HomeMy WebLinkAbout2012.03.12 EDA Packet AGENDA
CITY OF HUGO
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY, MARCH 12, 2012
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 February 13, 2012
8:35 am 4. Update on Roundabout Center Island Design
• 170th Street and TH61
8:50 am 5. Update on Hardwood Creek Trail
• 145th to 1401h—Trail Grade
9:20 am 6. Kidz n' Biz Sponsorship Request
9:30 am 7. Update on Downtown Redevelopment
10:30 am 8. Adjournment
BACKGROUND MEMO FOR THE EDA MEETING OF
MONDAY, MARCH 12,2012
3. APPROVAL OF MINUTES
Staff recommends approval of the minutes from the February 13, 2012, EDA Meeting as
presented.
4. UPDATE ON ROUNDABOUT CENTER ISLAND DESIGN
At its February meeting the EDA discussed the possible roundabout at the intersection of
1701h Street and TH61. The City Engineer provided a presentation on the project and
outlined possibilities for the center island design. The EDA made a recommendation to
the City Council to authorize preparation of concepts and associated costs for the design
for its consideration. This item was considered at the March 5. 2012, City Council
meeting, staff will update the EDA on the decision of the City Council.
5. UPDATE ON HARDWOOD CREEK TRAIL
At its February meeting the EDA discussed the railroad abandonment and the extension
plans for Hardwood Creek Trail. The EDA also discussed the grade of the trail as it
extends south of 145th Street. The EDA made a recommendation to the City Council to
direct staff to continue working with Washington County to ensure the grade of the trail
will be consistent with the rest of the trail to ensure accessibility and visibility for
businesses. This item was considered at the March 5. 2012, City Council meeting, staff
will update the EDA on the decision of the City Council.
6. KIDZ N' BIZ SPONSORSHIP REQUEST
On April 21, 2012, the 81h Annual Kidz n' Biz Fest will be take place at Oneka
Elementary School. This annual event is an opportunity for the HBA and Hugo EDA to
directly connect with the Hugo families and children in a PTA Carnival atmosphere. This
event is expected to attract more than 500 Hugo children and their families; and will once
again feature an assortment of games presented by the Hugo businesses with assistance
from the White Bear School District. Last year the EDA sponsored the event in the
amount of$750. The HBA is asking for the EDA to sponsor in that same amount again
this year.
7. UPDATE ON DOWNTOWN REDEVELOPMENT
Staff will update the EDA on the progress of downtown redevelopment.
MINUTES FOR THE EDA MEETING OF FEBRUARY 13, 2012
Miron called the meeting to order at 8:40 am.
PRESENT: Arcand, Denaway, Graff, Klein, Puleo, and Miron
ABSENT: Bever
STAFF: Bryan Bear, City Administrator
Rachel Juba, Planner
APPROVAL OF MINUTES FOR THE EDA MEETING OF JANUARY 3,2012
Klein made motion, Puleo seconded, to approve minutes for the EDA meeting of January
3, 2012.
All aye. Motion carried.
DISCUSSION ON CITY OWNED PROPERTY
The development team that has a purchase agreement on the City owned property was
present at the meeting to discuss their marketing effort and new ideas for the property.
Planner, Rachel Juba, gave an introduction to the development team. City Administrator,
Bryan Bear, stated that the development team has held a purchase agreement for the
property for almost 2 years (since May 2010) and staff has brought them to the EDA
meeting periodically to get an update in their progress.
Mark Finnemann and Mike Brass represented the development team and went over the
several iterations of development plans they have come up with for the site. Their ideas
include commercial and hospitality aspects that have integrated an event center. They
have been trying to find users that will fit those categories. They have provided potential
users with a brochure that features information on Hugo and concept drawings for the
site.
They have looked at the idea for housing on the property. Senior housing and assisted
living are options that they think would fit the area.
Miron stated that it is good to hear the excitement for the project and the work that is
being done.
Commissioner Graff asked if there was enough room on the site for senior housing and a
restaurant. Mr. Finnemann stated that a 50 unit senior housing project would consume
most of the site.
Commissioner Klein stated that there are other areas in the City of senior housing or
assisted living. He asked what the biggest obstacles for the property were. Mr. Brass
stated incentives are a plus in this economy; there have not been many pure market deals
in the last several months. He stated that they have been look for a restaurateur that
wants to build, but everyone is looking for existing space. Graff stated that the EDA and
the City are looking for a restaurant in Hugo. He stated that we need someone that has a
successful business and wants something long term. Senior housing will not bring the
restaurant to downtown Hugo.
