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Home My WebLink About2011.09.12 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, SEPTBEMBER 12, 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 August 8, 2011 8:35 am 4. Patrick Flanagan • Flanagan Law Office 5673 147" Street 9:00 am 5. Overview of 2005 Maxfield Study 9:15 am 6. Discussion on TIF District 9:30 am 7. Update on Greater Minneapolis/St. Paul Economic Development Partnership meeting on August 23, 2011 9:45 am 8. Update on City Rental Property 10:00 am 9. Update on Entrepreneur Boot Camp 10:10 am 10. Update on Downtown Redevelopment 10:20 am 11. EDA/Planning Commission City Image Workshop November 10, 2011 at 7 PM. 10:30 am 12. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY, SEPTEMBER 12, 2011 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the August 8, 2011, EDA Meeting as presented. 4. PATRICK FLANAGAN- FLANAGAN LAW OFFICE Patrick Flanagan will be present at the meeting to discuss his business locating in Hugo. He will be moving into the building located at the south east corner of 147th Street and Highway 61. Mr. Flanagan will talk about the background of his business with the EDA. Staff recommends the EDA welcome Mr. Flanagan and his business to the City of Hugo. 5. OVERVIEW OF 2005 MAXFIELD STUDY At its August meeting, the EDA asked staff to provide a summary of the 2005 Maxfield Study on the downtown area. Staff has provided the executive summary in the packet for the EDA's review and will present some of the highlights to the EDA in a presentation. 6. DISCUSSION ON TIF DISTRICT Staff will provide an update to the EDA on the TIF District in the downtown area. 7. UPDATE ON GREATER MINNEAPOLIS/ST. PAUL ECONOMIC DEVELOPMENT PARTNERSHIP MEETING ON AUGUST 23, 2011 Community Development Director, Bryan Bear and Commissioners Miron and Denaway attended the MSP Economic Development Partnership meeting on August 23, 2011. Staff will update the EDA on the discussion at the meeting. 8. UPDATE ON CITY RENTAL PROPERTY The Building Official inspected the rental house and put together a punch list of items that would need to be repaired in order to rent it out. Staff has enclosed a quote from a contractor to repair the items and the income and expense report on the property for the past years. Staff would like to have a discussion with the EDA on whether to rent the house out again or to demolish the house. 9. UPDATE ON ENTREPRENEUR BOOT CAMP Staff will update the EDA on the Entrepreneur Boot Camp that the Hugo Business Networking International (BNI) and Hugo Business Association (HBA) are putting together. The event is scheduled for October 18, 2011, at Wild Wings Hunt Club. 10. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. Staff has enclosed the activity report from the development team that has a purchase agreement for the City owned property. 11. EDA/PLANNING COMMISSION CITY IMAGE WORKSHOP ON NOVEMBER 10, 2011 AT 7 PM. At the EDA meeting in May, staff had a discussion with the EDA on the Planning Commission's interest in having a joint workshop with the EDA on City Image. The Planning Commission has scheduled the workshop on Thursday,November 10, 2011 at 7 pm. MINUTES FOR.T.HE EDA MEETING OF AUGUST 8, 2011 Miron called the meeting to order at 8:30 am. PRESENT: Arcand, Bever, Denaway, Graff, Klein, Puleo, and Miron ABSENT: None STAFF: Mike Ericson, City Administrator Bryan Bear, Community Development Director Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF JULY 11, 2011 Klein made motion, Puleo seconded, to approve minutes for the EDA meeting of July 11, 2011. All aye. Motion carried. DISCUSSION ON GREATER MINNEAPOLIS ST. PAUL ECONON((C DEVELOPMENT PARTNERSHIP Washington County has been contacted by a newly formed Greater MSP Economic Development Partnership (Greater MSP) to seek help in coordinating an economic development roundtable in the County. This organization was created to enhance existing economic development efforts in the greater metropolitan region. They are reaching out to private and public economic development leaders in Washington County to assist them in developing an aggressive regional economic development strategy. The City of Hugo has been informed by Washington County that they seek participation from cities in Washington County and business owners in the Greater MSP Economic Development Partnership, which will be holding a meeting on Tuesday, August 23, 201 L Deputy County Manager Molly O'Rourke has informed the City of Hugo that it seeks participation from two City officials as well as local business owners. The City Council considered this request at its August 1, 2011, meeting and appointed Bryan Bear, Community Development Director and EDA President, Fran Miron, as representatives and requested the EDA select someone of its membership as another representative of Hugo. Washington County will be contacting Wilson Tool and Schwieters Companies to be part of the roundtable discussion as private economic development leaders. Klein made a motion, seconded by Graff, to have Commissioner Denaway represent the EDA at the Greater MSP roundtable discussion. All aye. Motion Carried. DISCUSSION ON ENTREPRENEUR BOOT CAMP At its July 11, 2011, meeting the EDA had a discussion on a concept, presented by the BN[ group, for an entrepreneur boot camp. The sessions would help small business and entrepreneurs grow and create new businesses. Staff would like to provide the EDA with an update on how the boot camp is moving forward in partnership with the Hugo Business Association(HBA). Graff made a motion, seconded by Bever, to have staff continue working the BNI and the HBA on the boot camp. All aye. Motion Carried. UPDATE ON FLEXIBLE OFFICE SPACE Staff has been working with a property owner in the Bald Eagle Industrial Park on flexible office space as an option when leasing the building. The property now has three tenants and using the idea by creating separate office areas for the tenants in one space. UPDATE ON CITY RENTAL PROPERTIES Staff included the expense reports from September 2010 on the properties. The print shop is rented out on a short term lease. The barber is vacating the property this month. Staff has walked through the rental house and it is in need of repairs before it can be rented out again and out building will need to be removed. The repairs could be over $5,000. When it was being rented out the City was making money, but there has been a lot of staff time involved in maintenance and getting rent. If the building was demolished the cost would be over$20,000. Miron stated