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Home My WebLink About05-27-1999 ECONOMIC DEVELOPMENT COMMISSION AGENDA May 27, 1999 7:30 A.M. MOUNDS VIEW CITY HALL - CITY COUNCIL CHAMBERS I. CALL TO ORDER A.M. 2. ROLL CALL (Present = P, Absent =A) Carlson '< arty r Goff v Thomason (EDA Liaison) VzField Dorgan (Staff) ,Kahn ,jopke (Staff) ,/ lsen Carroll (Staff) VWalther 3. APPROVE EDC MINUTES April 22, 1999 Action: Motion Second G Vote 10,-0 4. SPECIAL BUSINESS : None anticipated. 5. EDC BUSINESS: A. Economic Development Potpourri -- Verbal update on recent developments and upcoming events, including --Commencement of construction of"Building N" --Grand opening of Wynnsong 15 Theater --Legislation affectingeconomicdevelopment --Business of the Year Awards Luncheon on June 3rd B. Comprehensive Guide Plan — Economic Development section Continuation of prior discussions, including information on proposed Resolution Requesting Extension of Comprehensive Guide Plan submittal date. 6. Report of Commissioners, Staff and EDA Liaison ,-------) 7. ADJOURN0 A.M. Next Regularly Scheduled Meetin : June 24, 1999 j N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\AGENDA99 AGEN0527.WPG Minutes of the Economic Development Commission City of Mounds View Ramsey County, Minnesota • Regular Meeting g April 22, 1999 City of Mounds View, Conference Room C 2401 Highway 10, Mounds View, MN 55112 1. CALL TO ORDER: The meeting was called to order at 7:41 a.m. by Chairperson Cindy Carlson. 2. ROLL CALL: Members present: Cindy Carlson, Tom Field, Sean Walther,Julie Olsen,Wendy Marty, EDA Liaison Lynn Thomason. Members absent: Jerry Kahn. Staff present: Economic Development Coordinator Kevin Carroll, Community Development Director Rick Jopke. 111 Guest present: Carol Frey, President, New Brighton-Mounds View Chamber of Commerce. 3. APPROVAL OF MINUTES: Motion/Second: Walther/Field to approve the minutes from March 23 and March 25, 199,with the understanding that the "Regular Meeting" reference on the March 23rd minutes will be changed to "Special Meeting." Motion Carried 6 Ayes 0 Nays 4. SPECIAL BUSINESS Economic Development Coordinator Kevin Carroll,EDC ChairCindyCarlson,-and-EDC Commissioner Tom Field introduced their daughters,who were attending the meeting in connection with "Take Your Daughter To Work Day." 5. EDC BUSINESS A. Building"N" Development Assistance Agreement Economic Development Coordinator Kevin Carroll and Community Development Director Rick Jopke provided the EDC members with a progress report regarding the ongoing negotiations/discussions with Everest Development concerning the Building"N" site. EDA members still have some concerns regarding the amount of TIF assistance, the contractual interest rate, the length of the term over which TIF assistance would be paid, and the uncertainty regarding the number of new jobs that will be created and the identity of the prospective tenant(s). Everest's position seems to be that the terms included in the latest draft of the unsigned Development Assistance Agreement are non- negotiable at this stage. Attorneys have become involved on both sides, and Everest has • indicated a willingness to initiate litigation if necessary. Nevertheless, negotiations will continue in the hope that mutually acceptable compromises can eventually be achieved. B. Comprehensive Guide Plan -- Economic Development Section Given the time that the EDC devoted to the Building"N" issue and the other matters on the agenda, insufficient time remained to finalize the format of the ED Section of the Comprehensive Guide Plan. EDC Chair Cindy Carlson recommended that EDC members annotate their respective copies of the "working draft" of the ED Section so that they are prepared to discuss their questions, suggestions and/or proposed revisions at the next meeting on May 27th. Specific issues that were preliminarily identified included amending the "new residential housing project" references to simply"residential housing;" moving the TIF paragraph that is currently in Part I [Community Economic Goals] to Part H [Financial Incentives]; revising the caption of Part III by eliminating the reference to "Disincentives" and possibly substituting"Existing [or Current] Economic Conditions;"including references to mass transit and affordable housing; possibly moving the recaptioned Part III to an attachment or exhibit, or eliminating it entirely from the ED Section of the Comprehensive Guide Plan and incorporating it into a"shorter term" EDC work plan or some similar type of document; adding [to Part IV] a reference to the willingness or ability of the EDC and/or others to market Mounds View as a potential business location; and substituting"bullets" for the paragraph numbers in Section V to lessen the impression that some of the identified priorities are significantly more important than others. 