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HomeMy WebLinkAbout02-19-2016 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION AGENDA MOUNDS VIEW CITY HALL FRIDAY, February 19, 2016 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF THE AGENDA 4. APPROVE MINUTES from January 15, 2016 5. EDC BUSINESS A. Administer Oath of Office B. Review 2016 EDC Priorities C. Review EDC Bylaws 6. REPORTS OF STAFF A. Mounds View Project Updates 7. REPORTS OF COMMISSIONERS 8. NEXT REGULAR EDC MEETING – March 18, 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 January 15, 2016 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 Helgemoe, Vice Chair, Jim Freichels, Commissioners, Jessica Rieland, Dan Larson, Royal Dahlstrom & Laurie Shoop Members Absent: Gary Stevenson Staff Present: Business Development Coordinator, Brian Beeman & City Administrator, Jim Ericson Meeting Attendees: N/A 3. APPROVAL OF JANUARY 15, 2016, AGENDA Motion/Second: Commissioner Freichels moved and Commissioner Shoop seconded the approval of the January 15, 2016 EDC agenda. Motion Carried: 6 Ayes, 0 Nays 4. APPROVAL OF DECEMBER 18, 2016, EDC MINUTES Motion/Second: Commissioner Larson moved and Commissioner Dahlstrom seconded the approval of the December 18, 2015 EDC minutes, as presented. Motion Carried: 6 Ayes, 0 Nays 5. EDC BUSINESS Administer Oath of Office Chair Helgemoe and Vice Chair Freichels took the oath of office. Commissioner Stevenson will conduct the oath of office at the next meeting. Elect Chairperson and Vice Chairperson Next, Chair Helgemoe asked for nominations of Chair and Vice Chair. Commissioner Freichels suggested that Jason Helgemoe remain as Chair. Chair Helgemoe asked for EDC Minutes January 15, 2016 Page 2 of 8 nominations of Vice Chair. Hearing none, Helgemoe asked if Freeichels would accept the position. Freichels confirmed that he would accept the positon. Motion/Second: Commissioner Freichels moved and Commissioner Larson seconded the approval of Commissioner Helgemoe as the Chair and Commissioner Freichels as Vice Chair. Motion Carried: 6 Ayes, 0 Nays Review Combined Tax Abatement & TIF Policy (Public Assistance Policy & Application) Chair Helgemoe asked Business Development Coordinator Beeman to provide a background to the Commission. Beeman informed the Commission that the Business Subsidy Policy will be moving forward January 25, 2016 in a joint Council/EDA meeting and Public Hearing. The new Public Assistance Policy & Application will be reviewed February 1, 2016 at a Council Workshop meeting then if confirmed; it will go to the EDA for approval at their February 8, 2016 meeting. No Public Hearing will be required for the new Public Assistance Policy. Beeman explained that both the city’s legal and financial consultants suggested that the TIF and Tax Abatement Policies be combined into one policy, as this makes it simpler for city staff, developers, consultant, and all involved, and it is what the consultants are seeing as a trend in other metro city’s policies. The TIF policy was last updated in 2000 and the Tax Abatement Policy was last updated in 2003. The new combined policy is now called, City of Mounds View Economic Development Authority, Public Financing Policy & Application. Ehler’s, the city’s financial consultant, combined the city’s existing policies and is suggesting the EDC and EDA review the new version for consideration of approval at the February 8, 2016 EDA meeting. By combining the two policies, the new policy is condensed into essentially five pages with the rest being the application and criteria for scoring. This simplifies the policy and attempts to reference Minnesota State Statues as much as possible so that when the statutes change, the policy also changes automatically without the need to change the policy each time. Section I Policy Purpose, of the new policy is very similar to the original policies. Any reference to TIF or Tax Abatement was changed to Public Financing. Section II Objectives for the Use of Public Financing was simplified from the former technical and detailed language naming square footage etc. to a more basic guideline providing an overview for policy makers. Other areas of the old policy referenced TIF pooling of funds and other confusing concepts that are often changed by legislators. The consultants felt that getting too technical in policies will only confuse and convolute the intent of the policy. Section III dealing with Business Subsidies was cleaned up by removing redundancies and simplifying the language to sync with the Business Subsidy Policy. Section IV and V are virtually the same as the old policies. In Section VI Application Process for Public Financing, the fees have been updated to a $3000 non-refundable application fee. This fee will be used for any type of public financing and will cover the initial legal and financial consulting fees to determine if the project qualifies or not. If the EDC Minutes January 15, 2016 Page 3 of 8 project doesn’t qualify, the developer isn’t out much financially. If the project does qualify and it is determined that it should move forward, then the developer would submit the $10,000 deposit. This is when the financial consultants and legal team would conduct a detailed analysis of financial statements and other documents including the “But-For” analysis and other required documentation. An