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HomeMy WebLinkAbout08-28-1997 ii• ECONOMIC DEVELOPMENT COMMISSION AGENDA AUGUST 28, 1997 7:30 A.M. j) MOUNDS VIEW CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER b I 3 P.M. 1 2. ROLL CALL (Present = P, Absent = A) VCarlson ,/ hmidt Goff ,/Welsch Nelson McCarty (EDA Liaison) Sjoberg irCg.iick (EDA Alternate Liaison) Bennett (Staff) 110 3. APPROVE EDC MINUTES July 24, 1997 G `\- -- 11` Action: Motion \.. \NI AL ''-----(- Co- Second Second L(-..J t Vote 5-- —G �� V SPECIAL BUSINESS , tet �� , ' ' Carol Frey, New Brighton/Mounds View Area Chamber of Commerce C �e) `�)�e `�' ' Chamber Activities Update - S� r.k ,f�'o4 f , - i s' uC:1 �,V" , 111 bfV dv-p i 4-- Gov �#- . _ --yyt fav h.., .cA.-,.-,QA,..k.....,� — 5ep- 0 I fl 5. EDC BUSINESS —p (,�iQ Gzi_F.e,_ _ S, t , (yh- —® U e v'� \U L cL Ci..ctAJ ,4 13 4:.+i n2„ Lit I.(, A. Consideration of Application for Marketing Funds through the New Brighton/Mounds View Area Chamber of Commerce Action: Motion -04k) Second \N] j f'� 3c A Vote " ,> ,,�_ 11111 Comments: � ° \� v B. Consideration of Establishing a Loan Program for the Improvement of Multi-Family Housing and Manufactured Homes • Action: Motion Second Vote Comments: C. Consideration of Assigning EDC Member to participate in the Development of Design Themes for Highway 10 Corridor Action: Motion Second Vote Comments: 6. Report of Commissioners, Staff and EDA Liaison• 7. ADJOURN <;5`•LIS P.M. NLL Next Meeting September 25, 1997 �, - `1 c) • 0 ice-Lc', -- ECONOMIC DEVELOPMENT COMMISSION AGENDA 110 AUGUST 28, 1997 7:30 A.M. MOUNDS VIEW CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER P.M. 2. ROLL CALL (Present = P, Absent = A) Carlson Schmidt Goff Welsch Nelson McCarty (EDA Liaison) Sjoberg Quick (EDA Alternate Liaison) Bennett (Staff) • 3. APPROVE EDC MINUTES July 24, 1997 Action: Motion Second Vote 4. SPECIAL BUSINESS Carol Frey, New Brighton/Mounds View Area Chamber of Commerce Chamber Activities Update 5. EDC BUSINESS A. Consideration of Application for Marketing Funds through the New Brighton/Mounds View Area Chamber of Commerce Action: Motion Second Vote • Comments: B. Consideration of Establishing a Loan Program for the Improvement of Multi-Family Housing and Manufactured Homes Action: Motion Second Vote Comments: C. Consideration of Assigning EDC Member to participate in the Development of Design Themes for Highway 10 Corridor Action: Motion Second Vote Comments: 6. Report of Commissioners, Staff and EDA Liaison • 7. ADJOURN P.M. Next Meeting September 25, 1997 • Minutes of the Economic Development Commission City of Mounds View • Ramsey County, Minnesota Regular Meeting July 24, 1997 City of Mounds View, Council Chambers 2401 Highway 10, Mounds View, MN 55112 I. Call to Order: The meeting was called to order at 7:35 a.m. by Vice Chairperson, Cindy Carlson. 2. Roll Call: Members Cindy Carlson, Rosemary Goff, Ron Schmidt, Brian Sjoberg and Delane Welsch were present. Dir. of Economic Development Cathy Bennett was present. Member Dan Nelson, EDA Liaison Duane McCarty and Alternate Liaison Gary Quick were absent 3. Approval Of Minutes: • Motion/Second: Goff/Sjoberg moved approval of Minutes from May 22, 1997. Motion Carried 5 ayes 0 Ynays 4. Special Business No Special Business. 5. EDC BUSINESS A. Consideration of Tax Increment Request to Mounds View Family Apartments for the Rehabilitation of Red Oak Apartments (Silver Lake Commons). Director Bennett explained that the proposal has evolved over the past few months but the concept is relatively the same as when this item was presented at the May meeting. The major difference is that the new units is reduced from 28 to 16. Bennett proceeded to give a brief overview of the proposal and the request to purchase EDA owned land and tax increment assistance. MSP is offering to purchase the EDA owned land for the appraised value and is requesting a $230,000 deferred loan from existing tax increment funds. The commission discussed the history of the City owned property and reviewed the efforts made to market the site for a commercial use. In addition, the commission discussed the study of the area which suggested multifamily development of the site in connection with rehabilitation of the existing apartments. • Director Bennett explained the structure of the proposal as an affordable housing project. This allows the applicant to secure funds from MHFA, Ramsey County and Minneapolis Public Housing Agency. TIF Consultant Dave Marony explained that because there is a possibility that tenants may be • displaced the City should be concerned that adequate amount of dollars are set aside for relocation and that a relocation plan be done by a professional