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HomeMy WebLinkAbout04-20-2018CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT COMMISSION AGENDA 7:30 a.m. MOUNDS VIEW CITY HALL FRIDAY, April 20, 2018 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF THE AGENDA 4. APPROVE MINUTES from March 16, 2018 5. EDC BUSINESS A. Review Ramsey County Housing Financing Programs B. Review Residential Housing Issues -- Building Code Official Presentation C. Update from Comprehensive Plan Task Force Members D. Update on New Business Categories to fill vacant space 6. REPORTS OF STAFF A. Mounds View Project Updates 7. REPORTS OF COMMISSIONERS 8. NEXT REGULAR EDC MEETING – May 18, 2018 if needed 9. ADJOURN Commissioners: Chair Jim Freichels, Dan Larson, Jason Helgemoe, Gary Stevenson, Teresa Muckala, Dennis Farmer, Ken Breske City Staff: Brian Beeman, Business Development Coordinator Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota Regular Meeting December 15, 2017 City of Mounds View, Council Chambers 2401 County Road 10, Mounds View, MN 55112 1. CALL TO ORDER Chair Jim Freichels called the meeting to order at approximately 7:30 a.m. 2. ROLL CALL Members Present: Chair, Jim Freichels, Vice Chair, Dan Larson, Commissioners, Gary Stevenson, Dennis Farmer, Teresa Muckala, Jason Helgemoe & Ken Breske Members Absent: Staff Present: Business Development Coordinator, Brian Beeman Meeting Attendees: Gary Meehlhause, Jacob Martin 4. APPROVAL OF MARCH 16, 2018, AGENDA Motion/Second: Commissioner Stevenson moved and Commissioner Farmer seconded the approval of the March 16, 2018 EDC agenda. Motion Carried: 7 Ayes, 0 Nays 5. APPROVAL OF FEBRUARY 16, 2018, EDC MINUTES Motion/Second: Commissioner Breske moved and Commissioner Larson seconded the approval of the February 16, 2018 EDC minutes. Motion Carried: 7 Ayes, 0 Nays 6. EDC BUSINESS Review Single & Multifamily Residential Housing Issues Business Development Coordinator Beeman informed the Commissioners that as part of the 2018 EDC Priorities, the EDC identified the following as a goal: “Monitor and assist with citywide housing issues & priorities and projects and older properties as well as cooperating with multifamily property owners to assist with upgrading facilities”. The first step in this process is to identify the properties and issues that are causing a concern. The second step is to identify any existing financing programs available to address those issues. The last step is for the EDC to determine which of the financing programs the City should be using to address the housing issues and if a new financing program should be created. Jacob Martin, the City’s Code Enforcement Officer, was present to provide comments, feedback, and answer any questions as it related to code violation trends. The EDC reviewed the chart of properties and violations and common trends for EDC Minutes March 16, 2018 Page 2 of 5 all of the properties and determined that Multi-Family properties had wall coverings, paint, parking lots, carpet, appliances, and plumbing as common violations while the single-family homes had windows, aesthetics, and landscaping, as the commons themes for violations. Officer Martin informed the Commission that his focus is safety and code violations. Commissioner Dennis Farmer mentioned that the City should perhaps look into helping single-family home owners who have naturally occurring affordable housing with assistance programs to help them upgrade their buildings and property. Officer Martin said the older properties may simply need a face-lift. Commissioner Ken Breske had met with his tax advisor and provided the EDC with an update on the new tax laws as it relates to landlords and property owners. Breske suggested that Officer Martin could inform landlords of the new tax laws in an attempt to motivate them to make improvements. Commissioner Gary Stevenson suggested that the City change its focus or include a new component to the Code Enforcement’s role to address the outside aesthetic issues in addition to the current safety and code enforcement role. Stevenson brought attention to the age of the current apartment and housing stock. Some apartment buildings may have looked great 30 years ago, but they are in dire need of upgrades and outside appearances. The look of these buidings contributes to the tired and run down look of the hosing stock in the city. Officer Martin informed the Commission that if land lords improve their properties then likely the County Assessors will increase the taxable value of those structures and therefore force the landlords to increase rents to cover the additional property tax. Commissioner Jason Helgemoe stated that with the new apartment buildings being built this could potentially cause existing tenants to leave the old apartment buildings and occupy the new apartment buildings. This may motivate the landlords who own older building to want to improve their building in order to keep their tenants. Officer Martin informed the EDC that the current