example of the “But-For” analysis is found on page 17. Ehler’s changed the Total Return on Equity column with assistance from 12% which they felt was unrealistic in the current market to the 7.93%. Ehler’s doesn’t recommend projects that would provide more than a 12% return anyway. Overall, Ehler’s ended up combining the TIF and Tax Abatement application. The Tax Abatement application had a stand-alone agreement with the developer and the TIF application had a section where the developer was required to sign giving approval to move forward. The application was combined to use the signature approach. Ehler’s also kept the housing and commercial/industrial development worksheets separate because the commercial/industrial worksheet is heavy on the job creation scoring while the housing worksheet is focused more on the added valuation, livability, location, amenities, etc. Ehler’s also had some concern about the Confidentiality Agreement on page 15 stating that while the initial information the developer submits could be considered confidential, at some point when the project has been approved and/or completed, some of the developer’s information may be considered public. Staff had the city’s attorney review the agreement and it was determined that it is acceptable and should remain in the application packet. Beeman stated that staff feels this is a good policy and a good way to approach the policy by combining them into one five page policy. The combined policy simplifies it for everyone involved. Beeman informed the EDC that if they see anything in the policy that is a concern, is glaring, or would raise any red flags then this is a good time to bring up those concerns before the policy goes to the EDA for approval. This policy would not require a Public Hearing to be approved. However, the Business Subsidy does require a Public Hearing to be approved. The Business Subsidy also is virtually 50% verbatim from Minnesota State Statute. The combined policy has more flexibility in what local governments can formulate as their policy. However, cities must still closely follow the State Statutes. Chair Helgemoe asked for the next steps in the process. Beeman informed the EDC that if there were not changes then a motion would need to be made recommending the combined policy to the EDA for approval. Vice Chair Freichels asked how the combined policy relates to other cities and their policies. Beeman stated that this policy is close in content to many other cities because Ehler’s and Kennedy & Graven work with several other cities in developing their policies and they are able to see the most current versions and trends and they ensure that the policy is following the most current State Statutes. Both consultants have also recommended that the TIF and Abatement policies be combined because this is what they are seeing other cities do in order to simplify the process. EDC Minutes January 15, 2016 Page 4 of 8 Commissioner Dahlstrom asked if the EDC could set a date to review the document providing an example of every two, five or seven years. Beeman stated that he tries to watch any statutes that are related to economic development as well as Ehler’s and the city’s legal team. Beeman also hears regular updates from the Economic Development Association of Minnesota. However, the city hasn’t set a formal review date for these policies. Beeman said establishing a regular review date is a good idea and he will continue to stay updated as much as possible to changing Statutes. Dahlstrom suggested that regular updates may be less costly than waiting a long time then having to redo the entire policy. Helgemoe stated that even though the review of the policies is more of an internal process and the attorneys review the statutes, it is ultimately up to staff to make the changes. Beeman suggested that the EDC place it as one of the goals for the 2016 EDC list of goals that will be discussed at the February meeting. Helgemoe thought this was a good idea to place the review of policies as one of the goals. Beeman agreed that this is something the EDC should discuss at the next meeting. Helgemoe asked for any other comments on the policy. Hearing none, Commissioner Freichels made a motion. Motion/Second: Commissioner Freichels moved and Commissioner Dahlstrom seconded the motion recommending that the combined policy move forward to the EDA for consideration. 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 stated that staff has met with The Beard Group to discuss the Preliminary Development Agreement. The Beard Group was hung up on a few of the clauses but has since agreed to move forward in recommending the Predevelopment Agreement to the EDA on January 25. Helgemoe asked if The Beard Group was the only developer for the site. Beeman informed the EDC that he had contacted approximately 40 or so developers with about twelve showing interest and only one actually submitting a proposal. Helgemoe asked if The Beard Group was one of the developers that the city had toured last summer. Beeman confirmed that The Beard Group was the developer that the group had toured at the Osseo site. Beeman stated that after the joint meeting with Council, EDC, and the Planning Commission, that The Beard Group is the developer that the group seemed to like the most as far as the product and since that time, the Council has