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HomeMy WebLinkAbout2009.08.10 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, AUGUST 10, 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 July 20, 2009 8:35 am 4. Discussion on Offers to Sell Property Located on 165th Street • Kieger Property • Thommes and Thomas Property 9:30 am 5. Update on Downtown Redevelopment 10:00 am 6. Update on BR&E Program 10:30 am 7. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, AUGUST 10, 2009 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the July 20, 2009, EDA Meeting as presented. 4. DISCUSSION ON OFFERS TO SELL PROPERTY LOCATED ON 165TH STREET On Thursday, May 14, 2009 staff met with the property owners in the 165th Street and Highway 61 area. The meeting was to discuss the possibility of another industrial park in that area. On the 2030 land use plan the area is shown as industrial. At the meeting some of the property owners in the area were interested in selling. These property owners continue to market their property for sale. The property owners thought the City may have an interest in buying the property and followed up with an offer to sell.Staff recommends the EDA discuss the offers to sell. 5. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. 6. UPDATE ON BR&E PROGRAM Staff will update the EDA on the progress of the BR&E Program. MINUTES FOR THE EDA MEETING OF JULY 20, 2009 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, and Brian Thistle ABSENT: Fran Miron 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 JUNE 15, 2009 Denaway made motion, Bever seconded, to approve the minutes for the EDA meeting of June 15, 2009. All ayes. Motion carried. 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 updated the EDA on the progress. Staff explained that the TIF request was being sent to the County on July 21, 2009. Staff will update the EDA when the TIF District is formally certified by the State. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of downtown redevelopment. Ricci's property had a purchase agreement on the property that was dropped. There have been people interested in the property, but not one that has been serious about redevelopment. Staff updated the EDA that the 61 Stop gas station will be reopening with a new owner in the near future. 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 was looking for recommendation from the EDA to forward the ordinances to the ORC for updating. Klein made a motion, seconded by Thistle, to forward the items to the ORC for review and updating. All aye. Motion Carried. UPDATE ON BR&E PROGRAM Shayla Syverson updated the EDA on the progress of the Business Retention and Expansion Program. The leadership team has been set and the potential task force members are being contacted to see if they are interested in being involved in the program. Staff continues to work on the resource list to give to businesses to help them with immediate concerns that they may have. The business visits will start in October. 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. ADJOURNMENT Denaway made a motion, seconded by Granger, to adjourn at 9:30 am. All Ayes, Motion Carried. `t July 28, 2009 N O RTH M ARQ Mr. Bryan Bear Community Development Director City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 via email: bbear@ci.hugo.mn.us RE: Kieger Property 15.15 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"Kieger 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 & 165`h Street& 5885 165th Street Hugo, Minnesota Seller: Kieger Family Limited Partnership Buyer: City of Hugo Property Description: Approximately 15.15 acres depicted in Exhibit A. Purchase Price: $1,550,000.00 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). Seller's Title: Seller will deliver the premises free of liens and monetary interests. 35D)AMERICAN BLVD W. SUITE 200 MINNEAPOLIS,MN 55431 T 952 831 10�-f0 noithrnarq con) 08/02/2009 17:11 6514834066 KIEGER PAGE 03 Mr.Bryan Bea/ July 28,2009 Page 2 o/3 Ph 6{y4 Taxes & Ass4ssments: Real estate taxes will be prorated on a calendar year basis ty 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 j executed by both parties. t== Closing: The parties will close this transaction 30 to 60 days after the expiration of the inspection period. ivS.. 