HomeMy WebLinkAbout2010.02.08 EDA Packet AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY, FEBRUARY 8, 2010
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 January 11, 2010
8:35 am 4. Hugo 1 Stop—Gas Station
• Michael Warner, Owner
• Ashraf El-Hakeem, Owner
9:10 am 5. Update on Downtown Redevelopment
• Carpenters Steakhouse—TIF District
9:30 am 6. Update on BR&E Program
9:45 am 7. Update on January 14,2010 Mixed Use Joint Workshop
10:00 am 8. Discussion on New Retail Project in Victor Gardens
North Village
10:10 am 9. Kidz n' Biz Sponsorship Request
10:15 am 10. Consider co-sponsorship of the HBA's Spring Saving
Show
10:30 am 11. Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
MONDAY, FEBRUARY 8, 2010
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the January 11, 2010 EDA Meeting as
presented.
4. HUGO 1 STOP—GAS STATION
Staff has invited the owners for the Hugo 1 Stop Gas Station located at 14815 Forest
Blvd. Staff recommends that the EDA welcome them as a new business in Hugo.
5. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will update the EDA on downtown redevelopment.
6. UPDATE ON BR&E PROGRAM
The BR&E Program Task Force Retreat will be held at Hugo City Hall on Monday,
February 8, 2010 from 4 pm to 8 pm. The U of M Extension Services team will reveal the
outcome of the surveys to the Task Force and start small group discussions on
implementation items for project ideas. The small groups will discuss ways to implement
strategies to help the businesses in Hugo and to accomplish the main goals from the
surveys.
7. UPDATE ON JANUARY 14, 2010 MIXED USE JOINT WORKSHOP
Staff will update the January 14, 2010 mixed use joint workshop.
8. DISCUSSION ON NEW RETAIL PROJECT IN VICTOR GARDENS NORTH
VILLAGE
Staff has received an application from Positive Companies for a new retail building in
Victor Gardens North Village, west of the Kwik Trip property. The building is
approximately 11,000 square feet. The application is scheduled to be on the February 11,
2010, Planning Commission agenda for consideration. Staff has enclosed the plans and
elevation for the EDA to review. No action is asked to be taken on the application.
9. KIDZ N' BIZ SPONSORSHIP REQUEST
On April 17th, 2010, the 6th annual Kidz n' Biz Fest will take place at the Oneka
Elementary School. This annual event is an opportunity for the Hugo Business
Association and the Hugo EDA to directly connect with Hugo families and children in a
PTA carnival atmosphere. This event is expected to attract more than 500 Hugo children
and their families, and will once again feature an assortment of carnival games presented
by Hugo businesses with assistance from the WBL High School and National Honor
Society. Last year the EDA and the Hugo Business Association(HBA) co-sponsored the
event in the amount of$500. Staff recommends that the EDA make a recommendation to
the City Council that the EDA co-sponsor with the HBA for Hugo Kidz `n Biz Fest.
10. CONSIDER CO-SPONSORSHIP OF THE HBA'S SPRING SAVING SHOW
On May 8, 2010 the HBA will he putting on a spring saving trade show for businesses in
Hugo. The event will be held at Hugo City Hall in the Oneka Room. The City
Administrator will discuss the event with the EDA and the possibility of the EDA co-
sponsoring this event.
MINUTES FOR THE EDA MEETING OF JANUARY 11, 2010
EDA President Fran Miron called the meeting to order at 8:30 am.
PRESENT: Jan Arcand, Tom Denaway, Jim Bever, Phil Klein, Brian Thistle and Fran Miron
ABSENT: Mike Granger
CITY STAFF PRESENT: City Administrator Mike Ericson, Community Development
Director Bryan Bear, Associate Planner Rachel Simone, and Shayla Syverson, Economic
Development/ Parks Intern
APPROVAL OF MINUTES FOR THE EDA MEETING OF DECEMBER t4, 2009
Klein made motion, Thistle seconded, to approve the minutes for the EDA meeting of December 14,
2009.
All ayes. Motion carried.
UPDATE ON DOWNTOWN REDEVELOPMENT
The City Administrator gave an update on the Carpenters Steakhouse fire. He stated that staff
and members of the Council met with the owners after the Fre to see if there was anything
the City could do to help. The emergency response to the fire was excellent. The State Fire
Marshal has completed his investigation on the cause of the fire. The building is ready to be
demolished and the insurance company is providing the money for the demolition. The CD
Director stated he is talking to the owners to see if the building to the north can be
demolished at the same time. He stated that the City's purchase of the property is on hold for
now.