that the repairs will cost more than what the City is profiting. Klein stated that the EDA talked about his last year and it may be more beneficial to demolish the house. Denaway agreed and stated that the property seemed to be a liability. Miron stated in the mean time the City needs to make sure the property is maintained, such as mowing the lawn. Staff will put together additional information on the properties and wilt bring it back to the EDA. UPDATE ON MIXED-USE REDEVELOPMENT LCDA GRANT Staff updated the EDA on the progress of the LCDA grant for the Sampair property. The application is complete for the Met Council review. One of the items that are requested for the planning grant is the update of the Maxfield study. Denaway stated that was a good idea to include that in the grant. Miron asked for an overview of the study at the next EDA meeting. UPDATE ON DOWNTOWN REDEVELOPMENT Staff included the assessment agreement for the demolition of the Ricci's property. The building.is planned to be demolished this�year. Staff is waiting for monthly reports from the development team that has a purchase agreement on the City owned property. The old Superior Market property has a reduced price of$695,000 and a new marketing brochure. Miron asked about the number of building permits and commercial/industrial activity. Staff will provide the 2010 Building Report and will provide the 2011 report when it is complete. Graff talked about agricultural business in Hugo and how we could showcase their service to the community. He talked about marketing to get more agricultural businesses in Hugo. Miron stated that the agricultural services are getting further away because they provide more of a service in those locations. The suppliers are also getting larger and have consolidated into fewer locations. Commissioner Bever stated that he would like to make a presentation on a community event sign. ADJOURNMENT Klein made a motion, seconded by Puleo, to adjourn at 10:10 am. All aye. Motion carried. EXECUTIVE SUMMARY Introduction Maxfield Research Inc. was engaged by the City of Hugo to conduct an analysis of the market potential for the redevelopment of Hugo's Downtown. Our research includes an analysis of the demographic characteristics and growth trends in the Hugo area, and of the existing supply of and market conditions for housing, retail, and office in the area. Based on this data, we quantify demand for additional housing units, retail space, and office space through 2015 in Downtown Hugo. Our demand calculations and recommendations are intended to serve as a guide in developing a strategic plan for the Downtown. Downtown Overview Hugo is a suburban community of approximately 10,000 people located on the northeastern fringe of the Twin Cities Metro Area. Hugo is starting to see significant growth because of demand for new housing and its supply ofdevelopable land. But the City and its Downtown still retain a rural feel. Dramatic growth in the next ten years will drive demand for housing, office, and retail in Downtown. Between 2000 and 2010, Hugo is projected to add approximately 12,000 people and 4,500 households. These figures represent a population growth of 190%and a house- hold growth of 215%. Downtown Hugo is approximately ten blocks along Forest Boulevard (Highway 61) which runs at a slight angle from south to north through the city. Historically, the Downtown, like downtowns in many other small communities, contained businesses that serviced the sur- rounding agricultural economy. The small town character of Hugo's Downtown remains to- day, despite the fact that Hugo is transforming into a rapidly growing suburban community. Downtown strengths include: o Existing Downtown Infrastructure; o Adjacent Residential Base; o Adjacent Business Parks; o Traffic Volume (Visibility); o Existing Downtown Draws; and o Room to Expand. Downtown weaknesses include: o Lack of Larger"Supporting Retail"; o Access to Surrounding Communities; and o Absence of Downtown Draws. Two critical factors will drive demand for housing, retail, and office uses in Downtown Hugo, and will affect the types of uses that will be feasible in the area. MAXFIELD RESEARCH INC. I EXECUTIVE SUMMARY 1. Dramatic household growth in Hugo and the surrounding communities. The City of Hugo is projected to add approximately 4,600 households between 2000 and 2010. These households will want a variety of housing options, ranging from single- family homes to various multifamily housing product types. Many will be attracted to housing in close proximity to services and in a pedestrian-oriented neighborhood, as en- visioned in the Downtown Redevelopment Plan. In addition, new households in the City of Hugo and surrounding communities will in- crease demand for retail goods and services, thereby increasing the need for commercial space in Hugo. This growth represents an opportunity for Downtown Hugo, bringing new households in the area and new businesses to serve these households. 2. The availability of better commercial sites nearer to Interstate 35E. Demand for commercial space—both office and retail space—in the City of Hugo and surrounding communities will be strong. However, there is a good deal of undeveloped land available near the intersection of County Road 14 and Interstate 35E to accommo- date this demand. Downtown Hugo may present a second-best alternative for many busi- nesses looking for commercial space in the area. While this fact represents a liability for Downtown Hugo, commercial development can still thrive in Downtown Hugo, as long as an appropriate amount of commercial space is developed,the right types of users are targeted, and lease rates are appropriate given Downtown's location. In order to be competitive, lease rates in Downtown Hugo will have be lower than higher profile sites along Interstate 35E. MA`CFIELD RESEARCH INC. 2 EXECUTIVE SUMMARY Demand Summary The following table summarizes our total demand calculations for the amount of each use that could be captured by Downtown Hugo during the remainder of this decade and through 2015. Detailed recommendations, including timing and appropriate lease rates and pricing are found in the Conclusions and Recommendations section near the end of the report. SUMMARY OF DEMAND DOWNTOWN HUGO DECEMBER 2005 Type of Use Housing General-Occupancy Single-family For-Sale Units 19 to 39 38 to 75 Townhome For-Sale Units 49 to 58 176 to 207 Condominium For-Sale Units 0 to 0 47 to 70 Rental Units 14 to 17 25 to 32 Ige-Restricted(Senior) Adult/Few Service For-Sale Units 10 74 Adult/Few Service Rental