apartments are 90-95% filled. Commissioner Jim Freichels suggested that Coordinator Beeman send the EDC the spreadsheet listing the current violations and between now and the next EDC meeting, Commissioners can note their observations of apartment buildings and the housing stock on the spreadsheet while they drive around the city and identify problem areas. Beeman informed the Commission that when Commissioners bring back their comments he will compile the comments into one master list and try to identify trends. Beeman informed the Commission that he is trying to coordinate schedules to get a representative from the Ramsey County Economic Development Department to attend then April ECD meeting to inform the Commission of any existing financial programs that might be able to address some of the identified issues. Chair Freichels thanked Code Enforcement Officer Jacob Martin for this comments and observations and moved to the next agenda item. Update from Comprehensive Task Force Members Commissioner Dennis Farmer provided the EDC with an update on the most recent Comprehensive Task Force meeting. The main takeaways from the last meeting is that the City needs to simplify its land use codes, the Task Force also talked about the differences in neighborhood versus regional commercial area. Regional Commercial are areas that outside residents drive to like the Mounds View Boulevard businesses. While neighborhood commercial area are places like the old Snap Market business or smaller EDC Minutes March 16, 2018 Page 3 of 5 convenience stores where only the local residents are likely to go to. County Road I would be an example of neighborhood commercial buildings. They also reviewed economic development goals such as sustainability, transportation. Much of the focus has been along Mounds View Boulevard. There are areas that could be identified as nodes that could serve as a cluster of similar businesses or uses. Each of the Task Force Members participated in a Dotmocracy exercise where each members placed different colored dots on a list of goals and priorities and the group tabulated the results based on the most popular to least popular in the category of importance. Farmer volunteered to provide a presentation to the EDC at the April meeting. Update from Commissioner Muckala on New Business Categories to fill Vacant Space in Mounds View Commissioner Teresa Muckala provided an update on her efforts in assisting with the new 2018 EDC goal, “Monitor & Explore New Business Categories through Trade Groups like Medical Alley and Identify Available Spaces in Mounds View with the Intent to Fill Those Vacancies with New Companies”. The idea is to attract start-up companies to fill the vacant space in some of our industrial buildings and growing them. The Minnesota High-Tech organization may be another place to look to partner with. Eventually, a policy decision will need to be made on what if any the property owners versus the City should be doing to fill these spaces. Beeman said there are some opportunities in the flex space with some of the existing buildings. One thing to think about is are we growing businesses out of Mounds View or is it important to fill these spaces and encourage jobs or focusing on specific trades? Breske asked about vacancy rates. Beeman said there are some lease vacancies available but little to none of the buildings are for sale. Beeman said this can create an issue with the lack of corporate citizenship. While business owners who own their own buildings are likely to participate in the Festival in the Park, make donations, and participate on local boards and commissions, the business owners who lease are less likely to participate locally and they are more likely to see Mounds View as the place where they commute to go to work and not much more. 7. REPORTS OF STAFF Crossroad Pointe Redevelopment Project Coordinator, Beeman provided the Commission with an update on the Crossroad Pointe redevelopment site stating that at a recent City Council meeting, the Council passes an ordinance amendment that did not include language to allow the discharge of firearms in an approved firing range. Therefore, the gun range portion of the project will not be developed. Since then City staff met with INH Properties to better understand their intention for the development. INH prefers to do all apartments and if a mixed-use component is considered, INH prefers to sell that piece to the commercial owner or have the City retain that portion and the City would recruit a commercial business to that site. INH claims that if they construct all apartments on the site they could potentially be in the ground this year but if it is a mixed-use concept and/or TIF is requested then it may be delayed to 2019. INH is proposing to build approximately 140 units give or take depending on the configuration and if retail is included or not. There would be EDC Minutes March 16, 2018 Page 4 of 5 underground parking and they would work with the City to sign a