resource Center administers loans for Mounds View, Woodbury, Shoreview, Roseville, Oakdale and Minnesota Housing, all of which have been less productive in the past several years. Housing Resource Center staff suggests reasons for the decrease in loans could be the economic downturn, including unemployment stress, and the decrease in property values. Discussion Since the City Council’s 2013 Priority Statement (see attached) relates to the revitalization of County Road 10, should the Home Improvement Loan Program be discontinued and the funds transferred towards County Road 10 revitalization? Also, was the Home Demolition Loan amount supposed to cover all of the costs associated with the demolition project? If so, City staff would suggest amending the Home Demolition Loan amount to at least $12,000. April 19, 2013 EDC Meeting Item 5C – Home Loans Page 2 of 2 Recommendation City staff recommends that the EDC review and discuss the Home Improvement Loan Program and provide a recommendation to the EDA regarding duration of the program and a possible increase to the Home Demolition Loan amount. Respectfully submitted, ___________________________ Heidi Steinmetz, Economic Development Specialist Attachments  Home Improvement Loan Program Criteria  2013 City Council Priority Statement Economic Development Authority (EDA) Demolition Home Loan Criteria EDA Approved November 22, 2010 The purpose of this loan is to provide loans to demolish blighted single-family or duplex properties in Mounds View. Blight Qualification (for Demolition Loan Only) Once a loan application is received, Mounds View’s Code Enforcement/Housing Inspector will arrange, by appointment, an inspection of the interior of the home to establish blight qualification. In addition, the inspector will make a determination as to the potential presence of hazardous materials on the property and will obtain a statement from the interested participant about any knowledge of the property’s use for production, storage, deposit, or disposal of any toxic or hazardous wastes or substances or asbestos products whatsoever, during the time the interested participant owned the property and before the date of interested participant purchased property. If a property satisfies the blight conditions as outlined herein, demolition procedures can continue. If the blight test cannot be met, the city will notify the interested person in writing indicating the reasons why the property cannot be considered as blighted. Loan Amount Up to $10,000 secured by a note & mortgage Loan Security All loans will be secured by a mortgage in favor of the City. The loan may be secured in a subordinate lien position behind the borrower’s existing prime/A-rated fixed rate mortgage. Interest Rate The interest rate is fixed at 3%. The monthly payment is fixed. Loan Term The maximum loan term is 10 years, however, the loan shall become due upon sale, transfer of title or refinancing of the property, whichever occurs first. Eligible Properties Mounds View single-family or duplex properties that qualify as blighted. See the Blight Qualification standard below. Demolition Bids Applicants are encouraged to first consider the Spring Lake Park/Blaine/Mounds View Fire Department’s house burning/training program demolition option. If that option is not feasible, applicants must obtain three demolition bids. The demolition contractor will be required to obtain all necessary City permits, pay applicable fees and provide for appropriate handling and abatement of any hazardous materials encountered. All contractors must be licensed and insured. Demolition Home Loan Page 2 of 3 Application & Loan Disbursement Process The Housing Resource Center’s (HRC) North & East Metro office is the program administrator. Please call the HRC’s construction and loan consultants at 651-486- 7401 to answer any questions about Mounds View’s loan program and/or your project. GMHC Housing Resource Center − North & East Metro 1170 Lepak Court Shoreview, MN 55126 Phone: 651-486-7401 Fax: 651-486-7424 DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A CLOSING HAS TAKEN PLACE. ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM. Application Process: Completed applications will be processed by the HRC’s North & East Metro office on a first-come, first-served basis, as funds are available until all program funds are committed. After loan approval you will be notified to come to the HRC for a loan closing to sign a Note and Mortgage. Rehabilitation Consulting: HRC consultants will be available to advise borrowers about proposed projects and conduct an optional initial home inspection. HRC will review bid(s) for reasonableness. Loan Costs: A credit report fee paid by applicant at time of application; mortgage registration tax and filing fee and title policy paid by borrower at closing. The title policy may be financed through the loan. Contractors & Permits: Contractors must be properly licensed by the state of Minnesota when required. Permits must be obtained when required by city code. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. Borrower’s contribution to project cost must be paid prior to release of loan funds. HRC can direct borrowers to additional financing sources. Work Completion: Weather permitting, work must be completed within 120 days of loan closing. Demolition Home Loan Page 3 of 3 Disbursement Process: Loan funds will remain in escrow at GMHC until payment for completed work. The following items must be received before the funds can be released: 1. Final Invoice from each contractor showing all amounts paid and due. 2. Lien Waiver. Original from each contractor. 4. Completion Certificate signed by each contractor and the borrower. 5. Permits Closed. Have the inspector sign the permit card, or have the inspector leave a message at the HRC at 651-486-7401. 6. Final Inspection and approval by the HRC. It may take up to 10 business days after receipt of above items to prepare checks. Payment checks to contractors must be countersigned by the borrower. Lien waivers must be provided before the funds will be released. Economic Development Authority (EDA) General Home Improvement Loan Criteria EDA Approved November 22, 2010 Amended December 12, 2011 Amended June 11, 2012 Amended October 8, 2012 The purpose of this loan is to provide loans for general home improvements and repairs to owner-occupied single-family or duplex homes in Mounds View. Loan Amount From $1,000 to $10,000 Loan Security All loans will be secured by a mortgage in favor of the City. The loan may be secured in a subordinate lien position behind t he borrower’s existing prime/A-rated fixed rate mortgage. Interest Rate The interest rate is fixed at 3%. The monthly payment is fixed. Loan Term The maximum loan term is 10 years, however, the loan shall become due upon sale, transfer of title or refinancing of the property, whichever occurs first. Income Limit The applicant’s total gross annual household income shall not exceed 80% of the current year area median household income as defined by HUD per household size, as follows (FY 2013): Household Size Income Limit 1 $45,100 2 $51,550 3 $58,000 4 $64,400 5 $69,600 6 $74,750 7 $79,900 8 $85,050 Loan to Value The borrower’s combined mortgage debt including the Mounds View loan cannot exceed 110% of the property value based on the taxable market value as determined by Ramsey County for the current year. Applicants may also submit a third party appraisal that has been completed within the last 6 months. Such an appraisal is to be obtained by the applicant at their expense. Debt to Income 50% Eligible Properties Mounds View owner-occupied single-family & duplex properties General Home Improvement Loan 10/8/2012 Page 2 of 4 Eligible Repairs & Improvements The General Home Improvement loan program makes funds available to improve the exterior and/or interior of the property. Eligible work may correct health and safety items, increase handicap accessibility, reduce long-term maintenance and energy costs or improve the livability of the home Eligible improvements include but are not limited to the following examples: Exterior Work:  Painting & Siding  Rafters, soffit and fascia  Energy efficient window glass and screens  Railings and stairs  Landings and porches  Driveways (only if current driveway is unimproved) Interior Work:  Energy efficiency improvements (insulation and heating/cooling systems)  Bathroom and Kitchen repairs & remodels  Accessibility improvements for people with disabilities  Failure of electrical, ventilation, or plumbing/septic system  Roof leaks that have led to significant damage to the interior  A structural failure of the foundation, walls, or roof that could cause collapse;  Removing lead paint or the cause of a confirmed concentration of lead in the resident’s whole blood (Environmental Intervention Blood Lead Level) Ineligible Improvements  Exterior repairs to condos and townhomes  New construction (additions)  Luxury items, such as swimming pools or saunas  Working capital, debt service or refinancing of existing debts Contractor Bids Applicants must provide the Housing Resource Center’s Construction Manager with three bids for each improvement project. All contractors must be licensed and insured. General Home Improvement Loan 10/8/2012 Page 3 of 4 Application & Loan Disbursement Process The Housing Resource Center’s (HRC) North & East Metro office is the program administrator. Please call the HRC’s construction and loan consultants at 651 -486- 7401 to answer any questions about Mounds View’s loan program and/or your project. GMHC Housing Resource Center North & East Metro 1170 Lepak Court Shoreview, MN 55126 Phone: 651-486-7401 Fax: 651-486-7424 DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A CLOSING HAS TAKEN PLACE. ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM. Application Process: Completed applications will be processed by the HRC’s North & East Metro office on a first-come, first-served basis, as funds are available until all program funds are committed. After loan approval you will be notified to come to the HRC for a loan closing to sign a Note and Mortgage. Rehabilitation Consulting: HRC consultants will be available to advise borrowers about proposed projects and conduct an optional initial home inspection. HRC will review bid(s) for reasonableness. Loan Costs: A credit report fee paid by applicant at time o f application; mortgage registration tax and filing fee and title policy paid by borrower at closing. The title policy may be financed through the loan. Contractors & Permits: Contractors must be properly licensed by the state of Minnesota when required. Permits must be obtained when required by city code. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. Borrower’s contribution to project cost must be paid prior to release of loan funds. HRC can direct borrowers to additional financing sources. Work Completion: Weather permitting, work must be completed within 120 days of loan closing. General Home Improvement Loan 10/8/2012 Page 4 of 4 Disbursement Process: Loan funds will remain in escrow at GMHC until payment for completed work. The following items must be received before the funds can be released: 1. Final Invoice from each contractor showing all amounts paid and du e. 2. Lien Waiver. Original from each contractor. 4. Completion Certificate signed by each contractor and the borrower. 5. Permits Closed. Have the inspector sign the permit card, or have the inspector leave a message at the HRC at 651-486-7401. 6. Final Inspection and approval by the HRC. It may take up to 10 business days after receipt of above items to prepare checks. Payment checks to contractors must be countersigned by the borrower. Lien waivers must be provided before the funds will be released. Economic Development Authority (EDA) Code Enforcement Home Loan Criteria EDA Approved November 22, 2010 Amended December 12, 2011 The purpose of this loan is to provide loans for owner-occupied single-family or duplex properties in Mounds View that have been required by the City of Mounds View to bring their properties into compliance with the City Code. Loan Amount From $1,000 to $7,000 Loan Security All loans will be secured by a mortgage in favor of the City. The loan may be secured in a subordinate lien position behind the borrower’s existing prime/A-rated fixed rate mortgage. Interest Rate The interest rate is 0%. The monthly payment is fixed. Loan Term The maximum loan term is 10 years, however the loan shall become due upon sale, transfer of title, refinancing of the property, whichever occurs first. Loan to Value The borrower’s combined mortgage debt including the Mounds View loan cannot exceed 110% of the property value based on the taxable market value as determined by Ramsey County for the current year. Applicants may also submit a third party appraisal that has been completed within the last 6 months. Such an appraisal is to be obtained by the applicant at their expense. Debt to Income 50% Income Limit The applicant’s total gross annual household income shall not exceed 80% of the current year area median household income as defined by HUD per household size, as follows (FY 2013): Household Size Income Limit 1 $45,100 2 $51,550 3 $58,000 4 $64,400 5 $69,600 6 $74,750 7 $79,900 8 $85,050 Eligible Properties Mounds View owner-occupied single-family or duplex properties Code Enforcement 12/12/2011 Page 2 of 3 Application & Loan Disbursement Process The Housing Resource Center’s (HRC) North & East Metro office is the program administrator. Please call the HRC’s construction and loan consultants at 651-486-7401 to answer any questions about Mounds View’s loan program and/or your project. GMHC Housing Resource Center − North & East Metro 1170 Lepak Court Shoreview, MN 55126 Phone: 651-486-7401 Fax: 651-486-7424 DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A CLOSING HAS TAKEN PLACE. ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM. Application Process: Completed applications will be processed by the HRC ’s North & East Metro office on a first-come, first-served basis, as funds are available until a ll program funds are committed. After loan approval you will be notified to come to the HRC for a loan closing to sign a Note and Mortgage. Rehabilitation Consulting: HRC consultants will be available to advise borrowers about proposed projects and conduct an optional initial home inspection. HRC will review bid(s) for reasonableness. Eligible Repairs Exterior repairs required by Mounds View’s Code Enforcement Officer such as:  Exterior painting  Siding repairs/replacement  Rafters, soffit and fascia repair  Energy efficient window glass and screens  Railings and stairs  Landings and porches Interior repairs are allowed only if they are related to life safety of the residents and required by Mounds View’s Code