Units I I 10 Congregate Units 29 40 Assisted Living Units 16 20 Memory Care Units 8 10 Total Housing Supportable 156 to 188 440 to 538 Retail Neighborhood Retail(sq. ft.) 26,900 71,100 Specialty Retail(sq. ft.) 13,600 33,900 Total Retail Supportable(sq. ft.) 40,500 105,000 Office Space Su ortable(s . ft.) 13,900 to 17,000 17,000 to 20,775 Source: Maxfield Research Inc. Housing Market Recommendations We recommend a ten-year phased approach that focuses on mid-density housing in the first five years and gradually moves to higher-density housing in the second five year period. Phase l— 2005 to 2010 Sinizle-Family Homes and Detached Townhomes—We recommend building 20 to 40 new single-family or detached townhome units in Downtown in the first phase. Pricing for the single-family homes, which typically range is size from 2,000 to 4,000 square feet, should MAXFIELD RESEARCH INC. 3 EXECUTIVE SUMMARY start at$325,000, or about$165 to$200 per square foot. Pricing for detached townhomes, which are typically smaller in size(1,400 to 2,000 square feet), should start at$250,000, or about$150 to$165 per square foot. Twinhomes and Main-Level-Living Styled Townhomes—We rind demand for between 49 and 58 townhome units in Downtown Hugo in the first phase. We recommend building about one-third of these units(between 16 and 20)as twinhome or main-level-living town- homes. These units typically start at$250,000, or between $120 and$180 per square foot. Units are typically between 1,600 and 2,200 square feet. Side-by-Side Townhomes and Back-to-Back, Entry-Level Townhomes— We recommend that two-thirds of the townhome units be side-by-side and back-to-back townhome units— between 32 and 40 units. Typically, back-to-back units are priced more modestly—starting at$175,000, or$120 per square foot. Back-to-back units range in size from 1,200 to 1,700 square feet. Pricing for side-by-side units should start at$190,000, or$120 per square foot. Sizes are typically between 1,200 to 2,000 square feet. Phase I!—2010 to 2015 Single-Family Homes—We find demand for 38 to 75 units of single-family homes in Down- town Hugo between 2010 and 2015. We recognize that there may not be land to develop such housing after the first phase. Townhomes—We find demand for between 176 and 207 townhome units in Downtown Hugo over the period. As with the single-family, we recognize that there may not be land available to develop such housing over this period. For-Sale Independent Senior Housing—For-sale senior housing, either age-restricted con- dominiums and townhomes or cooperatives, has become a growing trend in senior housing in the last few years. Through our demand estimates, we rind demand for about 70 units of for-sale senior housing in Downtown Hugo. We do not recommend the development of an age-restricted for-sale project and a general-occupancy for-sale project at the same time. Condominium — If an age-restricted, for-sale senior project is not built, we recommend considering a general-occupancy condominium building with 50 to 70 units. Rental Apartment— Based on our demand calculations, we recommend building 25 to 32 rental units in the second phase. We recommend considering two options for the rental housing, either a single affordable rental building or mixed-use buildings with rental units above retail. MAXFIELD RESEARCH INC. 4 EXECUTIVE SUMMARY= Retail Market Recommendations Downtown Hugo currently has about 132,500 square feet of retail space. Our calculations show that the Downtown can support'about 40,500 square feet of additional retail space, be- tween 2005 and 2010, and up to 105,000 square feet of additional retail between 2010 and 2015. We estimate that two-thirds of the new demand will be for neighborhood retail serv- ing the local population base. The types of stores that will be successful in the Downtown will be those that are able to market their unique Downtown location as an experience that cannot be found at shopping centers(the most likely store type will be specialty retailers). It will be more difficult for the Downtown to attract retailers of shopping goods, which typically require either a larger size store than can be accommodated in the Downtown (such as a discount merchandise store) or which require a greater number of stores in a small area carrying similar items for which customers can comparison shop (such as apparel). Based on the lease rates at new competitive shopping centers in the Market Area and sur- rounding communities, we find that new space in Downtown Hugo must be priced lower than higher-profile sites closer to Interstate 35E. Therefore, we believe net lease rates of $13.00 to $15.00 per square foot should be attractive to many of the potential retail tenants. Currently, many of the Downtown's current retail tenants own their buildings outright or are paying very low rents and would not be able to afford net rents of$13.00 or more. It will be important for the Downtown to retain some lower priced space, since the Downtown would not be able to support its full potential entirely with space priced at$13.00 per square foot or more. Redevelopment of existing commercial properties may require a public/private partnership. The rents necessary to make redevelopment economically feasible would be higher than what potential retail and office tenants could or would be willing to pay initially. Public as- sistance to help reduce the cost of redevelopment to the private sector will almost certainly be necessary for the commercial portion of the redevelopment to be successful in the next five years. Due to the increasing traffic counts and the realignment of County Road 8, we recommend the first phase of Hugo's Downtown retail development to be located closest to the Highway 61 and County Road 8 intersection. Furthermore, this intersection would result in the least amount of acquisition costs and would not displace any of the existing Downtown tenants. Office Market Recommendations There are no actively marketing office buildings in Hugo at this time. However, the recently completed Victor Gardens Shops includes a mix of medical office and a daycare center. Victor Gardens Shops net rents average $18.00 per square foot. MAXFIELD RESEARCH INC. 5 EXECUTIVE SUMMARY Typical tenants occupying office space in Hugo are businesses serving the local household and business base, such as dentists,chiropractors,optometrists, financial advisors, insur- ance, and accounting and tax services. The average size of the space these businesses oc- cupy is usually less than 2,000 square feet. Some potential users will seek space