development agreement that likely will include higher end finishes, aesthetics, and landscaping etc. Rice Creek Commons Coordinator, Beeman provided the Commission with an update on the Crossroad Pointe redevelopment site stating that the infrastructure is expected to occur in 2019 and new housing & commercial starts are expected in 2020. North Metro Business Council The North Metro Business Council meeting was held at the Mermaid Event Center March 14 where the group heard an update from Barclay Kruse from the National Sports Center (NSC) in Blaine. Beeman said the main takeaways are the NSC provided $79 million in annual tourism impact, a pedestrian bridge is planned over 105th Street in Blaine and an overpass at 109th Street. Freichels provided additional information, he said they are looking at building a hotel and Dist. 16 is looking to construct a magnet school. They are also the largest armature site in the country. They are also looking at bringing in an actual clinic on-site. The State of MN actually owns the site. Helgemoe said the expansion plans are exciting and it has the second largest draw behind the Mall of America and an international draw. They about 50 soccer fields and all of this helps local businesses. MWF Developers Beeman informed the Commission that MWF Properties has requested Tax Increment Financing (TIF) for their project. The Council created the housing TIF district recently and the City is cooperating with the developer to acquire the tax forfeiture properties. TIF plan a late fall 2018 start is all goes well. They found some contamination at the old gas station and will be working through that. Beeman said he is meeting with two more developers who are also proposing multi-family housing. Other Upcoming Events/Reports Beeman informed the Commission that the Mermaid is looking to refurbish the Mermaid statute and will relocate it somewhere on site. They are looking at the possibility of rebranding and updating their facilities. 8. REPORTS OF COMMISSIONERS Commissioner Helgemoe reminded the EDC that the next Twin Cities North Business Council meeting will be held June13 at the Mermaid and the topic will be cyber security. 9. NEXT REGULAR EDC MEETING Chair Freichels reminded the Commissioners that the next EDC meeting will be held April 20, 2018 at 7:30 a.m. EDC Minutes March 16, 2018 Page 5 of 5 10. ADJOURN There being no further business, Chair Freichels adjourned the March 16, 2018 meeting at approximately 8:35 a.m. Respectfully submitted, _______________________________ Brian Beeman Business Development Coordinator Item #: 5A Meeting Date: April 20, 2018 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review Ramsey County Housing Financing Programs Background As part of the 2018 EDC Priorities the EDC has identified the following goal: “Monitor and assist with citywide housing issues & priorities and projects and older properties as well as cooperating with multifamily property owners to assist with upgrading facilities”. The second step in this process is to identify available financing programs that could assist landlords and homeowners in updating their facilities. MaryLou Egan, who works in Community & Economic Development at Ramsey County has agreed to inform the EDC of its available programs. Discussion Ramsey County has a variety of housing financing programs available. Understanding these programs may provide some assistance to landlords and homeowners to address the local housing issues identified by the EDC. Mary Lou Egan, from the Community and Economic Development of Ramsey County will be providing information on each of the programs. Recommendation Staff recommends that the EDC hear Ramsey County’s presentation and ask questions about each financing program trying to correlate the existing programs to the identified housing issues locally in Mounds View. Respectfully submitted, ____________________________ Brian Beeman Business Development Coordinator Attachments: 1) Community and Economic Development Funding 2) Neighborhood Revitalization 3) Property Assessed Clean Energy Program 4) Ramsey County Multifamily Housing Program 5) Rental Rehabilitation Community and Economic Development Funding Contact us Ramsey County is now accepting proposals for Community Development Block Grant and HOME Investment Partnership Program funding for eligible projects that can be underway by fall 2018. Eligibility Eligible projects must: • Primarily benefit low and moderate income residents. • Be located in suburban Ramsey County. • Address community priorities. • Meet federal guidelines for the respective programs. Communities, non-profits and for profit developers are eligible to apply for funding. Funding is usually available after July 1, the start of the fiscal year. However, in 2017 funds did not become available until November. The more frequently funded projects include investment in affordable units in multi- family market rate properties, infrastructure, facility improvements and property acquisition. Program