relocation consultant. Director Bennett mentioned that the proposal has gone through development review and was approved by the Planning Commission at the July 16, 1997 meeting. The Council will vote on the development proposal at the July 28th meeting and is holding a public hearing on the sale of the land. Mr. Marony reviewed the sources and uses presented by the applicant per the EDC's request in May. Mr. Marony explained the financing structure from Minnesota Housing Finance Agency, Ramsey County, Minneapolis Public Housing Agency and the City of Mounds View. He noted that although the amount of the City loan is relatively small compared to the entire project size of$5 million, he suggested that any support should be conditioned upon the applicant securing other sources of financing and providing a relocation plan by a professional relocation consultant. Per State law for use of TIF funds, this is seen as an acceptable of tax increment funds. Per the EDC's request in May staff gathered additional information regarding the management of the project. Danzeisen Properties has been hired to provide property management for the project. Staff contacted references and received wonderful comments on Danzeisen Properties abilities to effectively manage the property. Ms. Danzeisen gave an overview of how she manages property and answered several questions. The commission members asked the applicant several questions regarding density, children play area, crime, green space and noise abatement. The applicant explained that the project is much less dense than is required, that they have created two play areas, quality management controls crime, that they • exceeded the required green space and any noise abatement required by MnDot would be covered by the developer. Commissioner Goff wondered if the retention pond would be screened from Children. The applicant responded that the play area is fenced. Commissioner Sjoberg asked more specifically how the management would reduce the crime. Ms. Danzeisen explained tenant screening and strict policies and she expects that crime will decrease by 90% after the project is fully complete. Commissioner Carlson noted that this is a difficult project because of the level of public funding and the first lenders investment will require quality construction and proper management. The need for a market study was discussed. Commissioner Carlson wondered if requiring that an independent 3rd party study be done is necessary. Mr. Marony suggested that the EDA may want the study for assurances that there will be a payback on the loan. MSP Real Estate said it is a requirement for first mortgage lender. Commissioner Carlson reviewed the goals for improvement in this area - develop EDA owned land, improve safety and improve aesthetics - and this project seems to meet these goals. Carlson asked about the status of the first mortgage. MSP said that they have received a letter of intent from the equity investor and first mortgage lender. Documentation should be final in September with closing in October. The loan is a 9%, 30 year fully amortized loan. Carlson noted that when Western finances this type of project they would require at least $24,000 of investment per unit and this project far exceeds their requirement by providing $88,000 per unit. Commissioner Welsch noted that he would like to see this project be a success. It would provide nice new townhomes with a lot of money invested in the rehab of a distressed apartment complex. He sees this as a benefit to the safety and aesthetics of the community. • There was much discussion regarding the relocation budget and assurances that enough funds are set aside to cover any relocation of tenants. Motion/Second: Welsch/Goff moved to recommend approval of the sale of EDA owned land for $45,000 contingent upon the project moving forward. Motion Carried 5 ayes 0 nays Motion/Second: Welsch/Goff moved to recommend approval of the request for a $230,000 deferred loan for 30years at 1% interest with interest accruing at the closing date and conditioned upon project moving forward. If the relocation budget decreases the EDC would recommend a condition that the left over go back to pay the loan after 24 months. In addition, a condition that the loan be paid in full upon sale of the property. Motion Carried 5 ayes 0 nays B. Discussion of Loan Program for Rehabilitation of Manufactured Homes Deferred to next meeting C. Information Regarding Highway 10 Design Theme RFP Deferred to next meeting. • 6. Reports From Chair, Commissioners and Staff: No Reports 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 9:18 a.m. Respectfully Submitted, Adi/ / L � I Director of Economic Development • 1 0 Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: July 17, 1997 Subject: Consideration of Application for Marketing Funds through the New (5.A) Brighton/Mounds View Area Chamber of Commerce The City is in the process of updating the Community Profile which is used to market the City to prospective new businesses and welcome new residents to the community. The Community Profile is a glossy booklet that provides background data on the City of Mounds View and the Metropolitan region. It provides information on population, utilities, transportation, quality of life, education and available sites. In an effort to pay for the printing and design of the profile it is possible to apply for charitable giving funds from the New Brighton/Mounds View Area Chamber of • Commerce. The City of New Brighton has applied for marketing funds annually for advertisements and site information. This community profile can be used X by the Chamber when they get request for information on the area. The printing and design of the profile costs an estimated $2,000 - $3,000. Much of the research for the data is done in-house therefore the product is very cost effective. The City currently has an estimated $1,500 in the budget for the production of the profile. I would recommend applying for $2,000 to help cover the cost of production. In addition, New Brighton has typically produces an advertisement highlighting the "Business of the Year" of which they would receive funding from the chamber. This has always been a New Brighton business but this year Mounds View's Western Bank was named "Business of the Year". Therefore, I would suggest applying for funds to generate an advertisement highlighting Western Bank and why they benefit from locating in Mounds View. As a follow-up the advertisement can be run in the local paper and inserts can be used when providing information to prospective new businesses. The production of the advertisement could cost approximately $1,500 plus the cost to run the ad in the Bulletin. Attached is the application for funds. I will complete the application and bring a copy to the EDC meeting for review. I am requesting a recommendation from the EDC to apply for the funds as it will benefit the economic viability of the community in our • marketing efforts. NEW BRIGHTON CHAM COMMER 612 631 1906 l P. 01 ' CHARITABLE GIVING GRANT REQUEST To help the New Brighton-Mounds View Area Chamber effectively evaluate your project, you must fill out the following form. Describe the project Will the project take place in New Brighton-Mounds View or a surrounding community? Does the project include a New Brighton-Mounds View Chamber member or a New Brighton-Mounds View business? • How does this project meet the needs of the community? Is this project sponsored by other organizations? How much are other sponsors contributing? How much would you like the chamber to contribute? NEW BRIGHTON CHAM COMMER 612 631 1906 P. 02 *his project aid or support education? \That is the long term goal of this project'? VIII the project become self-sustaining? Will this project affect a Page number of people? Will this project affect a small number of people in a significant way? • How will this project help improve the business climate or needs of the community? How will this project generate favorable response for the community? 0 ou organization or projects' fiscal agent have a 501 (C) (3) or if a festival a 501 (C) (4) designati -o please attatch a copy es your organization have a license to conduct gambling? Staff Memo • To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: July 17, 1997 Subject: Consideration of Establishing a Loan Program for the Improvement (5.B.) of Multi-Family Housing and Manufactured Homes Summary: The EDC is being asked to evaluate the possibility of using tax increment funds to assist residents in the rehabilitation of homes located in the manufactured home parks and provide low interest loans to encourage owners of rental units to make improvements. The Situation: Currently, owners of manufactured homes are constructing their own additions. State law requires that additions must be prefabricated. The additions that are being built are now is disrepair. They have leaks with faulty construction which create an unsafe health environment such as molding and insects. The City has the authority to require the owners to tear down these additions since they were not constructed per State building code. The problem is that the people who own the homes are not able to afford the prefabricated additions to replace the defective ones but they still desperately need the living space. In addition, many of Mounds View's rental units are deteriorating and have significant