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HomeMy WebLinkAbout2009.01.26 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JANUARY 26, 2009 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 November 24, 2008 8:35 am 4. Update on Downtown Redevelopment 8:40 am 5. Discussion on TIF Certification • Paul Steinman, Springsted • Mikaela Huot, Springsted 9:35 am 6. Discussion on the 2008 EDA Annual Report 9:50 am 7. Discussion 2009 Goals 10:30 am 8. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, JANUARY 26, 2009 3. Approval of Minutes for EDA meeting of November 24, 2008 Staff recommends approval of the November 24, 2008 EDA meeting minutes. 4. Update on Downtown Redevelopment Staff will provide an update on the progress of downtown redevelopment projects. 5. Discussion on TIF Certification Paul Steinman and Mikaela Huot from Springsted will be present at the meeting to talk about TIF certification. They will give an update on the qualifications for TIF and provide discussion topics to the EDA on certification of the TIF District. They will be able to answer questions that the EDA may have at the meeting. 6. Discussion on the 2008 EDA Annual Report Last year the EDA was presented with the 2007 EDA Annual Report. The EDA directed staff to complete a report for the year 2008. Attached is the 2008 EDA Annual Report that highlights the commercial and industrial projects in 2008. Staff recommends that the EDA review the report and provide staff with feedback 7. Discussion 2009 Goals Attached is the 2008 goals for the EDA. Staff would like to set the 2009 goals with the EDA. The City Council is holding a goal setting session on February 3rd, 2009 and the EDA goals for 2009 will be forwarded to the Council at that time. MINUTES FOR THE EDA MEETING OF NOVEMBER 24 , 2008 EDA Vice President Phil Klein called the meeting to order at 8:30 am. PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Phil Klein, and Brian Thistle ABSENT: Mike Granger and Fran Miron 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 OCTOBER 20,2008 Denaway made motion, Thistle seconded, to approve the minutes for the EDA meeting of October 20, 2008. All aye. Motion carried. HEALTH EAST CLINIC Staff invited Scott North, CEO, and Len Kaiser, Administrative Director both from Health East Clinic to welcome Health East into Hugo. The new clinic is under construction and is located at the northwest corner of County Road 8 and Everton Avenue. They attended the November 17, 2008 meeting and talked about the progress of the construction of the building. They were welcomed into the City as a new business. DISCUSSION ON CITY OWNED PROPERTY Mark Finneman from Finn Daniels Architects and Richard Fischer from Richard Fischer Architects were present at the meeting. They discussed a development idea for the City owned property in the downtown. They presented their ideas to the EDA at the meeting. Their plan included three commercial buildings and one senior housing complex. They stated that they would like to take advantage of the lake with the building placement proposed. The plan included lots of landscaping and rain gardens. They stated that the entrance as proposed with the Carpenters on the Lake place may not be in the most ideal location. Arcand stated that she like the concept that it is not too far from the concept that was brought forth to the EDA by the owners of Carpenters Restaurant. The EDA agreed that the access to the site is important. Bever stated that he likes the plan but is not sold on the senior housing that is proposed. He wants to see this as a downtown commercial area. Klein also stated that he was concerned with the senior housing, but liked the concept. He asked if there could be a second entrance to the area. CD Director stated that MNDOT will need to review the plans and they will decide what access will be allowed. Overall the EDA thought the concept for the City owned properties was a good idea. UPDATE ON BR&E COMMITTEE Staff updated the EDA on the BR&E Committee's progress. There was a Finance Workshop on November 18, 2008 at 7 pm at City Hall. There was only one person that showed up. The BR&E committee decided to do another workshop on finance but in a different format. The committee was thinking about having the meeting early in the morning or during the day and working with the HBA on the workshop. Also case studies will be starting soon. UPDATE ON PROPOSED SIGN ORDINANCE Since August 6, 2008, the ordinance review committee (ORC) has been working on revising the City's sign ordinance. The ORC consists of three Planning Commissioners, Tom Weidt, Bob Rosenquist, and Adam Moore, and two Council members, Mike Granger and Frank Puleo. The goals of the committee were to make the sign ordinance business friendly, make sure the signs are easily seen by the public, and make sure the signs are made out of quality materials. These goals were the basis of creating a new sign ordinance. Staff presented the proposed sign ordinance to the Hugo Business Association and the Planning Commission held a public hearing on the ordinance on November 13, 2008. Staff updated the EDA on how the sign ordinance will affect businesses and the outcome of the public hearing. The ordinance was tabled at the meeting and the committee will meet again with some business owners. The ordinance will be on the Planning Commission agenda on December 11, 2008. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on downtown redevelopment projects. Carpenters Restaurant continues working on their site plan and TIF application. ADJOURNMENT Denaway made a motion, seconded by Arcand, to adjourn at 9:30 am. i f CITY OF HUGO 2008 EDA Annual Report J .... This Annual Report is designed to showcase many of the commercial and in- dustrial businesses that have located in Hugo during 2008. The goal of the Hugo Economic Development Authority (EDA) is to create a thriving commu- nity with diverse jobs and tax base, brought about by specific emphasis on business retention, business expansion, and business attraction. Hugo's busi- In This Report: ness community is rapidly expanding due to strong residential growth and an • Lake Area Bank attractive business environment. • Health East 2CC8 coa i Clinic ... j • End Zone 1. Create Business Retention and Expansion Subcommittee Redevelopment . Work with the U of M or other colleges on BR&E research program j Project • On-going site visits . Blue Heron Grill . Continue collaboration with HBA • Carpenters • Continue participation in events Restaurant • Eagles Landing 2. Continue working on downtown redevelopment projects • Northland Pallet • Certify the TIF District • Industrial Paint • Partner on initial project to begin in 2008 Specialist • Coordinate public infrastructure . Gusset Design • Bald Eagle Mini 3. Establish quality commercial development Storage • Focus on gateways • Victor Gardens • Create retail design guidelines South Village 4. Continue implementation of the EDA marketing plan • Continue to update the marketing plan • Update the City website eonwwwkiii and jn&t6w«e eamhuc ... The valuation of the new commercial and industrial construction in Hugo ex- ceeded 3.3 million dollars in 2008. The City of Hugo and the EDA welcome all of the new businesses to Hugo and are excited about the new jobs and ser- vices they provide to the community. In this Annual Report the EDA has high- lighted the new businesses that have located in Hugo in 2008, redevelopment projects in the downtown area, and businesses that have expanded their buildings. 2008 EDA Annual Report .ea& awa J3ank)3 Nein c "itzg - 146U2 &wdan auenue Lake Area Bank constructed and opened their new 4,984 square foot full service bank in 2008. Lake Area Bank has been a part of the City of Hugo since 2001 and r ' has been serving the surrounding areas since 1915. The bank was operating in a temporary trailer for about 2 years and is happy to finally have a new building in the Victor Gardens development. Lake Area Bank is located on the southwest corner of County Road 8 and Everton Avenue. Lake Area Bank is a progressive community bank, dedicated to providing the community with a wide range of products and services to meet your financial needs. 3&aM Cwt Mdz cam4" to Nuga - 14688 &wWon auen" On December 18, 2008 Health East Clinic i opened its doors to the Hugo community. Health East Clinic occupies approximately F_MMMI one-third of the building's 22,000 square feet and space is available for lease for the re- maining portions of the building. The building is located on the northwest corner of County Road 8 and Everton Avenue in the Frenchman Place development. The clinic offers primary care services for patients of all ages and has a special emphasis on wellness and family care. End Zane J eco peed* 9edzue&pmznt J wiect - 13891 Jawt 3ou&ua td Site plan approval was received for a 23,123 square foot retail building located at 13891 Forest Boulevard North. Currently on site is a blighted restaurant building that will be de- molished with the construction of the retail building. The retail building includes 12 _.. leased spaces that range from approxi- `Y mately 1,400 square feet to 2,500 square feet. This property is located within the City's Tax Increment Financing District (TIF). The applicant has applied for TIF for the project and a TIF Agreement has been approved by the EDA and City Council i i E CITY OF HU410 Page 8 J hw Ne>wn qWU Opew is Xu�w — 14725 Vktot XtWiBoutevwd Blue Heron Grill Restaurant opened to the Hugo commu- nity in spring 2008. The restaurant is approximately 8,000 square feet and is located just south of Festival � R Foods grocery store. They provide a wide variety of food from your favorite burger to fine steak. The restaurant - has outdoor deck seating on the eastern portion of the f building. The restaurant has a banquet area that is avail to the public. The restaurant has been a great addition to the Victor Gardens North Village Marketplace. The res- - taurant currently em has 125 employees. pi eaxpedm oa ffie a& Ne&ue&pment — 14559 Joest Carpenters Restaurant has applied for a site plan to construct a new restaurant on their property. This will result in the demolition of the existing Carpenters Restaurant and Antique Shop. The restaurant is planned to be located on the east- ern portion of the property to take t advantage of the view of Egg Lake. There will be a deck on the back i side of the building for outdoor seat- ing. This will be one of the first re- p�Cepo6 development projects in the down- town area on Trunk Highway 61. Eagc5 Pxuding O f f ice W arc fimts a — 13055 .f enuwV J3ou&ua td A site plan has been approved for a one story 17,920 square foot office/warehouse building with 7 suites. The property is located at 13055 Fenway Boulevard in the Bald Eagle Industrial Park. The suites will be sold to indi- vidual property owners. Construction of the office/warehouse building is planned to start in spring 2009 and will be a great addition to the Bald Eagle Industrial Park . N JaP d Loan pan* P_oa in 3&W — 13285 ,9wuict* J3ou.