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 Seil,:the term and conditions outlined herein are b no means to be considered legally binding � Y 9 Y 9 upon either p rty; rather, they are for discussion purposes only. No language contained within this proposal hould be construed as a legal commitment. The parties are free to change or withdraw any§f the terms within this Offer to Sell. Please ackno*4edge 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. Respectfully, a�''•° t Jon Rausch, dCIM, SIOR Senior Vice Pro sident ' 952.893.8251 (Office) 612.685.8288(Mobile) 952.893.3629 Fax) BUYER: KI ger IN i ite Partnere City of Hugo t S By 4 � Date Date , C doculne�lldciege�l hst\locals—IVeraWhugo property077809 17 acres.doc Mr.Bryan Bear July 28,2009 Page 3 of 3 EXHIBIT A .r Y r II M � `1B.�ECTf PROPERTY aces .. WAS PROPER-ft `3 9 acres km ft �61 Z wy r - e mAbrok\industriat\property listings\propetiy a-k\kieger site\hueo property071109 17 acres.doc NORTHMARQ July 28, 2009 Mr. Bryan Bear Community Development Director City of Hugo 14669 Fitzgerald Avenue North Hugo, MN 55038 via email: bbear@ci.huao.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 07/218/2009 17:03 651466075 OFFICE MAX PA(5E 02' Mr. Bryon Bear July 22,2009 Page 2 of 3 Seller's Tittle: 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 more time is needed, please call us. We want to be cooperative. Respectfully, Jon Rausc , C.CIM, SIOR Senior Vice President 952.893.8251 (Office) 612.6$5.8288' (Mobile) 952.893.3629, (Fax) SELLER: BUYER: Thommes 'hiomas City of Hugo Tom Benick Date ,� / Date 7 12 John Thommes :/''J ate c:ldocumenu and settialts1.•tdministr3tor\1oca1 settings\temporary intcmer fileq\content.cnrtlook\v7gO800\hugo pro"072309.doc /1• 165th St _ ; { = sj or ti e. � t } it f ' s . . M. -. .yrw '• - t. 'C� .. - F ,� ' Aerials Express?j 2009 r., ` Tele Atlas?i 2009 ...) .,�, .,s.., - _,,.u....,. ,�,. - 5,..,; .:,r .. ., t.x_ : ry G ;er TF. sa;-7-n „t ., ;.: +Y^. .'... ••t:+x,. >...rt a. ,-_ a'+' ,."!-,• ..smJ9 ;:i. rc,e•.. 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Some commissioners say it isn't fair, but others hope for increasing returns year and is expected to net But the Washington County about the same in 2010.Wash- commissioners who sit on the By Elizabeth Mohr $4.25 million into a iive-county commissioners in Washington $2.5 million.Which has quieted ington County is allotted a Counties Transit Improve- emohr@pioneerpress.rom metro pool for transit funding. County some of whom have commissioners,for now low share of the pooled funds ment Board, the governing The county, in return, gets opposed the tax from the onset The quarter-cent sales tax because it doesn't have a board for the funds,this spring Shoppers in Washington $950,000 to spend on transit —to shout"not fair." being collected in Anoka, major project in the works or managed to rip the ante a Itttle. County will pay a sales tax projects. But in 2010, the county will Dakota, Hennepin, Ramsey ready to go—such as Central this year that will send about It is an imbalance that led get three times as much,about and Washington counties will Corridor light rail or North TRANSIT.TAX,38> _---------- Michael Bridging Fernandez, Urban Mis- ;µz.: 7, displays sion Pro. his cross to jest volun- his teacher f teer Daniel while Luke Crossman, I' r� Barnes 18, leads a n I works on his Vaca- Bible lesson .. ,�?��� � � � at evening tion Bible Vacation I Schoolat Bible ' Ho a Evan- `, School at p gelical gt _ Payne 4 7 Lutheran ,.. ,Avenue Church in Evangelical Minneapolis Free Church " last month. . last month. New m_ _ __etho s, -same —m- - �'�,. v�ata�.."A4,1C---L12I11C1"a, Lne ngnt aepth,the power Tc�f safif� '�� :. ag- -.t no cheap deal — a high-use, according to Doris Tyler, who ing would be unnecessary," er.There's no one monitoring Di county-owned ramp just off has been selling boats and said Heyers. "There are some the ramp and no fine for power merr` Minnesota 96 on White Bear is trailers at Hallberg Marine in people who need to take a loading— Sather hopes folks erati costing" close to $20,000 to Wyoming for more than course on loading their boat." will just abide by the "No two replace. 30 years. Heyers said he launches his Power Loading"signs. hilrL "We recognize it would be a Instead of being outfitted own 28-foot powerboat every "We're not doing it because big battle to ban power load- with rows of rollers that made weekend at Hub's Landing in we like to regulate," Sather ing,"said Nancy Stewart,coor- it easy to crank on a boat— Hastings — a no power-load- said.