HomeMy WebLinkAbout10-22-1998 ECONOMIC DEVELOPMENT COMMISSION AGENDA
October 22, 1998
7:30 A.M.
MOUNDS VIEW CITY HALL-"BACK"CONFERENCE ROOM
I. CALL TO ORDER A.M.
2. ROLL CALL (Present= P, Absent = A)
Carlson Marty %
Goff Stigney (EDA Liaison)
Field Whiting (Staff)
Sjoberg Jopke (Staff)
Schmidt Carroll (Staff)
✓ Walther ✓ D G Y1- i
3. APPROVE EDC MINUTES
August 27, 1998
Action: Motion
Second
Vote
4. SPECIAL BUSINESS (none anticipated)
5. EDC BUSINESS
A. Update on Mermaid Hotel and Banquet Center
[Informational only; no action required]
B. Comprehensive Guide Plan
[Economic Development section]
6. Report of Commissi• ers, - and EDA Liaison
7. ADJOURN 1 1 AM. u1
Mir
Next Mee ung: To Be Discussed ` �t
(The 4th Thursday of November is Thanksgiving) �! /
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Minutes of the Economic Development Commission
City of Mounds View
Ramsey County, Minnesota
Regular Meeting
August 27, 1998
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 7:30 a.m. by Chairperson Cindy Carlson.
2. ROLL CALL:
Members present: Cindy Carlson, Ron Schmidt,Tom Field,Rosemary Goff, Brian Sjoberg,
Wendy Marty, Sean Walther, EDA Liason Roger Stigney
Members absent: none
Staff present: Economic Development Coordinator Kevin Carroll, Community Development
Director Rick Jopke
3. APPROVAL OF MINUTES:
Motion/Second: Goff/Schmidt to approve the minutes from June 25, 1998 and July 20, 1998.
Motion carried unanimously.
4. SPECIAL BUSINESS
The EDC and City staff extended a welcome to Wendy Marty and Sean Walther,the newest
members of the EDC.
5. EDC BUSINESS --Update on Mermaid Hotel &Banquet Center
Economic Development Coordinator Kevin Carroll and Community Development Director Rick
Jopke provided the EDC members with a progress report regarding the Mermaid project. EDC
discussion ensued. EDC members indicated that they generally supported the concept of a
hotel and a banquet facility on the Mermaid property,because of the various benefits such
facilities would provide to the community. However, some members expressed an interest in
seeing more hard data or updated estimates regarding hotel room rates,hotel occupancy rates,
and interest rates on the financing that will be required. EDC members encouraged City staff to
actively seek the advice and input of experienced financial consultants in order to properly
evaluate the reasonableness of the Developer's projections regarding hotel and banquet center
revenue, operating expenses,and financing costs. In addition, several EDC members mentioned
that they would like to learn more about what the Developer plans to do with the existing
bowling alley and restaurant,particularly with regard to the exterior. It was suggested that an
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• effort should be made to upgrade the appearance of the existing structure so that it is consistent
with, and as attractive as,the exterior of the new hotel and banquet facility.
6. REPORTS FROM CHAIR, COMMISSIONERS,AND STAFF:
Economic Development Coordinator Kevin Carroll reported that Donatelle's Restaurant has
expressed an interest in applying for a Business Improvement Partnership loan,to help finance
parking lot improvements and interior/exterior remodeling. Donatelle's has been provided with
the required application form,but it has not yet been completed or submitted to date.
Mr. Carroll also reported that at its 7-27-98 meeting,the EDA adopted a revised version of the
EDC's proposed Resolution regarding the Business Improvement Partnership Loan program.
The EDA deleted the language that the EDC had suggested regarding the elimination of the
current requirement that a business be located in Mounds View for at least two years before
being eligible for the program. Mr. Carroll speculated that the EDA's concern may not be with
"residency"per se, but with the possibility that a business less than two years old may not have
a long enough financial "track record" to make it a suitable candidate for a loan under this
program.
7. ADJOURNMENT
There being no further business before the Commission,this meeting of the Economic
Development Commission adjourned at approximately 8:40 a.m.
