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HomeMy WebLinkAbout2009.07.20 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JULY 20, 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 June 15, 2009 8:35 am 4. Update on TIF Certification 9:00 am 5. Update on Downtown Redevelopment 9:30 am 6. Interim Use Permits, Special Event Permits, Transient Merchants and Peddlers 10:00 am 7. Update on BR&E Program 10:15 am 8 EDA Meeting Date Change 10:30 am 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, JULY 209 2009 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the June 15, 2009, EDA Meeting as presented. 4. UPDATE ON TIF CERTIFICATION At the June 2009 meeting the EDA recommended to the City Council to request TIF certification before July 24, 2009. The City Council at its July 6, 2009 meeting authorized staff to contact Springsted and have them request certification of the TIF District. Staff will update the EDA on the progress. 5. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. 6. INTERIM USE PERMITS, SPECIAL EVENT PERMITS,TRANSIENT MERCHANTS AND PEDDLERS The City of Hugo has formed an Ordinance Review Committee (ORC) to update several areas of the Municipal Code. There are members of the Planning Commission and City Council on the ORC. Staff is looking for recommendation from the EDA to forward the ordinances to the ORC for updating. 7. UPDATE ON BR&E PROGRAM Staff will update the EDA on the progress of the BR&E Program. 8. EDA MEETING DATE CHANGE: At the June 2009 the EDA moved to change the EDA meeting dates to the second Monday of each month at 8:30 am. The next meeting date is August 10, 2009. MINUTES FOR THE EDA MEETING OF JUNE 15,2009 EDA Vice President Phil Klein called the meeting to order at 8:30 am. PRESENT: Jan Arcand, Jim Bever Tom Denaway, Phil Klein, and Fran Miron. ABSENT: Brian Thistle and Mike Granger CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development Director Bryan Bear, Associate Planner Rachel Simone, and Shayla Syverson, EDA / Parks Intern APPROVAL OF MINUTES FOR THE EDA MEETING OF MAY 18, 2009 Klein made motion, Arcand seconded, to approve the minutes for the EDA meeting of May 18, 2009. All ayes. Motion carried. PRESENTATION OF DONATION CHECKS FOR THE BR&E PROGRAM Representatives from Postal Credit Union, Lake Area Bank, and Premier Bank were present at the meeting to present donation checks for the BR&E Program. The EDA formally thanked the banks for their contribution to the program. UPDATE ON CARPENTERS REDEVELOPMENT PROJECT Staff updated the EDA on the progress of the Carpenters Restaurant redevelopment project. Staff stated that the owners continue to work on getting financing for the project but have not been issued a building permit. The City had a meeting with the owners to discuss the progress. Staff discussed with the owners the changes that were made to the Highway 61 improvement project. Miron discussed about finding a way to help the Andersons with financing for their project. He stated that staff should talk to Springsted about options. Miron made a motion, seconded by Bever, to contact the Andersons about these options prior to July 6, 2009. All aye. Motion Carried. Miron discussed the cost of the City purchase of the properties in the downtown area and asked staff to bring that back to the next meeting. He also asked to see what fund the money came from and where it will go when we get reimbursed. DISCUSSION ON TIF CERTIFICATION Staff presented the EDA with options for certification of the TIF District. Staff recommended the EDA certify the TIF District after June 30, 2009 and make no revisions to the TIF Plan. Denaway made a motion, seconded by Klein, to make a recommendation to the City Council to certify the TIF district after June 30, 2009, but before July 24, 2009, at their July 6, 2009 meeting. All aye. Motion Carried. DISCUSSION ON EDA MEETING DATES Staff discussed changing the day of the meeting with the EDA. They currently are on the same morning as the City Council meetings. There has been concern about the meeting being on the same day. Since the EDA meets once a month, the recommendations to the Council usually come from the EDA that same day. It does not give the Council time to review the recommendation from the EDA prior to the Council meeting. Staff recommended the EDA discuss this issue. Bever made a motion, seconded