deferred maintenance problems. It has been very difficult to encourage owners to take advantage of County and State Funding to make improvements to the properties. One reason is that many of the programs require a financial commitment from the owner to receive the funding and the reporting requirements are onerous. The City can not apply for these funds without the participation of the owners. Many of the properties are in such disrepair that minor improvements do not generate enough incentive to increase rents as a financial payback. Therefore, any improvements beyond minor maintenance is never accomplished. Possible Solution: With regards to the manufactured home parks, staff is suggesting that a loan • program be established for the owners for the prefabricated additions to replace the ones that are a health hazard and need to be removed. The loan could be forgivable 0 after a number of years or payment due upon sale of the home. There could be a requirement that the recipient of the loan attend a property management class to help them self police problems that arise within these manufactured home parks. The questions arise when we begin to look at what type of security we would be able to have on the loan. One possibility is to put a lien on the property for the value of the loan. Of course we would need to be assured that the value of the manufactured home at least is equal to the loan amount. Another question would be the administration of the loan? The Building Inspector, Rick Larson, will be available to address the situation and provide information regarding the number of current cases that would qualify and how much a typical prefab addition would cost. With the possibility that owners of multifamily apartments and duplexes will be receiving a lower tax classification, there may be more incentive to use these savings to put into rehabilitation of their properties. It has been suggested that as an added incentive the City/EDA may want to explore providing a low interest loan program to help with these improvements. The loan could be structured similar to the business partnership loan with a bank or provided in partnership with other funding agencies such as Ramsey County and MHFA. • 1 am looking for your suggestions regarding these type of programs and brainstorm on what types of controls\terms we would like to incorporate into the program, etc. Staff Memo • To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: July 17, 1997 Subject: Consideration of Assigning an EDC Member to Participate (5.C.) in the Development of Design Themes for Highway 10 Corridor Background: At the July 7, 1997 work session staff was directed to go out for a Request for Proposal for professional services to prepare a design theme for Highway 10 Corridor between Edgewood Drive and Silver Lake Road. The goal of the project is to develop 2-3 alternatives which would identify the area as the Mounds View City Center which is seen as a focal point of community activity and the City's commercial core. This request was precipitated in response to the level of development activity planned along the corridor and the outcome of the UofM Design Course that suggested a ring road be developed to define the "Heart of Mounds View". In addition, one of the major issues in the community and identified by the Council at goal setting sessions is the Highway 10 Corridor. Specifically land use and design issues are critical to the success of current and future corridor development. The City currently has a window of opportunity to implement a design theme with the current development proposals that will have a significant impact on the character of the corridor. In addition, staff is hoping to develop a capital improvement plan for Highway 10 Corridor as part of the 1998 budget to include the elements of the design theme. Process and Conclusions: Staff mailed a request for proposals to 15 consulting firms in the Twin Cities. We received 8 proposals of which 4 were chosen for interviews by members of the Planning Commission with the assistance of staff. Planning Commission members Bobbie Brooks and Jean Miller volunteered to assist City staff in interviewing the 4 firms on August 19th and 21st. We were able to narrow the firms to SRF Consulting Group and Hoisington Koegler Group and after checking references Friday will bring a final recommendation to the EDA meeting on Monday. Once a firm is determined it will be recommended to establish a task force to work with the consultant on design themes. I would like at lease one volunteer from the EDC to participate in this process. It is estimated that this will be a 3-4 month process and will require attendance at 2-3 task force/community meetings.