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HomeMy WebLinkAbout2005.12.19 EDA Packet 0���i/►/ AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MEETING MONDAY, DECEMBER 19, 2005 - 8:30 AM HUGO CITY HALL 8:30 am 1. Call to Order 8:31 am 2. Roll Call 8:32 am 3. Approval of Minutes • Joint EDA/Council Meeting of November 21,2005 8:35 am 4. Update of the December 13, 2005, Meeting of the TIF Subcommittee 9:05 am 5. Reschedule the Next EDA Meeting for Tuesday,January 17th,2006 at 8:30 am. 9:15 am 6. Update on the Rescheduling of the Downtown Redevelopment Open House to Wednesday,January 18, 2006 9:25 am 7. Discussion of Next Steps towards Implementing the Downtown Plan • Informal Meetings with Prospective Developers • Solicit Proposals through RFP, RFQ or Other Selection Process 10:10 am 8. Update on the Negotiations to Purchase Carpenters Restaurant and the Antique Store from Mike and Catherine Anderson 10:20 am 9. Update on Advertisement for EDA Position 10:30 am 10. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF DECEMBER 19, 2005 3. NOVEMBER 21,2005 EDA MEETING MINUTES City staff recommends that the EDA approve the minutes for the November 21, 2005 EDA meeting as presented. 4. UPDATE ON THE DECEMBER 13,2005,MEETING OF THE TIF SUBCOMMITTEE City staff, Paul Steinman of Springsted, and subcommittee members Phil Klein, Mike Granger, and Frank Puleo met on December 13, 2005 to discuss the format for the upcoming downtown redevelopment open house meeting and to review the draft letter inviting downtown property owners to the meeting. Subcommittee member Nick Skarich was unable to attend. The upcoming open house meeting is part of the public education and marketing campaign for the implementation of the downtown plan and the establishment of a TIF district. At the EDA meeting, City staff will present an overview of the proposed agenda for the downtown redevelopment open house meeting. 5. RESCHEDULE THE NEXT EDA MEETING FOR TUESDAY,JANUARY 17TH, 2006 AT 8:30 AM. Due to the Martin Luther King federal holiday on Monday, January 16, 2006, which the City observes, the January EDA meeting needs to be rescheduled. Staff recommends that the EDA meeting be rescheduled to Tuesday, January 17th, at 8:30 am. 6. UPDATE ON THE RESCHEDULING OF THE DOWNTOWN REDEVELOPMENT OPEN HOUSE TO JANUARY 18,2005 At the November 21, 2005 joint EDA/Council meeting,EDA and Council selected Tuesday, January 17, 2006 for the public open house for the presentation of the downtown redevelopment plan and market study. Due to the Martin Luther King federal holiday on Monday, January 16, 2006, the City's second regular City Council meeting of the month was rescheduled to January 17, 2006, resulting in the conflict of meetings at City Hall that evening. At the December 5, 2005 City Council meeting, Council rescheduled the open house for January 18, 2005, in the Oneka Room at Hugo City Hall, at 7:00 pm. 7. DISCUSSION OF NEXT STEPS TOWARDS IMPLEMENTING THE DOWNTOWN PLAN Over the last few months Staff has been informally meeting with developers and other groups interested in putting together a redevelopment project in the downtown area. It is in the Staff's opinion that the timing is right for the City to begin the developer selection process for the following reasons: 1)The City has now assembled a critical mass of properties along Egg Lake. 2) The downtown market study by Maxfield Research is almost complete. 3) The proposed downtown TIF district could be established by late spring or early summer of 2006. 4) The County Road 8 realignment project is about to break ground. Staff is seeking direction from the EDA on how to proceed with the developer selection process. If desired by the EDA, Staff can invite prospective developers and interested groups to give informal presentations at upcoming regularly scheduled EDA meetings or Staff can begin to prepare a formal request for proposal (RFP) or a request for qualifications (RFQ) for the implementation of the downtown plan. Community Development Director Bryan Bear will give an overview of the proposed next steps at the meeting. 8. UPDATE ON NEGOTIATIONS TO PURCHASE CARPENTERS RESTAURANT AND THE ANTIQUE STORE FROM MIKE AND CATHERINE ANDERSON At the last meeting EDA and Council agreed to forward a letter to the Mike and Catherine Anderson stating that they will have until December 2, 2005 to sign the Purchase Agreement for Carpenters Restaurant and the Antique Store or the agreement would become null and void. Mike and Catherine Anderson have declined to sign the purchase agreement and are no longer interested in selling their property to the City at this time. 9. UPDATE ON ADVERTISEMENT FOR EDA POSITION Staff has advertised the opening on the EDA in the local newspapers,the City newsletter, and the City website and has sent letters to the remaining original