6. ADJOURNMENT • the Commission, this meeting being no further business before of the Economic Devel ment Commission adjourned at approximately 9:12 a.m. i/sp/ , ectfully S bmitted n acro c omic De elohent Coordinator t • N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\MIN99\EDCMIN04.WPD 2 To: Economic Development Commission Members From: Kevin Carroll, Economic Development Coordinator M Subject: Comprehensive Guide Plan update (Economic Development Section) Date: May 27, 1999 EMORANDUM At our next meeting on Thursday, May 27, 1999, we will continue our prior discussions regarding the Economic Development section of the Comprehensive Guide Plan update. It is presently anticipated that at the City Council meeting on June 14, 1999, the Council will be asked to adopt a resolution requesting (from the Metropolitan Council) another extension of the deadline for submitting the City's final version of its updated Comprehensive Guide Plan. The extension will be requested in order to provide the Planning Commission, the EDC, the EDA, City staff, and the City Council with the additional time that will be needed to complete ongoing discussions regarding the format and content of the updated Comprehensive Guide Plan. The EDC should, of course, continue to work toward the eventual adoption of an Economic Development section that can be reviewed (and then either approved or modified) by the EDA and the City Council. To that end, I have attached the latest draft of the ED section, which has been revised to reflect the changes that were suggested/discussed at the last EDC meeting. The primary changes and issues that you should review and consider are as follows: • In Part 1, I have changed the "new residential housing project" references to "residential housing." • I have moved the TIF paragraph that was previously in Part 1 [Community Economic Goals] to Part 2 [Financial Incentives]. • I have attached the City's TIF Policy, and information on the Business Improvement Partnership loan program, as referred to in Part 2. • I have revised the caption of Part 3 by eliminating the reference to "Disincenti " and substituting "Economic Development Challenges. '! • The EDC should decide whether to retain the "recaptioned" Part 3 within this document, or move it to an attachment or exhibit, or elimina ing 't entirely from the ED Section of the Comprehensive • Guide Plan (and possibly incorporating it into a "shorter term" EDC work plan or some similar type of document). ■ • • I have included references to mass transit and affordable housing in Part 4. • I have also added [to Part 41 a reference to the willingness or ability of the EDC and/or others to market Mounds View as a potential business location; • I have substituted "bullets" for the paragraph numbers in Section 5 to lessen the impression that some of the identified priorities are significantly more important than others. I look 1. and to hear.-: . .out, and discussing, any other additions, deletions, or mo 6' ations that y%u ieve to b- appropriate. - in Carroll (6 2-717-4029) Economic Development Coordinator N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\STAFF99\052799.MEM • ■ • nds View 1999 Mounds Comprehensive Guide Plan Update ECONOMIC DEVELOPMENT 1. COMMUNITY ECONOMIC GOALS rk" Mounds Views future economic development will be governed and directed by a , • set of basic goals, principles and assumptions. The most important of these are set gip% forth below. The redevelopment or expansion of an existing business, new commercial or industrial development, or residential housing will be considered even if it involves the possible acquisition, demolition or relocation of an existing business or residential home. The redevelopment or expansion of an existing business, or new commercial or industrial development, or residential housing will be considered if a reasonable e opportunity for public input has been provided, particularly by those business owners and homeowners who could potentially be affected. Whether or not such parties support (or, at a minimum, do not oppose) any proposed redevelopment, expansion, new development or new project will be one of the more important factors in determining the City's position with respect to any such proposal. In the final analysis, the City's goal will be to determine whether the actual or potential benefits to the City (from any such proposal) outweigh the actual or potential negative impacts on individuals, businesses or the community as a whole. • 1 • The City will actively market itself to selected "target audiences" as a prime location for specific types of businesses and industries. In order to continuously refine and review its objectives as economic conditions and realities change, the City (through the EDC and/or the EDA) will annually update its list of"targeted" businesses and industries. Although the City will respond in a timely and businesslike manner to all requests for information about the City's suitability as a business location, City staff members will focus their attention on those requests that come from businesses of the type that appear on the City's "target list." In light of the increasing "mobility" of businesses in general, the City's future economic development efforts will focus on retaining existing businesses and industries in the community, in some cases by helping to create circumstances under which they can expand to meet their customers' needs and/or their own desire to grow and prosper financially. Given the fact that the City is almost fully developed, and in order to improve the City's tax base and improve the City's visual aesthetics, the City also intends to devote significant attention to redeveloping aging, obsolete, blighted or otherwise underdeveloped structures. Additionally, the City will explore the opportunities that are presented by the few remaining parcels of undeveloped property. In some cases this may involve assisting the owners of such parcels with the marketing of their properties to prospective developers. The City recognizes that the maintenance of an adequate workforce will be one of the most serious challenges that will face business and industry for much of the foreseeable future, and that the private sector and/or educational institutions will be primarily responsible for addressing and resolving workforce issues. However, the City is prepared to assist with such efforts by working collaboratively with others who are concerned about such issues. The nature of the City's assistance may include having City representatives serve on local and regional committees, commissions and agencies devoted to this important topic. 