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HomeMy WebLinkAbout2010.10.11 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, OCTOBER 11, 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 September 13, 2010 8:35 am 4. Update on Park Dedication Policy 9:00 am 5. Update on TIF Certification 9:30 am 6. Discussion on City Rental Properties in Downtown 9:30 am 7. Update on BR&E Implementation Project Teams 10:00 am 8. Update on Downtown Redevelopment 10:30 am 9. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, OCTOBER 11, 2010 ./APPROVAL OF MINUTES Staff recommends approval of the minutes from the September 13, 2010 EDA Meeting as presented. UPDATE ON PARK DEDICATION POLICY At its September 20, 2010, the City Council considered both the EDA and Park Commission recommendations regarding park dedication fees for commercial and industrial development. The City Council directed staff to revise the park dedication ordinance by removing the requirement for commercial and industrial land/fee dedication. The ordinance will be considered by the Planning Commission during a public hearing on October 28, 2010. Staff will continue to update the EDA on the park dedication ordinance. 5. UPDATE ON TIF CERTIFICATION Staff would like to have a discussion with the EDA on the certification of the TIF district. (see attached memo) 6. DISCUSSION ON CITY RENTAL PROPERTIES IN DOWNTOWN The City owns two rental properties in downtown across from City Hall (barber shop/printing building and a duplex). For the last several years the duplex has been rented out and the barber shop has been rented out. Staff would like to discuss what the future will be for the two building with the EDA. UPDATE ON BR&E IMPLEMENTATION PROJECT TEAMS Staff had another joint meeting with the HBA on September 23, 2010, to discuss the Marketing and Events Action Plan. There is now a rough draft of the action plan and we will meet again on October 28, 2010, to finalize the action plan. The action plan items relate to both the City and the HBA. After the action plan is final we will then distinguish roles between and City and the HBA and there may be a few items that overlap. Staff will continue to work with the HBA on the action plan and bring the final plan to the EDA for its review. 8. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on downtown redevelopment. MINUTES FOR THE EDA MEETING OF SEPTEMBER 13, 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, Parks Planner, Shayla Syverson, and Planner, Rachel Simone. APPROVAL OF MINUTES FOR THE EDA MEETING OF JULY 12, 2010 Granger made motion, Thistle seconded, to approve the minutes for the EDA meeting of August 9, 2010. All ayes. Motion carried. UPDATE ON PARK DEDICATION POLICY Shayla Syverson, Parks Planner, gave the background on the discussions about the park dedication policy. The EDA made a recommendation to the City Council and Park Commission to remove the requirement for commercial and industrial development and included findings. The Parks Commission recommended to the City Council to keep the requirement and also included findings. The Parks Planner stated that both recommendations would go to the City Council at its September 20, 2010 meeting. Miron stated that business do pay a higher property tax in the City. Bever stated that the finding that the Park Commission stated are reasonable, but the EDA wants to make sure businesses come to town. Granger agreed with Miron and Bever. Miron discussed the draft ordinance and the appeal process. He stated that we do not have a formal appeal process for any of our fees that go the City Council. He asked if the appeals could go to the Park Commission first for recommendation to the City Council. The CD Director stated that the state law has changed and the park dedication fee needs to relate to the land value of the property. The appeal process is necessary to allow people to get an appraiser to determine the land value if they do not agree with staff. The EDA agreed that its recommendation to the City Council will remain the same. Denaway stated that the EDA has made other recommendations to lower costs for business and this will keep with the goals of the EDA. Granger agreed. 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. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on downtown redevelopment. The End Zone restaurant building has been demolished and the site has been graded and seeded. The CD Director stated that he contacted Er. Shelly at St. John's Church and he is not quite ready to meet on the development of the property they own. The development team that has the purchase agreement for the City owned property has not shown staff any plans for the land to date. The team has stated they will have plans soon for the EDA and staff to review and comment on. They have a one year purchase agreement on the property. The bank that owns Ricci's has received the letter from the City of their willingness to work with the property owner on the development constraints on the property. Pete Sampair continues to do proactive planning on the old stock lumber site that he owns. He would like to create a transit oriented development. ADJOURNMENT Granger made a motion, seconded by Arcand, to adjourn at 9:30 am. All Aye. Motion Carried. DRAFT Economic Development Authority Recommendation 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) 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 5 CITY OF HUGO EDA MEMORANDUM TO: EDA FROM: Rachel Simone, Planner SUBJECT: TIF Certification DATE: October 6, 2010 for the EDA Meeting of October 11, 2010 On July 22, 2009, the request to certify the TIF district was delivered to Washington County. The EDA decided to request certification at that time, because there is a three year time limit to use buildings that have been demolished to qualify. In order for the city to reimburse itself for the purchase of the properties and the demolition, the district needed to be certified within three years of the date that the property was deemed substandard. Staff was expecting to hear back from the County on the certification this summer. Staff contacted Washington County in August and they stated that they did not receive the certification request. The request was also sent to the State of Minnesota and they were aware of the request. Over the last month staff has been meeting with Springsted to come up with options on where to go from here. There were three topics of discussion: 1. Talk to Washington County and ask them to certify the TIF district on the date of the original request. This would not require a public hearing and we would keep the same base value as what was proposed with the TIF Plan. If certification happens after June 30`h, 2009, the base value is at pay 2010. Staff has been in contact with City Assessor Frank Langer and he stated that the values for pay 2011 have gone down from pay 2010. Since the values went down for pay 2011, the City would not collect increment for that year. The 26 year time clock does not start if we do not collect increment. So the City would not collect increment until the values go up in the district or significant development occurs in the district. However, if the City were to have the County certify the TIF district on the original date, the 5 year time clock to use TIF monies would start around June 2010. 2. Re-request certification for the TIF district. In this case we would use the pay 2011 tax values and it would give us another year to use the increment on development projects. This option will not be feasible because we need to use the buildings that were demolished to quality for the TIF district and for the City to reimburse itself for the purchase and demolition. The City would have to change the boundaries of district and go through the same process it went through for approving the original TIF district in order to move forward on this option. 3. Offer development incentives for property owners and developers other than TIF. There may be other options for the City to use to incentivize developers and businesses to come to Hugo. One idea is tax abatement for properties that would have been a part of the TIF district. Staff could discuss with Washington County a partnership for economic development where they would also provide tax abatement for developments. CONCLUSION: Staff would like the EDA to discuss the options above and provide staff with direction on what the next steps will be. .--ter -__ .., �,p' �•�P 4..0 r 'y1' Will q �4� — ...� / x is � •3 t, ,,' MINNOM mom.— ! ' �. - y,-t:�'.". viu�••. � "�,,,.�+�''�^�F`'s��,w�-... f�' M a! a .{: r�:` ,•rt►.`' �. 4';a �,' ! x ,area "1� w, •1c �+ r}} ,r � �"�", .,..... -•_... —.mer•—�—...— �•� ,tyL;t� t , t r•_,L • P1"r• !�• fx., , 7 1ep M �� ' ,.! IP er `, i I ' �!� l p.i`1', S �; �� t �r�.. � _..«. 'i.A' ,pyla , F' ��y tP►4,, �Y, ;�: Rs �� S �}'� Ii ��q} ,����♦ �! �A, • 'k. ,•� t J frS .. •r41. '�� aYC 1 A'. .Y�l.:,(t,° � tin `1 +� � � ,.'�.f��,� y'��r r S: � .��, t1 l ♦�r r��• •�i r. , .� � Y�' i � � lW Al � A } k � c , r '�.t4.�\ .s S�'2DK"Oist4' _ ,r,� .L�►'1 t ,_eW"'1�,tt' �" 1,* t p ill ILI tea . .. ! �� - ""`'ice• 4 -_ ��[I _,� .,�if�� � `+'. 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