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HomeMy WebLinkAbout12-18-2015 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION AGENDA MOUNDS VIEW CITY HALL FRIDAY, December 18, 2015 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF THE AGENDA 4. APPROVE MINUTES from November 20, 2015 5. EDC BUSINESS A. Approve EDC Meeting Schedule for 2016 B. EDC Applications – Review & Provide Recommendation to EDA 6. REPORTS OF STAFF A. Mounds View Project Updates 7. REPORTS OF COMMISSIONERS 8. NEXT REGULAR EDC MEETING – January 15, 2016 9. ADJOURN Commissioners: Chair Jason Helgemoe, Dan Larson, Jim Freichels, Gary Stevenson, Jessica Rieland, Laurie Shoop, and Royal Dahlstrom City Staff: Jim Ericson, City Administrator Brian Beeman, Business Development Coordinator Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting November 20, 2015 City of Mounds View, Council Chambers 2401 County Road 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Jason Helgemoe called the meeting to order at approximately 7:30 a.m. 2. ROLL CALL Members Present: Chair, Jason Helgemo, Vice Chair, Jim Freichels, Commissioners, Gary Stevenson, Laurie Shoop, Royal Dahlstrom, and Dan Larson Members Absent: Jessica Rieland Staff Present: Business Development Coordinator, Brian Beeman Meeting Attendees: Council Member, Gary Meehlhause 3. APPROVAL OF NOVEMBER 20, 2015, AGENDA Motion/Second: Commissioner Freichels moved and Commissioner Stevenson seconded the approval of the November 20, 2015 EDC agenda. Motion Carried: 6 Ayes, 0 Nays 4. APPROVAL OF AUGUST 21, 2015, EDC MINUTES Motion/Second: Commissioner Stevenson moved and Commissioner Freichels seconded the approval of the August 21, 2015 EDC minutes, as presented. Motion Carried: 6 Ayes, 0 Nays 5. EDC BUSINESS Review Business Subsidy Policy Business Development Coordinator, Beeman provided the Commission a background of the Business Subsidy policies stating the policies haven’t been updated since 2003 and some state statutes have changed. Business Subsidy policies are required by statute and provide guidelines for the city to use when financial incentives are requested. The original policies were constructed using the City of Elk River and Saint Anthony’s policies. Elk River recently completed their policy updates utilizing the same law firm as Mounds View, and Elk River has shared their updates with Mounds View staff to use as a comparison. Draft EDC Minutes November 20, 2015 Page 2 of 8 The first change was to add a title page listing the approving authority and dates of approved amendments. From researching past meeting minutes, it is thought that the City Council gave its authority to the EDA as the final approving authority for policies and business subsidies. However, there is some reference to the City Council’s involvement in joint public hearings. By notating the authority and date on the title page it will help save time for staff in the future. Second, staff added a table of contents. Next, the phrase Tax Rebate Financing was changed to Tax Abatement since that it how it is referenced in state statues and in other city’s policies. Chair Helgemoe clarified that in past history a Commissioner had wanted it phrased as Tax Rebate Financing so that residents didn’t think the city was providing a gift. Beeman explained that there are two types of Tax Abatement. One type can be used to forgive a portion of the property tax depending on the circumstance, another way to use Tax Abatement, which is more common, is to apply a portion of the monies back into the development project. Staff clarified what criteria would require a public hearing. There has been some confusion in the past as to when a subsidy would require a hearing. To simplify the matter, staff included the 23 instances that would trigger a public hearing. Under Roman numeral III staff added a clause defining the public purpose and objective stating, it is a development that would not be achieved without the assistance of a public subsidy. This language is again consistent with the state statute. Under IV, letter D. was added to provide guidelines on not exceeding the fair market value. The definition of excess fair market value normally is the excess of the acquisition price being in excess of 10% of the market value. The clause also leaves discretion to the city on a case-by-case basis in instances that may be deemed appropriate. Section V is the addition of retail and service industry as a recipient of business subsidies. Although retail is not normally a benefactor in public subsidies, they may qualify in circumstances where the project contributes to a strategic goal of the city like the addition of considerable jobs or the overall tax base. This clause provides a guideline for the city in those situations. Business retention was defined