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HomeMy WebLinkAbout11-25-2019 EDAPROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting November 25, 2019 Mounds View City Hall 2401 Mounds View Boulevard, Mounds View, MN 55112 1. CALL MEETING TO ORDER President Mueller called the meeting to order at 6:00 p.m. 2. ROLL CALL: President Mueller, Vice President Gunn, Commissioner Bergeron Commissioner Hull, Commissioner Meehlhause, Executive Director Zikmund, City Attorney Scott Riggs, and Finance Director Mark Beer. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Gunn/Meehlhause. To Approve the November 25, 2019, Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 4. CONSENT AGENDA A. Approval of Minutes: October 14, 2019, EDA Minutes. B. Approval of Minutes: November 4, 2019, EDA Minutes (Special Meeting). MOTION/SECOND: Gunn/Meehlhause. To Approve the Consent Agenda as presented. Ayes – 5 Nays – 0 Motion carried. 5. PUBLIC COMMENT None. 6. EDA BUSINESS A. Resolution 19-EDA-332 Confirm EDC Appointments. Assistant City Administrator Beeman requested the EDA confirm appointments to the Economic Mounds View EDA November 25, 2019 Regular Meeting Page 2 Development Commission. He commented further on the open seats on the EDC and recommended appointment of Gary Rundle, Dan Larson, and Lisa Marquis. MOTION/SECOND: Hull/Bergeron. To Waive the Reading and Adopt Resolution 19-EDA- 332, Conforming the EDC Appointments. President Mueller thanked all of the members of the community who were willing to serve on the EDC. Ayes – 5 Nays – 0 Motion carried. B. Open to Business and Ramsey County Economic Development Presentation. Assistant City Administrator Beeman stated representatives from Ramsey County and Open to Business had a presentation for the EDA. Noah Her, Open to Business, introduced himself to the EDA. He provided the EDA with a presentation on Open to Business and described how Open to Business would benefit local businesses in Ramsey County. He reported all services were provided on a confidential manner and were free of charge. He explained it was his goal to help businesses grow and succeed. He commented further on the services and lending options that were provided by Open to Business and how these services were impacting local businesses. He thanked the EDA for their time and stated he looked forward to serving the businesses in Mounds View. Rick Howden, Ramsey County Economic Development Department, introduced himself to the EDA. He discussed the initiatives the County was pursuing for the business community. He reported the County was working to be a resource navigator. He commented further on resources that would be available on the County’s website. President Mueller asked if Open to Business helped only new businesses. Mr. Her reported he worked with new and existing businesses. Commissioner Meehlhause questioned how many loans Open to Business processed each year. Mr. Her stated this varies from year to year but noted in 2019, he has processed seven loans. He anticipated this number would increase now that Ramsey County brought Open to Business in as a resource. Mr. Howden commented further on what a valuable resource Open to Business would be for local businesses in Ramsey County. C. Resolution 19-EDA-333 CEE Loan Servicing Contract. Assistant City Administrator Beeman requested the EDA approve the CEE Loan Servicing Contract. He explained the City used to contract this service with the Greater Minnesota Mounds View EDA November 25, 2019 Regular Meeting Page 3 Housing Corporation. He reported this organization has since gone away. For this reason, staff was recommending the EDA pursue a contract with CEE for loan servicing. Brenda Yaritz, Center for Energy and Environment representative, introduced herself to the EDA and thanked the Authority for their time. Marco Landoni, Center for Energy and Environment representative, provided the EDA with a presentation on the loan services CEE can provide. He explained CEE has been in business as a non-profit for the past 41 years. He described how CEE has partnered with CenterPoint and discussed the success CEE has had in the past year. It was his hope the City would see the benefit of partnering with CEE. He asked for questions or comments from the EDA. Commissioner Gunn asked if the existing loan program would have to change. Ms. Yaritz reported the existing loan program would remain the same. MOTION/SECOND: Meehlhause/Gunn. To Waive the Reading and Adopt Resolution 19- EDA-333, Approving the CEE Loan Servicing Contract. Ayes – 5 Nays – 0 Motion carried. D. Skyline Redevelopment Proposals. Assistant City Administrator Beeman reported the City was looking to redevelop the 3.5-acre Skyline Motel property. He noted the site had an additional 2 acres adjacent to the site (from Bauer Welding) that could be included in the redevelopment project. He indicated the City had four developers in attendance that had presentations for the EDA to consider. He requested the EDA hear the presentations and make a recommendation on how to proceed with the redevelopment of this site. Commissioner Meehlhause asked if the current business (BioClean) near this location was still interested in expanding. Assistant City Administrator Beeman explained this business was still interested in expanding and Kennedy & Graven was working on the contested easements. He explained the potential developers have been made aware of the proposed business expansion. President Mueller questioned if any other proposals would be brought forward to the EDA in December. Assistant City Administrator Beeman stated there were no further proposals. a.) MWF Development – Workforce Housing Chris Stokka, MWF Properties, introduced himself to the EDA and discussed a proposed workforce housing development that could be located on the former Skyline Motel property. He explained he met with Bauer Welding in order to understand the area that would be reserved for Mounds View EDA November 25, 2019 Regular Meeting Page 4 their future development. He reported he also spoke with staff and explained MWF was proposing to construct 96 workforce housing units within a four-story building with underground parking. He noted another development could be accommodated on the adjacent site. Mr. Stokka commented each unit would have two parking stalls underground and the units would be a mix of one, two and