applicants in order to determine their interest in serving out Theresa Charpentier's term. The Deadline for receiving applications was December 2, 2005. City staff has received two applications for the EDA position. City staff will be requesting at the next City Council meeting that Council consider the scheduling of interviews for the applicants or an extension of the deadline of receipt of applications. MINUTES FOR THE JOINT EDA/CITY COUNCIL MEETING OF NOVEMBER 21, 2005 The meeting was called to order by Mayor Fran Miron at 8:30 am. EDA Members Present: Miron, Granger, Arcand, Klein,Bever, Absent: Skarich City Council Members Present: Miron, Petryk, Haas, Puleo, Granger Absent: None City Administrator,Mike Ericson Community Development Director, Bryan Bear Community Development Intern, Andrew Gitzlaff 2. JOINT EDA/COUNCIL MEETING OF SEPTEMBER 19,2005 Arcand made motion, Granger seconded to approve the minutes as presented. All aye. Motion Carried 3. EDA MEETING OF SEPTEMBER 19, 2005 Miron made motion, Granger seconded to approve the minutes as amended. All aye. Motion Carried 4. UPDATE ON THE TIF DISTRICUDOWNTOWN REDEVELOPMENT PROJECT IMPLEMENTATION PLAN City staff, Paul Steinman from Springsted, and subcommittee member Phil Klein met with groups of local downtown area business and property owners on November 16, 2005 to discuss the downtown plan and methods of implementing the plan. Subcommittee members Nick Skarich, Mike Granger, and Frank Puleo were unable to attend. The meetings are part of the marketing plan for the implementation of the downtown plan and the establishment of a TIF district. At the EDA meeting, City Staff and Paul Steinman presented an overview of the outcomes of those meetings,the marketing plan, and the proposed schedule of activities. City staff recommended that the Council and EDA authorize and schedule a public open house to inform downtown area property owners of the downtown redevelopment process and the potential impacts. Bever made motion, Granger seconded to set the date for the downtown plan open house for January 17, 2006 at 7:00 P.M. All aye. Motion Carried The subcommittee had also prepared a draft press release and Q&A newsletter about TIF and the downtown redevelopment plan for review by the Council and the EDA at the meeting. Staff recommended that the Council and the EDA review the draft Q&A newsletter and press release and become familiar with the materials. Staff recommended that the Council and the EDA approve the materials for immediate distribution to downtown residents and property owners if the Council and the EDA are comfortable with the content of the documents. The Council and the EDA reviewed the draft newsletter and press release and requested that Staff make some minor changes to the documents before distributing the materials. The EDA and the Council also recommended that the TIF subcommittee send a letter to the downtown property owners before the open house meeting. Miron recessed the meeting at 8:30 am and passed the gavel to EDA member Klein who reconvened the meeting at 8:45 a.m. Miron returned at 10:20 a.m. 5. UPDATE ON TWIN CITIES COMMUNITY CAPITAL FUND PROGRAM At the September 19, 2005,joint EDA/Council meeting Scott Martin from the Twin Cites Community Capital Fund (TCCCF) gave a presentation about the organization and the benefits members receive from participating in the fund to the EDA and Council. The TCCCF is a nonprofit economic development loan fund. Communities that join the fund are eligible for low interest loans, gap financing, and other financial incentives. The EDA and Council thanked Scott Martin for coming to the meeting and suggested that the EDA and the Council evaluate the materials in order and make a recommendation at the next EDA meeting on whether or not to participate in the program. Springsted, the City's financial advising firm, has prepared some background information on the fund. At the meeting, Staff suggested that the EDA and the Council decide whether or not the City should consider becoming a member of the TCCCF at this time. Granger made motion, Arcand seconded to recommend that the Council consider becoming a member of the TCCCF fund. All aye. Motion Carried. 6. UPDATE ON CITY PURCHASE OF CARPENTERS RESTAURANT AND THE ANTIQUE STORE FROM MIKE AND CATHERINE ANDERSON Mike and Catherine Anderson are still reviewing the purchase agreement that the City Council approved at their September 6, 2005 meeting. City staff provided the Council and the EDA an update on recent discussions with the Andersons.