Enforcement Officer. This may include a structural failure of the foundation, walls, or roof that could cause collapse. Ineligible Improvements  Exterior repairs to condos and townhomes  Any repairs to mobile homes  Driveways, sidewalks and paved areas  “Junk” or debris removal, removal of inoperable vehicles, etc. Contractor Bids Applicants must provide the Housing Resource Center’s Construction Manager with three bids for each improvement project. All contractors must be licensed and insured. Code Enforcement 12/12/2011 Page 3 of 3 Loan Costs: A credit report fee paid by applicant at time of application; mortgage registration tax and filing fee and title policy paid by borrower at closing. Th e title policy may be financed through the loan. Contractors & Permits: Contractors must be properly licensed by the state of Minnesota when required. Permits must be obtained when required by city code. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. Borrower’s contribution to project cost must be paid prior to release of lo an funds. HRC can direct borrowers to additional financing sources. Work Completion: Weather permitting, work must be completed within 120 days of loan closing. Disbursement Process: Loan funds will remain in escrow at GMHC until payment for completed work. The following items must be received before the funds can be released: 1. Final Invoice from each contractor showing all amounts paid and due. 2. Lien Waiver. Original from each contractor. 4. Completion Certificate signed by each contractor and the borrower. 5. Permits Closed. Have the inspector sign the permit card, or have the inspector leave a message at the HRC at 651-486-7401. 6. Final Inspection and approval by the HRC. It may take up to 10 business days after receipt of above items to prepare checks. Payment checks to contractors must be countersigned by the borrower. Lien waivers must be provided before the funds will be released. Economic Development Authority (EDA) Emergency Deferred Loan Criteria EDA Approved November 22, 2010 Amended December 12, 2011 The purpose of this loan is to provide financial assistance to owner-occupied single-family, duplex and manufactured home properties that are in hardship financial circumstances, are unable to get money from other sources an d have a serious health and safety home repair situation that poses a threat to residents if not addressed immediately. Loan Amount Up to $7,000 Loan Security All loans will be secured by a mortgage in favor of the City. The loan may be secured in a subordinate lien position behind other loans. This criteria does not apply to manufactured home owners. Interest Rate The interest rate will be 0% deferred. Loan Term The loan shall become due upon sale, transfer of title or refinancing of the property, whichever occurs first. Income Limit The applicant’s total gross annual household income shall not exceed 50% of the current year area median household income as defined by HUD per household size, as follows (FY 2013): Household Size Income Limit 1 $28,850 2 $32,950 3 $37,050 4 $41,150 5 $44,450 6 $47,750 7 $51,050 8 $54,350 Loan to Value The borrower’s combined mortgage debt including the Mounds View loan cannot exceed 110% of the property value based on the taxable market value as determined by Ramsey County for the current year. Applicants may also submit a third party appraisal that has been completed within the last 6 months. Such an appraisal is to be obtained by the applicant at their expense. Asset Limit The maximum gross assets of the borrower, excluding the residential property to be improved and a retirement account that is or was subject to penalty for early withdrawals before age 59 ½, shall not exceed $25,000. Emergency Deferred 12/12/2011 Page 2 of 3 Application & Loan Disbursement Process The Housing Resource Center’s (HRC) North & East Metro office is the program administrator. Please call the HRC’s construction and loan consultants at 651-486- 7401 to answer any questions about Mounds View’s loan program and/or your project. GMHC Housing Resource Center − North & East Metro 1170 Lepak Court Shoreview, MN 55126 Phone: 651-486-7401 Fax: 651-486-7424 DO NOT SIGN ANY CONTRACTS OR START YOUR PROJECT UNTIL A CLOSING HAS TAKEN PLACE. ANY PROJECT BEGUN BEFORE A LOAN CLOSING HAS TAKEN PLACE WILL BE INELIGIBLE FOR PARTICIPATION IN THE PROGRAM. Application Process: Completed applications will be processed by the HRC ’s North & East Metro office on a first-come, first-served basis, as funds are available until all program funds are committed. After loan approval you will be notified to come to the HRC for a loan closing to sign a Note and Mortgage. Rehabilitation Consulting: HRC consultants will be available to advise borrowers about proposed projects and conduct an optional initial home inspection. HRC will review bid(s) for reasonableness. Debt to Income 50% Eligible Properties Mounds View owner-occupied single-family, duplex or manufactured