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HomeMy WebLinkAbout2010.09.13 EDA Packet r AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, SEPTEMBER 13, 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 August 9, 2010 8:35 am 4. Update on Park Dedication Policy 9:00 am 5. Update on BR&E Implementation Project Teams 9:30 am 6. Update on Downtown Redevelopment 10:30 am 7. Adjournment • BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, SEPTEMBER 13, 2010 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the August 9, 2010 EDA Meeting as presented. 4. UPDATE ON PARK DEDICATION POLICY Staff will update the EDA on the park dedication policy. See enclosed staff report. 5. UPDATE ON BR&E IMPLEMENTATION PROJECT TEAMS The BR&E Marketing and Event Implementation Project Teams had joint meeting with the HBA on August 17, 2010 and August 26, 2010. The groups discussed the roles of the City and the HBA in regards to marketing the City and the businesses. During the meetings is was suggested the two entities work together and brainstorm goals and tasks for the action plan and divide them up depending on the roles. The brainstorming session is on September 23, 2010 at 4 PM at Bobby and Steve's Auto World conference room. Brittany Eshelman from Bobby and Steve's is the Marketing Chair for the HBA. 6. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on downtown redevelopment. MINUTES FOR THE EDA MEETING OF AUGUST 9, 2010 Granger called the EDA meeting, to order at 8:40 am. PRESENT: Jan Arcand, Jim Bever, Tom Denaway, Mike Granger Brian Thistle and Fran Miron (came later) ABSENT: Phil Klein, CITY STAFF PRESENT: City Administrator, Mike Ericson, Community Development Director, Bryan Bear, and Planner, Rachel Simone. APPROVAL OF MINUTES FOR THE EDA MEETING OF JULY 12, 2010 Arcand made motion, Bever seconded, to approve the minutes for the EDA meeting of July 12, 2010. All ayes. Motion carried. DISCUSSION ON LETTER TO RIVER BANK—RICCI'S BUILDING Staff has been working with the representative of the River Bank that owns the Ricci's property on the demolition of the building. The property owners are interested in demolishing the building, but know that there are constraints on the property that limit what can be developed there. Staff has drafted a letter for discussion with the EDA on what the City would be willing to help with as they redevelop the property. Staff recommended that the EDA review the draft letter and provide feedback to staff. The EDA thought the letter was good and wanted the bank to move forward with the demolition of the building. Bever made a motion, seconded by Denaway, to make a recommendation to the City Council to send the letter to the owners of the Ricci's property. All aye. Motion carried. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EUA on downtown redevelopment. CD Director talked about the End Zone building demolition to happen this month. The antique store building demolition order hearing is on September 10, 2010. The demolition of the building should happen in the month of September. The missing link to the hardwood creek trail will most likely happen in 2013. The County needs to buy the right of way and abandon the railroad before the trail can be constructed. There may be a creative way the County can lease the property until acquisition and build the trail earlier. New traffic signals will be installed this year at the intersections of 147th Street and Highway 61 and 130th Street and Highway 61. This will be complete this construction season. A Development team has been looking at the church property in front of Muller Manor. The property is zoned commercial. The EDA discussed having a meeting with the interested parties. Miron made a motion, seconded by Granger, to direct staff set a meeting with the interested parties. All aye. Motion Carried. UPDATE ON THE BR&E IMPLEMENTATION PROJECT TEAMS Staff made a presentation to the HBA on the BR&E Marketing and Events implementation project teams at its July 13, 2010, meeting. The outcome was to have a BR&E and HBA joint meeting on the implementation project and distinguish roles of the City and the HBA on each goal. The joint meeting is on August 17, 2010. Staff will update the EDA in September on the outcome of the joint meeting. DISCUSSION ON THE PARK DEDICATION FEES The City of Hugo Parks, Recreation and Open Space Commission discussed possible revisions to the Park Dedication Policy at their July 14, 2010 meeting. Parks Planner Shayla Syverson discussed the Park Dedication Policy with the EDA. Currently, the Park Dedication Policy requires payment of$2,400 per acre with any commercial or industrial development. All funds that are dedicated are used by the Parks Commission to build new park facilities, which help meet the increased demand for parks brought by the development. The majority of funds received through dedication are from residential developments. Approximately $10,000 in park dedication has been paid to the city for commercial and industrial development between 1999 and 2009. Some cities do not require park dedication with commercial and industrial development. Granger stated that the park dedication fee for commercial and industrial properties is a disincentive for businesses to come to town. Denaway stated that the businesses pay property taxes and agreed with Granger. Granger made a motion, seconded by Denaway, to recommend to the Parks Commission to remove the fee for commercial and industrial developments from the park dedication policy with the following findings: 1. The parks are important to the City and make the community more attractive. 2. The park dedication fee is a competitive disadvantage for businesses to come to Hugo. 3. Many surrounding cities do not require commercial and industrial development to pay park dedication fees. 4. The park dedication fee collected for existing commercial and industrial developments is not a huge revenue generator. 5. Commercial and industrial property taxes help pay for park improvements. 