due to past confusion in dealings with other businesses wanting to keep the same number of employees but add to the overall valuation with a new building or expansion project. The subsidy would be allowed in instance where the jobs would be lost but for the new development occurring. The retained jobs need to provide for the increased and diversification of local jobs. To be considered for a new or retained job a Minimum wage has been defined in order to receive a public subsidy. Minimum wage in this sense is not referring to the State and Federal set minimum wages, however, the policy’s minimum wage is based upon $15.00 per hour or 150% of the State or Federal minimum wage whichever is greater. This is exclusive of the benefits required by law. The policy leaves discussion in instance where the project would provide a significant increase in the tax base. Draft EDC Minutes November 20, 2015 Page 3 of 8 The next section explains the application process. An applicant must provide their information on the preapproved application forms. Staff will work with the city’s financial consultants who will review at least two years of the company’s financial statements to verify a gap in financing the project. Other deletions in the policy are to eliminate wordy and confusing language. The last section is the reporting requirements. Beeman explained that the city is required by law to report wage and job goals to the state each year and sometimes the company owners are not located in Minnesota and have multiple locations around the country and even in other countries. Retrieving this information can be daunting. In order to have some leverage, Beeman has place language in the policy allowing the city retribution in cases where companies are not cooperative in their required reporting to the city. If the city misses the annual statutory reporting deadline then the city could lose its ability to subsidize businesses. Beeman noted the other deletions were to eliminate confusing and wordy language. The city attorney will review the policies before the EDA sees them to verify the changes and ensure the statutory language. The EDA will make the final determination whether to accept the amended policy or not. Beeman noted that it is always good to have another set of eyes review the policies and perhaps the EDC, especially those that have been on the EDC for a while, may recall instances in the past that may dictate other language in the policy. Beeman asked the EDC if they had any questions or suggestions concerning the policy. Chair Helgemoe asked Beeman to explain the last time a business subsidy was applied for in the city. Beeman noted that to his knowledge Medtronic was the last applicant to apply for a TIF and that was approximately 7 years ago. As of the end of 2015 the city will have decertified all of the other TIF districts leaving the Medtronic TIF district as the only remaining district. Beeman explained that there was a potential TIF applicant for the Skyline Motel project for a light industrial project. However, it was determined that the ratios weren’t high enough to justify the use of TIF and they city didn’t feel comfortable at the time in subsidizing a property owner who is unwilling to negotiate. In these situations it is more of a policy decision to get rid of blight and substandard conditions, rather than job creation. Helgemoe asked for questions from the Commission. The commission felt that Beeman has done a good job researching and preparing the update. Hearing no questions Helgemoe asked how the review of financial statements is handled and should that be defined in the policy. Beeman said he had included that language in both the TIF and Tax Abatement policies. Beeman explained that the city’s financial consultant will review the financial statements to verify any gaps in financing the project. Using a third party financial consultant serves two purposes. It protects the city in case of a legal dispute and it allows the financial statements of a company to be reviewed through a non- disclosure agreement so that the company’s financials remain non-public. The consultant will then provide a memo to the city confirming that they have reviewed the financial statements along with their findings. Doing it this way is a win-win for the city and company being evaluated for public assistance. Draft EDC Minutes November 20, 2015 Page 4 of 8 Chair Helemoe asked the Commissioners again if there were any questions. Commissioner Stevenson said it was easy to follow along. Commissioner Dahlstrom said the policy is much cleaner now. Helgemoe reiterated the good job. Hearing no further questions Helgemoe asked for a motion to approve the policy. Motion/Second: Commissioner Shoop moved and Commissioner Stevenson seconded the approval of the