- Granger ndersons:Granger made motion, Bever seconded to recommend that the City Council give the Andersons ten days to sign the proposed purchase agreement before it becomes null and void. All aye. Motion Carried 7. UPDATE ON ADVERTISEMENT FOR EDA POSITION At its September 19, 2005 meeting, the EDA discussed the request from Commissioner Theresa Charpentier to seek a replacement for her on the TIF Subcommittee due to a change in her work schedule. At their October 17, 2005 meeting, Council accepted the resignation of Theresa Charpentier from the EDA and publicly thanked her for her service to the City of Hugo. The Council directed staff to advertise for this vacancy and contact the remaining applicants who originally interviewed for the position in order to determine their interest in serving out Theresa's term on the EDA. Staff informed the EDA that letters have been sent to the remaining original applicants and the opening has been advertised in the local news papers, the City newsletter, and the City website. The Deadline for receiving applications is December 2, 2005. After the deadline, City staff will schedule the applicants for interviews with the City Council. 8. ADJOURNMENT Granger made motion, Klein seconded to adjourn the EDA meeting at 10:28 a.m. Haas made motion,Puleo seconded to adjourn the City Council meeting at 10:29 a.m. AGENDA ✓ ` CITY OF HUGO 'ECONOMIC DEVELOPMENT AUTHORITY MEETING S-Plu MONDAY, DECEMBER 19, 2005 - 8:30 AM HUGO CITY HALL 8:30 am 1. Call to Order 8:31 am 2. Roll Call 8:32 am 3. Approval of Minutes • Joint EDA/Council Meeting of November 21,2005 8:35 am 4. Update of the December 13,2005, Meeting of the TIF Subcommittee + 9:05 am 5. Reschedule the NeEDA Meeting for Tue, y,January 7th,tat 8:30 amr 9:15 am 6. Update on the Rescheduling of the Do�y,pown Redevelopment Open House to�Vedney,January 18,20 9:25 am 7. Discussion of Next Steps towards Implementing the Downtown Plan • Informal Meetings with Prospective Developers • Solicit Proposals through RFP,RFQ or Other Selection Process 10:10 am 8. Update on the Negotiations to Purchase Carpenters Restaurant and the Antique Store from Mike and Catherine Anderson 10:20 am 9. Update on Advertisement for EDA Position 10:30 am 10. Adjournment rod / '`� BACKGROUND MEMO FOR THE EDA MEETING OF DECEMBER 19, 2005 3. NOVEMBER 21,2005 EDA MEETING MINUTES City staff recommends that the EDA approve the minutes for the November 21, 2005 EDA meeting as presented. 4. UPDATE ON THE DECEMBER 13, 2005,MEETING OF THE TIF SUBCOMMITTEE City staff, Paul Steinman of Springsted, and subcommittee members Phil Klein, Mike Granger, and Frank Puleo met on December 13, 2005 to discuss the format for the upcoming downtown redevelopment open house meeting and to review the draft letter inviting downtown property owners to the meeting. Subcommittee member Nick Skarich was unable to attend. The upcoming open house meeting is part of the public education and marketing campaign for the implementation of the downtown plan and the establishment of a TIF district. At the EDA meeting, City staff will present an overview of the proposed agenda for the downtown redevelopment open house meeting. 5. RESCHEDULE THE NEXT EDA MEETING FOR TUESDAY,JANUARY 17TH, 2006 AT 8:30 AM. Due to the Martin Luther King federal holiday on Monday, January 16, 2006, which the City observes, the January EDA meeting needs to be rescheduled. Staff recommends that the EDA meeting be rescheduled to Tuesday, January 17th, at 8:30 am. 6. UPDATE ON THE RESCHEDULING OF THE DOWNTOWN REDEVELOPMENT OPEN HOUSE TO JANUARY 18, 2005 At the November 21, 2005 joint EDA/Council meeting, EDA and Council selected Tuesday, January 17, 2006 for the public open house for the presentation of the downtown redevelopment plan and market study. Due to the Martin Luther King federal holiday on Monday, January 16, 2006, the City's second regular City Council meeting of the month was rescheduled to January 17, 2006, resulting in the conflict of meetings at City Hall that evening. At the December 5, 2005 City Council meeting, Council rescheduled the open house for January 18, 2005, in the Oneka Room at Hugo City Hall, at 7:00 pm. 7. DISCUSSION OF NEXT STEPS TOWARDS IMPLEMENTING THE DOWNTOWN PLAN Over the last few months Staff has been informally meeting with developers and other groups interested in putting together a redevelopment project in the downtown area. It is in the Staff's opinion that the timing is right for the City to begin the developer selection process for the following reasons: 1) The City has now assembled a critical mass of properties along Egg Lake. 2) The downtown market study by Maxfield Research is almost complete. 3) The proposed l downtown TIF district could be established by late spring or early summer of 2006. 4) The County Road 8 realignment project is about to break ground. Staff is seeking direction from the EDA on how to proceed with the developer selection process. If desired by the EDA, Staff can invite prospective developers and interested groups to give informal presentations at upcoming regularly scheduled EDA meetings or Staff can begin to prepare a formal request for proposal (RFP) or a request for qualifications (RFQ) for the implementation of the downtown plan. Community Development Director Bryan Bear will give an overview of the proposed next steps at the meeting. 