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
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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
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