in tradi- tional office buildings, while some may prefer space located above retail stores and some may prefer street level retail space. We identified seven multi-tenant office buildings in the Secondary Market Area. We believe that many of the businesses in these office buildings serve households and busi- nesses in Hugo. Over the long-term, new office space in Downtown Hugo would have the ability to capture some of the tenants that are either currently in these buildings or would consider moving into these buildings. Net rents in selected SMA office buildings range from $9.00 per square foot to $16.00 per square foot. Currently, most office users in Hugo are paying rents that are lower than the current costs to construct new traditional office space. Our calculations show that the Downtown can support an additional 31,000 to 37,700 square feet of office space through 2015. We estimate that up to approximately 15,000 square feet of office space could be built immediately to satisfy pent-up demand. We recommend bringing the space on-line in several buildings with 10,000 to 15,000 square feet over the remainder of the next ten years. New office space in Downtown Hugo should capture net lease rates priced from $10.00 to $13.00 per square foot. These lease rates are likely higher than what current tenants are pay- ing at this time, as Hugo lacks newer office space and a number of professional office ser- vice firms office out of their homes. However, these rates are lower than those found in higher-profile sites in the Secondary Market Area. Rent for office suites is typically higher than traditional office space. We believe that rents that range from $300 to $800 per month would be competitive. Some office users will prefer to own their space versus leasing. While these could be businesses of various types, most businesses seeking ownership space will be smaller busi- nesses requiring less than 2,000 square feet. We do note, however, office condominiums currently marketing in nearby Centerville and in Mahtomedi are selling very slowly. We recommend a very cautious approach to office condominiums in Downtown Hugo, and do not recommend the development of office condominiums until the later part of this decade. Office locations along Highway 61 and the newly redesigned County Road 8 will be most appealing to potential office tenants. This is particularly true for a stand alone office build- ing. Due to the increasing traffic counts and the realignment, we recommend the first phase of office space development to be located near the Highway 61 and County Road 8 intersec- tion. NIAXFIELD RESEARCH INC. 6 TIF Discussion Will TIF be available for the first project? l�- l �jYl� I • We keep telling developers that it will be available and they can ask for TIF • Is this still the correct answer? ` W Timelines and clocks: 1' 1 4- Iryt iLAA I Oci 1. Request Certification i�ayi Io 2. District Certification — 5,,4 Y-. 10 5pe►ic1 N0,4 . 01015 h 3. clock start when we create increment? " " 4. Demolition L-7 OUCe,r-h6 c cc ►-� a. How long can we use as a TIF eligible expense Highway 61 Improvements 6- CiSK Maws New TIF Rules a OL ��.l�,� � o ► �, — Ec0 n am`�� v e lv,�rr�r�.� D s-�-r►�fi v a l �,c,e.s N Iii a►-, �---- w� ��Vf, v a �d"* a�pc ;�A ov ,r c(�es no � -e�Pck �jv�a-1 c� i v►-� �v�v+ . d oe S lowev ha5e, Pavicei cin �� bro�gh�- fil `tet ry r U � nn - 10 l S J 4 p �a � �fm, � )nOO � � ® le � � n Property Records and Was ig 111 Taxpayer Services ountyKevin Corbid Director April 25, 2011 CITY OF HUGO RON OTKIN-FINANCE DIR 14669 FITZGERALD AVE N HUGO MN 55038 District 0079-0 Hugo 1-2 Downtown Redev State Description TIF DIST 1-2 (79) DOWNTOWN REDEV Category Primary Type Redevelopment Start Year 2011 TIF Plan Date 4/16/2007 End Year 2036 Certification Request Date 7/22/2009 Base Value Year 2009 Certification Date 11/24/2010 Base Rate Year 2010 Knockdown Rule Date 2/1/2015 Fiscal Disparity B Election No Projected Decertification Date 12/31/2036 Certification of tax increment financing net tax capacities and taxes for the District for taxes payable in 2011: Current Net Tax Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 308,003 Original Net Tax Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321,535 Net Tax Capacity Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 Fiscal Disparity Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retained Captured Tax Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 Retained as a % of Current Net Tax Capacity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0000% Total Captured Tax Increment Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00 Less Excess Tax Increment due to increase in tax rate . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00 Tax Increment District Gross Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00 TIF District Homestead Credit- Paid by State of MN . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00 Tax Increment District Net Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00 Projected State Auditor.36% Admin Fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00 Projected Net to District. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $0.00 Please contact us at 651-430-6175 if you have any questions. Department of Property Records and Taxpayer Services Taxation Division STATE OF MINNESOTA OFFICE OF THE STATE AUDITOR 4, SUITE 500 525 PARK STREET (651)296-2551(Voice) REBECCA OTTO SAINT PAUL,MN 55103-2139 state.auditor@state?mn us(E-mail) STATE AUDITOR 1-800-627-3529(Relay Service) Statement of Position TIF's Amended Four-Year Knock-Down Rule The provision of the TIF Act referred to as the Four-Year Knock-Down Rule states that development activity must begin within four years from the date of certification of a tax increment financing (TIF) district.I The 2009 Legislature extended the Four-Year Knock-Down Rule to six years for districts certified on or after January 1, 2005, and before April 20, 2009.3 For all districts certified before January 1, 2005 or after April 20, 2009,the Four-Year Rule continues to apply. 