8. UPDATE ON NEGOTIATIONS TO PURCHASE CARPENTERS RESTAURANT AND THE ANTIQUE STORE FROM MIKE AND CATHERINE ANDERSON At the last meeting EDA and Council agreed to forward a letter to the Mike and Catherine Anderson stating that they will have until December 2, 2005 to sign the Purchase Agreement for Carpenters Restaurant and the Antique Store or the agreement would become null and void. Mike and Catherine Anderson have declined to sign the purchase agreement and are no longer interested in selling their property to the City at this time. 9. UPDATE ON ADVERTISEMENT FOR EDA POSITION Staff has advertised the opening on the EDA in the local newspapers, the City newsletter, and the City website and has sent letters to the remaining original applicants in order to determine their interest in serving out Theresa Charpentier's term. The Deadline for receiving applications was December 2, 2005. City staff has received two applications for the EDA position. City staff will be requesting at the next City Council meeting that Council consider the scheduling of interviews for the applicants or an extension of the deadline of receipt of applications. i MINUTES FOR THE JOINT EDA/CITY COUNCIL MEETING OF NOVEMBER 21, 2005 The meeting was called to order by Mayor Fran Miron at 8:30 am. EDA Members Present: Miron, Granger, Arcand, Klein, Bever, Absent: Skarich City Council Members Present: Miron, Petryk, Haas, Puleo, Granger Absent: None City Administrator, Mike Ericson Community Development Director, Bryan Bear Community Development Intern, Andrew Gitzlaff 2. JOINT EDA/COUNCIL MEETING OF SEPTEMBER 19, 2005 Arcand made motion, Granger seconded to approve the minutes as presented. All aye. Motion Carried 3. EDA MEETING OF SEPTEMBER 19,2005 Miron made motion, Granger seconded to approve the minutes as amended. All aye. Motion Carried 4. UPDATE ON THE TIF DISTRICT/DOWNTOWN REDEVELOPMENT PROJECT IMPLEMENTATION PLAN City staff, Paul Steinman from Springsted, and subcommittee member Phil Klein met with groups of local downtown area business and property owners on November 16, 2005 to discuss the downtown plan and methods of implementing the plan. Subcommittee members Nick Skarich, Mike Granger, and Frank Puleo were unable to attend. The meetings are part of the marketing plan for the implementation of the downtown plan and the establishment of a TIF district. At the EDA meeting, City Staff and Paul Steinman presented an overview of the outcomes of those meetings, the marketing plan, and the proposed schedule of activities. City staff recommended that the Council and EDA authorize and schedule a public open house to inform downtown area property owners of the downtown redevelopment process and the potential impacts. Bever made motion, Granger seconded to set the date for the downtown plan open house for January 17, 2006 at 7:00 P.M. All aye. Motion Carried The subcommittee had also prepared a draft press release and Q&A newsletter about TIF and the downtown redevelopment plan for review by the Council and the EDA at the meeting. Staff recommended that the Council and the EDA review the draft Q&A newsletter and press release and become familiar with the materials. Staff recommended that the Council and the EDA approve the materials for immediate distribution to downtown residents and property owners if the Council and the EDA are comfortable with the content of the documents. The Council and the EDA reviewed the draft newsletter and press release and requested that Staff make some minor changes to the documents before distributing the materials. The EDA and the Council also recommended that the TIF subcommittee send a letter to the downtown property owners before the open house meeting. Miron recessed the meeting at 8:30 am and passed the gavel to EDA member Klein who reconvened the meeting at 8:45 a.m. Miron returned at 10:20 a.m. 5. UPDATE ON TWIN CITIES COMMUNITY CAPITAL FUND PROGRAM At the September 19, 2005,joint EDA/Council meeting Scott Martin from the Twin Cites Community Capital Fund(TCCCF) gave a presentation about the organization and the benefits members receive from participating in the fund to the EDA and Council. The TCCCF is a nonprofit economic development loan fund. Communities that join the fund are eligible for low interest loans, gap financing, and other financial incentives. The EDA and Council thanked Scott Martin for coming to the meeting and suggested that the EDA and the Council evaluate the materials in order and make a recommendation at the next EDA meeting on whether or not to participate in the program. Springsted, the City's financial advising firm, has prepared some background information on the fund. At the meeting, Staff suggested that the EDA and the Council decide whether or not the City should consider becoming a member of the TCCCF at this time. Granger made motion, Arcand seconded to recommend that the Council consider becoming a member of the TCCCF fund. All aye. Motion Carried. 