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HomeMy WebLinkAbout01-09-2023 EDACITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA MOUNDS VIEW CITY HALL Monday, January 9, 2023 6:30 p.m. 1. CALL TO ORDER 2. OATH OF OFFICE 3. ROLL CALL: President Hull, Vice President Cermak, Commissioner Lindstrom, Commissioner Meehlhause, Commissioner Gunn 4. APPROVAL OF AGENDA 5. CONSENT AGENDA A. Approval of Minutes: November 28, 2022 6. PUBLIC COMMENT Citizens may speak to issues not on tonight's agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 7. EDA BUSINESS A. Consider 23-EDA-363, Electing and Appointing Officers to the Mounds View Economic Development Authority (EDA) B. Ardan & Greenfield Park Redevelopment Discussion 8. REPORTS A. None 9. NEXT EDA MEETING: January 23, 2023 at 6:30 p.m., Mounds View City Hall 10. ADJOURNMENT 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 PROCEEDINGS OF THE MOUNDS VIEW EDA CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA Regular Meeting November 28, 2022 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 6:31 p.m. 2. ROLL CALL: President Mueller, Vice President Cermak, Commissioner Bergeron Commissioner Hull, Commissioner Meehlhause, and Executive Director Zikmund. NOT PRESENT: None. 3. APPROVAL OF AGENDA MOTION/SECOND: Hull/Meehlhause presented. Ayes — 5 4. CONSENT AGENDA To Approve the November 28, 2022, Agenda as Nays — 0 Motion carried. A. September 26, 2022, EDA Minutes. MOTION/SECOND: Meehlhause/Cermak. To Approve the Consent Agenda as presented. Ayes — 5 5. PUBLIC COMMENT Nays — 0 Motion carried. Brian Amundsen, 3048 Woodale Drive, spoke to the EDA, which also served as the HRA, regarding the City providing assistance to the aging housing stock in the community. He explained the Council would be considering a contingency bond for another city to assist them with improving a rental unit. He suggested the Mounds View EDA consider providing this bonding to a local rental landlord, instead of sending the money outside of the City. Finance Director Beer reported the City has used conduit financing on two separate housing projects in the past two years. Ann Tate, 3048 Bronson Drive, explained she lived at the corner of Pleasant View and Bronson Mounds View EDA November 28, 2022 Regular Meeting Page 2 1 Drive. She presented the EDA with a petition against the road redesign that was being considered 2 and requested the planned project be limited to the repair of the existing road. She reported those 3 members of the public that had signed the petition opposed the proposed multi -use trail. 4 5 Mayor Mueller asked that Ms. Tate bring her request forward at the City Council meeting under 6 the Public Comment portion of the meeting. 7 8 6. EDA BUSINESS 9 10 A. EDA Resolution 22-EDA-361, Appointing Members to the Economic 11 Development Commission. 12 13 Assistant City Administrator Beeman requested the EDA appoint members to the Economic 14 Development Commission. He reviewed the proposed appointments and recommended approval. 15 16 MOTION/SECOND: Meehlhause/Hull. To Waive the Reading and Adopt Resolution 22-EDA- 17 361, Appointing Members to the Economic Development Commission. 18 19 Commissioner Meehlhause thanked Dan Larson for his years of service on the Economic 20 Development Commission. 21 22 Commissioner Hull thanked Andrina Moe for coming forward to serve on the EDC. 23 24 Ayes — 5 Nays — 0 Motion carried. 25 26 B. EDA Resolution 22-EDA-362, Approving a Preliminary Development 27 Agreement with Reuter Walton Development, LLC by the Mounds View 28 Economic Development Authority. 29 30 Assistant City Administrator Beeman requested the EDA approve a Preliminary Development 31 Agreement with Reuter Walton Development, LLC by the Mounds View Economic Development 32 Authority. He commented on the history of this project and explained Reuter Walton was 33 proposing to construct a $46 million 140-unit apartment building. He reported the Planning 34 Commission reviewed this meeting at their last meeting recommended approval of the preliminary 35 plat. Since that time, staff has been working with the applicant on a Preliminary Development 36 Agreement. Staff commented further on the Preliminary Development Agreement, noting the 37 amount of money the City would receive in park dedication funds and recommended approval. 38 39 President Mueller reported there would be two phases to this project. She noted Phase I would 40 include the 140-unit apartment complex that would be constructed in 2023. She asked if the figures 41 reviewed by staff included fees for both Phase I and Phase 11. Assistant City Administrator Beeman 42 explained the figures were for Phase I alone. 43 44 President Mueller inquired when the details of the development would be further reviewed by the 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 Mounds View EDA Regular Meeting November 28, 2022 Page 3 City. Assistant City Administrator Beeman explained staff was working through these details with the developer at this time. MOTION/SECOND: Meehlhause/Cermak. To Waive the Reading and Adopt Resolution 22- EDA-362, Approving a Preliminary Development Agreement with Reuter Walton Development, LLC by the Mounds View Economic Development Authority. President Mueller requested a roll call vote. ROLL CALL: Bergeron/Cermak/Hull/Meehlhause/Mueller. Ayes — 3 Nays — 2 (Mueller and Hull) Motion carried. 