Commissioner Denaway stated that he would support a smaller housing component and a
mix of commercial uses,not a senior housing project that would take up the entire site.
He stated do not give up on commercial retail and marketing should mention the other
options.
Miron thanked the development team for presenting to the EDA.
The EDA agreed that the development team should continue to work on development
concepts for the property and they expect the purchase agreement to be extended in June.
DISCUSSION ON INTERSECTION IMPROVEMENTS AT TH61 AND 170TH
STREET
MnDOT has plans to construct intersection improvements at TH61 and 170th Street
(CSAH 8). The discussions include the options of a traffic signal or a roundabout. The
construction will begin in 2013. If a roundabout is selected there will be a center island
that can be improved. MnDOT has a basic landscape model for center islands, but other
designs can be approved by MnDOT. Jay Kennedy, City Engineer,presented options to
the EDA on possible designs for the center island and the projected costs of each design.
Staff recommended that the EDA discuss the center island designs options and make a
recommendation to the City Council.
Klein made a motion, seconded by Denaway, to recommend to the City Council to
authorize preparation of concepts/associated costs for consideration.
All aye. Motion Carried.
UPDATE ON MINNESOTA STABLE OWNERS ASSOCIATION
Commissioner Graff addressed the EDA with an update on the Minnesota Stable Owners
Association meeting he attended last week. He also discussed the possibility for future
equestrian events in Hugo, such as a barn tour event.
Commissioner Graff stated that he attended a stable association meeting that included six
stables in Hugo. He stated that the stable association liked the idea of a barn tour event
and would like to reach out to other stables in the area. There have been no dates set,but
Commission Graff will keep the EDA updated.
UPDATE ON FIBER OPTICS INSTALLED IN TH61
During the summer of 2011, fiber lines were installed along TH61. Staff met with
Enventis the company that installed the fiber line through Hugo. The fiber line is
available at a lease rate to anyone who would like to connect to the line. The line can
accommodate even the largest data users. There were Federal funds that helps Enventis
install the line from St. Paul to Duluth.
DISCUSSION EDA ANNUAL REPORT
Enclosed in the packet is the 2011 EDA Annual Report. The report showcases
commercial and industrial activities and other economic development projects that
happened in 2011. Staff recommended that the EDA review the report and provide
feedback to staff.
Denaway made a motion, seconded by Graff, to approve the 2011 EDA Annual Report.
All aye. Motion Carried.
UPDATE ON THE BUSINESS NETWORKING BREAKFAST—STATE OF THE
CITY ADDRESS
On Tuesday, February 7, 2012, the EDA in partnership with the HBA held the Business
Networking Breakfast State of the City Address. The Blue Heron Grill hosted the event
and 70 people attended the business breakfast. Members of the EDA attended the event
that stated that the audio visuals of the State of the City Address were great.
UPDATE ON DOWNTOWN REDEVELOPMENT
Staff provided an update on the railroad abandonment process along TH61 between 145th
and 140th Street. Staff has met with Washington County to discuss the trail extension
design and construction. Staff encouraged them to review the grade of the trail as it
extends south to CSAH 8. The grade of the trail is higher from 145th to 140th Street than
the rest of the trail. To ensure a safe and adequate crossing over CSAH 8 the trail will
need to be lowered from 145th extending beyond CSAH 8. The trail grade is also high as
it extends south of CSAH 8. There is a residential neighborhood that benefits from the
height of the grade and the tree line as a buffer from TH 61. During the meeting staff
encouraged the grade to be lowered from 145th to beyond CSAH 8. Staff also encouraged
the grade and tree line to remain south of CSAH 8 to continue to provide a buffer for the
residential neighborhood.
Denaway made a motion, seconded by Graff to recommend to the City Council to direct
staff to continue working with Washington County to ensure the grade of the trail will be
consistent with the rest of the trail to ensure accessibility and visibility for businesses.
All aye. Motion Carried.
ADJOURNMENT
Puleo made a motion, seconded by Klein, to adjourn at 10:35 am.
All aye. Motion carried.
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CITY OF HOGS
2011 EDA Annual Report
Introduction. . ..