6. UPDATE ON CITY PURCHASE OF CARPENTERS RESTAURANT AND THE ANTIQUE STORE FROM MIKE AND CATHERINE ANDERSON Mike and Catherine Anderson are still reviewing the purchase agreement that the City Council approved at their September 6, 2005 meeting. City staff provided the Council and the EDA an update on recent discussions with the Andersons. Granger made motion, Bever seconded to recommend that the City Council give the Andersons ten days to sign the proposed purchase agreement before it becomes null and void. All aye. Motion Carried 7. UPDATE ON ADVERTISEMENT FOR EDA POSITION At its September 19, 2005 meeting, the EDA discussed the request from Commissioner Theresa Charpentier to seek a replacement for her on the TIF Subcommittee due to a change in her work schedule. At their October 17, 2005 meeting, Council accepted the resignation of Theresa Charpentier from the EDA and publicly thanked her for her service to the City of Hugo. The Council directed staff to advertise for this vacancy and contact the remaining applicants who originally interviewed for the position in order to determine their interest in serving out Theresa's term on the EDA. Staff informed the EDA that letters have been sent to the remaining original applicants and the opening has been advertised in the local news papers, the City newsletter, and the City website. The Deadline for receiving applications is December 2, 2005. After the deadline, City staff will schedule the applicants for interviews with the City Council. 8. ADJOURNMENT Granger made motion, Klein seconded to adjourn the EDA meeting at 10:28 a.m. Haas made motion, Puleo seconded to adjourn the City Council meeting at 10:29 a.m. 11. City of Hu ro Downtown Redevelopment Plan/TIF District Estahlislunent Marketing Plan Revised Time Schedule October 17, 2005 EDA Meeting • Discuss draft press release with the EDA • EDA reviews proposed marketing plan • Schedule meeting date for joint council/EDA workshop Late-October Hugo City Report Newsletter(November Edition) • Include the following updates on the downtown redevelopment plan • Downtown Design Guideline Adoption • Maxfield Research Market Study • Present Downtown Framework map • Notification of upcoming meetings November City staff arranges meetings with groups of key downtown (Before Joint Workshop) property owners and business owners • Business owners near Egg Lake • Business owners along old CASH 8 • Property owners and business owners along Hwy 61 by `End Zone Property' November 21,2005 Joint Council/EDA workshop (hosted by Springsted) • Informative meeting about TIF • Discuss implementation/marketing strategy • Authorize TIF district establishment procedures Nov/Early Dec First Two Press Releases sent to downtown neighbors (upload (After Joint Workshop) onto City website for view by the general public) ■ Background, goals, objectives of plan ■ Intro Q&A about TIF/downtown plan ■ Notification of upcoming open house meeting (individual letters will be sent to property owners and business owners in the downtown area/TIF district) January 18th, 2006 Downtown Redevelopment Plan Open House Meeting ■ Maxfield Research presents results of Market Study ■ Springsted provides information about the TIF district ■ Landform provides overview on the downtown plan ■ EDA and Council representatives present to answer questions Late-January Third Press Release (After Open House) ■ Notification of TIF District Qualification procedures (need for inspections) ■ Accompanied by letters sent to property owners requesting voluntary inspections (by this time most property owners will already be aware of reasons for inspections) Early February Staff will begin TIF District Qualification Procedures ■ Staff will begin inspections of downtown buildings ■ Springsted will prepare TIF District Financial Plan For Immediate Release Date: December 14, 2005 From: The Office of the Community Development Director City of Hugo,Minnesota Contact: Mr. Bryan Bear EDA Executive Director bbear@ci.hugo.mn.us 651.762.6320 THE CITY OF HUGO, MINNESOTA BEGINS IMPLEMENTATION OF DOWNTOWN PLAN Hugo,Minnesota- In 1998 the City of Hugo,Minnesota, established a downtown plan and preliminary design guidelines to address redevelopment of the downtown commercial core. The original plan needed to be revisited to consider the impact of the future realigned County Rd 8 and Hwy 61 intersection. After a series of workshops and open houses to engage public input, the updated plan was finalized in July, 2004. The Hugo City