Business Subsidy Policy Amendments making a recommendation to the EDA to review and approve the proposed changes. Motion Carried: 6 Ayes, 0 Nays 6. REPORTS OF STAFF Crossroad Point Redevelopment Project Business Development Coordinator, Beeman provided the Commission with an update on the Crossroad Pointe redevelopment site. Beeman contacted approximately 40 developers. Seven of those said they would be interested in submitting a proposal. Only one developer of those 7 submitted a proposal. On October 5, 2015 the City Council held a work session to review a proposal from The Beard Group for a Phase I three story apartments with 119 units and underground parking. Phase II would entail a commercial development along County Road 10 with the idea of a patio type restaurant and/or office/medical user with underground parking. Parking has been an identified concern however; The Beard Group doesn’t seem concerned stating that they will have underground parking. The Council at the time was in favor of the project and generally in favor of providing some sort of financial assistance if an application is received. At the time, the Council authorized staff to bring forward a pre-development agreement for consideration. Since that time, staff learned that The Beard Group is only interested in Phase I and doesn’t want to be obligated to complete Phase II under a defined timeline in case markets change etc. At the November 23, 2015 meeting the EDA will consider whether or not they would accept the development occurring with potentially two developers and splitting the land into two separate developments. If deciding not to allow The Beard Group to go forward, then there were two mixed-use developers who showed interest, with the remaining developers all interested in senior housing. However, none of these developers had submitted their proposal in the first round. The TCAAP site will be developing soon and this may affect the city’s window of opportunity for this site. Commissioner Freichels said in the developer tours they were shown more two-bedroom apartments rather than one-bedroom. However, the proposed Mounds View site shows more one-bedroom units. He asked why that was the case. Beeman said he noticed that in their proposal as well and was reassured from the Beard Group that they had been conducting studies and trends with millennials and came to the conclusion that the market for this area is more in the one-bedroom units. Draft EDC Minutes November 20, 2015 Page 5 of 8 The Beard Group could purchase the Phase II site, however they would like to study the markets for a potential Phase II commercial development and not be locked into a timeline or build a new building that sits vacant. Beeman said The Beard Group would like to break ground in the spring of 2016 and get all of the development agreements, land negotiation, zoning requirements, etc. completed this winter so that they are clear for the spring. Business Retention & Expansion Visit (BR&E) Updates Coordinator Beeman informed the Commission that he has been very aggressive in the business retention and expansion visits in trying to g et ahead of trends to ensure that businesses stay in Mounds View. Outsource Receivables: Is located across the street from city hall. They conduct medical billing and serve as an outsourced financial department for many medical clinics across the metro. They moved to Mounds View to get away from the crime in Brooklyn Center. They purchased half of the building and may consider an acquisition soon which would require more parking spaces. They are working on an agreement with Walgreens. If that doesn’t work, they will be contacting the city to determine if parking at the Community Center would be permissible. Sara Lee: They are also considering an expansion. They currently occupy 18,000 SF and would need a custom 40,000-50,000 SF building. They would consider staying in Mounds View if they can take the tenants space next door. This could be a possibility since that tenant may be leaving. If expanding, they would be adding more employees. Magno International: They are headquartered in Florida and for the Mounds View location; they serve as a warehouse for medical products. They are also passively seeking more space. Zep Manufacturing: When visited, they were doing well. However about a week after the visit, the city was informed that they had been acquired by a private entity and the Mounds View location would be consolidating to Chicago. The building is now vacant and up for lease. Another company in town wanted to purchase the building but the property owner only wants to lease the building. Rice Creek Commons (TCAAP) Development Update Next, Coordinator Beeman provided an update on anticipated improvements relating to Rice Creek Commons. He informed the