instructed staff to work with the developer to bring forward a Predevelopment Agreement. EDC Minutes January 15, 2016 Page 5 of 8 Beeman clarified that the Predevelopment Agreement protects the developer buying them time to do their due diligence so another developer can’t come in after the proposal deadline. The agreement for the most part is non-binding as for the terms, but rather identifies main areas where both parties can preliminarily come to a consensus before the formal Development Agreement is finalized. Helgemoe asked about the timeline for development. Beeman said the developers originally wanted to be in the ground this spring, it depends on how long it takes to get the Development Agreement in place, the due diligence, and financing, etc. The financing process could take two to three months. Beeman also thought that the land needed to be rezoned to a PUD before development can occur as well as the bids, subcontractors, materials, etc. Beeman noted at this rate, the earliest the development could begin may be summer or fall. Helgemoe asked about the phased development. Beeman informed the Commission that Phase I is the three story 119 unit apartment building while Phase II is the triangular shaped property next to County Road 10. The Beard Group is only interested in Phase I at this time and may be interested in Phase II depending upon market demand. The city would be on-the-hook to market and find a developer for Phase II. A restaurant with outdoor seating and/or a medical office building has been suggested with possible underground parking. The lack of parking may still be a concern so the Development Agreement may need to identify a shared parking area between the Phase I & II development. Beeman mentioned that he had talked to a developer who was interested in constructing a three story medical office space that would be in a triangular shape in the northwest corner and would be a modern glass building. However, the developer has since lost interest because they require a 70% prelease agreement for occupancy before they will commit to the project. Since they were unable to secure enough interest in the building, they have backed out of any negotiations on the site. Dahlstrom asked if the Crossroad Pointe development was the land near the old Robert’s site. Beeman confirmed that it was the site and is about 4.25 acres. With the split development of Phase I & II one site will be 1.76 acres leaving the other phase a little more than two acres. Business Retention & Expansion Visit (BR&E) Updates Coordinator Beeman informed the Commission that due to his involvement with updating the financial policies, he was only able to complete one business retention visit this month. Technical Life Care presented at an EDC meeting about a year ago. They are currently talking about a possible second floor build-out. They are looking for more warehouse space and less office space and they are using some of the office space as storage. They like being around other medical companies in the Mounds View area and they continue to grow with plans to stay in Mounds View long-term. They would like to start a branch in Michigan and Wisconsin, however currently, 90% of their market share is from Minnesota. The company has 18 fulltime employees and four part-time with plans to hire two more fulltime employees this year. Last year they hired four fulltime and one part-time employee. They hire technicians who are already certified and who are graduates of the local technical colleges. EDC Minutes January 15, 2016 Page 6 of 8 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 with the current 53,000 to 127,000 vehicles on I-35, MNDOT is looking to add MNPASS lanes, one each direction due to the increased traffic. If funding can be secured, the preliminary engineering process would start as soon as 2018. Mounds View Project Updates Beeman provided an update on the Mounds View Area Regional Sewer Improvements being completed by the Metropolitan Council. A half mile section is being replaced in Mounds View running diagonally from the northeast to the southwest corner through the city. Snyder Building Beeman informed the Commission that there is no change with the Snyder building stating that there is continued interest, however it is overpriced. County Road 10 Addressing Next, Beeman updated the Commission that he has met with the company that Commissioner Rieland has put him in touch with to discuss the electronic syncing of addresses with the phone map applications, websites, and other sources. The company is able to pin point the latitude and longitude of the actual building then sync the address so that their clients and customers can find them. This gives local businesses a temporary solution until Ramsey County can come up with the resources to replace the signs with the correct signage. Beeman said the company may also put in a bid for updating the city’s website and assisting with the quarterly newsletter. Another meeting has been set for staff to meet with County officials to discuss the signage issue later this month. Commissioner Freichels asked if the US Post Office had continued to deliver mail after discontinuing service to the Bel Rea residents due to the incorrect signage. Beeman informed the Commission that he believes the Post Office has continued delivery. Beeman said the County recently