7. REPORTS None. 8. NEXT EDA MEETING: Monday, December 42, 2022 at 6:30 p.m. 9. ADJOURNMENT President Mueller adjourned the meeting at 6:50 p.m. Respectfully submitted, Recorded and transcribed by: Heidi Guenther Minute Maker Secretarial MOUNDS I V IEW ECONOMIC DEVELOPMENT A UTHORITY Oath of Office I, Al Hull, do solemnly swear, to support the Constitution of the United States, and of this state, and to discharge faithfully the duties, devolving upon me as a member of the Economic Development Authority of the City of Mounds View, to the best of my judgment and ability. Sworn before me this 9' day of January, 2023. (SEAL) Al Hull Nyle Zikmund, City Administrator MOUNDS I V IEW ECONOMIC DEVELOPMENT A UTHORITY Oath of Office I, Zach Lindstrom, do solemnly swear, to support the Constitution of the United States, and of this state, and to discharge faithfully the duties, devolving upon me as a member of the Economic Development Authority of the City of Mounds View, to the best of my judgment and ability. Sworn before me this 9' day of January, 2023. (SEAL) Zach Lindstrom Nyle Zikmund, City Administrator MOUNDS I V IEW ECONOMIC DEVELOPMENT A UTHORITY Oath of Office I, Sherry Gunn, do solemnly swear, to support the Constitution of the United States, and of this state, and to discharge faithfully the duties, devolving upon me as a member of the Economic Development Authority of the City of Mounds View, to the best of my judgment and ability. Sworn before me this 9' day of January, 2023. (SEAL) Sherry Gunn Nyle Zikmund, City Administrator MOUNDS VfE_W Item No: 7A Meeting Date: January 09, 2023 Type of Business: EDA City Administrator Review: City of Mounds View Staff Report To: Economic Development Authority From: Brian Beeman, Assistant City Administrator Item Title/Subject: Resolution 23-EDA-363 Electing and Appointing Officers to the Mounds View Economic Development Authority (EDA) Background Article 3, Section 3.1 of the EDA by-laws state that the President, Vice -President, Treasurer and Secretary shall be elected annually at the first meeting of the year. The EDA officers for 2022 were as follows: President: Vice President Treasurer: Secretary: Carol Mueller Theresa Cermak Gary Meehlhause Al Hull Discussion January 09, 2023, is the first EDA meeting of the year. In accordance with the EDA Bylaws, the EDA is required to appoint its officers at this meeting. Recommendation Staff recommends that the EDA appoint officers and approve attached EDA Resolution 23-EDA-363. Respectfully submitted, Brian Beeman Assistant City Administrator Attachment(s): 1) Resolution 23-EDA-363 Electing and Appointing Officers to the EDA EDA RESOLUTION 23-EDA-363 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION ELECTING AND APPOINTING 2023 OFFICERS TO THE MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, Minnesota Statutes Section 469.096 addresses officers, duties and organizational matters relating to an Economic Development Authority; and WHEREAS, the Mounds View Economic Development Authority (the "Authority") has adopted Bylaws that govern the operation and function of the Authority; and WHEREAS, Minnesota Statutes Section 469.096 require the Authority to annually elect certain officers of the Authority— the President, Treasurer, and Secretary; and WHEREAS, the Authority Bylaws require the Authority to annually elect certain officers of the Authority - the President, Vice -President, Treasurer and Secretary - at the first meeting of the year. NOW, THEREFORE, BE IT RESOLVED that the Mounds View Economic Development Authority hereby elects the following individuals to serve as the officers of the Authority for 2023 as noted below: President: Vice -President: Treasurer: Secretary: Adopted this 91" day of January, 2023. Al Hull, President ATTEST: Nyle Zikmund, Executive Director (SEAL) MOUNislVIEW of Mounds View Staff R Item No: 7B Meeting Date: January 9, 2023 Type of Business EDA City Administrator Review To: Economic Development Authority From: Brian Beeman, Assistant City Administrator Item Title/Subject: Ardan & Greenfield Park Redevelopment Discussion Introduction: On April 5, 2021 the City Council heard a presentation by staff on all of the potential redevelopment sites in the city. Ardan and Greenfield Park redevelopment areas were discussed and it was determined that a wetland delineation study was needed in order to define what is developable and what is to remain as wetland. The wetland delineation study was completed early towards the end of September 2022. The study was distributed to developers with instructions to submit a concept map and general plan proposal to the City Council for it's January 3, 2023 City Council Worksession meeting. Those proposals are attached. At the January 3, 2023 City Council Worksession, the City Council heard a brief overview of the final wetland delineation study and then heard presentations from five developers offering a variety of housing products and layouts in the Ardan and Greenfield Park redevelopment areas. The City Council provided staff direction to continue the discussion by setting up a meeting to define the housing product type desired at those locations and to choose a developer or combination of developers to move forward in the process. Discussion: The EDA to review and discuss the housing needs and desires based on the adopted 2023-26 Strategic Plan and on -going discussions. The two main objectives for this meeting is to define the housing type and choose which developer(s) to bring back for a more detailed discussion before taking any formal actions