6. Commercial and industrial businesses have made donations to several community and organized events in the City. All aye. Motion Carried. ADJOURNMENT Granger made a motion, seconded by Denaway, to adjourn at 10:30 am. All Aye. Motion Carried. 4 F�FF P CITY OF HUGO COMMUNITY DEVELOPMENT DEPARTMENT Memorandum TO: Economic Development Authority FROM: Shayla Syverson, Parks Planner DATE: September 9, 2010 for the meeting of September 13, 2010 SUBJECT: Park Dedication Policy Revisions BACKGROUND: At the August 9, 2010 meeting, the Economic Development Authority discussed proposed revisions to the Park Dedication Policy. The EDA recommend that park dedication not be required for commercial or industrial developments. The following reasons were given: ■ Businesses support the community through events. ■ Industrial and Commercial Development brings additional revenue into the city through increased property taxes. • The dedication requirement creates a competitive disadvantage for businesses to come to Hugo. ■ Many surrounding cities do not require commercial and industrial developments to pay park dedication. ■ Economic development would be supported in Hugo. • Parks are important and attractive assets in a residential community. PARKS COMMISSION UPDATE: At their August 11 and September 8, 2010 meetings, the Parks, Recreation and Open Space Commission discussed the Park Dedication Policy and made a recommendation to determine the amount of park dedication based on the density of the development and to allow for developers to appeal the assigned dedication. The Parks Commission is recommending that park dedication continue to be required from commercial and industrial developments because they generate a need for parks. The following examples of use of park areas by businesses were given: ■ Wilson Tool employees use Water Tower Park for lunch breaks and have requested additional park amenities be built. ■ The cafes and restaurants in Victor Gardens promote eating out in Victor Square. • KinderGardens Day Care frequently takes their children on the trails and uses the playground equipment in the Victor Garden area. r The following reasons were given for how commercial and industrial development creates a greater need for parks thus: ■ Linear parks and trails make industrial parks and commercial districts more attractive to businesses. ■ Parks provide services to employees on their breaks. ■ Trails provide access to business areas. ■ Companies are moving towards keeping health care costs down and need facilities and park amenities to encourage employees to be active. ■ Landscaped and natural areas make the community a more attractive place to do business and draws businesses in. ■ Park assets help keep property values high. CONCLUSION: Both the EDA and Parks Commission recommendations will be presented to the City Council at their September 20, 2010 meeting. ATTACHMENTS: CURRENT Park Dedication Policy DRAFT Proposed by the Parks Commission 9-8-2010 CURRENT PARK DEDICATION POLICY Sec. 90-324. - Park dedication. In order to develop a system of parks within the community to serve the public's health and recreational needs, ten percent of the net buildable acreage(total acres minus wetlands and floodplain acres) of all land subdivided for residential purposes shall be dedicated to the city as public parkland. The land so dedicated shall be subject to approval by the city council in accordance with the city's master park plan. At the city council's discretion, a parkland dedication fee may be accepted or required instead of land dedication. The parkland dedication fee shall be charged for each dwelling unit originated by the subdivision or development of any property in the city, not including any dwelling unit that may be in existence at the time of the adoption of the ordinance from which this article is derived, or which is subject to an approved development agreement with the city that includes a parkland dedication provision. A parkland dedication fee shall also be charged to commercial and industrial property pursuant to city ordinance. (Prior Code, § 1215-040.1) Parkland dedication: Commercial and industrial $2,400.00 per acre Residential $2,400.00 per unit DRAFT 9-8-2010 CITY OF HUGO AN ORDINANCE REQUIRING PARK DEDICATION WITHIN THE CITY OF HUGO, MINNESOTA THE CITY OF HUGO ORDAINS: SECTION 1. The City Council of the City of Hugo does hereby amend Chapter 90, Section 90-324 Park Dedication to the following: Sec. 90-324. Park Dedication. (a) General Dedication Standards In order to develop a system of parks within the community to serve the public's health and recreational needs, a percentage of the net buildable acreage based on the density of all land subdivided for residential purposes shall be dedicated to the city as public parkland. The city finds that the more dense a development is, the more demand for park land it creates since lots can be smaller affording less private recreational space and more occupants per acre. The following formula will be used to determine the dedication requirement where a land dedication is required: Density Percentage of Land to be Dedicated (of the buildable land) 0-3.99 units per acre 10% 4.00-5.99 units per acre 11% 6.00-7.99 units per acre 13% 8.00-9.99 units per acre 15% 10.00 < units per acre 17% The land so dedicated shall be subject to approval by the city council in accordance with the city's Comprehensive Plan for parks. At the city council's discretion, a parkland dedication fee may be accepted or required instead of or connection with land dedication. The parkland dedication fee shall be set annually by the City Council and adopted as part of the City's fee schedule. The parkland dedication fee shall be charged for each dwelling unit originated by the subdivision or development of any property in the city, not including any dwelling unit that may be in existence at the time of the adoption of the ordinance from which this article is derived, or which is subject to an approved development agreement with the city that includes a parkland dedication provision. (b) Commercial/ Industrial