had mentioned that they wanted to shorten the name to County 10 because of the cost. However, at this time staff is telling all local businesses that the correct name is County Road 10 until the County decides to change the name. Commissioner Helgemoe stated that he had asked a County Commissioner last week about the naming of County Road 10. The County official said that there was a meeting scheduled to discuss the matter. City Administrator, Jim Ericson who was in the audience stated that the meeting had not happened yet and was scheduled for the last week in January. EDC Minutes January 15, 2016 Page 7 of 8 Beeman said he is trying to get the address location company to speak at the next Mounds View Business Council meeting which will be held March 9, 2016 at the Community Center. Other Upcoming Events Beeman informed the Commission that the next Annual North Metro Home & Garden Show is scheduled to be held Saturday, February 6, 2016 from 9:00 a.m.-3:00 p.m. at the Sports Expo Center in Blaine. This year Columbia Heights is also participating in addition to the original cities of Blaine, Mounds View, and Fridley. There are only a couple of booths left. Helgemoe asked about what the expo involves. Beeman stated that it will be a conglomeration of business vendors relating to landscaping, gardening, roofs, windows, siding, and other home improvement businesses. Residents are welcome to attend the free event. Helgemoe stated that they are working with the Chamber to get PRIME Design & Advertising to present at the next Mounds View Business Council meeting. As soon as it is confirmed, Beeman will inform the Commission. 7. REPORTS OF COMMISSIONERS Chair Helgemoe asked for updates from Commissioners. Hearing none, Helgemoe informed the Commission that he will be participating in the upcoming Polar Plunge at the end of January. Helgemoe asked if Beeman had any more BRE visits scheduled. Beeman does not, but is working on a few companies that haven’t returned his phone calls. Helgemoe thanked Beeman for his work with businesses and stated that he believes there has been good participation by EDC Commissioners. Beeman also mentioned that the Mayor and Council Member Gary Meehlhause have also been on a few visits. With Beeman’s involvement on the policy updates this has slowed him down but he anticipates starting up again this spring. Helgemoe asked about the senior housing and if there were any updates. Beeman said the Bel Rae Senior Living is now at 70% which is right on track with company goals. The Bel Rae staff has purposefully filled the vacancies in phases. This has allowed their staff and residents to adjust to increased numbers of residents and also helps to hire more staff in phases. Beeman said they were looking at a Phase II development at one point. However, they have decided to look at other cities as possibilities. Helgemoe asked about the Zep building. Beeman said that Zep Manufacturing was a public company that was recently bought out by a private equity firm who has moved the Mounds View operations to Chicago. Mid-West Medical Supply has purchased their existing building and has also inquired about purchasing the Zep building. However, the owners of the Zep building are only interested in leasing at this time. In the meantime Mid-West Medical is looking for a 25,000 SF building somewhere near Mounds View to buy. They are also looking to place a new sign in front of their property. Beeman said it EDC Minutes January 15, 2016 Page 8 of 8 is amazing how many companies in Mounds View are tied to Medtronic either directly or indirectly. Beeman said this helps Mounds View because it creates jobs and fills local buildings. 8. NEXT REGULAR EDC MEETING Chair Helgemoe asked about the upcoming EDC meeting. Beeman informed the Commission that the next meeting will consist of the Oath of Office for Gary Stevenson and reviewing the 2016 EDC priorities & annual bylaws. Helgemoe mentioned that we should make note to address Commissioner Dahlstrom’s suggestion to review the financial policies on a regular basis as one of the EDC goals. 9. ADJOURN There being no further business, Chair Helgemoe adjourned the January 15, 2016, meeting at 8:30 a.m. Respectfully submitted, _______________________________ Brian Beeman Business Development Coordinator Item #: 5A Meeting Date: February 19, 2016 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Administer Oaths of Office to Newly Appointed EDC Members Background The Economic Development Authority (EDA) appointed three members to the Economic Development Commission (EDC) on January 11, 2016—Jason Helgemoe, Business Representative, Jim Freichels, Business Representative and Gary Stevenson, Resident Representative. As per standard practice, all new commission appointees are required to be sworn in, or in other words, take an oath of office. Staff Recommendation The Oaths of Office for Jason Helgemoe, Jim Freichels, were completed at the EDC’s January 15, 2016 meeting. Gary Stevenson’s Oath of Office is attached and will be administered at the February 19, 2016 EDC meeting. Respectfully submitted, ____________________________ Brian Beeman, Business Development Coordinator City of Mounds View Economic Development Commission Oath of Office I, Gary Stevenson, do solemnly swear, to support the Constitution of the United States and of this state, and to discharge