Respectfully Submitted,
Kevin Carroll
Economic Development Coordinator
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1
To: Economic Development Commission Members
From: Kevin Carroll, Economic Development Coordinator MLI IOIYINDUM
Subject: Comprehensive Guide Plan
(Economic Development Component)
Date: October 16, 1998 �M R�
As you know, during 1998 the City has been devoting a considerable amount of attention
to updating its Comprehensive Guide Plan. Some components of the Guide Plan are
required(e.g., Community Background, Land Use,etc.), while other portions are
considered optional. "Economic Development" is designated as an optional section of the
Guide Plan. Still, incidental yet significant benefits might be derived from the preparation
of an Economic Development section, despite its optional nature. Accordingly, work is in
progress on such a section.
Your thoughts regarding what should or should not be in this portion of the Guide Plan
would be useful. More than enough time remains to incorporate your thoughts and
suggestions. I have attached, for reference, a two page summary of some topics that
could potentially be covered in the Economic Development"chapter" of our
Comprehensive Guide Plan. Please be prepared to engage in an informal discussion at the
October 22nd meeting regarding these items-- and I would be especially interested in your
prioritized"ranking" of potential economic goals and objectives.
Your input will be reflected in a draft of a written Economic Development section that
you will have an opportunity to review and comment upon before it is considered, adopted
or approved by the City Council and/or EDA.
Although I look forward to talking with all of you about this on Thursday, I want to
emphas' - that you arealwayswelcome-to call-me(717-4029)at your-convenience-if-
you' ,A e to discus- ;. y o - se topics"one-on-one!"
'1 r�
e ;n P. Carrroll
conomic Development Coordinator
Optional Plan
Elements
is section includes discussion of three optional elements:
• ,Economic development
• Intergovernmental cooperation:and
• Critical Area/Mississippi National River and Recreation Area (MNRRA)plan-
ning guidelines.
Economic Development
Many communities now have an economic development department
or commission— or are thinking about creating one. It is important
that the economic development and long-range planning efforts of the
community be integrated with each other, so that both work well
together to a common end.
Regional Blueprint policies specifically encourage communities to
become more proactive in working to retain and support existing
businesses by building a business climate that improves their competi-
tiveness, and to avoid raiding businesses from neighboring communi-
ties in the region.
The following is a list of relatively common issues that could be
addressed in an optional economic development section:
1. Community Economic Goals
• Creating new jobs;
• Stabilizing or enhancing the community's tax base;
• Ensu-ring convenient goods and services for community resi-
dents;
• Addressing changing needs of community consumers;
• Meeting changing needs of local businesses; and/or
• Improving employers' access to employees and employees'
access to jobs.
2. Current Business Activity and Business Climate
Description of existing business activity in the community and
those business elements that are expected to be retained or expand-
ed. The information included in this optional section could also be
used for supporting material in a grant review under the Livable
Communities Act.
Local Planning Handbook May 1997 5.1
3. Support of Forecasted Growth and Redevelopment _
Discussion of how the community's land use, public facilities and
• infrastructure support the community's forecasted employment
growth and community goals; identification of"obsolete" or under-
utilized commercial/industrial land and cost/benefits of its redevel-
opment.
4. Financial Incentives
Description of financial incentives, if any, that the community may
be willing to use to foster economic development and a discussion
about how the use of such incentives may impact other jurisdic-
tions (school district, county).
5. Disincentives for Economic Development
Discussion of existing disincentives toward economic development
in the community, such as licensing, permitting and associated fees,
infrastructure capacity limitations and what the community plans
to do to deal with them.
6. Resources to Support Economic Development
Identification of resources available to assist the community with its
economic development efforts.
7. Priorities for Economic Development Decisions
v Criteria or factors for prioritizing local decisions with regard to eco-
-< a nomic development, such as:
AlvA J'7! Av5 • Creation and location of jobs;
J• A . • Market demand;
ti' • Cost of acquisition, cleanup and redevelopment relative to antic-
,
ipated benefit to the community;
`41//j,<5'A..4IA't • Responsiveness to changing demographic and market forces; and
itQv PC` t` `� • Effects on traffic circulation, access, goods and people move-
s, , �r: C� •
ment.