to proceed with the development. The EDA to provide feedback on which development or combination of developments they would like to see. Should the EDA wish to continue discussions with one or more developers, the EDA should authorize staff to coordinate with the developer(s) to further discuss in detail those developments with the chosen developer(s). In order to assist in making these decisions, staff has contacted each of the developers that presented on January 3, 2023 and asked them the same set of questions then formulated a comparison chart. (The developer responses and comparison chart is attached) Please bring your City Council Worksession agenda packet from January 3, 2023 with developer concept plans and proposals if needed to help you make a decision. In addition, the EDA should have a general discussion on the wetland if we should continue as planned with the proposed developments or if we should look at other uses. Strategic Plan Strategy/Goal: ■ Create and maintain a positive business climate where businesses want to locate and remain in Mounds View through a good BR&E program and redevelopment efforts. Maximize utilization of development space and current list of available sites. Support the development of a variety of housing stock that includes affordable and market rate and the maintenance of properties. Consider more townhomes and affordable apartments and other housing options. ■ Increase the EDA levy to have funds available for redevelopment projects. Identify and set aside strategic lots within the City like Ardan Park redevelopment area. Ensure townhomes are integrated into the neighborhood with proper style and landscaping. Financial Impact: Project is developer lead. Actual costs and revenues depend on product type, number of units, total project cost, etc. The Mounds View Vision A Thriving Desirable Community Recommendation: 1. Engage in a discussion comparing housing product types and developers and the wetland 2. Consider a motion specifying the housing product type desired and developer(s) desired to move forward in the Ardan and Greenfield Park redevelopment sites, and authorizing staff to continue to cooperate and coordinate with said developer(s) in order to set up a future meeting to allow the EDA to continue to engage in more focused and detailed discussions and to determine the next steps. Respectfully, AV&4410--- Brian Beeman, MPA, CIVIC Assistant City Administrator ATTACHMENT(S): 1) Developer Comparison Chart 2) Pulte Homes Response 3) Wetland Maps for Ardan & Geenfield Park Redevelopment Area The Mounds View Vision A Thriving Desirable Community Pult HOMES January 4, 2023 City of Mounds View Honorable Mayor and City Council 2401 County Road 10 Mounds View, Minnesota 55112 Re: Ardan Avenue Properties Honorable Mayor and City Council: Thank you for providing us the opportunity to participate in a discussion during the City Council workshop meeting on January 3, 2023. We truly appreciate it. The purpose of this letter is to respond to recent staff emailed questions and to provide some helpful information about some of the issues discussed during the workshop meeting. City Staff Questions Number of units? — We have prepared four different sites plans based on different assumptions regarding what properties are to be included and the assumed density. As discussed below, we have made minor revisions to one of our site plans and have included this site plan as an attachment to this letter. The unit count shown on this updated site plan includes: 74 townhome units 22 potential additional townhome units 6 to 12 YardHomes 80 to 108 total units 2. Type they proposed or can build? — Pulte feels that the highest and best use for most of the homes on this site would be two-story townhomes for the following reasons: a. Townhomes act as a logical transitional use between the freeway/compost site and single-family homes. b. Townhomes would generate more tax revenue than detached homes. c. The values and heights of the homes will be consistent with the neighboring single-family homes. d. Most important, townhomes would fulfill demand for the most severely underserved demographic groups: housing for empty nesters and first-time new homebuyers. If the City determines that other uses are desired, then Pulte is willing to evaluate the building of other types of homes. These could include small single-family homes, single level homes, or twin homes (please see below item 1 for more discussion 92023 Pulte Homes of Minnesota LLC. All rights reserved. BL#BC627273 regarding HOA dues). YardHomes will build the prefabricated compact homes that have been displayed and discussed. 3. Price range — The townhomes are anticipated to range in selling price from $340k to $480k depending on the range of options chosen by buyers and the cost of the land and infrastructure. The YardHomes are anticipated to start below $200k. 4. Interest in Ardan or Ardan and Greenfield or will be willing to do just Greenfield — Pulte and YardHomes are interested in participating in both sites. However, based on the initial research we have completed, the Greenfield site may be significantly challenged from the standpoint of floodplain issues. If this issue can be resolved, our team is interested in both sites. If Pulte is not chosen for the Arden site, then Pulte would not be interested in pursuing the Greenfield site. If YardHomes is not chosen for the Arden site, then YardHomes remains interested in pursuing the Greenfield site. 5. If that developer will work with YardHomes — Pulte has intentionally partnered with YardHomes due to the similarities in each company's common goals, work ethic, and transparent approach. 