home properties Eligible Improvements  Failure of the heating, electrical, ventilation, or plumbing/septic system;  Roof leaks that have led to significant damage to the interior  A structural failure of the foundation, walls, or roof that could cause collapse;  Removing lead paint or the cause of a confirmed concentration of lead in the resident’s whole blood (Environmental Intervention Blood Lead Level)  Other emergency conditions that could cause the home to be or become uninhabitable will be considered by on a case -by-case basis Contractor Bid Applicants must provide the Housing Resource Center’s Construction Manager with one bid for each improvement project in an emergency situation if the construction manager deems the bid reasonable. All contractors must be licensed and insured. Emergency Deferred 12/12/2011 Page 3 of 3 Loan Costs: A credit report fee paid by applicant at time of application; mortgage registration tax and filing fee and title policy paid by borrower at closing. The title policy may be financed through the loan. Contractors & Permits: Contractors must be properly licensed by the state of Minnesota when required. Permits must be obtained when required by city code. Total Project Cost: It is the borrower’s responsibility to obtain the amount of funds necessary to finance the entire cost of the work. If the final cost exceeds the loan amount, the borrower must obtain the additional funds. Borrower’s contribution to project cost must be paid prior to release of loan funds. HRC can direct borrowers to additional financing sources. Work Completion: Weather permitting, work must be completed within 120 days of loan closing. Disbursement Process: Loan funds will remain in escrow at GMHC until payment for completed work. The following items must be received before the funds can be released: 1. Final Invoice from each contractor showing all amounts paid and due. 2. Lien Waiver. Original from each contractor. 4. Completion Certificate signed by each contractor and the borrower. 5. Permits Closed. Have the inspector sign the permit card, or have the inspector leave a message at the HRC at 651-486-7401. 6. Final Inspection and approval by the HRC. It may take up to 10 business days after receipt of above items to prepare checks. Payment checks to contractors must be countersigned by the borrower. Lien waivers must be provided before the funds will be released. Item No: 5D Meeting Date: April 19, 2013 Type of Business: EDC Administrator Review : ____ City of Mounds View Staff Report To: Economic Development Commission (EDC) From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Review Business Improvement Partnership Loan Program Background The Business Improvement Partnership Loan Program was created by the EDA in 1995 to provide up to $25,000 loans at 2% interest loans for exterior and interior improvements. Attached is the program flyer and application. EDA records show that the program was used three times; one for Dynex Industries in 1995, one for Mister Donut in 1995 and another to Mounds View Fina in 1996. Each loan was a “participation loan” with $25,000 provided by the EDA and $25,000 provided by the bank. The total loan fund budget for 20 13 is $50,000. Discussion Since the City Council’s 2013 Priority Statement relates to the revitalization of County Road 10, should the Business Improvement Partnership Loan Program amended to better support County Road 10 revitalization? For instance, should new businesses be eligible for the loan? Currently, businesses must be located in Mounds View for two years prior to becoming eligible to apply for the funds. Recommendation City staff recommends that the EDC review and discuss the Business Improvement Partnership Loan Program and provide a recommendation to the EDA regarding possible amendments to the program criteria and application. Respectfully submitted, ___________________________ Heidi Steinmetz, Economic Development Specialist Attachments  Business Improvement Partnership Loan Program Flyer & Application ECONOMIC DEVELOPMENT AUTHORITY (EDA) BUSINESS IMPROVEMENT PARTNERSHIP LOAN PROGRAM $25,000 LOANS AT 2% FOR EXISTING MOUNDS VIEW BUSINESSES A participating bank and the City of Mounds View Economic Development Authority (EDA) must approve all applications. PROGRAM PURPOSE The Mounds View Business Improvement Partnership Program was established to partner with the local business community by providing 2% interest loans for exterior and interior improvements. HOW THE PROGRAM WORKS The Mounds View Economic Development Authority, in partnership with local banks, will provide improvement loans to existing Mounds View businesses at a minimum of $10,000 and a maximum of $50,000 (the most the EDA itself would loan is $25,000). The EDA participates in the program by providing ½ the loan amount at a 2% interest rate. The loan is non-assumable. ELIGIBILITY REQUIREMENTS  Existing Mounds View business for two years  Qualified small