2. FINANCIAL INCENTIVES [Please refer to the attached information regarding Mounds View's tax increment financing policy and the Business Improvement Partnership loan program.] 2 Tax increment financing and other available forms of assistance will continue to be • used by the City, where and when it is appropriate to do so. City financial assistance will generally be limited to situations in which its use will enable the City /' to attract a new business, retain or expand an existing business, provide new / employment opportunities, enhance the City's tax base, or otherwise improve the Ak •p e. ance or vitality of the local business economy_ Tax increment financing will figic ntinue to be used in a manner consistent with the City's TIF Policy, which • be amended from time to time to reflect changes in the local economy and/or the public assistance philosophies of the members of the City Council and/or the Economic Development Authority. 3. ECONOMIC DEVELOPMENT CHALLENGES The effectiveness of local economic development can be enhanced by continuously assessing, and attempting to address, any circumstances that might negatively impact the local business climate. Such circumstances include those that might: • a. make a developer or business owner less inclined to establish a new business in Mounds View; or b. make a developer or business owner less inclined to relocate an existing business to Mounds View; or c. make an existing Mounds View business less inclined to expand its operation in Mounds View; or d. makean existing Mounds View business consider moving its operation to another community; or e. adversely affect, in some other way, the ability of an existing Mounds_View_business__to_achie_ve_economic success. The preceding circumstances are, to varying degrees, mitigated by the presence of financial and other incentives that encourage or allow economic development. Successful economic development will continue to require the careful monitoring of these existing and developing challenges so that realistic and timely efforts can be made to emphasize Mounds View's many positive attributes in order to effectively minimize or counteract negative perceptions or circumstances. The following table outlines Mounds View's future plans in this regard: • 3 • CHALLENGE(S). RESPONSE(S)/ACTION(S) 1. A scarcity of undeveloped land 1. Prepare and periodically update an suitable for new construction. inventory of undeveloped land; list undeveloped parcels on City web site with consent of owners/agents; acquire and/or clear underdeveloped sites suitable for new construction. 2. The small size of the few 2. Focus development efforts on remaining parcels of undeveloped land businesses suitable for smaller lots; that still remain. investigate possibility of combining adjoining lots to accommodate larger businesses. 3. Unrealistic price expectations on 3. Wait for market to "catch up" with the part of those who own undeveloped currently excessive asking prices; parcels of land (i.e., asking prices well investigate options that might reduce • in excess of actual market value). asking prices (relocation assistance, etc.). 4. Actual or perceived 4. Survey residents to determine neighborhood opposition to commercial preferences; arrange neighborhood development of certain types in certain meetings and/or public hearings in areas. 0 connection with proposed commercial development(s). 5. Uncertainty regarding the 5. Discuss general development position/direction/philosophy of the policies with City Council/EDA a City Council and/or EDA with respect work sessions on a periodic basis; to commercial and industrial periodically review (and update or development in general or with respect amend, as needed) TIF policy. to City/EDA financial assistance related thereto. • • 6. Owners of"underdeveloped" 6. Arrange meetings with owners; parcels (especially residential provide current information regarding homeowners and owners of old or potential market value of their obsolete commercial structures) who properties; develop or refine City are unwilling to sell, resulting in an relocation policies; consider use of inability to develop those properties to eminent domain in appropriate their highest and best uses. circumstances. 7. The lack of an commonly known 7. Continue work on the or readily ascertainable "identity" that development of a Highway 10 Design would attract new businesses Theme; maintain higher "profile" within the local and regional business communities; handle "business climate" inquiries promptly and professionally. 