UPDATE ON BR&E PROGRAM
Shayla Syverson, Economic Development/ Parks Intern gave an update on the BR&E
program. She stated that 38 businesses have been visited and surveyed by the BR&E
program leadership team and task force members and each has received help locating
business resources they requested. Staff was at the U of M on January 7, 2010 for a meeting
with the extension educators to discuss the outcomes of the surveys. There will be a meeting
on February 8, 2010 to showcase the results of the survey and for the task force members to
come up with implementation items and project ideas. In the beginning of March 2010 the U
of M Extension staff will present the full report of the survey results and the implementation
strategies identified.
UPDATE ON CITY-WIDE INTERNET/2010 LMC LEGISLATION
Staff updated the EDA on their meeting with Quest and the information that they provided.
There are complexities of the internet system to provide high speed internet to everyone in
Hugo. The urban area is covered, but the rural area is more complicated to cover because
properties are spread out. It will cost a lot of money to provide high speed internet to
everyone in Hugo. The League of MN Cities Bulletin was discussed. New legislation for
2010 will focus on telecommunications and municipal involvement.
2009 EDA ANNUAL REPORT
The EDA was presented with the EDA Annual Report that highlights the commercial
projects and the BR&E Program for 2009. Staff recommended that the EDA review the
report and provide staff with feedback.
Denaway made a motion, seconded by Bever, to approve the 2009 EDA Annual Report.
All Aye. Motion Carried.
2010 GOALS UPDATE
Enclosed were the EDA goals for 2010. Staff recommended that the EDA review the goals
and provide staff with feedback. The EDA stated that the goals were accurate. The 2010
EDA goals will go before the City Council on January 25, 2010 at their goal setting session.
UPDATE ON JANUARY 14,2010 JOINT WORKSHOP WITH THE EDA,
PLANNING COMMISSION, AND CITY COUNCIL
On January 14, 2010, there will be a joint workshop with the EDA, Planning Commission, and City
Council from 7 pm to 9 pm. The workshop is scheduled to discuss the mixed use land use district and
the northern gateway. Staff will be presenting information on the area and the items in the
comprehensive plan that relate to the mixed use area and transportation. Staff encouraged the members
of the EDA to attend this meeting.
ADJOURNMENT
Klein made a motion, seconded by Denaway, to adjourn at 10:10 am.
All Aye. Motion Carried.
5
CITY OF HUGO
MEMORANDUM
TO: EDA
FROM: Bryan Bear, Community Development Director
SUBJECT: Demolition of Carpenters and Antique Store
TIF implications
DATE: February 5, 2010
As everyone is aware, on January 3, 2010, Carpenter's restaurant burned. The building is
a total loss. The State Fire Marshall has completed his investigation and found no
definite cause for the fire.
The City's Building Official has declared the building a hazardous structure, and has
ordered the building be removed from the site immediately. Cathy Anderson, the owner,
has hired a contractor who is now removing the debris from the site. The City is also
encouraging the demolition of the adjacent antique store building to the north, also owned
by Ms. Anderson.
The properties are part of an approved redevelopment plan for a new restaurant, and are
within TIE District 1-2. Both buildings (Carpenter's Restaurant and the Antique Store)
were inspected by City staff prior to establishment of the TIF District, and both buildings
were deemed substandard. The antique store building has been vacant for some time, is it
not structurally sound, it is not secure from intrusion by the public, and it is possible that
it could also deemed as a public safety hazard in the near future. That building must
undergo an environmental review, and asbestos abatement, prior to its demolition. We
are hopeful the demolition can occur within the next month. Both the City and Ms.
Anderson are desirous of removing the blighted buildings from the property.
Now that the fire has occurred, Ms Anderson must evaluate her financial position before
deciding exactly how to proceed with redevelopment of the property. There are several
possible options, but they all result in the eventual redevelopment of the land.
The EDA has asked the City staff to determine the implications of the building
demolitions on the tax increment financing that may be provided in this area. I have
discussed this in depth with City Financial Advisors, Paul Steinman and Mikaela Huot, as
well as City Bond Counsel, Mary Ippel. They advised me that now that the District has
been created, there is no formal action the City must take prior to either building being
demolished. The expenses incurred may be classified as TIF expenses. It is important to
note that demolition of both buildings was and still is necessary to proceed with the
redevelopment of the property. Even though a fire has occurred, these demolition actions
being taken now are seen as the necessary first step in the redevelopment process,
ultimately leading to construction of the approved restaurant plan or some modification
of that plan.