6. Any other pertinent issues — See the below comments. City Council Discussion Below is a list of questions/concerns/desires that were expressed by City Councilmembers. We realize that each comment may not represent the City Council as a whole, but we felt it important to offer a full response to these comments for the benefit of all stakeholders. As a potential City partner, we believe in strong communication from beginning of a project to its end. 1. Desire for single level homes for empty nesters — It is true that the Twin Cities metropolitan area is showing a demand for this type of housing. It is also true that the market has changed in how it is responding to this demand. Our population is aging in a healthier manner. Previously, when children grew up and left the family home, the parents would oftentimes move into a single level home with no stairs. They enjoyed the convenience of homeowner association (HOA) maintenance of the yard and snow removal. This transition still takes place for many empty nesters. However, as we age "better," an additional move has become mainstream. Many empty nesters are now choosing to move into a two-story townhome. This option involves the navigation of one set of stairs, but also allows them to enjoy the HOA maintenance of the yard and snow removal. In addition, many are attracted to the additional HOA maintenance of the exterior of their two-story townhomes. Historically, 30% of the buyers of this two- story townhome are empty nesters. We wouldn't be surprised in this submarket to see this percentage increase. One other important point for your consideration is that it is important to have enough homes to support the fixed costs of having an HOA. There is no hard written rule, but our guideline is to have at least 40 to 50 homes within an HOA to enable the association dues to be at a reasonable level. It will be difficult with detached single level townhomes to approach this minimum number of homes. Therefore, we concluded that two-story townhomes are the best and most appropriate housing type for most homes in this location. 2. YardHomes along Long Lake Road - We heard a comment that it may be preferable to move the YardHomes to the City -owned lots along Long Lake Road. We agree with 0 Page 2 this comment and have revised our site plan to better reflect what this could look like. Please see the attached revised site plan. We have made a couple of other minor revisions to help illustrate how this neighborhood could look and feel. 3. What investment are you making in our community? — Depending on the assumptions made, we anticipate investing more than $33M into this new neighborhood. The taxable market value of the proposed development is estimated to be more than $40M. It should also be noted that although the Pulte headquarters is outside of Minnesota, all our employees that work in the Twin Cities are based and live in the Twin Cities. Also, our trades are substantially based here in the Twin Cities as well, like all builders. It is estimated that for every home we build, four full time jobs are sustained. 4. One of our goals is to maximize tax revenue generated from this development — In response to this comment, we have created an initial high-level estimate of the City tax revenue to be generated from this neighborhood. We estimate the townhomes and YardHomes to generate about $170k in annual City tax revenue. • 96 townhomes with $400k average sales price leads to $1,517/year to the City = $145,632 • 9 YardHomes with $200k average sales price leads to $692 = $6,228 • Total = $152k/year (using the League of MN Cities property tax calculator) 5. There is a concern about high groundwater— All of the homes proposed by Pulte and YardHomes are slabs on grade with no basement. This type of design should alleviate concerns about potential high groundwater levels. 6. A potential concern was expressed about private streets —Currently, private streets are standard for attached townhomes. Pulte designs private streets using City street standards and by creating HOA budgets which incorporate the replacement cost of all HOA maintained infrastructure including private streets. These standard practices have enabled the use of private streets to be common, practical, and sustainable. However, if the City Council is not comfortable with private streets, we'd be happy to design and construct public streets. The tradeoff is that the number of homes and tax revenue will be reduced. It is our hope that the above comments are helpful. We are confident that our team and key stakeholders within Mounds View can deliver an exceptional housing development. We remain very excited about this collaborative opportunity and it is a high priority for us. There is no doubt this can expand owner -occupied housing choices for existing and future residents and enhance the vitality of Mounds View and its reputation as a regional destination to live, work and play. We look forward to working with you. Sincerely, 4 Pulte Homes Paul Heuer, Director of Land Planning & Entitlement Encl Revised site plan • Page 3 L,; ." nN�o� LL� w ax 200E W aa o N o J (.7 z Y r �5m U W (A (7 mo NUU M p p a m N c7 r� w° m3 Jc�c�°J z og Yo M z Z z (n z E z O Om Uz ¢ w >LO a 0 O-. 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