funding may also support social service programs including tenant counseling and employment training. Funds are also used to provide homebuyers assistance and owner-occupied property weatherization/rehabilitation. Contact Prospective applicants are encouraged to contact Community and Economic Development staff with questions at 651-266-8000. Application Applications are due by Monday, March 5, 2018. • Community and Economic Development Funding Request application (Word) • Appendix A - Non-Minnesota Housing Property information form (Excel) Submit completed applications to: Community & Economic Development 250 Courthouse 15 West Kellogg Blvd. Saint Paul, MN 55102 Neighborhood Revitalization & Infrastructure Contact us Municipalities, property owners, agencies and organizations seeking funds to reduce the local costs of projects that principally benefit suburban Ramsey County’s low- and moderate-income residents (LMI) are eligible to apply for funds available through the competitive funding pool. Eligible projects may include infrastructure construction, neighborhood revitalization, rental rehabilitation and other capital improvements. Ramsey County has two sources of funding available: Community Development Block Grant (CDBG) and HOME. Applicants must be able to demonstrate that funds benefit LMI individuals and families either by locating the project in a low and moderate income census tract or other defined geographic area or by compiling income data on activity participants. In the past, funds have been used to replace deteriorating water and sewer lines, build sidewalks from affordable rental housing to a neighborhood commercial center, install accessibility improvements in public buildings, rehabilitate affordable privately owned rental housing, replace roofing and siding at a condominium complex, and acquire land for construction of single family homes by Habitat for Humanity. How to apply Agencies and organizations interested in applying for funding will need to complete the the 2016 CDBG and HOME Common Funding Application. Property Assessed Clean Energy Program (PACE) Contact us The Property Assessed Clean Energy (PACE) program is a way to finance energy efficiency and renewable energy retrofits to eligible non-residential properties. PACE overcomes challenges that hinder energy efficiency projects by eliminating up-front costs, providing low-cost, long-term financing, and making it more efficient for building owners to transfer repayment obligations to a new owner upon sale. Interested property owners and their contractors evaluate measures that achieve energy savings and receive 100 percent financing, repaid as a property tax assessment for up to 20 years. On November 10, 2015, the Ramsey County Board designated the Saint Paul Port Authority as the County’s implementing entity for the PACE program. Process, eligibility and requirements Applicants must be: • The legal owner of the property and all of the legal owners of the property must agree to participate. • The interested property owner must be current on any existing mortgage and the property owner must not have defaulted on the deeds of trust. • Property must not be subject to any involuntary liens or judgments, not be delinquent on property taxes • The property owner must not be in bankruptcy. Saint Paul Port Authority (SPPA) will perform a thorough credit analysis and applications are approved by the SPPA’s Credit Committee prior to the SPPA submitting an assessment request to the county. Following review by SPPA, SPPA requests the county apply a special assessment and collect repayment on property tax bills on behalf of the SPPA. Loan payments for PACE OF MN projects cannot exceed 20 percent of the property’s assessed value. The Ramsey County Board is required to adopt by resolution each assessment. The assessment stays with the property in the event of a sale. The special assessment becomes a lien against the property at the point that it is extended to the tax rolls. If not timely paid, the special assessment would accrue penalties and interest as with other delinquent taxes and is subject to tax forfeiture. Unpaid assessments become a lien on the property like any other special assessment or unpaid property taxes. Getting started Community and Economic Development office helps interested applicants for the PACE program to be connected with the Saint Paul Port Authority. For more information, call 651-266-8000. Multi-Family Development Program Contact us Ramsey County Community and Economic Development (CED) and Housing and Redevelopment Authority (HRA) partners with multi-family residential rental properties to create affordable housing units. Ramsey County has several tools that may be used to assist in the development and preservation of affordable housing in suburban Ramsey County. However, because Ramsey County is fully-developed, some resources, such as Tax Increment Financing and Revenue Bond Financing, fall first under the local jurisdiction where the