business and credit history  Loan must be used to improve the interior or exterior of existing facility  Interior and exterior improvements must conform to current zoning ordinances, building codes, and other applicable city ordinances  Owner or officer of the business must be loan applicant QUALIFIED IMPROVEMENTS  Repair storefront entrances, windows, doors and other decorative applications  Upgrade interior design and configuration to enhance business  Paint, clean, or stain interior and exterior of building  Upgrade or replace existing business sign  New or upgraded landscaping to improve appearance of facility  Parking lot reconfiguration or repair  Required storm water discharge improvements  Upgrade facility to comply with American with Disabilities Act requirements HOW TO APPLY Contact Economic Development Specialist Heidi Steinmetz at 763-717-4029 or heidi.steinmetz@ci.mounds-view.mn.us for an application. APPLICATION EDA BUSINESS IMPROVEMENT PARTNERSHIP LOAN Business Name:______________________________________________________ Business Address:____________________________________________________ Applicant Name (Business Owner/Officer):__________________________________ Number of years located in Mounds View:__________________________________ Phone:_______________________Email:__________________________________ Business Website Address:______________________________________________ Business Description:___________________________________________________ ______________________________________________________________________ Description of Work to be Performed Name of Contractor Projected Cost Signature:__________________________________________________ Title:_______________________________________________________ Date:________________________ Mounds View EDA Business Loan Application Page 2 of 2 Please attach the following items as exhibits to your application: _____ A. Fiscal year-end financial statements for last three years _____ B. Most recent interim financial statement _____ C. Personal financial statement(s) of owner(s) _____ D. Bids or Contracts to substantiate projected costs _____ E. Plans and specifications All applications must be approved by a participating bank and the City of Mounds View Economic Development Authority (EDA). Item #: 7A−G Meeting Date: April 19, 2013 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Reports of Staff 7A – TCAAP Development Update Attached is an article about Ramsey County’s recent purchase of the property. 7B – County Road 10 Name Change Update Staff will provide a verbal update at the EDC meeting. 7C – Mounds View Business News Attached is a copy of the March 2013 edition of Mounds View Business News. 7D – Available Business Sites in Mounds View Attached is a list of available business sites in Mounds View. Site details are availab le on the City’s Website. 7E – Annual Town Hall Meeting – Monday, April 29, 2013 The 9th Annual Town Hall Meeting will be held on Monday, April 29, 2013, from 6:00- 8:30pm at Mounds View City Hall. There will be City department exhibits and a formal presentation from the Mayor and City Administrator at 6:00pm. The meeting will be broadcast live (and replayed) on Mounds View TV, Cable Channel 16. 7F – Spring Clean Up Day – Saturday, May 4, 2013 Attached is a flyer for the event. 7G – Next Business Council Meeting – Wednesday, May 8, 2013 Mounds View Business Council meetings are held monthly at the Mounds View Community Center at 7:30am. Respectfully submitted, ____________________________ Heidi Steinmetz, Economic Development Specialist http://www.twincities.com/localnews/ci_23036453/ramsey-countys-tcaap-purchase-finalized-at-28-million# Page 1 of 2 17/04/2013 11:37 AM TCAAP Superfund site now belongs to Ramsey County By Frederick Melo fmelo@pioneerpress.com TwinCities.com-Pioneer Press Posted:TwinCities.com Despite objections of some neighbors, Ramsey County has completed the $28 million purchase of the remainder of the Twin Cities Army Ammunition Plant in Arden Hills -- the state's largest Superfund site. How will the land be redeveloped? That remains to be seen. Carl Bolander and Sons Co. has been hired to proceed with environmental cleanup as the 427 acres are transferred into the county's hands and out of the control of the federal government. "We've already closed," county board Chairman Rafael Ortega, who led negotiations on the contract, said after commissioner met Tuesday, April 16. "It's a done deal. I signed all of the paperwork yesterday." County officials hope to clean up the contaminated land within the next three to five years so that it can be sold for private residential development. Skeptics, including some members of the county board, maintained that putting the county in the chain of title for a polluted property was an unusual move, and local taxpayers would be left on the hook for what should be a federal cleanup and redevelopment project. As part of the deal with the federal