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HomeMy WebLinkAbout2008.10.20 EDA Packet r AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, OCTOBER 20, 2008- 8:30 AM 8:30 am 1. Call to Order 8:31 am 2. Roll Call 8:32 am 3. Approval of Minutes EDA Meeting of September 15, 2008 kdi+d 8:35 am 4. NorthWA Pallet Company • Mitch Martin 9:00 am 5. Suburban Cable Cannel Award for"That's Hugo, Today!" 9:30 am 6. Update on BR&E Subcommittee 10:00 am 7. Update on Downtown Redevelopment 10:30 am 8. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, October 20, 2008 3. Approval of Minutes for EDA meeting of September 15, 2008 4. Northern Pallet Company Northland Pallet Company has purchased and is now running its business out of the old 84 Lumber building. Northland Pallet is a company that constructs pallets and recycles pallets into mulch. The company moved from Minneapolis to Hugo. Mitch Martin from Northland Pallet will be present at the meeting to talk about his business and answer questions that the EDA may have on the business. Staff recommends that the EDA welcome Northland Pallet as a new business in Hugo. 5. Suburban Cable Cannel Award for"That's Hum Today!" On Friday, October 10, 2008, City officials attended the 2008 Annual Suburban Community Channels (SCC) Excellence Awards Ceremony at K & J Catering in North St. Paul. Rachel Simone,Nate Ehalt, and City Administrator Mike Ericson attended the 2008 Excellence Awards Ceremony on behalf of the City of Hugo. SCC Executive Director Ted Arbeiter announced that the award for technical excellence, the category which recognizes good camera composition, consistent audio/video levels, and a mixture of both field and studio production, went to the City of Hugo. Rachel Simone and Nate Ehalt accepted the award on behalf of the City of Hugo and directors Terri Hodges and Cindra Schmidt, who are key members of the production team. 6. Update on BR&E Subcommittee Staff will update the EDA on the progress of the BR&E subcommittee. 7. Update on Downtown Redevelopment Staff will update the EDA on downtown redevelopment. MINUTES FOR THE EDA MEETING OF SEPTEMBER 15 , 2008 EDA Vice President Phil Klein called the meeting to order at 8:30 am. PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Mike Granger, Phil Klein, Brian Thistle and Fran Miron ABSENT: None CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development Director Bryan Bear, and Associate Planner Rachel Simone APPROVAL OF MINUTES FOR THE EDA MEETING OF AUGUST 15,2008 Granger made motion, Denaway seconded, to approve the minutes for the EDA meeting of August 18, 2008. All aye. Motion carried. SERTINO'S CAFE Staff has invited Mickey Michlitch, owner of Sertinos Cafe, to come to the EDA meeting to talk about his new business in town. Mickey talked about how he decided to come to the City of Hugo, after he had already picked a location in Woodbury. He stated that signage is very important for his business and wanted to include more signage. He also stated that the SAC/WAC fees for the City are a bit higher than other cities he has worked with. Sertinos serves breakfast in the morning starting a 6 am. The EDA welcomed Sertinos as a new business in Hugo. HUGO COMMONS CONSIDERATION OF TIF AGREEMENT Bill Lentsch and Dale Dockendorf(Development Partners Hugo LLC) have a purchase agreement with the property owners of the former"End Zone" site. They have applied for site plan approval and Tax Increment Financing (TIF). The EDA reviewed the TIF Agreement at the meeting and staff provided the EDA with an overview of the agreement. Staff recommends approval of the TIF Agreement. Staff recommended that the EDA provide the City Council with a recommendation on whether or not to approve the agreement. The site plan and TIF Agreement was on the City Council agenda for consideration on Monday, September 15, 2008. The Associate Planner gave an overview of the TIF Agreement. The project is eligible for TIF because it passes the but for test. The applicant requested TIF for the following: — Demo $61,490 — Pub Improvements $190,000 — Site Improvements $291,610 — For a TOTAL of$543,000 — $543,100 @ 6.5%over 25 years for a total of$1.4 Million The TIF Agreement was put together by Springsted after they completed an analysis of the request. The TIF agreement is Pay-as-you-go, which means that the developer puts all the money up front and there is no risk for the City. Springsted made the recommendation from the analysis that the TIF agreement include the following, which is different from the request. A $380,000 principal, over 10 years, at 6% interest rate with a 3% market value inflator for a total principle and interest of$586,156. This is based on the rate of return on the investment and the debt ratio. Springsted recommend only granting as much TIF that is needed to make the project viable. Bill Lentsch was