ANY_ rY _ :
3� . t
\// .
5.2 May 1997 Local Planning Handbook
To: Economic Development Commission Members �M RA
From: Kevin Carroll, Economic Development Coordinator . MLI IOIIANDUM
Subject: Mermaid Hotel/Banquet Center Project
(Update)
Date: October 16, 1998
At the upcoming meeting on October 22nd, I plan to provide you with a verbal update
regarding the following subjects related to the project referred to above:
1. The possibility of, and negotiations regarding, a Park&Ride facility on the
Mermaid site;
2. The results of preliminary Environmental Site Assessments that have been
conducted regarding the properties that would be involved in the project;
3. Discussions and negotiations regarding the acquisition of parcels that
would be needed for the project;
4. The Redevelopment Grant application that was recently filed with the
Department of Trade and Economic Development in connection with the
project.
With regard to the latter, a copy of the bound application will be made available for your
review at the meeting. With the exhibits attached, the application is nearly 100 pages
long; given its length, I did not make copies for everyone because I suspected that some
might not want to read the entire document. Those who do are welcome to borrow my
copy at any time.
If you have questionsaboutthe project that might take some research to answer, L -- -
encourage you to contact me by phone in advance of the meeting so that I have sufficient
time to o• ain the information that you desire.
e '1 P. Carrroll
Economic Development Coordinator
To: Economic Development Commission Members
I From: Steve Dorgan,Housing Inspector MEMORANDUM
Subject: Update on Proposed Interest Subsidy Home
Improvement Loan Program
Date: October 21, 1998
I I 1 I
SUMMARY
At the City Council workshop meeting on September 8, the Council recommended staff continue
to take necessary steps for the implementation of the proposed Subsidized Home Improvement
Loan Program. As proposed,the program would use Tax Increment Funds(TIF)to finance
subsidies and associated administrative costs. However,the City Attorney recently informed staff
that TIF may not be used to subsidize interest rates for home improvement loans. According to
legal stag Minnesota State Statutes dictate that TIF funds may not be used for the purposes of
subsidizing interest rates for home improvement loans. Therefore, the proposed loan subsidy
program may not use TIF funds for the purposes of subsidizing interest rates.
At the October 12, City Council meeting, staff was directed to continue researching other funding
sources, which the City may access to provide subsidies for the proposed program. One available
option would be to apply for funding through the Metropolitan Council Livable Communities
Housing Initiatives Fund. In recent conversations with Metropolitan Council stag City staff was
informed that the Home Improvement Loan Interest Subsidy Program might qualify for funding
through the"Super RFP" sponsored by the Metropolitan Council and the Minnesota Housing
Finance Agency. Applications for the Super RFP will be sent out in November/98 and are due in
February/99. As part of the application, the City may also apply for funding associated with other
housing related programs(i.e. housing replacement program, remodeling counselors). The City
may apply for the Super RFP and consolidate several programs into one application. If approved,
the City may receive funding for the proposed interest subsidy program as well as several other
programs. The funding sources associated with the Super RFP do require that most housing
programs have income related eligibility requirements for households. These requirements
typically have a maximum household income threshold that is 80% of the metropolitan area
median income(approximately$45,000 for a familyoffour). If approved, some modifications to
the income requirements of the proposed program may be necessary. Staff will continue work on
obtaining financial assistance for the interest subsidy program
programs. z
1 N •
g p k z ?
Steve Dort cousin Ins actor
717-4023 0 7 ..t.....