Development A parkland dedication fee shall also be charged to commercial and industrial property development as set annually by the City Council and adopted as part of the City's fee schedule (c) Appeal Process The parkland dedication fee may be appealed to the City Council before the City Council makes a decision on the final plat and shall be calculated as follows: The percentage of land to be dedicated will be multiplied by the fair market value of the net buildable acreage. The fair market value shall be determined by the City Council, following their review of a current appraisal submitted to the city at the developer's expense. The appraisal shall be made by appraisers who are approved members of the SREA or MAI, or equivalent real estate appraisal societies. If the city receives written notice of a dispute over the parkland dedication fee before approval of the final plat, the developer shall pay the fee into an escrow account pending a decision of an appeal of the fee. If an appeal is not filed within 60 days following approval of the final plat, or if the person aggrieved by the fee does not prevail on the appeal, then the funds paid into escrow must be transferred to the city. SECTION 2. Severability. In the event that a court of competent jurisdiction adjudges any part of this Ordinance to be invalid, such judgment shall not affect any other provision of this Ordinance not specifically included with that judgment. SECTION 3. Effective Date. This amendment shall take effect upon its passage and publication. ADOPTED BY THE HUGO CITY COUNCIL ON Fran Miron, Mayor ATTEST: Michele Lindau, City Clerk HCity of ugo 14669 Fitzgerald Avenue North, Hugo, MN 55038 (651)762-6300 www.d.hugo.mmus September 9, 2010 Brian Zeller Greystone Commercial 836 Minnesota Street S Bayport, MN 55003 RE: Ricci's property 14777 Forest Blvd. N. Hugo, MN 55038 Dear Mr. Zeller, As you know, the City of Hugo's Economic Development Authority and City Council are interested in encouraging and assisting in the demolition of the vacant Ricci's building, which suffered damage due to a fire several years ago. This issue has been discussed by the EDA at its August 9, 2010 meeting, and the Hugo City Council at its August 16, 2010 meeting. They have authorized me to send this letter, offering the following: • The City recognizes your intention to sell the property. To the extent possible, the City will assist you in marketing the property, and will direct potential buyers to you or your real estate agents. • The City has made an investment in improvements to the intersection that benefits this property. The improvements include construction of a new traffic signal, and reconstruction of 147' Street and TH61. The improvements will be complete this construction season, and the City does not intend to levy any assessments against the property for these improvements. • The Washington County Sheriff's Office, and the City's Fire Department have expressed interest in conducting a training exercise inside the building before it is demolished. If there is an advantage to you in donating the building to the City for this purpose, it will be accepted by the City. • Once the building is demolished we understand that redevelopment of the site will eventually follow, and an application will be submitted to construct one or more buildings on the property. The City has created a Tax Increment Financing (TIF) District that includes this property, for the purpose of encouraging new development. The City will consider granting TIF funds toward the redevelopment of a qualifying project. • The City recognizes the site constraints existing on the property related to its size, shape, access, and location at the intersection of TH61 and 147`h Street. The site constraints may limit your ability to maximize the development potential of the site. The City will consider reasonable flexibility under the zoning code to allow for redevelopment of the property, and may consider adjustments to the parking, setback, height or other zoning requirements through the variance approval process. • The City has reviewed the site from a stormwater management perspective. Partly because of infrastructure already installed by the City, the City will not require the construction of retention ponds or the installation of water quality treatment measures that may typically be required. The City cannot waive the infiltration requirements for the site. The City will work with you toward a cost-effective design and location of any requirement infiltration measures, and we will assist in obtaining grant dollars toward the installation of a qualifying infiltration system. Obviously, the City and the property owner have many of the same interests concerning economic development within downtown Hugo. Please contact me at 651-762-6320 at your earliest convenience to discuss arrangements for demolition of the building. Sincerely, B an J. ear Community Development Director c: Jason Gamble, The River Bank Honorable Mayor and Council Economic Development Authority Mike Ericson, City Administrator HCity of ugo 14669 Fitzgerald Avenue North,Hugo,MN 55038 (651)762-6300 www.ci.hugo.mn.us August 25, 2010 Mr. Duane Arens Connexus Energy 1460 Ramsey Blvd. Ramsey, MN 55303 Dear Duane, On behalf of the City of Hugo, thank you for your generous contribution to the Hugo Business Retention and Expansion Program. We are grateful not only for your personal involvement but also the financial contribution made by Connexus Energy. Our Business Retention and Expansion Program has made a significant positive impact on our business community here in Hugo. Please share with your Board of Directors our strong support to include support of Business Retention and Expansion Programs in your company's 2011 budget. Donations from Connexus Energy and other organizations make Business Retention and Expansion Programs possible which, in turn, strengthen the communities you work with. Thank you. Sincerely, r ael A. Ericson City Administrator C: Honorable Mayor and City Council Economic Development Authority