government, however, the cost of environmental cleanup will be deducted from the purchase price, leaving the sale cost at $4.9 million, county officials say. Leading up to the purchase, U.S. Rep. Betty McCollum, D-Minn., raised tough questions about the plans, without publicly withdrawing her backing for the process. "I have been contacted frequently by Ramsey County residents who have voiced concerns and questions about the sale," McCollum wrote in a letter to County Manager Julie Kleinschmidt. Ramsey County hired the law firm of Gray, Plant, Mooty, Mooty and Bennett to ensure "the county avoids potential liability arising from the United States Army's prior use of the site." The two-part sale that closed Monday involves the initial purchase of 397 acres that previously had been cleaned up to industrial standards. The remaining 30 acres has "residual soil contamination," and that land will be leased from the federal government until the environmental remediation is finished. "Once the cleanup is complete, Ramsey County will take title to the leased property," according to a letter from the law firm. Even after the property transfer, "the federal government will retain liability for groundwater remediation and certain other environmental liabilities." The county bought environmental insurance as an additional safeguard. The TCAAP site has been the subject of political battles and failed development dreams for decades. In its entirety, TCAAP comprises nearly 2,370 acres in the northern third of Arden Hills. The former World War II-era ammunition manufacturing site was placed on the Superfund list in 1983. Currently, the 1,500 acres west of Lexington Avenue comprise the Arden Hills Army Training Site,. Another 173 acres are maintained by the Minnesota Department of Transportation, Ramsey County and Arden Hills for a public works facility and Arden Hills City Hall. An additional 112 acres form the Rice Creek North Regional Trail, and the rest was declared surplus by the federal government in 2002. http://www.twincities.com/localnews/ci_23036453/ramsey-countys-tcaap-purchase-finalized-at-28-million# Page 2 of 2 17/04/2013 11:37 AM After simmering for years, the Ryan Cos.' plan to redevelop the site was withdrawn in 2009, and Arden Hills considered using the entire site for parks and open space. Zygi Wilf, a major owner of the Minnesota Vikings, had proposed building a stadium for the team on the land and surrounding it with hotels, residences and commercial shops. Instead he brokered a deal last year with Minneapolis and state lawmakers to redevelop the site of the existing Metrodome. Tough discussions over how to redevelop the site are likely to continue at several levels of government. State Sen. Bev Scalze, DFL-Little Canada, has introduced legislation that would dedicate $35 million to road improvements around TCAAP. Arden Hills Mayor David Grant called the purchase "fantastic news" and said he has awaited progress on TCAAP since he joined the city council more than a decade ago. Arden Hills has hired a consultant to help with a redevelopment master plan and expects Ramsey County to install a "spine road" through the site once cleanup is completed. Frederick Melo can be reached at 651-228-2172. Follow him at .twitter.com/FrederickMelo IF YOU GO The county has scheduled an open house at 5 p.m. on May 7 at the Ramsey County Public Works Building in Arden Hills. Information about the purchase and cleanup will be presented. City Hall: 763−717−4000 City Website: www.ci.mounds-view.mn.us March 2013 Volume 3, Issue 1 Mounds View’s Business Newsletter Mounds View Business Council April 10, 2013 The Twin Cities North Chamber of Commerce invites Mounds View business owners and representatives to attend Mounds View Business Council meetings the 2nd Wednesday of each month at the Mounds View Community Center (5394 Edgewood Drive). The next meeting is scheduled for Wednesday, April 10, 2013, at 7:30am. To receive meeting notices via email, contact Tim Roche at tim@twincitiesnorth.org or 763-571-9781. Congratulations Western Bank & BioLife! Mounds View’s Western Bank and Biolife Plasma Services won awards at the Twin Cities North Chamber of Commerce’s Annual Gala & Excellence in Business Awards on February 22, 2013! Excellence in People Development - Western Bank Community Advocate Award - BioLife Plasma Services Free Comedy Show Every Wednesday The Mermaid Event Center 2200 County Road 10 9:00pm www.mermaidminnesota.com Mounds View Anytime Fitness Special Offer 2541 West County Road 10 763-786-2244 Spring Business Expo Tuesday, March 26, 2013 The Mermaid Event Center 2200 County Road 10 5:00−7:00pm  Booth space still available: Chamber Members - $150 Non-Members - $200  Vendors receive: 8-foot table with 1 white table cloth & 2 chairs (no table skirting)  Free appetizers provided by Chamber Member restaurants and caterers  Open to the public (free admission)  To reserve a booth, call the Chamber at 763-571-9781.