faithfully the duties devolving upon me, as a member of the Mounds View Economic Development Commission, to the best of my judgment and ability. _____________________________ Gary Stevenson Date: February 19, 2016 Witness: ______________________________ Brian Beeman Business Development Coordinator Item #: 5B Meeting Date: February 19, 2016 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review EDC’s 2016 Economic Development Priorities Background At the EDC’s meeting on October 17, 2014, the Commission reviewed the priorities from the previous year. For the most part, the adopted priorities for 2015 remained unchanged. Discussion As amended and revised at the October meeting, the following represents the EDC’s priorities for 2015: 1. Development/redevelopment along the County Rd 10 corridor a) Crossroad Pointe redevelopment site 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 / County Road H Intersection f) Silver View Plaza g) Simon’s & City-Owned Lot h) Johnson Lot & Related Empty Lot 2. Monitor Mounds View commercial properties in transition 3. Monitor and assist with Citywide housing issues and projects 4. Meet bi-annually with the Mounds View EDA 5. Continue business retention program 6. Skyline Motel redevelopment 7. Support the implementation of the citywide Street & Utility Improvement Program 8. Monitor development plans for the TCAAP site in Arden Hills 9. Continue budgeting to implement the Mounds View Branding Project Recommendation Staff recommends that the EDC review its adopted 2015 priorities as a means to consider possible changes for 2016. Respectfully submitted, ____________________________ Brian Beeman Business Development Coordinator Attachments: 1) Development/Redevelopment Map, 2) Trails & Sidewalks Map Item #: 5C Meeting Date: February 19, 2016 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review Economic Development Commission Bylaws Background Section 408.07 of the City Code indicates that the EDC should review its Bylaws, and that this should be done at the meeting in February. Subd. 6. Bylaws: The Commission shall adopt bylaws for its governance and for the transaction of its business. The bylaws will be reviewed on an annual basis at the first regular meeting in February. The last time the Bylaws were amended was in 2002. Staff Recommendation Please review the attached Bylaws. If any changes are needed, staff will prepare a resolution to formalize the amendment. Respectfully submitted, ____________________________ Brian Beeman, Business Development Coordinator Attachments: 1) Current EDC Bylaws (Amended 2002) CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION BYLAWS I. AUTHORITY: These Bylaws are established in accordance with City Ordinance 408.07, Subdivision 6. "The Commission shall adopt bylaws for its governance and for the transaction of its business." There shall be no conflict between the Bylaws of this Commission and the provisions of the City Charter and the Municipal Code. II. MEETINGS. 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. Regular meetings may be changed, added or canceled by the chairperson or vice - chairperson. Special meetings may be added by the chairperson or vice -chairperson. A. The regular business meeting shall be for the purpose of making recommendations to the Economic Development Authority, herein EDA, conducting public hearings, drafting of reports, and for other discussion not requiring action (ie. vote) by the Commission. B. Meetings shall be conducted in accordance with State Open Meeting Laws. III. INFORMATIONAL PACKETS. Each commissioner shall receive an informational planning report for the items that are on the regular meeting agenda no later than the Tuesday preceding the regular meeting. Each commissioner is responsible for reviewing the material within the packet prior to the regular agenda meeting. IV. ATTENDANCE. Commission members shall advise the designated Staff member or chairperson of an anticipated absence from any regularly scheduled Economic Development Commission meeting. Any member attending less than eighty percent of the meetings per year without consent of the commission shall be deemed to have vacated the office, and such vacancy shall be filled by the EDA pursuant the Chapter 408.06 of t he Municipal Code. A leave of absence may be granted by the consent of the commission. EDC Bylaws Revised April 19, 2002 2 V. PROFESSIONAL CONSULTANTS. Advice from, consultation with, and/or requests for review by the City Attorney, Bond Attorney, City Engineer, City Planning Agency, or o ther paid consultants shall be in accordance with the Municipal Code. VI. ADJOURNMENT. Meetings shall adjourn on or before 90 minutes from the time of call to order unless a two-thirds majority of the members present agree to extend the time of adjournment. VII. MINUTES. Approved minutes shall be the official record of the Economic Development Commission. A. The minutes shall state: 1. The kind of meeting, whether regular business or special and the date, time and place. 2. Roll call of members present and whether absent members are excused or unexcused. 3. Corrections to and approval of the previous minutes and the vote taken. 4. Description of each item being discussed. 5. A motion and second is required for each action item and the motion shall be recorded as accurately as possible. 