`But if they keep doing it, Co dinator for the DNR's public but sometimes difficult to align Ing ramp on the Mississippi the few people who can get water access. `But it's that correctly — bunk trailers River. their boats on now might not Vli really heavy-on-the-throttle make it easy to align but, for "On many a Sunday night, be able to later." D*, i action that churns a lot of inexperienced boaters, more you'll see me down there clip- �"' material and does a lot of dam- difficult to trailer. ping and cranking,"said Moni- John Brewer can be reached age m no time." The problem comes when ca Frazer, who owns Hub's 651228 2093, d� d xs 'COBS`?..,�"' Y "•n "2, 3.h i "� N S-' ty� [ax a =z mho 40 651 CONTINUED FRO A 5 BY THE NUMBERS ��) � � significant transit goals. � P o" v "I'm not anti-transit, I just 1 . } Transit `1 .. � want to be sure wehaveaclear $85M $85M understanding of what it's *.;-going to take to pay for it,"he t receipts from the transit receipts expected from the `Baid.,3 i Instead of getting 1 percent of r now,he has no plans to sales tax,2009 transit sales tax 2010 t the funds as they are getting call for the county to back out thisear, the will get 3 per- of the transit tax ment. . cent each year through 2013. He said he'll wait too see what The first six months' pro- $950K $25m ` happens in 2011. seeds from the tax, which has "The big thing with me is the been collected since July 2008, Washington County's share Washington County's share `''financial capacity of the quar- went to the Metropolitan Coun- ter-cent(tax),"Kriesel said."If cil and metro-wide projects. that's not going to be sufficient, Commissioner Lisa Weik County staff members are metro transportation system. are they going to expand the said when running for the working on proposals for "(The regional system) revenue base by bringing county board last fall that she spending the 2010 money. serves not only our county but more counties in? Because if opl,:sed the transit tax and Nothing is certain, but there the people who are coming they have to raise the sales tax, would work to get Washington are hopes to expand transit into or through our county," I'm not going to be supportive County out of it options in the Interstate 94 cor- Peterson said. "We need to of that." The 3 percent return, she ridor, extend Central Corridor address the fact that we're a said this week,"keeps us at the light rail to Woodbury, and transition county and give eiti- Elizabeth Mohr can be reached at table"but isn't a guarantee the pursue high-speed rail from zens the opportunity to use 651-228-5162. county will stay in the game. the Twin Cities to Chicago via mass transit instead of build- "Everything is so fluid," the Red Rock Corridor, which ing highways." Weik said."Every time you go would parallel parts of U.S.61. Commissioner Gary Kriesel, ; to a (CTIB)meeting,the wish Dennis Hegberg and Myra who voted against the tax,said list of projects (from other Peterson are the two commis- he did so because he wanted counties)is growing....Where sioners who have supported more information. He's does this leave Washington the transit tax from the start. pleased the county will get County? The return on our Peterson said proceeds from more back this year than orig- investment appears to be the transit tax allow the coup- inally anticipated but isn't con- { improving,but I still have a lot ty to plan for its own-growing vinced the tax will bring in of the same questions I had a population and its role in the enough money to meet f year ago." Commissioner Bill Pulkrabek, who voted,against the tax in April 2008, says the county's pull improved only I CONCRETE slightly,"from a worse deal to a bad deal." Save 50% or More of Replacement Costs "Washington are putting county resi- dents ore Commercial • Residential • Industrial dents are putting in more t money than we're getting Apartment Complex * Sidewalk * Patio back,"Pulkrabek said"It's bet- ter,but I'm still opposed to it" o Driveway Garage Floor Etc. The county's initial is being Call for Free Estimates Insured BBB Natiattat from the transit fund is being „� - used to subsidize commuter �. Recyctfng I � � . M014{T.14�1 am-lropm A buses from Forest Lake to St. Paul and Minneapolis and ., *. 1: . ,9�,7raeetemu,Hu9p 175 to study the Interstate 94 , t # i 92 Prit corridor. Servingthe Metro for over ,