project will be located. The Ramsey County HRA may issue rental housing revenue bonds or 501(c)(3) bonds under some circumstances. Ramsey County provides Community Development Block Grant and HOME funds in the form of flexible, below-market loans for affordable rental projects located in suburban Ramsey County. Funds in amounts ranging from $150,000 to $350,000 are typically provided as gap financing. Funding is usually provided on a competitive basis annually. However, developers are urged to contact CED/HRA staff throughout the year to discuss funding availability and program requirements. During the past decade, Ramsey County has provided financing for 1,500 new suburban units, 175 of which will be affordable for 20 years or longer. New development projects may include family town homes, senior cottages, apartments, transitional and supportive housing. To search for available commercial or industrial properties in Ramsey County, visit MetroMSP.org and select "Search Properties." You can then use a GIS-based site selection tool that enables you to locate buildings or land, pull up site-specific demographic data and generate valuable reports. Developers are encouraged to contact Community and Economic Development/Housing and Redevelopment Authority staff to discuss project financing needs and the potential impact of federal compliance requirements. Rental Rehabilitation Contact us Ramsey County Community Economic Development (CED) and Housing and Redevelopment Authority (HRA) works with developers and owners of rental properties in suburban Ramsey County communities. Direct services for renters are provided through a network of other area organizations. For existing properties, Ramsey County can provide below-market, flexible loan financing for weatherization and energy conservation, health and safety, and other basic rehabilitation activities. More than half the units must be occupied by tenants with low to moderate incomes at affordable rents. Community Development Block Grant (CDBG) and HOME Investment Partnership Program (HOME) funds are generally available on a competitive basis annually. However, property owners and landlords are encouraged to contact CED/HRA staff to discuss fund availability and program requirements any time through the year. Ramsey County has invested in improvements to the Marion Brittany Apartments in Roseville, Golden Star in Maplewood and a number of smaller properties throughout suburban Ramsey County. The county has also invested in the conversion of recreational space to community service at Polynesian Village Apartments in New Brighton. Item #: 5B Meeting Date: April 20, 2018 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Review Residential Housing Issues – Building Code Official Background As part of the 2018 EDC Priorities the EDC has identified the following goal: “Monitor and Assist with Citywide housing issues and projects & older properties as well as cooperating with multi-family property owners to assist with upgrading facilities. Discussion At the March 16, 2018 EDC meeting Jacob Martin, Housing & Code Enforcement Inspector reviewed a spreadsheet of current code enforcement issues in order to help the EDC identify trends. As a follow- up, Jacob will be providing a power point presentation with pictures of some of the properties in order to help the EDC identify specific issues associated with individual properties. EDC Members are also encouraged to notify Brian Beeman before the meeting of the types of issues they are seeing with individual properties and/or bring the list with them to the April meeting for discussion. Recommendation Staff recommends that the EDC hear the Housing & Code Enforcement Inspector’s follow-up presentation and identify specific issues associated with each property. Business Development Coordinator Beeman will compile the information into a master sheet for future reference. Respectfully submitted, ____________________________ Brian Beeman Business Development Coordinator Item #: 5C Meeting Date: April 20, 2018 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Update from Comprehensive Plan Task Force Members Background As part of the 2018 EDC Priorities the EDC has identified the following goal: “Review Business section of the Comprehensive Plan Task Force for 2018 update by utilizing the two Comprehensive Plan Task Force Members who are also on the EDC” Discussion When reviewing the 2018 EDC Priorities it was suggested that an update from the Comprehensive Plan Task Force Members be added to the agendas going forward. Recommendation Staff recommends that the EDC hear the update from the Comprehensive Plan Task Force Members and discuss any suggestions/concerns the EDC may have relating to the business section of the Comprehensive Plan for the task force members to pass along. Respectfully submitted, ____________________________ Brian Beeman Business Development Coordinator Item #: 5D Meeting Date: April 20, 2018 Type of Business: EDC City of Mounds View Staff