6. The vote on each motion (ayes, nays, and abstentions), a statement of reasons for nay votes or abstentions, and whether motion carries or fails. 7. Specific concerns addressed to the chairperson for inclusion in the minutes. 8. Reports by members. 9. Time for adjournment. 10. Signature of the Staff designated member. B. All minutes shall be clearly marked to indicate either "APPROVED" or "UNAPPROVED". Each commissioner shall receive a copy of the previous regular business meeting minutes "UNAPPROVED". Approved copies may be obtained upon request. A copy of the approved minutes shall be filed with the EDA Executive Director. EDC Bylaws Revised April 19, 2002 3 VIII. LIAISON TO EDA. In the event of the absence of the EDA ex-officio member, a commission member may be appointed by the chairperson to represent the Economic Development Commission at the next regular EDA meeting. IX. POTENTIAL CONFLICT OF INTEREST. When a potential conflict of interest may exist for commission member or members, the member(s) shall ask to be excused and step down from the commission prior to discussion on that item. X. SUPPLEMENTARY PUBLICATIONS. All commission members shall receive a copy of the Municipal Code, Chapter 408, as well as other materials as provided by the EDA, Staff or other commission members. Item #: 6A Meeting Date: February 19, 2016 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 On January 25, 2016 the EDA approved the predevelopment agreement between The Beard Group and the City of Mounds View. The purpose of the predevelopment agreement is to allow for a period of time to complete the due diligence on the site. If it is determines that The Beard Group and City wish to move forward with the project, a formal development agreement will be completed. The Beard Group is hoping to break ground this August and open in the spring of 2017. B. Business Retention & Expansion (BR&E) Visits Since the January EDC meeting, BR&E visits have been completed with Fedor’s Market, a neighborhood grocery store. Fedor’s Market: Fedor’s Market has been in business for 55 years. The building was at one time the City Hall and Police Department. They claim it was the first building in Mounds View and Fedor’s Market has withstood the ups and downs of the market until now. The business is owned by brothers Paul and Gordy Fedor. Gordy said he was hear when the Army development was being constructed and he has been around long enough to see it torn down. The owners have experienced great competition from Wal- Mart, Aldi’s, and others. As a result, they have decided to close their grocery store as of the last week of January 2016 and they will keep the meat market portion of the business open. They only need about 1,000-1,200 SF of the existing building and they are open to leasing out the remaining space or finding a buyer then doing a lease back so that they can keep their meat business. They will be doing some minor exterior improvements this spring and they are interested in knowing if the city has any redevelopment plans or knows of someone tha t may want to purchase the business and/or building. They mentioned that at one time the gas station wanted to expand . The two brothers are full of stories and very knowledgeable in the history of Mounds View. Rice Creek Commons (TCAAP) Development Update Construction on the TCAAP site and County Road 10 & H is expected to start this spring with final completion early 2017. Reports of Staff February 19, 2016 Page 2 of 3 C. Mounds View Project Updates None. D. 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 learned that the original owner was stuck paying the mortgage and is accepting reasonable offers and is open to creative financing. E. Bel Rae According to Kelly Royten, Executive Director or the bel Rae Senior Living, their second Memory Care community is now open and they have 10 apartments left for Memory Care. They still have availability for Assisted Living with one bedroom and Studio apartments. There current staffing is approximately 50 employees. Overall, they are over 60% filled. 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 last Mounds View Business Council meeting. Jim Ericson, City Administrator will be meeting with Ramsey County official on February 22 to discuss the matter. Staff will provide an update at the March 18 EDC meeting. G. Mounds View Business Council Meeting The next meeting will 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. Reports of Staff February 19, 2016 Page 3 of 3 H. Other Upcoming Events/Reports The Carley Foundry is the new tenant where Zep Manufacturing used to be. A BR&E visit will be scheduled once they get settled in. Confirmation of the 2016 EDC Chairperson and Vice Chairperson was approved by the EDA January 25, 2016. On January 25, 2016 the City Council approved Resolution 8509 and the EDA approved Resolution 16-EDA-291 the Business Subsidy Policy. On February 8, 2016 the EDA approved Resolution No. 16 -ERDA-292, a resolution adopting public financing policy and application and the City Council approved Resolution No.8512. All of the city’s financial policies have now been updated and in compliance with state statutes. I. Reports of Commissioners (Agenda Item 7) J. Upcoming EDC Meetings (Agenda Item 8) March 18 at 7:30 a.m. if needed. ______________________________ Brian Beeman Business Development Coordinator