by Denaway, to change the EDA Meeting dates to the 2nd Monday of each month with the condition of approval from EDA Commissioners Granger and Thistle. UPDATE ON DOWNTOWN REDEVELOPMENT AND COMMERCIAL PROJECTS Staff updated the EDA on the progress of downtown redevelopment and the Carpenters Project. The EDA talked about the Ricci's and the End Zone property. There is a PAWS pet hospital that is proposed to be located just west of Lake Area Bank and staff updated the EDA on there progress. UPDATE ON THE BR&E PROGRAM Shayla Syverson updated the EDA on the progress of the BR&E program. The first Leadership Team meeting will be on June 18, 2009. The members of the Leadership Team are Galen Carlson, Deb Barnes, Pat Nygaard, and Beth Jameston. The Leadership Team will be recruiting the Task Force Team of about 20-30 people. The surveys of the businesses should start in September or October. ADJOURNMENT Denaway made a motion, seconded by Klein, to adjourn at 10:35 am. All Ayes, Motion Carried. City of Hugo General Fund Investment in Downtown Properties DESCRIPTION OF ASSET Year Land Imps Demo Total Acquired Economic Development: 14593 Forest Boulevard Genera( 2000 $ 18,000.00 $ 97,867.05 $ 41,634.70 $ 157,501.75 14607 Forest Boulevard C')"e*'af 2000 $ 80,765.32 $ - $ - $ 80,765.32 14645 Forest Boulevard centra f 2000 $ 26.15 $ - $ - $ 26.15 14687 Forest Boulevard Gev,em( 2000 $ 15,000.00 $ 71,046.14 $ 17,278.48 $ 103,324.62 14635 Forest Boulevard r;,e.Pjem( 2001 $ 15,000.00 $ 135,404.82 $ 13,535.68 $ 163,940.50 14655 Forest Boulevard�eMeM4 2001 $ 20,000.00 $ 130,889.18 $ 13,158.65 $ 164,047.83 14701 Forest Boulevard af-" 2002 $ 21,000.00 $ 158,436.22 $ - $ 179,436.22 14625 Forest Boulevard Cene -0-'( 2005 $ 60,000.00 $ 205,282.90 $ 15,794.23 $ 281,077.13 14667 Forest Boulevard Genvvn� 2006 $ 116,000.00 $ 79,000.00 $ - $ 195,000.00 $ 345,791.47 $ 877,926.31 $ 101,401.74 $ 1,325,119.52 Total Square Footage 159,814.41 Investment per Square Foot $ 8.29 General Fund Fixed Assets: 5399 145th Street $ 137,859.21 $ 20,652.00 $ 158,511.21 Mrd $ f;�C*)4 Exhibit A Qualified Costs Purchase of 14593 Forest Boulevard (General Fund) _ $ 116,345.28 Purchase of 14607 Forest Boulevard(General Fund) _ $ 81,098.67 Purchase of 14635 Forest Boulevard(General Fund) _ $ 151,025.60 Purchase of 14645 Forest Boulevard(General Fund) _ $ 26.26 Purchase of 14655 Forest Boulevard(General Fund) _ $ 151,511.95 Purchase of 14687 Forest Boulevard(General Fund) _ $ 86,401.29 Purchase of 14701 Forest Boulevard(Parks Fund ) _ $ 151,511.95 Purchase of 14625 Forest Boulevard(To Be Determined) _ $ 265,000.00 26S28Z.9 0 Purchase of 14583 Forest Boulevard (To Be Determined)_$ 322,000.00 Other Property Purchases (To Be Determined) _ $ 675,079.00 ----------------- Total Property Purchases $2,000,000.00 s`399 I qS-l-1-i ) Sy SJl.2 f CSA H5 V (kK 1758605v1 N ORTH MARQ July 28, 2009 Mr. Bryan Bear Community Development Director City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 via email: bbear@ci.hugo.mn.us RE: Thommes & Thomas 90.39 Acres - Offer Letter to Sell Dear Bryan: Pursuant to our conversation of Wednesday, July 16, 2009, 1 am pleased to present the following offer to sell for the "Thommes & Thomas Property". The owners are very interested in working with the City to effectuate a sale of the property. The sellers are very motivated to sell. This economic downturn has resulted in lower prices and could create a tremendous opportunity for the city to purchase and prepare the site for future businesses to relocate in Hugo. Currently the development time frame is prohibitive to a lot of companies. Other cities like Blaine are also purchasing land to lock in today's low prices and to pursue land for corporate and industrial users. Most users are not willing or able to go through the entitlement process taking a piece of raw land to a shovel ready condition. The wetland issues, EIS, EAW, DNR, EPA and other municipal against approvals are often too daunting for most users. They have enough challenges running their own businesses. Additionally, there are other pad ready options for users in adjacent communities that users may gravitate to. (i.e. Forest Lake, Columbus, Lino Lakes, Blaine) OFFER TO SELL Property Addresses: Hwy 61 & 165th Street & 5885 165th Street Hugo, Minnesota Seller: Thommes & Thomas Buyer: City of Hugo Property Description: Approximately 90.39 acres gross, or 65 acres net, depicted in Exhibit A. Purchase Price: $1.00 psf on the expected useable upland. I was previously marketing the property for $3.00 per square foot. Inspection Period: Buyer will have days from execution of the purchase agreement for the inspection period (the "Inspection Period" to evaluate the physical condition of the property). 