1112_,1110 The Rule requires the development authority to certify to the county auditor evidence that development activity has occurred within four years of certification (or within six years of certification, for qualifying districts) on each parcel in the district. If demolition, rehabilitation, renovation, or other site preparation considered to be "development activity" has not begun on each parcel within four years (or six years, for qualifying districts), tax increment revenues can no longer be taken from that parcel.4 Site preparation can include qualifying street improvement adjacent to a parcel in a TIF district, but the street improvements are limited to construction or opening of a new street, relocation of a street, and substantial reconstruction or rebuilding of an existing street. Installation of utility service, including sewer or water systems, does not qualify as development activity. Certification of development activity must occur no later than February 1St of the fifth year following the year the district was certified(or seventh year, for qualifying districts). ' State law has been summarized and simplified. Minnesota Statutes should be consulted before making decisions based on this Statement. The Statement does not contain legal advice and it should not be relied upon in lieu of legal advice. It is subject to revision at any time. 2 Minn.Stat. §469.176,subd.6;id.,§§469.194 to 469.1799,inclusive,as amended. 3 In enacting this legislation,the 2009 Legislature was acknowledging how difficult it is to find developers willing to commence development activity during a recession. 4Id.,§469.176,subd.6. Reviewed: December 2010 2009-3002 Revised: June 2009 This Statement of Position is not legal advice and is subject to revision. An Equal Opportunity Employer The county auditor, required to enforce this provision, must then exclude the original net tax capacity of any parcel on which there has been no development activity. The exclusion of the net tax capacity does not mean the parcel is eliminated from the district. If the authority or owner of the parcel begins site preparation on that parcel later (but in accordance with a TIF plan), the authority may reinstate the excluded parcel in the existing district and certify to the county auditor that development activity has begun. The county auditor will then add the net tax capacity of the parcel to the original tax capacity of the rest of the parcels in the district. The term of the district for the parcel would remain the same as for other parcels in the district,but the tax capacity that is now the "frozen base" for that parcel is the tax capacity of the parcel as most recently certified by the Department of Revenue. Alternatively, the authority may decide to include the parcel in a new TIF district. The term for a new district would be longer than the remaining years available for the parcel in the existing district. Reviewed: December 2010 2009-3002 Revised: June 2009 This Statement of Position is not legal advice and is subject to revision. An Equal Opportunity Employer City of Hugo TIF#79 District 1-2 GEOCODE PRIMARY OWNER STREET ADDRESS CLASS Knockdown Rule Date: 02/01/15 Tax Exempt Tax Market Value Tax Market Value Net Tax Capacity Net Tax Capacity Base(Pay 2010) Base(Pay 2010) Pay 2011 Difference Base(Pay 2010) Pay 2011 Difference Exemption Year 2003121310002 Ed Pardee 14491 Forest Boulevard NH Resid $ 295,200 $ 255,700 $ (39,500) $ 3,690 $ 3,196 $ (494) 2003121310002 Ed Pardee 14491 Forest Boulevard Comm/Ind $ 106,400 $ 106,800 $ 400 $ 1,596 $ 1,602 $ 6 2003121310004 Ed Pardee NH Land Only $ 48,500 $ 47,500 $ (1,000) $ 606 $ 594 $ (12) 2003121310007 Ed Pardee 14497 Forest Boulevard NH Resid $ 126,200 $ 113,000 $ (13,200) $ 1,262 $ 1,130 $ (132) 2003121310008 Ed Pardee NH Land Only $ 23,700 $ 23,200 $ (500) $ 296 $ 290 $ (6) 2003121310009 Ed Pardee NH Land Only $ 21,400 $ 20,900 $ (500) $ 268 $ 261 $ (7) 2003121310024 Washington County HRA 14235 Forest Boulevard Tax Exempt $ 2,165,300 $ - $ - $ - $ - $ - $ - 2003121310031 Church of St John Baptist 14383 Forest Boulevard Tax Exempt $ 145,000 $ - $ - $ - $ - $ - $ - 2003121320001 John A Krebsbach 5377 145th Street Res Home $ 117,300 $ 124,100 $ 6,800 $ 1,173 $ 1,241 $ 68 2003121320003 Henry J Schostag 5361 145th Street Res Home $ 119,400 $ 106,600 $ (12,800) $ 1,194 $ 1,066 $ (128) 2003121320004 City of Hugo 5399 145th Street Tax Exempt $ 54,600 $ - $ - $ - $ - $ - $ - 2003121320005 Gregory J Granger Res Home $ 13,700 $ 12,900 $ (800) $ 137 $ 129 $ (8) 2003121320006 Gregory Flaherty 5389 145th Street Res Home $ 150,000 $ 1.'7,800 $ (2,200) $ 1,500 $ 1,478 $ (22) 2003121320007 Gregory J Granger 5421 145th Street Res Home $ 129,200 $ 1 `0 $ (14,000) $ 1,292 $ 1,152 $ (140) 2003121320008 Keith&Susan Dippel 5433 145th Street Res Home $ 136,500 $ 1 (14,400) $ 1,365 $ 1,221 $ (144) 2003121320009 Thomas R Zeller Jr Res Home $ 14,400 $ 1-1 (800) $ 144 $ 136 $ (8) 2003121320010 Thomas R Zeller Jr 5455 145th Street Res Home $ 141,800 $ 126,8( 115,000) $ 1,418 $ 1,268 $ (150) 2003121320011 Hugo Investments LLC 5517 145th Street Comm/Ind $ 560,400 $ 560,40.: $ - $ 11,208 $ 11,208 $ - 2003121320012 Kathy L Decorsey 5473 145th Street Res Home $ 125,400 $ 112,400 $ (13,000) $ 1,254 $ 1,124 $ (130) 2003121320013 Michael&Brenda Hanson 5485 145th Street Res Home $ 130,600 $ 116,400 $ (14,200) $ 1,306 $ 1,164 $ (142) 2003121320014 Irene E Cartier TRS 5477 145th Street NH Resid $ 99,100 $ 88,800 $ (10,300) $ 991 $ 888 $ (103) 2003121320015 Jeffrey L Rogers 5501 145th Street Res Home $ 105,400 $ 94,900 $ (10,500) $ 1,054 $ 949 $ (105) 2003121320016 Hugo Investments LLC Comm/Ind $ 19,400 $ 19,400 $ $ 388 $ 388 $ - 2003121320017 Hugo Investments LLC Comm/Ind $ 14,500 $ 14,500 $ $ 290 $ 290 $ - 2003121320018 Kyle M Petersen 5509 145th Street Res Home $ 120,900 $ 107,700 $ (13,200) $ 1,209 $ 1,077 $ (132) 2003121320019 Hugo Investments LLC Comm/Ind $ 19,600 $ 19,600 $ $ 392 $ 392 $ - 2003121320021 Hugo Investments LLC Comm/Ind $ 95,700 $ 95,700 $ $ 1,914 $ 1,914 $ 2003121320022 Hugo Investments LLC Comm/Ind $ 205,100 $ 205,100 $ $ 4,102 $ 4,102 $ 2003121320023 Hugo Investments LLC Comm/Ind $ 531,400 $ 531,400 $ $ 9,878 $ 9,878 $ 2003121320029 Marvin J LaValle NH Ag $ 50,600 $ 50,600 $ $ 506 $ 506 $ 2003121320029 Marvin J LaValle NH Vacant Land $ 3,000 $ 3,000 $ $ 30 $ 30 $ 2003121320030 Washington County PW Tax Exempt $ 96,600 $ - $ - $ $ - $ - $ 2003121320031 Hugo Investments LLC NH Land Only $ 161,000 $ 36,000 $ (125,000) $ 2,013 $ 450 $ (1,563) 2003121320032 Hugo Investments LLC NH Land Only $ 214,800 $ 48,000 $ (166,800) $ 2,685 $ 600 $ (2,085) 2003121330004 Charles Lowell Comm/Ind $ 435,500 $ 348,400 $ (87,100) $ 7,960 $ 6,218 $ (1,742) 2003121330006 City of Hugo Tax Exempt $ 35,000 $ - $ - $ $ - $ - $ 2003121330009 Scott R Kersten 14057 Forest Boulevard Comm/Ind $ 338,600 $ 338,600 $ $ 6,022 $ 6,022 $ - 2003121330010 Michael DAtkinson 14029 Forest Boulevard NH Resid $ 165,600 $ 142,400 $ (23,200) $ 1,656 $ 1,424 $ (232) 2003121330011 Oneka Childcare Center Inc 5525 141st Street Comm/Ind $ 666,900 $ 666,900 $ $ 12,588 $ 12,588 $ - 2003121330071 Dragonfly Group LLC 5448 140th Street Comm/Ind $ 955,900 $ 955,900 $ $ 18,368 $ 18,368 $ - 2003121340020 David L Zrust 5604 142nd Street Res Home $ 157,800 $ 141,500 $ (16,300) $ 1,578 $ 1,415 $ (163) 2003121340023 Bank of America/FHLMC 14227 Forest Boulevard NH Resid $ 211,700 $ 168,800 $ (42,900) $ 2,117 $ 1,688 $ (429) 2003121340023 Bank of America/FHLMC 14227 Forest Boulevard Comm/Ind $ 23,200 $ 21,000 $ (2,200) $ 348 $ 315 $ (33) 2003121340024 Patrick Shearen/Suzanne Peterson 14187 Forest Boulevard NH Resid $ 113,400 $ 101,600 $ (11,800) $ 1,134 $ 1,016 $ (118) 2003121340025 Jason M Lushine 14197 Forest Boulevard Res Home $ 124,500 $ 111,600 $ (12,900) $ 1,245 $ 1,116 $ (129) 2003121340026 Ronald&Cheryl Istvanovich 14173 Forest Boulevard Res Home $ 167,500 $ 149,400 $ (18,100) $ 1,675 $ 1,494 $ (181) 2003121340028 Kenneth Franzmeier 14145 Forest Boulevard Comm/Ind $ 269,200 $ 269,200 $ - $ 4,634 $ 4,634 $ - 2003121340076 Grace Waugh Res Home $ 36,400 $ 28,400 $ (8,000) $ 364 $ 284 $ (80) 2003121340077 Michael&Kathleen Atkinson 5560 140th Street Res Home $ 198,200 $ 177,700 $ (20,500) $ 1,982 $ 1,777 $ (205) 2003121340078 Delmar&Jane Kuschel 5585 142nd Street Res Home $ 183,700 $ 158,300 $ (25,400) $ 1,837 $ 1,583 $ (254) 2003121340079 Dennis&Bethany Johnson 5601 142nd Street Res Home $ 160,300 $ 143,100 $ (17,200) $ 1,603 $ 1,431 $ (172) 2903121210008 Troy R Charpentier 13825 Forest Boulevard NH Resid $ 184,100 $ 168,300 $ (15,800) $ 1,841 $ 1,683 $ (158) 2903121210009 Jason Montgomery 13793 Forest Boulevard Res Home $ 178,500 $ 162,800 $ (15,700) $ 1,785 $ 1,628 $ (157) 2903121210016 Premier Bank NH Land Only $ 124,300 $ 157,000 $ 32,700 $ 1,554 $ 1,963 $ 409 2903121210099 Sedona Homes Inc NH Land Only $ 200 $ 200 $ - $ 3 $ 3 $ - 2903121220001 Zena Minich 13891 Forest Boulevard Comm/Ind $ 738,100 $ 738,100 $ - $ 14,012 $ 14,012 $ - 2903121220004 Marlys A Williamson 13767 Forest Boulevard Res Home $ 147,900 $ 169,700 $ 21,800 $ 1,479 $ 1,697 $ 218 2903121220005 Premier Bank NH Land Only $ 37,100 $ 96,800 $ 59,700 $ 464 $ 1,210 $ 746 2903121220006 Premier Bank NH Land Only $ 91,300 $ 107,500 $ 16,200 $ 1,141 $ 1,344 $ 203 2903121220007 Western State Bank 13997 Forest Boulevard Comm/Ind $ 1,279,100 $ 1,279,100 $ - $ 24,832 $ 24,832 $ - 2903121220008 Burdette J Berntson 13845 Forest Boulevard NH Resid $ 121,100 $ 110,600 $ (10,500) $ 1,211 $ 1,106 $ (105) 2903121230001 Scott G Carlson 13753 Forest Boulevard NH Resid $ 126,900 $ 115,200 $ (11,700) $ 1,269 $ 1,152 $ (117) $ 5,839,100 $ 21,512,000 $ 20,367,100 $ 1,144,900 $ 321,535 $ 308,003 $ 13,532 Percent Decrease: -5,32% -4.21% Page 2 City of Hugo TIF#79 District 1-2 GEOCODE PRIMARY OWNER STREET ADDRESS CLASS Knockdown Rule Date: 02/01/15 Tax Exempt Tax Market Value Tax Market Value Net Tax Capacity Net Tax Capacity Base(Pay 2010) Base(Pay 2010) Pay 2011 Difference Base(Pay 2010) Pay 2011 Difference Exemption Year 2003121210013 Sales Dogs LLC 14815 Forest Boulevard Comm/Ind $ 853,800 $ 853,800 $ $ 16,326 $ 16,326 $ 2003121210015 Riverbank MN 14777 Forest Boulevard Comm/Ind $ 269,900 $ 256,100 $ (13,800) $ 4,648 $ 4,372 $ (276) 2003121210016 Steve&Linda Cox 14797 Forest Boulevard Comm/Ind $ 854,400 $ 854,400 $ - $ 16,338 $ 16,338 $ - 2003121210029 Granger&Granger LLP 5616 147th Street NH Resid $ 188,500 $ 158,400 $ (30,100) $ 1,885 $ 1,584 $ (301) 2003121210073 Gerald&Karla Mundell 5720 147th Street Res Home $ 149,000 $ 194,500 $ 45,500 $ 1,490 $ 1,945 $ 455 2003121210096 Max Sterling Prop LLC Comm/Ind $ 35,500 $ 35,500 $ - $ 710 $ 533 $ (177) 2003121210097 Scott&Susan Kersten 5725 148th Street Comm/Ind $ 328,700 $ 328,700 $ $ 5,824 $ 5,824 $ - 2003121230017 Gerald K Eide(Res) 5546 145th Street Res Home $ 180,200 $ 180,200 $ $ 1,802 $ 1,802 $ 2003121230017Gerald K Eide(Com) 5546 145th Street Comm/Ind $ 63,800 $ 63,800 $ $ 957 $ 957 $ 2003121230025 City of Hugo Tax Exempt $ 230,000 $ - $ - $ $ - $ - $ 2003121240006 City of Hugo Tax Exempt $ 100,000 $ - $ - $ $ - $ - $ - 2003121240007 Michael Quinn 14739 Fitzgerald Avenue Res Home $ 117,200 $ 104,500 $ (12,700) $ 1,172 $ 1,045 $ (127) 2003121240008 Michael Quinn Res Home $ 20,100 $ 19,000 $ (1,100) $ 201 $ 190 $ (11) 2003121240010 Chad&Heidi Carlson 14719 Fitzgerald Avenue Res Home $ 145,700 $ 129,200 $ (16,500) $ 1,457 $ 1,292 $ (165) 2003121240011 Glenn&Marie Jansen 5601 147th Street Res Home $ 136,000 $ 121,100 $ (14,900) $ 1,360 $ 1,211 $ (149) 2003121240013 City of Hugo 14665 Fitzgerald Avenue Tax Exempt $ 2,050,000 $ - $ - $ - $ - $ - $ - 2003121240014 Peter&Brenda Ranier 14683 Fitzgerald Avenue Res Home $ 128,200 $ 114,300 $ (13,900) $ 1,282 $ 1,143 $ (139) 2003121240015 Richard J Granger Comm/Ind $ 73,000 $ 73,000 $ $ 1,460 $ 1,460 $ - 2003121240016 City of Hugo Tax Exempt $ 40,000 $ - $ - $ $ - $ - $ - 2003121240017 Peter&Brenda Ranier Res Home $ 54,400 $ 50,800 $ (3,600) $ 544 $ 508 $ (36) 2003121240018 Richard J Granger 5655 147th Street Comm/Ind $ 202,200 $ 202,200 $ - $ 3,294 $ 3,294 $ - 2003121240021 'T Joseph&Quentin Marier 14609 Fitzgerald Avenue NH Resid $ 105,400 $ 94,600 $ (10,800) $ 1,054 $ 946 $ (108) 2003121240022 T Joseph&Quentin Marier NH Resid $ 2,900 $ 2,800 $ (100) $ 36 $ 35 $ (1) 2003121240023 Hugo Professional Center LLC 5673 147th Street Comm/Ind $ 408,200 $ 408,200 $ - $ 8,164 $ 8,164 $ - 2003121240024 Wendi Pfingsten 14715 Forest Boulevard Res Home $ 133,000 $ 118,200 $ (14,800) $ 1,330 $ 1,182 $ (148) 2003121240025 Robert&Georgette Ricce TRS 5697 147th Street Apartments $ 329,300 $ 271,200 $ (58,100) $ 4,116 $ 3,390 $ (726) 2003121240026 Jeffrey M Guertin 5737 147th Street NH Resid $ 188,600 $ 163,900 $ (24,700) $ 1,886 $ 1,639 $ (247) 2003121240027 Richard Billings Denesen 5717 147th Street Res Home $ 180,500 $ 156,100 $ (24,400) $ 1,805 $ 1,561 $ (244) 2003121240028 John&Kim Granger 5757 147th Street NH Resid $ 135,700 $ 120,500 $ (15,200) $ 1,357 $ 1,205 $ (152) 2003121240030 Zackary&Katherine Wilson 5801 147th Street Res Home $ 164,300 $ 147,700 $ (16,600) $ 1,643 $ 1,477 $ (166) 2003121240031 City of Hugo 14701 Forest Boulevard NH Resid $ 125,400 $ 122,000 $ (3,400) $ 1,254 $ 1,220 $ (34) 2003121240032 City of Hugo 14687 Forest Boulevard Tax Exempt $ 47,300 $ - $ - $ $ - $ - $ - 2003121240033 City of Hugo 14667 Forest Boulevard Comm/Ind $ 172,700 $ 172,700 $ $ 2,704 $ 2,704 $ - 2003121240034 Gary C Holmgren 14663 Forest Boulevard Res Home $ 96,400 $ 86,300 $ (10,100) $ 964 $ 863 $ (101) 2003121240035 City of Hugo 14635 Forest Boulevard Tax Exempt $ 42,600 $ - $ - $ $ - $ - $ - 2003121240038 City of