&vwtd Northland Pallet Company now occupies and runs its business out of the old 84 Lumber building in the Bald Eagle Industrial Park. They provide new and reconstructed pallets as well as mulch to areas in the twin cities. The company moved from Minneapolis to Hugo and occupies the entire 93,000 square foot building. I : CITY OF HUGO AM W_ 3ndcvsWal .l aint fxparr bw — SSSS 152nd Stwxt In 2008, Industrial Paint Specialists constructed a 21,000 square foot expan- sion of their current building, which is approximately 41,000 square feet. The property is located at 5858 152nd Street in the Peloquin Industrial Park. The expansion makes the total square footage of the building approximately 62,000. There is 3,600 Hugo City Hall square feet of office area j in the building and the rest is used for painting industrial materials that include I 14669 Fitzgerald bridge components, propane tanks, materials for Caterpillar, 3M, and Boeing. Ave N Industrial Paint Specialists has approximately 50 full time employees. r Hugo, MN 55038 ,jimi3et A,3ign Fxpawion- 15557 gcvicerst J3ou&u ,%d 651-762-6300 In 2008, Gusset Design constructed a building addition that totals 12,060 square feet and will be used for ware- housing equipment utilized by the 2008 EDA Members business. The current building totals 5,740 square feet and is used for of- Fran Miron, fice, manufacturing and warehousing President on a lot that is just over an acre. Gus- set Design specializes in precision machining and metal fabrication. Their ser- vices include metal fabrication, sawing, welding, sandblasting and painting. Phil Klein, Ja "cMita S 13465 C'ivc & Vice President � � — c'�' Bald Eagle Mini Storage located in the Bald Eagle Industrial Park added two Jim Bever new storage buildings in 2008. The new buildings total 11,660 square feet for additional storage space. There are three other buildings approved for the site Mike Granger that are not constructed to date. Bald Eagle Mini Storage offers standard mini storage garages, controlled climate spaces, qualified on-site management, Jan Arcand and long-term discounts. Tom Denawa Viet" ganJ�e daw Sou& tad — 14643 Dii" y Victor Gardens South Village Retail Center has introduced new businesses to Brian Thistle Hugo. The new businesses of 2008 include Sertinos Cafe and Coffee, Fantas- tic Sam's, Oneka Dental, and Luxury Nails. There are three suites remaining in the building to be leased. 2008 EDA Goals 1. Create Business Retention and Expansion Subcommittee of the EDA • Work with U of M or others on BR&E research program • On-going site visits • Continue collaboration with HBA • Continue participation in events. (groundbreaking, ribbon-cutting ceremonies) 2. Continue working on downtown redevelopment projects • Certify the TIF District • Partner on initial project to begin in 2008 • Coordinate public infrastructure o Stormwater management planning & funding o Traffic improvements (signals, Hwy 61) o Trail and sidewalk improvements 3. Establish quality commercial development • Focus on gateways • Create design guidelines • Collaborate with the Planning Commission • Review development policies and incentives within the approval process 4. Continue implementation of the EDA marketing plan • Continue to update the marketing plan • Updating City website • Continuation of the City's cable access show Rachel From: Bryan Bear Sent: Wednesday, December 17, 2008 1:38 PM To: Rachel Subject: FW: [NEWSENDER] -Status of Hugo BR&E --will discuss in 2009-Message is from an unknown sender Copy this for the January EDA goals. . . -----Original Message----- From: templin@umn.edu [mailto:templin@umn.edu] Sent: Tuesday, December 09, 2008 4:15 PM To: duanea@connexusenergy.com Cc: Michael P. Darger; Claudia Cody; Mike Ericson; Bryan Bear Subject: [NEWSENDER] - Status of Hugo BR&E -- will discuss in 2009 - Message is from an unknown sender Duane, Just wanted to update you on the conversation I had this afternoon with Bryan Bear, Community Development Director in Hugo regarding their BR&E status. I had met with Mike Ericson and Bryan Bear on December 19th, 2007 to overview the program. One of their questions was how much staff time would the program take, and I indicated about half-time for one person for the duration of a program if the city was providing primary leadership. The person would be doing some coordination of volunteers for business visits, but by far the biggest time commitment is doing the one-on-one follow-up on the individual concerns of businesses. Since I met with Mike and Bryan, they checked with other communities who have conducted the program. They heard positive feedback about the program and are clearly interested. The communities indicated the estimate of one position half-time is pretty accurate. In Bryan's words, the delay is not the cost but the staff time. Obviously, Hugo has been busy since the end of May with the tornado. Bryan indicated BR&E will be one of the topics discussed in January at the Strategic Planning meetings with the EDA as well as the City Council. If those entities agree that BR&E is a priority, then staff time will be allocated to the program. Therefore, it is clear that Hugo cannot commit by the end of 2008 to conducting the program. They are a possibility in 2009 -- we will know sometime in January. When I hear, I will let you know. Liz Liz Templin Extension Educator -- Community Economics and Extension Professor University of Minnesota Extension -- Andover Office 550 Bunker Lake Blvd NW, Suite L-1 Andover, MN 55304-4199 Phone: 763-767-3880 FAX: 763-767-3885 www.extension.umn.edu 1