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HomeMy WebLinkAbout2011.07.11 EDA Packet a V AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JULY 11, 2011 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 13, 2011 8:35 am 4. Christy Waflen—St. Croix Saddlery • 5525 141' Street 9:00 am 5. Gretchen Boyd- BNI President • Update on BNI 9:15 am 6. Update on Flexible Office Space 9:45 am 7. Update on the Business Networking Breakfast 10:00 am 8. Update on City Rental Properties 10:10 am 9. Update on Mixed-Use Development LCDA Grant 10:20 am 10. Update on Downtown Redevelopment 10:30 am 11. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, July 11, 2011 3.APPROVAL OF MINUTES Staff recommends approval of the minutes from the June 13, 2011, EDA Meeting as presented. 4. CHRISTY WAFLEN—ST. CROIX SADDLERY Christy Waflen owner of St. Croix Saddlery will be present at the meeting to discuss her business. St. Croix Saddlery will be moving into the old daycare building located at 5525 141 S` Street. Ms. Waflen will provide the background of her business to the EDA. Staff recommends the EDA welcome St. Croix Saddlery as a new business in the City of Hugo. 5. GRETCHEN BOYD-BNI PRESIDENT Gretchen Boyd, President of Business Networking International (BNI), will be present at the meeting to give the EDA background on BNI and how it benefits businesses. She would also like to talk to the EDA about educational seminars that the BNI group may offer to small businesses and entrepreneurs. 6. UPDATE ON FLEXIBLE OFFICE SPACE Staff and Commissioner Graff met with Grant Barrette, a property owner in the Bald Eagle Industrial Park that has office space available. Flexible office space was discussed with the owner and he seemed interested. Staff will update the EDA on the details of the meeting. 7. UPDATE ON THE BUSINESS NETWORKING BREAKFAST The EDA and HBA business networking breakfast was held on Tuesday, June 28, 2011. Washington County Attorney, Pete Orput, spoke to the group about identity theft. There were over 50 people that attended the event. Staff will update the EDA on the event. 8. UPDATE ON CITY RENTAL PROPERTIES The print shop building has been leased out to an individual that cleans foreclosed properties and will use it for storage. The barber shop area will soon be vacant, as Pricilla will be leaving the business. The house to the north will also be vacant. Staff would like to discuss these changes with the EDA. 9. UPDATE ON MIXED-USE DEVELOPMENT LCDA GRANT Staff helped Pete Sampair complete the Met Council's Livable Communities Grant application for a mixed-use development that was due in May 2011. Staff received the feedback from the Met Council on June 13, 2011, and will update the EDA on the outcome. 10. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. MINUTES FOR THE EDA MEETING OF JUNE 13, 2011 Miron called the meeting to order at 8:30 am. PRESENT: Arcand, Bever, Graff, Puleo, and Miron ABSENT: Denaway and Klein STAFF: Mike Ericson, City Administrator Bryan Bear, Community Development Director Rachel Juba, Planner 1 APPROVAL OF MINUTES FOR THE EDA MEETING OF MAY 9, 2011 Arcand made motion, Bever seconded, to approve minutes for the EDA meeting of May 9, 2011. All aye. Motion carried. DISCUSSION ON PEARSON MECHANICAL BUILDING - 13497 FENWAY BOULEVARD NORTH The Pearson Mechanical building and property located at 13497 Fenway Boulevard North is now available for sale or lease.North Star Bank holds the mortgage on the property and has been working with the current owner to sell or lease the property. Jack Ritt, Chairman/CEO of North Star Bank, had a discussion with the EDA on the availability of the building. He wanted to make a connection with the EDA and the City as he markets the property. Commissioner Graff stated that the bank should note that there is rail access in the BEIP. DISCUSSION ON FLEXIBLE OFFICE SPACE At the April EDA meeting there was discussion on flexible office space and possible opportunities in Hugo. Commissioner Graff started the discussion and stated that he would like to meet with property owners that have vacant space and talk to them about this concept. The EDA directed staff to work with Commissioner Graff and set up meetings with property owners. Staff and Commissioner Graff met with Matt Alexander and Jack Appert from Kraus- Anderson, who owns the Healtheast Building and has vacant space. They have heard of flexible office space, but Kraus-Anderson has not used the concept before. They mentioned a company called Regus that purchases space and converts it into flexible office space. In regards to the Healtheast vacant space, Kraus-Anderson has not finished the space. The space would need to be finished and furnished. This is not an expense they would be willing to incur to accommodate for flexible office space. They also stated that the space would need to be managed and they do not see Kraus-Anderson managing the short-term lease involved with flexible office space, but would be open to a company leasing the vacant space to operate and manage flexible office space. Commissioner Graff discussed the outcome of the meeting and other information he has gathered for flexible office space. lie has been in contact with Mike Brass at Welsh Companies and there are ways that flexible office space can work. One, owner occupied buildings with excess space to lease and two, a company that specializes in flexible office space manages the building. There are other ways it can work at a smaller location. He has been talking to several local businesses and business owners in the area. Commissioner Graff stated that he would like to invite Gretchen Boyd, president of Business Networking International (BNI), to a meeting to update the EDA on the BNI group. DISCUSSION ON TAX ABATEMENT At the April EDA meeting, staff was asked to put together information for the basics of tax abatement and how it can be used. Staff has included a document from Springsted on the concepts and mechanics of tax abatement. Minnesota law allows cities to grant property tax abatement for economic development. Tax abatement is a temporary deferral of payments for property tax. Bonds can be paid back with abatements. Some qualifications include: • Increase tax base • Provides employment • Redevelopment • Provide residents access to public services • Construct public facilities Community Development Director, Bryan Bear, mentioned projects in Hugo where the City used tax abatement to pay for bonds. He discussed that the regulations are less with tax abatement than with Tax Increment Financing(TIF). UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on the progress of downtown redevelopment. The purchase agreement extension was approved by the City Council with FBF, LLC, for the City owned property in downtown. The City owned print shop building will be rented out on a short term lease. Staff continues to help Pete Sampair in completing the Met Councils Livable Communities Grant application for a mixed-use development. NRI continues to move forward with its approved plans for the property. ADJOURNMENT Puleo made a motion, seconded by Arcand, to adjourn at 10:25 am. All aye. Motion carried. loll _r AW 00 U.AA loll as 16 64 0,4 ,�,� iii ��_ _--;, � o► d a � a- ,,. ,Q, ,, , Q al r i � � A ►� d �1 • Q► =