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To: Economic Development Commission Members
I From: Steve Dorgan,Housing Inspector MEMORANDUM
Subject: Update on Proposed Interest Subsidy Home
Improvement Loan Program
Date: October 21, 1998
I I 1 I
SUMMARY
At the City Council workshop meeting on September 8, the Council recommended staff continue
to take necessary steps for the implementation of the proposed Subsidized Home Improvement
Loan Program. As proposed,the program would use Tax Increment Funds(TIF)to finance
subsidies and associated administrative costs. However, the City Attorney recently informed staff
that TIF may not be used to subsidize interest rates for home improvement loans. According to
legal staff Minnesota State Statutes dictate that TIF funds may not be used for the purposes of
subsidizing interest rates for home improvement loans. Therefore, the proposed loan subsidy
program may not use TIF funds for the purposes of subsidizing interest rates.
At the October 12, City Council meeting, staff was directed to continue researching other funding
sources, which the City may access to provide subsidies for the proposed program. One available
option would be to apply for funding through the Metropolitan Council Livable Communities
Housing Initiatives Fund. In recent conversations with Metropolitan Council staff City staff was
informed that the Home Improvement Loan Interest Subsidy Program might qualify for funding
through the"Super RFP" sponsored by the Metropolitan Council and the Minnesota Housing
Finance Agency. Applications for the Super RFP will be sent out in November/98 and are due in
February/99. As part of the application, the City may also apply for funding associated with other
housing related programs(i.e. housing replacement program, remodeling counselors). The City
may apply for the Super RFP and consolidate several programs into one application. If approved,
the City may receive funding for the proposed interest subsidy program as well as several other
programs. The funding sources associated with the Super RFP do require that most housing
programs have income related eligibility requirements for households. These requirements
typically have a maximum household income threshold that is 80%of the metropolitan area
median income(approximately$45,000 for a family of four). Ifapproved, some modifications to
the income requirements of the proposed program may be necessary. Staff will continue work on
obtaining financial assistance for the interest subsidy program as well as other housing related
programs.
I
Steve Dorg Ttillrrousing Inspector
717-4023
N:DATA\GROUPMCOIDEW{OUSINGWOMp.OAMEDC6 25,96
To: Economic Development Commission Members
I From: Steve Dorgan, Housing Inspector MEMORANDUM
Subject: Update on Proposed Interest Subsidy Home
Improvement Loan Program
Date: October 21, 1998
I I I
SUMMARY
At the City Council workshop meeting on September 8, the Council recommended staff continue
to take necessary steps for the implementation of the proposed Subsidized Home Improvement
Loan Program. As proposed, the program would use Tax Increment Funds(TIF)to finance
subsidies and associated administrative costs. However, the City Attorney recently informed staff
that TIF may not be used to subsidize interest rates for home improvement loans. According to
legal staff; Minnesota State Statutes dictate that TIF funds may not be used for the purposes of
subsidizing interest rates for home improvement loans. Therefore, the proposed loan subsidy
program may not use TIF funds for the purposes of subsidizing interest rates.
At the October 12, City Council meeting, staff was directed to continue researching other funding
sources, which the City may access to provide subsidies for the proposed program. One available
option would be to apply for funding through the Metropolitan Council Livable Communities
Housing Initiatives Fund. In recent conversations with Metropolitan Council staff, City staff was
informed that the Home Improvement Loan Interest Subsidy Program might qualify for funding
through the"Super RFP" sponsored by the Metropolitan Council and the Minnesota Housing
Finance Agency. Applications for the Super RFP will be sent out in November/98 and are due in
February/99. As part of the application, the City may also apply for funding associated with other
housing related programs(i.e. housing replacement program, remodeling counselors). The City
may apply for the Super RFP and consolidate several programs into one application. If approved,
the City may receive funding for the proposed interest subsidy program as well as several other
programs. The funding sources associated with the Super RFP do require that most housing
programs have income related eligibility requirements for households. These requirements
typically have a maximum household income threshold that is 80% of the metropolitan area
median income(approximately$45,000 fora family of four). If approved,-some modifications to
the income requirements of the proposed program may be necessary. Staff will continue work on
obtaining financial assistance for the interest subsidy program as well as other housing related
programs.
I
Steve Dor: rousing Inspector
717-4023
NADATA\GROUPSCOMDE WOUSINGIHOMffiAANIBDC6_ZS96