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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) �! / N:\DATA\GROUPS\ECONDEV\EDA-EDC\EDC\EDCAGE98\AGEN I 022.EDC 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 N:\DATA\GROUPS\ECONDEV\EDA EDC\EDC\EDCMIN98\EDCMIN08.98 • 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 N:\DATA\GROUPS\ECONDEV\EDA EDC\EDC\EDCMIN98\EDCMIN08.98 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..... N:IDATAIGROUPS'COMDK N1CUSINfVHOMBLOAMEDC6_2$9S >" D q u s i ? ? 0 L--. A 1, 19 J 0 i-- 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