Council and Economic Development Authority (EDA) are in unanimous support of moving forward with implementation of the plan. Mayor Fran Miron stated, "It would be a waste of taxpayer dollars for this plan to just sit on the shelf and collect dust—now is the time for implementation of the downtown plan." EDA vice president, Phil Klein, echoed the Mayor's statement and added that"Implementation is a challenging phase of any downtown plan,but Council and EDA leadership have helped to put in place the proper mechanisms to gain public input into this process." As with any downtown redevelopment project, there are a number of costs involved including property acquisition, relocation, demolition and possible environmental remediation. In order to make implementing the downtown plan more financially feasible to private sector developers, the City will be utilizing tools available to it such as tax increment financing (TIF)to assist with some of these costs. A significant part of the public input process includes discussions centered on the mechanics of this tool and how it may be used for the benefit of property owners in the downtown core to facilitate redevelopment. EDA members agree that sometimes TIF can be controversial,but as EDA member Nick Skarich states "It is one of the only tools remaining today that can provide significant enough resources to address the specific issues of downtown redevelopment." Implementation of the Downtown Plan began with a series of meetings with key property owners in the downtown area. The process will also include several meetings with neighborhood residents, downtown business/property owners, and the general public. The next scheduled meeting is an informational public open house on Wednesday, January 18th 2006, at 7:00 p.m. in the Oneka Room at City Hall. Throughout this input gathering and implementation phase the public can stay informed by going to the City website at www.ci.huQo.mn.us and reading the City newsletter, as each will contain regularly updated information on implementation of the plan. Currently the City website contains an introductory question/answer page describing TIF and the implementation plan in greater detail. City of Hugo Downtown Redevelopment Project Q & A Newsletter This Q&A newsletter responds to some of the recent questions about the Downtown Hugo Redevelopment Project. Q. What is happening with the Downtown Redevelopment Project? A. The Planning Commission and the City Council recently held a joint meeting to discuss and begin to finalize the new design guidelines for the downtown area. The design guidelines are the result of a collaborative effort from businesses, residents, City staff and officials, and are intended to provide direction and shape plans for anticipated development in downtown Hugo. The City has also retained the services of Maxfield Research, through a grant from Metropolitan Council, to conduct a market study of the downtown area. The market study is needed to know if there is a market for the proposed uses and to understand what rates people will potentially pay for those uses. The Economic Development Authority (EDA) has become very involved in guiding the redevelopment process. The EDA have been meeting with developers interested in implementing the downtown plan, and non-profit public sector financing organizations, at their regularly scheduled meetings. The EDA has also established a subcommittee responsible for formulating a plan to create a Tax Increment Financing (TIF) Redevelopment District for the downtown area. Q. What type of development is proposed for the Downtown Area? A. The redevelopment project reflects the community's vision for a pedestrian friendly town center with unique mixtures of housing, retail, office space, trails, and public amenities such as a new City park across from City Hall and a boardwalk along Egg Lake. Other proposed uses include a senior housing facility, a new Carpenter's Restaurant along the shore of Egg Lake, and specialty retail and gift shops. Q. Which part of downtown will be developed first? A. The most likely part of downtown to develop first will be the properties along Egg Lake across from City Hall. Over the past few years, the City has been acquiring properties along the western edge of Egg Lake as they become available on the market. The City now owns a substantial amount of downtown real estate. Retaining ownership of the properties allows the City a considerable amount of control over the future uses of the site. It is possible, however, that separate redevelopment projects could happen in different parts of the downtown simultaneously. Q. What is the typical time frame for a redevelopment project? A. The planning process for a typical redevelopment project can take up to two years. Construction then begins and that could take two years depending