three bedrooms. He stated he would be requesting a 15-year TIF note but would be paying $535,000 for the .85 acres of City land. He reviewed several sample elevations on how the proposed building could look with the EDA. President Mueller thanked Mr. Stokka for his efforts. She asked if the proposal assured the City MWF would be purchasing and developing the entire parcel. Mr. Stokka stated he is proposing to purchase the three acres and would help the City find another user for the other parcel. President Mueller questioned what type of housing MWF was proposing to build. Mr. Stokka reported he was proposing to construct affordable housing for residents that were making 60% of the area median income or less. He commented further on the great success he has had with The Boulevard development, noting he only had one more unit to fill. Commissioner Meehlhause asked if the proposed MWF development would be primarily located on the Bauer Welding property. Mr. Stokka stated this was correct. Executive Director Zikmund inquired when MWF would be able to begin the proposed project. Mr. Stokka stated this project could begin in spring of 2021. Commissioner Meehlhause questioned why MWF was requesting more units than was done in The Boulevard development. Mr. Stokka stated this was being done given the fact The Boulevard development was so highly successful and to make the project more economically viable. President Mueller thanked Mr. Stokka for his presentation. b.) Augusta Development – Senior Housing Jared Gruett, Augusta Development, introduced himself to the EDA and explained he was proposing to construct senior housing on the Skyline Motel property. He introduced the team members he had present from Augusta Development. He reported he had completed three senior housing developments to date which include Havenwood in Minnetonka, Havenwood of Richfield and Yorkshire of Edina. He stated he was working to approve projects in St. Paul, Maplewood and Plymouth. Mr. Gruett explained he was proposing to construct 100 age in place senior housing units. He noted these units would include independent, assisted living and memory care units. He reported Mounds View EDA November 25, 2019 Regular Meeting Page 5 his project would not require any public financing. He discussed how the project would be oriented on the site and noted he could work with another developer on the Bauer Welding site. He reviewed several elevations of the projects he had completed in other communities. He commented the proposed building would have 22 independent units, 66 assisted living units and 12 memory care units. Commissioner Meehlhause asked what amenities would be included in the facility. Mr. Gruett reported the facility would have outdoor walking areas, a bar area, workout facility, theaters, and a chapel. He commented further on the dining room and bistro areas that would be included within the facility. Commissioner Meehlhause questioned how residents would transition from an independent unit to an assisted living unit. Mr. Gruett described how services were provided to independent and assisted living residents depending on their health. It was noted the only time residents would have to move would be if they required memory care services. He reported all units would come with laundry and would be available with one or two bedrooms. Commissioner Meehlhause inquired if staff was aware of the capacity levels at Bel Ray. Assistant City Administrator Beeman reported Bel Ray was near capacity at this time. It was his understanding Bel Ray was doing so well they were considering a Phase II development. Commissioner Hull asked if this project would utilize the entire redevelopment site. Eric Reiners, 4200 West Old Shakopee Road in Bloomington, explained when the project was originally considered, it was designed to fit entirely on the 3.5-acre Skyline Motel site. He stated he was not aware of the Bauer Welding property at first. He indicated the development could be shifted to utilize the Bauer Welding land with one acre of the Skyline Motel property. President Mueller questioned what age group would be served by the proposed senior housing. Mr. Gruett stated the housing would be for those 55 years of age or older. President Mueller inquired who Augusta Development would work with to manage the senior housing development. Mr. Gruett reported he would be working with Health Dimension Group (HDG). President Mueller asked if Augusta Development would be conducting a market study. Mr. Gruett stated this would be conducted. President Mueller questioned when the Augusta Development project could begin. Mr. Gruett reported his project could begin shortly after receiving approval from the City of Mounds View. He anticipated the project could begin in 2020. c.) Ebert Construction – Temperature Controlled Storage Mounds View EDA November 25, 2019 Regular Meeting Page 6 Charles Burg, Ebert Construction, introduced himself to the EDA and discussed the temperature- controlled storage project he was proposing for the Skyline Motel property. He indicated the self-storage facility would be 115,000 square feet in size. He reported the building could be three or four stories in height. He stated he did multiple sketch fits for this project and noted he could locate on the northern or southern portions of the site. He reviewed elevations of another project that was completed and noted he had completed eight other similar projects in the metro area. He discussed how self-storage facilities provided a great buffer from industrial properties to other uses. He stated he would be happy to work with the City and another developer on the project. Greg Hayes, Ebert Construction, introduced himself to the EDA and indicated Ebert Construction was a family owned business that has been around for the past 52 years. He stated he had 110 to 125 full-time employees. He explained his intent would be to hold and own the proposed facility. He commented further on the varied architecture that was being proposed for the proposed site and described the people who were using modern self-storage units. Commissioner Meehlhause noted a friend of his rented a similar storage unit. He requested further information regarding the parking requirements. Mr. Hayes reported the parking typically ranged from nine to 15 stalls. He commented further on how secure the facility would be for