Commission that the Ramsey County project manager will be speaking at the next Mounds View Business Council meeting December 9 at 7:30 a.m. at the Community Center. Also be expecting some updates to be posted to the city’s newsletter on alternate truck routes and project updates. This is important because there will be Met-Council and City improvement projects going on at the same time starting in the spring. Draft EDC Minutes November 20, 2015 Page 6 of 8 Mounds View Project Updates Beeman provided an update on the Bio Life ribbon cutting ceremony. Several people were in attendance including representatives from the Baxter group who is the parent company to the Biolife centers, County Commissioners, and City Council Members and city staff as well as several business owners. Coordinator Beeman updated the Commission on the new Bel Rae Senior Living facility stating that they are now 50% filled and taking on new reservations each week. Chair Helemoe asked if they had projected specific occupancy by a certain timeline. Beeman said they purposefully did everything in phases so that they could take on a few residents and hire staff gradually eventually ramping up to full occupancy. They seem to be doing well and are even talking about a phase II in another city. Apple Tree Dental is still planning to build their second floor buildout in the spring. The library is planning to construct their trail extending from the city’s existing trail to the library building. In exchange for the library allowing Apple Tree Dental staff to park in their parking lot, Apple Tree Dental would be required to maintain the trail. Pat’s Muffler Shop went out of business but they are now occupied by an auto repair shop that fixed the broken windows and painted the exterior of the building and cleaned up the rear of the building. They are doing well and currently looking to install a new sign. Snap Market is out of business. The Indian Wedding shop next door is interested in leasing the space for warehousing but don’t want to pay the retail fees. HB Systems is a new computer security and support company specializing in medical and law type businesses. They are located in the center of the Midwest -Medical building next to Medtronic. Louisiana PoBoy is also out of business. They struggled since opening. There has been a request for a Pub type business and if a liquor license could be granted for this site. A real estate broker specializing in restaurants has listed the site. Chair Helgemoe asked if an Applebee’s or similar business could go into that space considering zoning & liquor licenses. Commissioner Stevenson said the parking in general is not big enough to support that type of business with a sit-down restaurant. Beeman has asked the broker to determine if a Chick-Fil-A or Wendy’s would work. They are looking into it. Snyder Building Beeman updated the Commission on the Snyder building. The owner is from Canada and built the building during the construction peak, then when the “Great Recession” hit, Snyder’s handed over the keys and didn’t honor their lease, leaving the owner stuck paying the mortgage. The owner is accepting reasonable offers above $1 mill and below $2 mill. The original asking price was $2.5 mill. The owner is an accomplished investor, owning some strip malls and three other pharmacies in Canada. He is open to any creative financing for a tenant or buyer and would like to see something happen but he is not willing to give it away either. Draft EDC Minutes November 20, 2015 Page 7 of 8 County Road 10 Addressing Beeman then provided an update on the County Road 10 addressing stating , city staff has done what they can to this point and the project is in the county’s hands to come up with the resources to complete the project. The County must determine that resigning is a priority before this project can become a reality. Mounds View Business Council Meeting Next, Beeman informed the Commission that the next Mounds View Business Council meeting will be held December 9, 2015 at 7:30 a.m. at the Mounds View Community Center. The Chamber of Commerce determined that these meetings haven’t been generating enough interest and felt that by going to quarterly meetings it would increase the attendees. The speaker will be Beth Engum, Ramsey County project manager for the Rice Creek Commons project. Other Upcoming Events Beeman informed the Commission that he had attended the Regional Economic Gardening meeting Wednesday. The speaker was the CEO of the Cirrus Design Corporation. He is in the Hall of Fame for aeronautics. There company is the only aircraft company in this class of airplanes that didn’t go bankrupt during the economic crisis. This is due to the continual redesign and innovation of their product. He wanted to make an airplane that was so simple