3500 AMERICAN BLVD.W. SUITE 200 MINNEAPOLIS,MN 55431 T 952.831.1000 northmarq.com 07/28/2609 17:03 6514660725 OFFICE MAX PAGE 02 Mr. Bryan Boar July 22, 2009 Page 2 of 3 Seller's Title: Seller will deliver the premises free of liens and monetary interests. Taxes &Assessments. Real estate taxes will be prorated on a calendar year basis at closing. Purchase Agreement: Buyer will prepare, at its expense, within 14 business days of Seller's acceptance of the Offer to Sell, a Purchase Agreement to be reviewed, negotiated in good faith and executed by both parties. Closing: The parties will close this transaction 30 to 60 days after the expiration of the inspection period. In my opinion, creating a business park or available sites with wetland irrigation complete will keep Hugo competitive in the NE Metro. Except for Owners intent to remove the Property from the market on execution of this Offer to Sell, the terms and conditions outlined herein are by no means to be considered legally binding upon either party; rather, they are for discussion purposes only, No language contained within this proposal should be construed as a legal commitment. The parties are free to change or withdraw any of the terms within this Offer to Sell. Please acknowledge your acceptance of this Offer to Sell by signing below. If no acceptance has been received by 5:00 p.m., August 15, 2009, this Offer to Sell shall become null and void. However, if rnare time is needed, please call us. We want to be cooperative. Respectfully, C ��/►� Jo�nR a Wus C.CIM, SIOR Senior Vice President 952.893.8251 (Office) 612.685.828e (Mobile) 952.893.36291 (Fax) SELLER: BUYER: Thommes 't►omas City of Hugo Tom Benick /�`.���Q Date Date -2 12 / l 2 John Tholmmes ate c:ldocumcnte and scttiogsWministratorllocal scttins\tcmporary intcrnaliltslcontent.ntrtlooklv7,igO800lhugo Pr0perty072309.doc 08/02/2009 17:11 6514834066 KIEGEP PAGE 03 Y•�' Mr.Bryan Bear ! ' July 28,2009 awe Page 2 o/3 Taxes & Assessments: Real estate taxes will be prorated on a calendar year basis at closing. . k•., Purchase Ag�reement: Buyer will prepare, at its expense, within 14 business days i of Sellers acceptance of the Offer to Sell, a Purchase Agreement to be reviewed, negotiated in good faith and executed by both parties. VL'? Closing: The parties will close this transaction 30 to 60 days after the expiration of the inspection period. In my opinion; creating a business park or available sites with wetland irrigation complete will keep p Hu o g co petitive in the NE Metro. Except for Owners intent to remove the Property from the market on execution of this Offer to Sell, the terms and conditions outlined herein are b no means to be considered legally binding Y 9 Y 9 "='' upon either porty; rather, they are for discussion purposes only. No language contained within this proposal Should be construed as a legal commitment. The parties are free to change or withdraw any df the terms within this Offer to Sell. Please acknowledge your acceptance of this Offer to Sell by signing below. If no acceptance has been received by 5:00 p.m., August 15, 2009, this Offer to Sell shall become null and void. However, if more time is needed, please call us. We want to be cooperative. i Respectfully, A. Jon Rausch, CCIM, SIOR Senior Vice President vt ' 952.893.8251 (Office) 612.685.8288 (Mobile) K's 952.893.3629 (Fax) t=' Sl .. Lt. J' BUYER: Kieger F tly i Ite �artnor�P� City of Hugo t., By .�. ; ' Date Date i ll; , e:"documu—l�ekiege-I ha6locals–hteri'hugo property0'2809 I7 acres.doc I Mr.Bryan Bear July 28, //• Page EXHIBIT A { AVL mAbroUndustfiaR g,y " a 1 ""`� Tele Atlas fg 2809 t optptt 1 :1' tt Agenda Number F!