present at the meeting and stated that he would like more money in TIF. He also asked what happens if he needs more TIF after the 10 years. The CDD stated that we only should grant as much money is needed to make the project work as recommended by Springsted. Granger made a motion, seconded by Arcand to recommend approval to the City Council with the understanding that staff and the developer will continue to work on the agreement. All aye. Motion carried. UPDATE ON THE BR& E SUBCOMMITTEE The BR&E Subcommittee has received a number of business profile questionnaires from businesses in the City. There is a handful that would like to have a business case study or market study completed on the business, which would be done by a group of college students free of charge. The subcommittee also has a good idea from the business profiles on what the first business workshop will be on. The first workshop is expected to be in October. The subcommittee will be doing site visits to new and existing businesses to thank them for being a part of Hugo and to find out if there is anything that the City can help them with. Staff provided an update on the progress of the committee at the meeting. The Associate Planner stated that the first workshop will be on financing and that the subcommittee made its first site visit to Western Spring Manufacturing in the Bald Eagle Industrial Park. Klein stated that the HBA can help get the work out about the workshops. Granger stated that an email should go out to the businesses to find out what topic on financing that the businesses want to hear about. UPDATE ON EDA MARKETING WORK PLAN AND PROMOTIONAL PACKAGE Enclosed was EDA marketing spreadsheet outlining the items that have been completed and on going items. Staff updated the EDA on the promotional package that went out to 90 development groups on the downtown redevelopment of Hugo. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of downtown redevelopment projects. Carpenters continues to work towards completing an application for redevelopment of the restaurant. UPDATE ON WALKER ELDER CARE SERVICE PROJECT Walker Elder Care Services is proposing to construct a 206 unit independent and assisted living senior housing facility in Forest Lake. The project has been approved by the Forest Lake City Council. The City of Forest Lake is using industrial revenue bonds to help finance the senior housing facility. Each City has a limit for bonding revenue of$10 million. The City of Forest Lake has asked the City of Hugo if they can use a portion of Hugo's bonding authority to help finance the project. At the August meeting the EDA made a recommendation to the City Council to allow the City of Forest Lake to use Hugo's bonding authority for this year. Staff updated the EDA on the progress of the project on that they will not be using the City's bonding authority because they will be using another method of financing. UPDATE ON RENTAL AND FORECLOSED PROPERTY Staff will update the EDA on the rental and foreclosed property presentations that are being given to Home Owners Associations (HOA) in the City. The Associate Planner stated that staff is meeting with some of the HOA's in the City to talk about foreclosed homes and rental housing. Staff is visiting all the foreclosed homes in the City to make sure they are being maintained in good condition. This needs to be done so the home does not look vacant. When a home looks vacant is seems as though people vandalize the home or break in. Staff has drafted a rental housing program and talks to the HOA's about the program and what they think about it. The program is designed to find out where the rental properties are in the City and get a contact of who the owner is. UPDATE ON TUESDAY, OCTOBER 7,2008 CITY COUNCIL CANDIDACY DEBATE The Citizen Newspaper and the League of Women Voters are putting on a candidacy debate at City Hall on Tuesday, October 7, 2008. The EDA was invited to attend this debate. ADJOURNMENT Granger made a motion, seconded by Thistle, to adjourn at 10:30 am. &C z ej)ey / 7f&WScc s 6L' l� 6C S . 0BUR BAN E wM COMMUNITY CHANNELS B UTLER PRODUCTIONS, O O p Professional`Disc Jockey Bnt+ inment U vi KI N gtroph ies C/ elegance in awards a recognluon C� 7Ais 2008 evening s events: excellence bpm-7pm please enjoy hods d'oeuvres and Ainks as you►ninyle with ptoduce'cs, volicnteets, staand commissionets! AwMds CategoV'es: 7pm-8pm . all of.lame 300+ v-9. P points 2008 Awatc s eetemony Vew categories and new oppodunities fot excellence! 006 of the Yea$ A .7eehnical excellence Bpm-10pm 2d Matt Butler will provide the entertainment for the evening, Set/ptops ig ting xce ence including "sec.911, " Outstanding eteative trivia, kataoke, games and-'MV! Community .involvement On ,:Xocation volunteer of the Year punch and coffee provided' see volunteer of the Peat Mase enjoy the cash bat tesponsibly.