anyone not knowing how to operate an airplane could get in and drive it like a car. The Economic Gardening group is looking for two more businesses to join the next class. They are hoping to generate interest from a Mounds View company. They are looking for a phase II business with at least 10 employees and up to about 99 employees who wants to get to the next level. The group will provide strategic planning and research; CEO’s will meet to discuss common issues and how to solve them. If anyone knows of a Mounds View business that would be interested Commissioners are encouraged to let Beeman know so that he can provide them the necessary information. Beeman reminded the Chamber that the city is a member of the Twin Cities North Chamber of Commerce who holds a free breakfast each month. Commissioners are encouraged to attend if available. Beeman informed the Commission that he attended a Saint Paul Chamber of Commerce event last week and Mounds View was nominated as a finalist for its aggressive business retention and expansion program. Beeman noted that he didn’t know who nominated the city or the criteria for receiving an award. The Lieutenant Governor, Mayor of Saint Paul, County Commissioners, and several cities were in attendance. Over 70 business visits have been completed in about a year’s timeframe. Other cities who have an economic development staff of five or more and who also coordinate with their chamber of commerce had only completed about 9 visits. Beeman is the only economic development staff member in Mounds View. Beeman thanked the Commissioners saying this is a tribute to the EDC and City thanking the Commission for Draft EDC Minutes November 20, 2015 Page 8 of 8 their efforts and support in the business retention program. The Commissioners thanked Beeman for his efforts and involving the Commission in the business visits. 7. REPORTS OF COMMISSIONERS Chair, Jason Helgemoe asked for reports from Commissioners. Hearing none, Helgemoe reminded the EDC that today is the last day to submit applications to EDC to be considered for another term. Commissioners Helgemoe, Freichels, and Stevenson’s terms are expiring December 31, 2015. All three Commissioners expressed their interest in another term and will submit their applications by the deadline. 8. NEXT REGULAR EDC MEETING Hearing no further comments from Commissioners or the audience, Helgemoe stated the next meeting will be held December 18 at 7:30 a.m. Helgemoe asked Beeman what would be on the next agenda. The EDC will consider another component of the financial policies. The EDC will review either the Tax Abatement or TIF policy and also consider the EDC applications making a recommendation to the EDA. 9. ADJOURN There being no further business, Chair Helgemoe adjourned the November 20, 2015, meeting at approximately 8:27 a.m. Respectfully submitted, _______________________________ Brian Beeman Business Development Coordinator Item #: 5A Meeting Date: December 18, 2015 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Establish EDC Meeting Calendar for 2016 Background Section 408.07 of the Mounds View Municipal Code and the EDC Bylaws require that the Economic Development Commission establish a meeting calendar. The Bylaws specify that the meetings shall occur on the third Friday of each month. The Commission has traditionally met at 7:30 am. If there is a desire to meet on alternative days, a new resolution would need to be adopted, per Bylaws. If the Commission wanted to meet at a different time on the third Friday, that could be accomplished by motion. The following dates represent the third Fridays through 2016. January 15, 2016 February 19, 2016 March 18, 2016 April 15, 2016 May 20, 2016 June 17, 2016 July 15, 2016 August 19, 2016 September 16, 2016 October 21, 2016 November 18, 2016 December 16, 2016 It does not appear that any of the above dates conflict with observed holidays. Staff Recommendation Staff recommends the Commission make a motion to approve Resolution NO. 15-EDC- 39 establishing the calendar of meeting dates for 2016 and confirm the time of day. Respectfully submitted, ____________________________ Brian Beeman, Business Development Coordinator MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION RESOLUTION NO. 15-EDC-39 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION ESTABLISHING CALENDAR OF MEETING DATES FOR 2016 WHEREAS, The Mounds View Economic Development Commission plans to hold one business meeting per month throughout 2016, with the exception of Special Meetings; and WHEREAS, the adoption of a list of meeting dates provides an orderly system of advance notification for the benefit of the EDC, City staff and the general public. NOW, THEREFORE, BE IT RESOLVED that the Economic Development Commission hereby adopts the calendar