on the size of the project. For a redevelopment project to work, it must not only meet community goals, but also make sense from both a market and financial perspective. Hugo's project is unique due to the complexities of redeveloping many different parcels and to assure the public's involvement in the planning and design stage. Q. How will the project be funded? A. The City received funding through a Livable Communities Grant form the Metropolitan Council to conduct preliminary planning and concept refinement for the downtown area. The City will continue to look for other grant sources but the project will be funded primarily by private developers. The City will provide additional assistance through Tax Increment Financing (TIF) as necessary for public improvements and the City has retained independent financial consultants to ensure that any assistance provided to the developer is only the amount that is justifiable and reasonable. Q. What is Tax Increment Financing (TIF)? A. TIF is a financing tool created by the Minnesota State Legislature in the 1970s to help encourage development and redevelopment of underutilized properties that ordinarily would not be revitalized without some financial assistance. Under TIF, property tax revenue equivalent to what the current property generates continues to go to all taxing jurisdictions. The portion of the tax revenue that results from the increased value of the new development, also called the "tax increment," is used to pay site costs such as acquisition, demolition, water, sewer and street improvements. Once the site costs have been paid, the tax increment goes to the taxing jurisdictions. Q. Why does the City need to establish a TIF District? A. Minnesota State Statute permits cities to establish TIF Districts as a method to assist with redevelopment. Establishing a TIF District allows the City to capture the tax increment created by the new development; then the City may use portions or all of the increment to provide financial assistance to the developer. The amount of the actual assistance provided is determined by an analysis by the City's independent financial advisor. The financial performance submitted by the developer will be analyzed to determine the gap or amount that would be necessary to make the development financially feasible. Q. Will providing TIF assistance to the developer impact my property taxes? A. The tax increment comes from only the increased value of the improved property within the district and the pre-existing level of taxes still continues to be paid to local governments (city, county, and school district). Increment is only provided to the extent it is determined necessary for the project to proceed. Therefore, there is no impact on your property taxes resulting from TI F. Q. Does the City own all the property included in the project? A. No, the City owns many of the properties along the western edge of Egg Lake but the majority of the property is privately owned. The City is not actively negotiating sales with the downtown property owners but rather has been slowly acquiring the parcels over time through tax forfeitures or when the owners decide to sell for various reasons. After the City enters into a development agreement, it will primarily be the private developer who will be responsible for negotiating with downtown property owners. The City may assist in the process to ensure that the ensuing relocation process is as smooth as possible for local businesses and residents who wish to remain in Hugo. Q. What happens if the property owners cannot reach an agreement with the private developer? A. The City will encourage the developer to reach a voluntary agreement with property owners. If the developer and the property owner are unable to reach agreement, a mediator will be used to assist with the process. At this time the City Council has not decided from a policy standpoint whether or not pursuing the process of condemnation will be considered during the property acquisition stage of the downtown redevelopment project. Q. If my property is in the TIF district is my home or business going to be redeveloped? A. The TIF district overlays the entire redevelopment project area. Tax Increment revenue from property valuation will be captured from all parcels within the district but inclusion in the district does not mean that every parcel will be redeveloped. The property within the district that does not get developed or redeveloped may be removed from the district at a later date. Furthermore, the TIF district overlay designation does not restrict the rights of private property owners in any way. Q. Once the City begins working with a developer or development team, is the redevelopment a "sure thing"? A. No. There will still be land use and other regulatory approvals, environmental impact studies, securing