Hugo Tax Exempt $ 60,000 $ $ $ $ $ $ 2003121240039 City of Hugo 14655 Forest Boulevard Tax Exempt $ 200,800 $ $ $ $ $ $ 2003121240040 City of Hugo 14625 Forest Boulevard Tax Exempt $ 178,700 $ $ $ $ $ $ 2003121240041 City of Hugo Tax Exempt $ 102,300 $ $ $ $ $ $ 2003121240042 City of Hugo 14593 Forest Boulevard Tax Exempt $ 96,300 $ $ $ $ $ $ 2003121240043 City of Hugo Tax Exempt $ 89,500 $ $ $ $ $ $ 2003121240044 Catherine E Anderson Comm/Ind $ 14,300 $ 14,300 $ $ 286 $ 286 $ - 2003121240045 Catherine E Anderson 14583 Forest Boulevard Comm/Ind $ 57,600 $ 96,400 $ 38,800 $ 864 $ 1,446 $ 582 2003121240046 Catherine E Anderson Comm/Ind $ 139,700 $ 139,700 $ - $ 2,794 $ 2,526 $ (268) 2003121240047 Catherine E Anderson 14559 Forest Boulevard Comm/Ind $ 415,800 $ 415,800 $ $ 7,566 $ 7,566 $ - 2003121240048 Catherine E Anderson Comm/Ind $ 52,500 $ 52,500 $ $ 1,050 $ 1,050 $ 2003121240049 City of Hugo Tax Exempt $ 68,600 $ - $ - $ $ - $ - $ 2003121240050 JD Group 14531 Forest Boulevard Comm/Ind $ 216,600 $ 216,600 $ $ 3,582 $ 3,582 $ 2003121240051 Oksana Holdings LLC 14529 Forest Boulevard Comm/Ind $ 461,700 $ 461,700 $ $ 8,484 $ 8,484 $ 2003121240052 Ed Pardee 14511 Forest Boulevard Comm/Ind $ 103,500 $ 103,500 $ $ 1,852 $ 1,854 $ 2 2003121240053 City of Hugo Tax Exempt $ 36,500 $ - $ - $ $ - $ - $ - 2003121240055 Michael&Lorie Crowley 14716 Fondant Avenue Res Home $ 220,000 $ 195,400 $ (24,600) $ 2,200 $ 1,954 $ (246) 2003121240056 Richard&Barbara Rodriguez 5725 Lower 147th Street Res Home $ 265,200 $ 231,300 $ (33,900) $ 2,652 $ 2,313 $ (339) 2003121240057 Michael&Patricia Shea 5755 Lower 147th Street Res Home $ 262,600 $ 219,900 $ (42,700) $ 2,626 $ 2,199 $ (427) 2003121240058 Donald&Gina Lenhart 5775 Lower 147th Street Res Home $ 187,400 $ 168,900 $ (18,500) $ 1,874 $ 1,689 $ (185) 2003121240059 James&Rose Wisner 5811 Lower 147th Street Res Home $ 229,300 $ 204,200 $ (25,100) $ 2,293 $ 2,042 $ (251) 2003121240060 T J Marier NH Land Only $ 9,200 $ 8,700 $ (500) $ 115 $ 109 $ (6) 2003121240061 Treffle&Ema Marier NH Land Only $ 4,300 $ 4,100 $ (200) $ 54 $ 51 $ (3) 2003121240062 Joseph Marier 5557 146th Street NH Resid $ 128,200 $ 114,200 $ (14,000) $ 1,282 $ 1,142 $ (140) 2003121240063 T J Marier 5566 145th Street Res Home $ 171,200 $ 150,400 $ (20,800) $ 1,712 $ 1,504 $ (208) 2003121240064 Brian VanKleek 5554 145th Street Comm/Ind $ 104,000 $ 104,000 $ - $ 1,560 $ 1,560 $ - 2003121240065 T Joseph&Quentin Marler 5582 146th Street Comm/Ind $ 242,900 $ 237,400 $ (5,500) $ 4,108 $ 3,998 $ (110) 2003121240066 T Joseph&Quentin Marier 5558 146th Street Comm/Ind $ 121,300 $ 116,100 $ (5,200) $ 2,426 $ 2,322 $ (104) 2003121240068 Holly&Anthony Parsons 14720 Foxhill Avenue Res Home $ 198,200 $ 173,100 $ (25,100) $ 1,982 $ 1,731 $ (251) 2003121240070 Hugo Professional Center LLC 5673 147th Street Comm/Ind $ 473,800 $ 473,800 $ - $ 8,726 $ 8,726 $ - 2003121240071 Steven J Bernier 5583 147th Street Res Home $ 151,200 $ 133,300 $ (17,900) $ 1,512 $ 1,333 $ (179) 2003121240072 Marsha R Bun a 14696 Fondant Avenue Res Home $ 300,900 $ 259,900 $ 41,000 $ 3,009 $ 2,599 $ 410 Page 1 . 7. 5. �- � 1�:� HealthPartners Was on .�'County AGENDA 1. Welcome: Gary Kriesel, Washington County Board Chair 2. Introduction: Mary Brainerd, President and Chief Executive Officer, HealthPartners A. Purpose of meeting: to engage Washington County economic development leadership to partner in developing the GreaterMSP regional economic development strategy B. Self-introduction of roundtable participants C. Introduction of Michael Langley 3. Greater MSP: Michael Langley, Chief Executive Officer A. Introduction of Greater MSP Team B. Greater MSP overview, goals, and accomplishments 4. County Presentation: Molly O'Rourke, Washington County Deputy Administrator and Craig Waldron, Oakdale City Administrator A. Demographics B. Strengths in Washington County C. Biggest challenges in Washington County D. Current economic development environment, activities, and tools 5. Roundtable A. What key industry/business sectors are most important to Washington County now and in the future, and why? B. What Greater MSP promotion, marketing and project coordinating services are most important to Washington County? C. Discuss economic development process in Washington County. How does Greater MSP plug-in and support economic development efforts? Who can best interface with Greater MSP? 6. Close/Next Steps e 14701 FOREST BLVD. RENTAL PROPERTY PUNCH LIST • Exterior stair to second story apartment $1309.00 • Replace or repair missing window screens $1050.00 • Replace broken window glass $300.00 • Install stops in double hung windows to secure in the open Position $225.00 • Install smoke detectors on each level and in each sleeping Room $400.00 • Install CO detector within ten feet of sleeping rooms $330.00 • Replace front and rear storm doors $781.00 • Install outlet boxes on all open electrical boxes $890.00 • Secure gas line in second floor apartment $70.00 • Repair roof leaks $800.00 Remove two accessory structures clean up and haul away debris. Remove all personal property in garage, dwelling and on grounds. • 2-30 yard dumpsters $546.00 each $1092.00 • Two employees 24 hours @ $110.00 per hour $2640.00 Total $9887.00 14701 Forest Boulevard Income and Expense Summary 14701 Forest Boulevard 2002 2003 2004 2005 2006 2007 2008 2009 2010 Cumulative Cost of Acquisition $ 179,436.22 Land=12,005 square feet Bldg= 1,499 square feet Building Built in 1901 Thru Sept Assessed Value: Building $ 116,400 $ 128,000 $ 133,100 $ 142,000 $ 129,600 $ 126,600 $ 123,800 $ 9,700 $ 8,600 Assessed Value: Land $ 21,000 $ 23,000 $ 45,000 $ 45,000 $ 52,500 $ 52,500 $ 47,300 $ 115,700 $ 113,400 Assessed Value: Total $ 137,400 $ 151,000 $ 178,100 $ 187,000 $ 182,100 $ 179,100 $ 171,100 $ 125,400 $ 122,000 Rent Received $13,650.00 $14,400.00 $14,375.00 $14,300.00 $ 9,150.00 $14,400.00 $13,050.00 $ 6,592.00 (1) $ 99,917.00 Expenses: Electric Utilities $ 630.53 $ 970.50 $ 180.74 $ 273.39 $ 3,017.60 (2) $ 1,590.90 $ 1,570.46 $ 1,746.46 $ 9,980.58 Gas Utilities $ 918.03 $ 1,336.46 $ 453.04 $ - $ 3,313.85 (2) $ 2,206.87 $ 1,639.69 $ 1,191.24 $ 11,059.18 Insurance $ 727.00 $ 855.50 $ 916.00 $ 1,017.00 $ 1,789.25 $ 1,245.50 $ 1,234.00 $ 1,346.00 $ 9,130.25 Legal Fees $ - $ - $ - $ - $ 1,717.83 (3) $ 44.56 $ - $ - $ 1,762.39 Repair&Maintenance(4) $ 333.91 $ - $ - $ 182.48 $ 861.09 $ 303.83 $ 662.03 $ 678.39 $ 3,021.73 Taxes $ 1,314.00 $ 1,666.00 $ 1,780.00 $ 1,844.00 $ 1,696.00 $ 1,822.00 $ 1,740.00 $ 1,344.00 $ 13,206.00 $ 3,923.47 $ 4,828.46 $ 3,329.78 $ 3,316.87 $12,395.62 $ 7,213.66 $ 