of 2016 meeting dates attached hereto. Adopted this 18th day of December 2015. Chair ATTEST: City Administrator CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION 2016 MEETING DATES January 15, 2016 February 19, 2016 March 18, 2016 April 15, 2016 May 20, 2016 June 17, 2016 July 15, 2016 August 19, 2016 September 16, 2016 October 21, 2016 November 18, 2016 December 16, 2016 (All meetings will be held at Mounds View City Hall at 7:30 a.m. unless otherwise noted) Item #: 5B Meeting Date: Dec 18, 2015 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review Applications to the Economic Development Commission, Make Appointment Recommendations to the EDA Background: The Economic Development Commission is comprised of seven members—three business representatives and four resident representatives. Each member serves a three year term which are staggered to ensure continuity of service. The terms of Jason Helgemoe, Jim Freichels, and Gary Stevenson expire December 31, 2015 leaving two Business Representative and one Resident opening. All three openings are for the term starting January 1, 2016 and ending December 31, 2018. Discussion: After posting notice online, through social media, the Cable TV channel, and in the City newspaper, applications were received from Jason Helgemoe and Jim Freichels for the Business Representative opening and Gary Stevenson, for the Resident Representative. Mr. Helgemoe has been an EDC member since 2002 and is a banker at Northeast Bank. While Mr. Freichels, CEO of Dell-Comm and Mr. Stevenson a Planning Commissioner have been EDC Members since 2013. All three applicants have provided a wealth of knowledge and experience to the EDC. Recommendation: Review the applications and make a motion recommending to the EDA to appoint two Business Representatives and one Resident Representative to the EDC with all three terms beginning January 1, 2016 and expiring December 31, 2018. ________________ Brian Beeman Business Development Coordinator Attachments: 1. Applications from Jason Helgemoe, Jim Freichels, & Gary Stevenson At last, TCAAP site ready for development By: Brian Johnson November 16, 2015 3:12 pm 0 Minnesota’s biggest Superfund site is finally fit for new development, now that environmental cleanup of the 427-acre former Twin Cities Army Ammunition Plant site in Arden Hills is a wrap. Ramsey County officials on Friday announced the completion of environmental cleanup and clearing of the sprawling former U.S. Army property, which is in the northeast quadrant of Interstate 35W and Highway 96. The milestone comes three years after the county agreed to buy the heavily polluted property from the federal government in hopes of revitalizing the site and getting it back on the tax rolls. The county paid $28.5 million for the land, which includes the $22.5 million cleanup cost. City and county officials have targeted the site for new development for decades. The site has been off the tax rolls since 1941, and is part of a larger 2,300-acre TCAAP site that also includes a U.S. Army Training Center, a trail and civic buildings. The federal government acquired the site in 1941 for small arms ammunition production. At its peak, 26,000 people worked at TCAAP before ammunitions operations ceased in 1976, according to the city of Arden Hills website. The site was placed on the Superfund list in 1983. Four years later, the U.S. Army began cleanup work with oversight from the Minnesota Pollution Control Agency and the U.S. Environmental Protection Agency, according to the city of Arden Hills website. The land was polluted with an array of contaminants, from PCB-contaminated soil to lead and chlorinated solvents. “I think a lot of people thought that the site would never get cleaned up,” said Heather Worthington, deputy county manager for Ramsey County. The end of environmental cleanup sets the stage for a redevelopment plan, known as Rice Creek Commons, which includes residential, commercial and office uses. Redevelopment proposals have come and gone, with ill-fated plans ranging from a proposed Ryan Cos. US Inc. mixed-used development to a new Minnesota Vikings stadium. Pollution has always been an obstacle. Between the cost of cleaning up the land and putting in the necessary infrastructure, private developers couldn’t make the numbers work, Worthington said. “This was such an unknown [for private developers] in terms of their financial liability,” Worthington said. “They had a difficult time wrapping their arms around what it would cost.” St. Paul-based Carl Bolander and Sons finished the cleanup work on time and on budget, Worthington said. How big of a job was it? Putting it in perspective, the county said Bolander removed 49 miles of material including 400,000 tons of concrete and asphalt, 43,700 feet of railroad