loading and unloading. President Mueller questioned if the self-storage units were used for vehicles. Mr. Hayes stated the units could not house vehicles or anything flammable. He reported units were typically filled with personal items. President Mueller inquired how the self-storage units were monitored. Mr. Hayes explained the units were monitored by staff (when onsite) and via electronic monitoring. He discussed the hours staff would be onsite. He estimated the self-storage facility would bring six jobs to the community. President Mueller asked if Ebert Construction would be willing to work with another developer on this project. Mr. Hayes stated he would be very willing to work with another developer. Commissioner Gunn indicated there was a need in the community for self-storage units. She discussed how she had needed a storage unit after she sold her home and was waiting to move into a new apartment. Mr. Hayes stated timing-wise this project could be completed in 2020. d.) Adams French Properties – Temperature Controlled Storage Todd Mohagen, Mohagen Hanson Properties, introduced himself to the EDA and stated he was Mounds View EDA November 25, 2019 Regular Meeting Page 7 proposing to build temperature-controlled storage on the Skyline Motel property. He reviewed the site plan and noted it was very similar to the previous project. He noted the location of the access drive for the three-story self-storage building. He commented being along the freeway was very important for visibility purposes. He indicated self-storage was a great buffer for the adjacent industrial zone. He stated Adams French Properties was open to working with another developer on this project and was mostly interested in the 3.5-acre site. He provided further comment on the work Adams French Properties has done in Minnesota and stated he was very proud of the architecture and products that were being constructed. He explained the proposed project could begin construction in 2020 after receiving approval from the City of Mounds View. President Mueller asked if Adams French Properties would continue to own the property after it was constructed. Mr. Mohagen reported it was his understanding this would be the case. President Mueller questioned how many jobs would be brought to the community. Mr. Mohagen stated six jobs would be created. President Mueller inquired how many parking spaces would be required. Mr. Mohagen indicated the site would be requesting 12 parking spaces. He estimated the site would have three or four visitors per hour. Commissioner Gunn asked if this project would require financial assistance from the City. Mr. Mohagen reported the project would not require any financial assistance from the City of Mounds View. Commissioner Gunn questioned if a 40’ truck would fit into the loading bay area. Mr. Mohagen stated this was the case. He noted the loading bay area was not designed for a semi-truck, but would fit a standard moving truck. President Mueller inquired if the loading area was inside the building. Mr. Mohagen explained the loading bay area was inside the building. Commissioner Meehlhause stated he believed the proposed self-storage buildings would look like a nice office building from the exterior. Executive Director Zikmund discussed the history of this property and noted it has been marketed with a purchase price of $1.8 million. He requested the EDA discuss the proposed developments and provide staff with direction on how to proceed with this project. Mr. Gruett addressed the employment numbers for his project and estimated he would have 20 full-time and 20 part-time employees within the proposed senior housing development. Executive Director Zikmund stated he believed it may be best for the developers to work together Mounds View EDA November 25, 2019 Regular Meeting Page 8 in order to come up with a price for the EDA to consider prior to moving forward with the redevelopment of this site. He was of the opinion this was a great group of proposals for the EDA to consider. Commissioner Bergeron supported the EDA having prices to review prior to making a decision. He also wanted to see the developers coming together to devise a joint solution for the property. President Mueller agreed with this suggestion and encouraged the developers to consider working with both Bauer Welding and BioClean through the proposed project. Commissioner Meehlhause thanked all four of the developers for their proposals and presentations. He stated all four were excellent options for the City. He commented on the surface there would be an advantage of the Augusta development over the MWF development given the fact Augusta would not be requesting any financial support. He stated he did not object to TIF and noted TIF was offered to The Boulevard development. Commissioner Gunn agreed with Commissioner Meehlhause’s statement. She anticipated there would be room on this site for one housing development and one self-storage project. She indicated she was leaning towards the senior housing project at this time. President Mueller asked if MWF would be completing a market study. Mr. Stokka commented a market study would have to be completed eventually, but he would pursue the project without doing a market study at this time. He explained he had enough confidence given the success of The Boulevard development to move forward with the proposed project. President Mueller questioned how long it would take Augusta Development to complete a market study. Mr. Gruett indicated he could pursue the project without a market study. He noted market studies had been completed in adjacent communities and he was confident a market study would support his project. Commissioner Hull commented one of the obstacles to getting more restaurants into the City was the need for higher density. He indicated the workforce housing project would provide the City with an additional 100 units that would contribute to the local economy while also increasing the City’s traffic counts. Consensus was to direct staff to bring this item back for further discussion on December 2, 2019. 7. REPORTS None. 8. NEXT EDA MEETING: Monday, December 9, 2019 at 6:00 p.m. Mounds View EDA November 25, 2019 Regular Meeting Page 9 9. ADJOURNMENT President Mueller adjourned the meeting at 7:58 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther TimeSaver Off Site Secretarial, Inc.