6,846.18 $ 6,306.09 $ 48,160.13 Revenue over Expenses $ 9,726.53 $ 9,571.54 $11,045.22 $10,983.13 $ (3,245.62) $ 7,186.34 $ 6,203.82 $ 285.91 $ 51,756.87 Return on Acquisition 5.42% 5.33% 6.16% 6.12% -1.81% 4.00% 3.46% 0.16% Comparison: Rate on 5-Year Treasury Bond 2.97% 3.43% 4.05% 4.75% 4.43% 2.80% 2.20% 1.26% (1)Tenants owe$2,127 in back rent as of 09/30/10-Does not include staff time spent collecting rent (2)Xcel was billing tenant but ultimately held city responsible for past due bills under a PUC rule prohibiting a tenant from being billed for gas and electric service when one meter is used for a multiple unit rental property (3)Unlawful detainer action to evict tenant for nonpayment of rent and utility bills (4)Repairs&Maintenance does not include staff time making repairs Owner'sReport PROJECT: Event Center 'STATUS: OWNING ENTITY: City g of Hugo 1.Initial Contact 2.1 Showing MONTH: August 2011 3.Planning in Progress 4.Proposal/Letter of Intent 5.Proposal/Letter in Intent Signed 6.Lease/PA out for Signature 7.Lease/PA Signed 6.Tenant Moved In/Closed Sale 0.No Activity ODDS TYPE PROSPECT/BUSINESS SF REQUIREMENT * SOURCE CONTACT/PHONE# 20% Health Center 2000k . Class room area, sell shakes 2 Direct Kellie Caridnal 651-485-1113 20% Schweiters Building Supply • Resource client base 2 Direct 651-762-1110 -- -- ---a_ --- ---- - ----- --- ._ 20% Stuart Management e Mixed use prospects with housing 2 Direct Stuart Nolan 952-948-9500 200/6 Christ Luther Church . AM Sunday Use 2 Direct Wilt Feidler 651-429-8656 10% Tunnici • Restaurant 2 Direct 651-459-3211 10% Steak on 7 t Restaurant 2 Direct Dave Koch 106/6 Rudolphs Restaurant Restaurant 2 Direct Jimmy Therus 10% President Des—in g Lolitos • Unknown 2 Direct John Neal 10% Acqua Restaurant and Wine • Restaurant 1 Direct 651-407-7317 Bar 10% Frey Development o Resource client base 2 Direct Bernie Frey 612-827-4201 --- - --- --- - ------ - -- _ _ ------ 10% -10% Griener Inc. Retail, hospitality 2 Direct Buddy Hulbert 612-338-1696 CONTACT: 1 Mike Brass (612)7504312—mikeOmikebrass.com „;; $ —---------- 10% _-1DY6 BDHand Young ° Resource client base 2 Direct Kathy Young 952-345'8301 ------- ------ 10% _1O% Hemp|eDevelopnmant w Resource client base 2 Direct JonHemp|e 763'383'1100 ........_��------- ��_�� 10Y6 Marketing and Development ° Hotel Hospitality 2 Direct K8orQonNedarhiper 1'507-643-6982 1096 Weis Builders ° Multi-family Housing 2 Direct RickFenohv 612-600-6678 10% Henriokaon Inc. ° Hospitality 2 Direct K8n,k Es|inger 812'877'3304 1096 Sevan', the Gbakmhouom ° Restaurant 2 Direct DavidA\|exuoKoch 612'238'7770 lUY- Mueller umUerFunFuneral ----- ° ShoredAaoom--bly---- ---------'------2 ----' CVrec '----800tt Mueller 651-429-4900 10% Wilson Development " Municipal Financing Options 2 Oinaot Dan Wilson 852-488-4830 10% Design Coalition ° Hospitality Consultant 2 Direct John Neal 763'788-0098 _--�_--' ------ _--_ ----- -------_---------------_------- ....._.... _-- __ 1096 Gaughan Companies * Combine with adjacent kd 2 Direct Julie Nash Smith 851-464-5700 10% River States Realty ° Area market 2 Direct OichStockstead 651-275-4861 -10% Anderson Builders ° Developer-unknown -' 2 - -- Direct ----'Greg Anderson -'' - -' '--- 952-827'5444 ________ 1O% &1asqueraTheater Company ° Potential Weekday user 2 Direct Craig Moen 851-464'5823 ....... ......... Bio chemical Lab 2000 - Labopooe. oneorbwooffioea O Broker JeffNondnoom 09S Restaurant * Restaurant O Direct Blackie LanderviUe'Founderof Champs ---—-------�� coNTAcr. Mike Brass u12>750'*312-."/x,mx"/xe^,"ss.m,." For Sale northco l brokerage Gas Station / C-Store 13997 Forest Blvd (Hwy 61) Hugo, MN 55038 New Reduced Price: $695,000 ►'iY 1`w� c\ F•y An N V s 1 3� r� N Snapshot _._.._.._.._ Building Type: Retail - Gas/C-Store Year Built: 1996 F - Loa Building Square Foot: 8,993 Lot Size: 1.9 Acres i Asking Price: $695,000 i Tenancy: Poss. Multi. Gas Pumps: Three (3) Islands - Parking Spaces: 52 Highlights: Great corner location surrounded by an industrial business park and residential homes and townhouses. lust south of downtown Hugo on Highway 61 (Forest Blvd), this site serves the high traffic Highway 61 that connects the cities of Forest Lake (north) and White Bear Lake (south).The almost 9,000 square foot building is already built out for a convenience store with additional accommodations for a separate deli and meat market/processing business operations. Accommodations included are multiple coolers,freezers, processing equipment, C-Store shelving, gas pumps/canopy. GRUBB :v EL115 For Sale northco'l brokerage Gas Station / C-Store 13997 Forest Blvd (Hwy 61) Hugo, MN 55038 New Reduced Price: $695,000 Paul Hugo Farms Wildlife Refuge Rice Creek Hanifl FieldsPark Av Athletic Park lL '16 Hanifl Fields Athletic Park - approximately 1 mile east on Co Rd 8 (140th St.) - houses 5 soccer fields (one of the home fields of White Bear Soccer) and NEW in the Spring of 2011 is its year-round use shelter consisting of a gathering room, restrooms, concession stand and —_--- an open-air pavilion. Also just outside the shelter are playground structures. a Z Men& '3 Y 61 I ate 8 , Possible 6.02 Acre Assemblage &tcn St 81 For more information please contact: Chris Kubesh Cameron Peterson Map Senior Associate Senior Associate 952.820.1668 952.820.1688 ckubesh@northco.com cpeterson@northco.com GRUBB&ELLIS Grubb & Ellis I Northco 15353 Wayzata Blvd I Suite 400 1 Minneapolis, MN 55416-1340 www.northco.com The information contained herein was obtained from sources believed reliable;however,Grubb Ellis company makes no guarantees,warranties,or representations as to the completeness or accuracy thereof The presentation of this property is submitted subject to errors,omissions,change of price or conditions prior to sale or lease,or withdrawal without notice. You re invited ,, To a Business Networking Breakfast Hosted by: City of JJUgo ugoation Where: Hugo City Hall - Oneka Room 14669 Fitzgerald Avenue North When: Tuesday, September 20 2011 , p , U7:30AM - 9:00AM Fee: $5.00 at the Door Bobby Williams, Senior Partner of Bobby and Steve's Auto World, will be presenting on how he started Bobby and Steve's Auto World and the importance of team building. Learn more about encouraging Your team members to work together towards a common goal. - - - - - - - - - - - - - - - - - - - - There is limited seating for this i event. To reserve your spot, please i RSVP to Rachel Juba at (651) 762-1 J ` 6304 or rjuba@ci.hugo.mn.us by i September 13, 2011 ' A hot breakfast buffet will include french toast sticks, sausage, fresh fruit, coffee, juice, and water.