8. A scarcity of attractive office 8. Encourage new construction to space. meet this need. 9. A scarcity of rental 9. Encourage new construction to • warehouse/showroom space. meet this need. 10. Insufficient financial resources to 10. Investigate and use less aggressively recruit the most attractive expensive and/or more carefully "new business" prospects and/or to "targeted" recruitment/marketing "market"Mounds View as a business techniques: phone calls, personalized location. letters, networking at social/business functions, etc. 11. Insufficient financial resources 11. Aggressively pursue grants to to fund business incubator programs, fund such programs; establish "enterprise facilitation"projects or collaborations with other governmental other initiatives designed to help new entities and non-profit organizations; businesses get started locally. serve as a clearinghouse for information about assistance (financial and otherwise) that may be available from sources other than the City 12. A competitive climate in which 12. Avoid "raiding" nearby municipalities will sometimes try to communities for relocation prospects; entice businesses to move from one work together cooperatively with them 1111 community to another. whenever possible. • 13. The lowest levels of 13. Participate in groups/activities unemployment in modern times, designed to seek solutions to ongoing resulting in concerns about the workforce issues. community's (and the region's) ability to provide an adequate workforce. 14. A"legislative inclination" to 14. Monitor proposed legislation; restrict future use(s) of tax increment lobby for/against legislation where financing. appropriate. 15. The high cost of redeveloping 15. Seek creative solutions to the property vs. developing property. financing challenges inherent in potential redevelopment projects. • 1; r • 4. RESOURCES TO SUPPORT ECONOMIC ! EVELOPMENT #'' "Resources to support economic development" can be f efmed as any facts, Lellit:vtA programs or circumstances that enhance Mounds Vie 's ability to attract new businesses, retain and expand existing businesses, or .ssist in the preservation of a vibrant, diverse local economy. Such resources curr- tly include the following: 1. Close proximity to Interstate 35-W, all. ing relatively quick and easy l ,, , access to the downtown areas of Minn-.polis and St. Paul, and to other, portions of the Twin Cities metropolit. area. 400M PA Good internal traffic circulation, :;• -_.•_ ;. :!! 3. Successful, attractive business parks. 4. Visible evidence of new commercial activity ( - , .10 th. • ► a • .o • �j, ' .. n , '�.. onstore, ,- ( 1 5. Ongoing plans to create unifying visual the es and coordinated planning in and for the Highway 10 corridor. 6. Local business owners who are interested in expanding their operations 4110and improving the appearance of their properties. 7. The potential availability of tax increment fmancing for appropriate development or redevelopment projects. 8. The potential availability of city-assisted funding for cosmetic and operational improvements, through the Business Improvement Partnership Loan program. 9. Parcels of land, especially along Highway 10, that are suitable for development or redevelopment. 10. An active local Chamber of Commerce. 11. Strong local interest (among residents and businesses) in plans for local economic.development, especially along Highway 10. 12. A.coordinated approach to local planning and development issues, as evidenced by the ongoing work of the I-35W Corridor Coalition. 13. Historically low interest rates. 14. A continuing "legislative inclination" to reduce commercial and industrial property tax rates. 15. A plentiful supply of"life-cycle"housing to accommodate a wide range of incomes, including numerous rental units and other varieties of "affordable housing" for entry-level workers. E 16. Easy access to mass transit for workers who need or prefer to use such methods of transportation. 17. The willingness and ability of the City Council, Economic Development Authority, Economic Development Commission, city staff members, and community residents to market Mounds View as a good location for new businesses and/or for business expansion. 5. PRIORITIES FOR ECONOMIC DEVELOPMENT DECISIONS It' 0/ In general, the City of Mounds View's economic development priorities are as follows: • Retain existing businesses that make positive contributions to the local economy. • Provide a reasonable and prudent level of assistance (financial or otherwise) to enable existing businesses to expand their operations and/or facilities in Mounds View. • • Attract new commercial and industrial development in order to expand the City's tax base, thereby providing property tax relief for homeowners. • Encourage the development of new office space, warehouse space and retail operations that will enable Mounds View to offer services, facilities and goods that are not presently available in the community, or that are unavailable in sufficient quantity or quality.. • __ __Pursue the redevelopment of parcels and sites that are aesthetically displeasing, contaminated, blighted, abandoned, or otherwise underdeveloped. • Facilitate communications between and among the City, Ramsey County, local businesses, the Chamber of Commerce, local educational institutions, and any other parties or entities having a direct or indirect interest in the continued economic prosperity of Mounds View. • 5 Beyond the preceding general priorities and objectives, the City will continually develop and review more specific priorities in order to provide guidance to City staff, business owners, developers, and residents with respect to intended areas of concentration (geographic and otherwise). 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