of financing, and acquisition of property that must occur before the development is a "sure thing". Residents and business owners will also have several more opportunities through public hearings and City-sponsored open houses to give input and share their opinions before any development plans are finalized. Q. How can I stay informed? A. There are several ways you can stay informed: • Attend regular EDA meetings, which are held on the third Monday of each month at 8:30 a.m. at Hugo City Hall, 14669 Fitzgerald Avenue. In addition, regular Planning Commission and City Council meetings are broadcast live and replayed on cable channel 16. • Visit the City's Website for project updates located at www.ci.hugo.mn.us • Read the Neighborhood News & Report and the Hugonian, the City's two local newspapers, and the Hugo City Report, the City's quarterly newsletter. Articles on the project and information about upcoming meetings frequently appear in the local papers and in the City's newsletter. • Contact the Director of Community Development Bryan Bear or other community development staff members at anytime. The City Hall phone number is (651) 762-6300. For Immediate Release Date: From: The Office of the Community Development Director City of Hugo, Minnesota Contact: Mr. Bryan Bear EDA Executive Director �K. bbear@ci.hugo.mn.us 651.762.6320 DOWNTOWN REDEVELOPMENT PLAN MOVING FORWARD, THE CITY OF HUGO INVITES THE PUBLIC TO ATTENDED AN OPEN HOUSE ON JANUARY 18TH Hugo, Minnesota—The community vision for a pedestrian friendly downtown Hugo with unique mixtures of housing, retail, office space and public amenities is moving forward from the drawing board to reality. The downtown plan and the design guidelines are now in place and the City has begun the necessary steps towards implementing a downtown redevelopment project. One of the key elements is the completion of a market study by Maxfield Research of the downtown area. Economic Development Authority (EDA)chair Mike Granger stated that, "The market study is a crucial element to the downtown redevelopment project because it will indicate if there is a market to support the proposed uses." Community Development Director Bryan Bear added that, "the City was able to obtain the services of Maxfield research through grant money received by the Metropolitan Council." The EDA has been very involved in guiding the redevelopment process and has recently been meeting with develops interested in implementing the downtown plan. "There is a strong desire from the development community along with local business owners and residents to see the plan implemented in the near future," stated Economic Development Vice President Phil Klein. A subcommittee was also formed to establish a tax increment financing (TIF) district in the downtown area. TIF is tool that will help the City provide assistance to developers to cover a number of the costs associated with a redevelopment project such as property acquisition,relocation, demolition, and possible environmental remediation. The public is cordially invited to attend an informational open house to discuss the implementation of the downtown plan on Wednesday,January 18th 2006, at 7:00 p.m. in the Oneka Room at City Hall. City staff and officials, along with representatives from Maxfield Research, Landform, the City's planning consultant, and Springsted the City's financial advisor, will be there to answer questions from the downtown property owners and the general public. Draft letter to TIF property owners Dear As you may be aware, the City of Hugo has begun implementation of the downtown redevelopment plan. This is an exciting time which marks the start of an important phase in the life cycle of our City. Implementation of the downtown plan will lead to business and housing diversity, economic stabilization, and the creation of a central focal point of the community. The purpose of this letter is to invite you to an open house scheduled for . The purpose of the open house is to provide a more detailed explanation of the downtown plan and the process of implementation. The following topics will be covered: You are specifically invited to attend because your property at lies within an identified downtown redevelopment boundary. If you have questions regarding this or any other downtown plan issues, please feel free to call City Hall at Optional Paragraph: Tax Increment Financing is a public financing tool designed by law to assist in the implementation of redevelopment plans for downtowns. It is anticipated to be one of a number of complex tools utilized by the City to successfully implement the downtown plan. Part of the process of using this tool includes requesting that in an internal inspection be conducted to identify issues which allow the qualification of the parcel in a Tax Increment Financing District.