✓ CITY OF HUGO COMMUNITY DEVELOPMENT DEPARTMENT Memorandum TO: Hugo Economic Development Authority FROM: Rachel Simone, Associate Planner SUBJECT: Interim Use Permits, Special Event Permits, Transient Merchants, and Peddlers. DATE: July 17, 2009, for the EDA meeting of July 20, 2009 1. BACKGROUND: The City of Hugo has formed an Ordinance Review Committee (ORC) to update several areas of the Municipal Code. There are members of the Planning Commission and City Council on the ORC. Staff is looking for recommendation from the EDA on the following areas: Interim Use Permits The City of Hugo allows residents to apply for an interim use permit for Home Occupations, but nothing else. If a property owner wanted to temporarily use the site in a way that is not allowed by ordinance the City does not have a formal way to approve it. The only way to do it is by Conditional Use Permit (CUP). The problem with a CUP is that it runs with the land and does not have an ending date unless terminated by the City through litigation. The City has had several requests for temporary use of property. The most recent being the flea market request on the old lumber yard property. A flea market is not allowed on the property and there is no way to ask for approval. The flea market may have been acceptable for the site with conditions on how it is operated and on temporary basis. Staff has thought that with an Interim Use Permit the applicant could request approval of the use on a temporary basis and the City could set restrictions to the use with an ending date. Special Event Permits There are events that happen on properties in the City that currently do not need approval from the City. The events in some cases create an abundance of traffic, have potential parking issues, and extend late in the day. In these cases staff has thought that the events should require approval whether it be administratively or by City Council. Increasingly, there are more businesses in the Page 2 City that are interested in having events on their property. Many cities require special events to be reviewed and approved by the City depending on the intensity of the event. This way the City can ensure that problems with things like traffic, parking, and nuisances are minimized. Transient Merchants and Peddlers A Transient merchant is someone that sells goods out of a trailer or something of the sort on a piece of property within the City. A peddler is someone that goes door to door most times and showcases items for sale. Transient merchants and peddlers are under the same requirements in the Municipal code. Staff has meet internally and have found that there are many items that are out of date in the code. Many cities regulate the location of where a transient merchant can be and how many are allowed in the City. In the ordinance it states that the peddlers and transient merchant licenses are required to be considered by the Council and published in the paper. Many cities have this as an administrative approval. The fees that are established for transient mechanists and peddlers currently do not cover the expense of staff time and publication of the notice. 2. CONCLUSION / RECOMMENDATION: It is in staff opinion that these ordinance be reviewed and updated. Staff recommends that the ordinances be forwarded to the ORC for updating. 2 L O CAL RESTAURANTS ,s s 9, 3� BU NS LE o s 7 - 8 I � n O 4 v 4 nfI J H J J RESTAURANT Address 1 Applebees 915 County Rd 42 W 2 Arbys 14221 Grand Ave 5 3 Blue Ox Sandwich Factory 14270 Buck Hill Rd 3 4 Bumpers Bar and Grill 12930 Harriet Ave t� 5 Burger King 14251 Nicollet Ave S 6 Burger King 1150 Highway 13 E 7 Champps 1200 County Rd 42 W 16 h� 8 Chipotle Mexican Grill 780 County Rd 42 W CO D 42 W -- 3 7. f \� 9 Dairy Queen 1301 Highway 13 E 3 2 26 - ,9'2, 10 Davanni's Pizza&Hot Hoagies 14639 County Rd 11 .511 EI Loro Mexican Restaurant 2501 Horizon Or OU 12 Famous Daves 12721 County Rd 5 3 13 Godfather's Pizza 850 County Rd 42 W j 14 Hooters 12950 Aldrich Ave S 2 15 Jimmie John's 1615 County Rd 42 W 16 Jimmie John's 2001 Cliff Rd E 17 Kentucky Fried Chicken 14150 County Rd 5 18 Lee Ann Chin Chinese Cuisine 14023 Aldrich Ave S 19 McDonalds 14200 Grand Ave S 20 McDonalds 2901 Highway 13 W 21 Old Country Buffet 14150 Nicollet Ave S 22 Olive Garden 1451 W County Rd 42 A23 Outback Steakhouse 2034 County Rd 42 W 24 Perkins 12750 W Frontage Rd O 25 Quizno's Classic Subs 1501 Riverwood Dr (� 26 Red Lobster 1301 County Rd 42 W 27 Subway 2925 Cliff Rd E 28 Subway 12601 Nicollet Ave S 29 Taco Bell 1901 W Highway 13 30 Taco Bell 14231 Nicollet Ave S --- — - 31 TGI Fridays 14400 Buck Hill Rd THIS MAP DOES NOT REFLECT ALL OF THE RESTAURANTS IN THE AREA. 32 Wendy's 2101 W County Rd 42