Report To: Economic Development Commission From: Brian Beeman, Business Development Coordinator Item Title/Subject: Update from Commissioner Muckala on New Business Categories to fill vacant space in Mounds View Background As part of the 2018 EDC Priorities the EDC has identified the following goal: “Monitor & explore new business categories through trade groups like Medical Alley and identify available spaces in Mounds View with the intent to fill those vacancies with new companies”. Discussion Commissioner Muckala is volunteering some of her time to assist in setting up meetings with industry trade groups like Medical Alley in cooperation with Business Development Coordinator Brian Beeman. Beeman and Muckala have met to discuss the process and met with Medical Alley April 4, 2018. EDC Commissioners are encouraged to provide ideas on other trade groups that staff can meet with to discuss possibilities in locating to Mounds View. If Commissioners have contacts with other trade groups and companies that may be a fit for Mounds View they are encouraged to pass along those contacts Coordinator Beeman who will start compiling a list of contacts and work towards setting up meeting with the industry trade groups. At the March 16, 2018 EDC meeting it was suggested that Minnesota High-tech also be contacted. The idea is to target young start-up companies and get to them early to identify the location, technical space, and engineering office areas that Mounds View could host and grow the businesses. Recommendation Staff recommends that the EDC hear the update from Commissioner Muckala and discuss and offer any suggestions the EDC may have relating to the business industry categories and contacts. Respectfully submitted, ____________________________ Brian Beeman Business Development Coordinator Item #: 7A Meeting Date: April 20, 2018 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 8, 2018 the EDA approved the predevelopment agreement between the EDA and INH Properties who is proposing to build an approximately 120-160 unit market rate apartment building. The developer is still meeting with potential retail prospects to solidify the concept plan. The developer will present three options to the City Council at its May 7 Council Worksession. EDC Members are welcome to attend this meeting. INH will begin their due diligence by coordinating with their architect and testing the soils etc. soon. INH will have legal access to the Crossroad Pointe site for one year to conduct their due diligence and work towards a formal development agreement. C. Rice Creek Commons (TCAAP) Development Update There are no new updates for the Rice Creek Commons development. D. Mounds View Project Updates N/A E. North Metro Business Council Meeting The next North Metro Business Council meeting will be held June 13, 2018 from 7:30- 9:00 a.m. at the Mermaid Event Center. The topic is, “Cyber Security”. All meetings are free. F. MWF Properties MWF Properties is looking to construct around 60 units of workforce housing on two lots owned by Cynthia Johnson, located at 2865 Mounds View Boulevard and 7980 Groveland Road and also two adjacent tax forfeiture parcels. The City Council approved a Housing TIF district March 12, 2018. The City is working with Ramsey County and MWF to finalize the land acquisition. Construction is expected to begin in 2018 and completed December 2019. Reports of Staff April 20, 2018 Page 2 of 2 G. The Triton The Triton is a 61 unit affordable housing project to be located at the old Skyline Motel site. The developer has until the end of 2018 to close on the purchase agreement. The proposed project will be a four-story above underground parking facility partly funded by the 9% Tax Credit program. At its April 9 meeting, the City Council approved a resolution showing support in creating a TIF district after it has been announced that the developer has been awarded the Tax Credits. This likely will not occur until late this fall. The developer is asking the City for a Housing TIF in the amount up to $375,000 for 15 years. H. Norhart Homes Norhart Homes is proposing to build an approximately 200 unit market rate apartment building on the five parcels east of Bel-Rae and/or where Arden Park currently sits. The developer is looking to purchase additional parcels in the area and would dedicate a portion of the property for public parking to be used as a trailhead and a dog park. The Council reviewed this project at its April 2, 2018 worksession. I. Other Upcoming Events/Reports Parts Midwest, Inc is holding an open house April 25th, 2018 from 10:00 a.m.-2:00 p.m. at 4821 & 4825 Mustang Circle, in Mounds View. This is a new company that bought the building that Trailwood Transportation used to be in and across the street from Dell- Comm. J. Reports of Commissioners (Agenda Item 7) K. Upcoming EDC Meetings (Agenda Item 8) The next meeting will be held May 18, 2018 at 7:30 a.m. if needed. ______________________________ Brian Beeman Business Development Coordinator