This project has passed the "but-for" test, and the expenses now occurring will be
considered as part of the necessary site preparation costs.
SUMMARY:
In short, the City does not need to take any action on this topic at this time, but should
recognize this property, not as a "greenfield" site, but rather as a site that is in the process
of being redeveloped.
cc: City Council
HCity of
ugo 14669 Fitzgerald Avenue North,Hugo,MN 55038 (651)762-6300
wwwxi.hugo.mn.us
January 28, 2010
Brad Ensrude
K.A. Kamish Excavation Inc.
1301 South Concord St.
South St. Paul, MN 55075
RE: FIRE DAMAGE TO CARPENTER'S STEAKHOUSE LOCATED AT 14559
FOREST BLVD. N, HUGO, MN 55038
Dear Mr. Ensrude:
The City of Hugo has declared this building to be "Hazardous" as defined under Section 463.15
of the 2007 MN State Building Code and orders the building to be immediately removed as
per Section 463.16 of the 2007 State Building Code. The City of Hugo's Building Inspection
Department conducted an inspection of Carpenter's Steakhouse site on January 8, 2010, and has
the following safety concerns:
I. The remnants of the building and the piles of debris are very unstable and may collapse.
2. The building is leaning toward the street and sidewalk along Forest Blvd. N. Any
pedestrian or vehicle traveling in that direction is in harm's way should the building
collapse on to the sidewalk or street.
3. A portion of the building is leaning on the adjacent building to the south (Domino's
Pizza). This not only puts additional stress on the adjacent building, there also is a safety
concern for the customers accessing Domino's Pizza.
4. Washington County Sheriff's Department reported vandals and thieves are accessing the
site and entering the building.
5. The building site is difficult to secure and is being accessed by the public, which may
result in great bodily harm.
Prior to the commencement of any demolition, the following information and permits will be
required:
1. A commercial demolition permit to be secured from the City at a fee of$120.00.
2. An Escrow Check in the amount of$1,000.00 (escrow monies will be returned when
items 3 & 4 have been submitted).
3. Written approval from the Minnesota Pollution Control Agency regarding any on-site
hazardous waste materials.
4. Receipts from an authorized landfill verifying proper disposal of all demolition materials.
It is the City of Hugo's understanding that the State Fire Marshal's office and the
property owners' insurance company have completed its investigation regarding the fire
that destroyed Carpenter's Steakhouse on January 3, 2010. The City of Hugo would
appreciate your immediate attention in this matter..
If you have any questions please call me at(651) 762-6313.
Sincerely,
3
John Benson
Building Official
Cc: Mayor and City Council
Mike Ericson, City Administrator
Bryan Bear, Community Development Director
Catherine and Mike Anderson, Property Owners
Hugo Fire Department
8
EU(000 LEEKKT o M&
1 SCALE 1.W
i I
� 1 }o ao rcci
atAPHIC SCALE
I
I I
. C.
--------------
LOCATION
------ LOCATION MAP
NOT TO SCALE
ENGINEER/SURVEYOR/PLANNER
5t.Peul Moes
Amai ntrW
ot.55106
651.771.0544
3 ' I 651.776.5591 tax
I
LL
2 / ARCHITECT
ohagens_=
® Hansen
Architectural
/
Group
1
Q2 SHEET INDEX DEVELOPER
Cl COVER SHEET PWITIVE
a � C2 EXISTING CONDITIONS
C3 PLAT • VqFr
' C4 SITE PLAN Wu WMt IrfRO ea•aLTnrim
C5 GRADING PLAN
C6 UTILITY PLAN CERTIFICATION
C7 SWPPP PLAN
SL1 LIGHTING PLAN
11f8®IROItgOMY 0.1.0®IROS M UWf Of
A1.1 LANDSCAPE PLAN
A20 FLOOR PLAN �TcMKIR.
A3.0 EXTERIOR ELEVATIONS
SHEET No. Cl
SfGNAGE SJGNAGE SWNAGE - Material Key
Cultured Stone: (Chardonay)
i
- ® EIFS: Color#1 (Honey Twist)
■ Brick: Glen Gery (Navaho velour)
West Elevation
EIFS: Color#2 (Amarillo white)
Concrete Block: (Limestone)
■ Arch. Shingles: (Charcoal)
Smug -
-- �.
North Elevation South Elevation
SIGNAGE SIGNAGE SIGNAG8 vc:NAGE SIGNAGE
East Elevation
Mohagen
Hansen Positive Victor Gardens Exterior Elevations
Architectural Companies
Group �� Hugo, MN January 28, 2010