track, 39,000 feet of fencing, and nearly 178,000 feet of piping, from gas mains to sanitary pipe. Building demolition at the site began in May 2013. Roughly 93 percent of the materials hauled off the site were recycled or reused, said Todd Planting, project manager for Bolander, which partnered with Wenck Engineering on the project. A significant portion of that is pavement, as well as concrete, steel materials and rebar from old structures. Heavy timber framing material included old growth Douglas fir, Planting said. “That was deconstructed and salvaged and it will be re-milled and incorporated into new construction,” Planting said. Worthington said the county was required to clean the property at least to commercial/industrial standards, but opted to spend an additional $1.5 million to get it to the higher residential level. “We wanted to make sure we made the development potential as flexible as possible,” Worthington said. Development is expected to play out in stages over nearly 10 years, but things could start to happen there in 2016 or 2017, Worthington said. For now, the county is working with the Minnesota Pollution Control Agency to verify the cleanup work, and it will then ask the agency to de-list the property as a Superfund site for soil contamination. Meanwhile, a number of area road improvements are just completed or in the works, including the $27 million County Road H/I-35W interchange project. Construction is expected to start this spring. The Minnesota Department of Transportation just completed an $11.7 million diverging diamond interchange at County Road 95 and I-35W in the TCAAP area. Worthington said it’s the first interchange of its kind in Ramsey County. Last month, the county agreed to acquire an additional 93 acres for a multi-use trail to serve the TCAAP site. Jill Hutmacher, Arden Hills’ community development director, said the completion of environmental work is “a huge milestone.” “We are very happy with the work Ramsey County and Bolander have done, bringing that site to residential level of completeness,” Hutmacher said. The county continues to draft a master developer solicitation for Rice Creek Commons. A master developer solicitation is expected to be out in 2016, Worthington said. A draft framework for the site envisions 151 acres for residential development, 168 acres for commercial, 25 acres for parks and green space, and 83 acres for a four-lane arterial road. Item #: 6A Meeting Date: December 18, 2015 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Reports of Staff A. Crossroad Pointe Redevelopment Project At their November 23, 2015 meeting the EDA heard comments from The Beard Group and staff regarding the proposal for a three story 119 unit apartment building with underground parking on the 4.25 acre Crossroad Pointe site. The Beard Group originally had proposed developing the entire site. However, those plans changed when considering the pre-development agreement. The new proposal is to build the apartment building on only 2 acres, leaving the oblong shaped triangle property along County Road 10 to the city’s discretion. The Beard Group would like to use Phase II as a staging area for the Phase I development. Once Phase II is complete, The Beard Group could either purchase the remaining lot developing it themselves or in partnership with another developer, or they would leave ownership to the city to market and develop as a commercial site . The EDA Chair was hesitant in allowing only parts of the 4.25 acre site to be developed stating that the site was to be considered a des tination and allowing more housing isn’t a destination. The rest of the EDA expressed their support for the project noting that the type of modern apartments being proposed is a different product than what Mounds View can currently provide. Ultimately, the EDA approved unanimously to accept the development in two phases. The next step is for staff to complete the pre -development agreement for EDA approval. It is expected that the developer will submit a financial incentive application at some point in the process. Most likely, this would be for a redevelopment TIF to assist with the underground parking portion of the project. B. Business Retention & Expansion (BR&E) Visits Since the November EDC meeting, BR&E visits have been completed with Skye’s Salon, Midwest Medical Services, Inc. and Raymond Vandeveer Realty. Skye’s Salon: The company started about a year or so ago. They have one employee and like the city’s consideration to possibly implement a collective garbage service. They are happy in Mounds View and plan on staying long-term. They give the city 7 of 10 possible points for serviceability. Reports of Staff December 18, 2015 Page 2 of 3 Raymond Vandeveer Realty: The company started in its current location in 2008. They plan on staying in Mounds View long-term. Their clients are from a 50 miles radius. They own the office building next to Snap Market and have 3 offices available totaling 1200 SF. They have five employees and give the city 8 of 10 points for serviceability stating the city is good to work with except when they Ok’d the business to cut bushes then questioned why he cut the bushes two years ago. Midwest Medical Services, Inc.: Midwest Medical Supply or Midwest Companies has been in Mounds View since 1996. They just completed a $120,000 renovation and are still looking for more space. (25,000 SF Office/Warehouse) They would like to own, not lease and would like space for March 2016. Being a national distributor of medical supplies and having 142 FT and 42 PT employees, they expect a 5-10% increase in 2016. Most of their markets are primarily in the Twin Cities, but they also have offices in Aikin, St. Cloud, Burnsville, and Duluth and they are looking to expand in WI, IA, ND, SD, NE. They would like to install a new sign right away. They like the Mounds View location with access to I-35W & HWY 65. The city is always good to work with and they are business friendly. C. Rice Creek Commons (TCAAP) Development Update The superfund site cleanup has been completed and another 93 acres has been purchased to be used as a multi-trail recreational addition. The Metropolitan Council approved the City’s TCAAP Comprehensive Plan Amendment on October 28, 2015. Ramsey County has announced that the demolition and remediation pro ject is complete, and that the site has been cleaned to a residential standard. A Finance and Commerce article published on November 16, 2015, is attached. Construction on the TCAAP site and County Road 10 & H is expected to start in the spring of 2016 with final completion early 2017. Beth Engum, Ramsey County Project Manager provided an update December 9 at the Mounds View Business Council meeting. Staff continues to notify area businesses of the upcoming construction so they can plan for alternate truck routes. D. Mounds View Project Updates Bel Rae Senior Residential Facility: Ebenezer, the management company, has stated that the new facility is now over 60% filled with more rooms continually being reserved. E. Snyder Building Staff is in regular contact with the realtor offering ideas and leads. The main issue is the price and lack of parking. The asking price has been reduced from $2.5 mill to somewhere between $1 to $2 mill. The lease is over $14 p/sq. ft. Many businesses like the location but can’t afford the price and/or require more parking spaces. Staff has Reports of Staff December 18, 2015 Page 3 of 3 learned that the original owner was stuck paying the mortgage and is accepting reasonable offers and is open to creative financing. F. County Road 10 Addressing County Road 10 signage has caused much confusion over the years with multiple signs displaying different naming of the road. Sign replacement and updating is the sole responsibility of Ramsey County. The county is aware of the issue; however replacing the signs has proven too costly. Therefore, the sign confusion will remain until the county determines this issue to be a priority and finds proper resources to fund the project. The issue was brought up again at the Mounds View Business Council meeting. G. Mounds View Business Council Meeting On December 9 the Mounds View Business Council met. The presenter was Beth Engum, Ramsey County Project Manager for the Rice Creek Commons development. Several businesses were in attendance. The presentation was sent to all Mounds View businesses. Construction is expected to begin April 2016 with substantial completion November 2016. The intersection of County Rd 10 & H will be much wider and safer with flashing yellow lights. The soil has been remediates to a residential standard. However, the deep aquifer is still contaminated. The County will be seeking a master developer in the first quarter of 2016 with building construction starting in 2017. They are expecting 1,400 housing units, 4,000 residents, and 4,000 jobs. It will be a flexible business district with the possibility of grocers, national housing developers, etc. When the site is fully developed approximately 2030, they are expecting 20,000 -25,000 in traffic counts from the site. The next me eting be held March 9, at 7:30 a.m. at the Mounds View Community Center. All meetings are now held quarterly and the Twin Cities North Chamber of Commerce may be merging some of the member cities into the meetings. The speaker for the next meeting is TBD. H. Other Upcoming Events I. Reports of Commissioners (Agenda Item 7) J. Upcoming EDC Meetings (Agenda Item 8) January 16 at 7:30 a.m. ______________________________ Brian Beeman Business Development Coordinator