This Annual Report is designed to showcase many of the commercial and
industrial businesses that have located in Hugo and other economic devel-
opment during 2011. The goal of the Hugo Economic Development Au-
thority (EDA) is to create a thriving community with diverse jobs and tax
base, brought about by specific emphasis on business retention, business
expansion, and business attraction. Hugo's business community is rapidly
In This Report: expanding due to strong residential growth and an attractive business en-
0 Excel Energy Inc., vironment. The valuation of the commercial and industrial construction
Training Center completed in 2011 in the City totaled $691,800. The City of Hugo and the
! NRI Transition EDA welcome all of the new businesses to Hugo and are excited about the
New Businesses new jobs and services they provide to the community. In this Annual Re-
BR&E Program port the EDA highlights the projects approved in 2011, the new busi-
nesses that have located in Hugo, EDA events, and the Business Retention
• Boot Camp for and Expansion Program implementation that continued through 2011.
Entrepreneurs
Met Council Grant 2011 EDA Goals. . .
• Design 1. Business Retention and Expansion
Guidelines • Implementation of the BR&E Strategies Program
• Continue collaboration with HBA
! • Continue participation in events.
2011 EDA Members 2. Continue Marketing of the City
• Downtown Promotions
Fran Miron, • Continuation of the City's cable access show
President • Evaluation of 2010 US Census data
3. Continue working on downtown redevelopment projects
Phil Klein, • Coordinate public infrastructure
Vice President • City owned properties
4. Establish quality industrial and commercial development
Jim Bever • Focus on gateways
• Coordinate site planning for 165t1 & 61
Frank Puleo • Begin area plan for 170t1 & 61 (Mixed Use)
Jan Arcand • Review development policies and incentives
S. Transportation
Tom Denaway • Interchange @170t1 St& 35E
• Intersection C@ HWY 61 & CSAH 4 (170[1 St)
Mike Graff • Elmcrest Ave
• County Road 8 Trail on the south side
6. Encourage the County on Economic Development Efforts
City of Hugo 14669 Fitzgerald Ave N Hugo, MN 55038 www.ci.hugo.mn.us (651) 762-6300
so
Page 2 qMME
Xcel Energy Training Center to Locate in Hugo!
On December 19, 2011, the City
Council approved the concept
plan for a 50,000 square foot Xcel
Energy training center. The prop- ,
erty is located along Fenway
Boulevard across from Schwieter's
industrial buildings on a 12 acre
parcel, which is part of the Roy _—
Molitor farm. Gas and Electric 4
training will be conducted at the
property, including indoor and outdoor training. They plan to conduct training 42 weeks out of
the year. Xcel Energy expects up to 50 trainees at the center per each week of training. They will
have 9 full time employees that will working at the training center. The existing buildings on the
property will be demolished. Xcel Energy plans on applying for formal site plan approval in early
2012 and to begin construction that same year. The City is excited to have Xcel Energy Inc., as
part of its business community.
National Recycling Inc. Site Revisions Approved. . .
Several changes will be made to the National Recycling Inc. (NRI) property over the spring and
summer of 2012. The City Council approved plans on May 16, 2011, to transition the existing
use to a residential recycling center. The recycling center will consist of a structure containing a
series of bins allowing for the deposit of household recyclables, such as newspapers, glass bot-
tles, recyclable cans, and plastics. All of the scrap metal will be removed from the site and is pro-
hibited from stockpiling on the ground. NRI will be adding a new building to the eastern portion
of the site that will contain bins with recyclable material. They will be phasing out the existing
use and will be moving industrial scrap and recycling portion of the business to a new location
in Cambridge, Minnesota. The clean up and transition is expected to be complete in July 2012.
New Businesses Continue to Locate in Hugo...
The EDA welcomes the new businesses that located in Hugo in 2011. These new businesses in-
cluded commercial build-out for their space. Patrick Flanagan opened Flanagan Law Office in
downtown Hugo in October. Ryan Manning launched an Anytime Fitness franchise in Victor Gar-
dens North Village retail center. Shawn Whitehurst opened Tawshi El Salon in Victor Gardens
South Village retail center next to Festival Foods. The salon started in her home and was grow-
ing, she then decided to locate in Hugo. Grant Barrett owns office space in the Bald Eagle Indus- j
trial Park. He constructed several office spaces with a portion of his building to be used as
shared office spaces. All of the space within the building is now occupied by a title company,
physical therapist, and a physiologist. HealthEast Clinic expanded within its current building to
include additional offices and exam rooms.
City of Hugo 14669 Fitzgerald Ave N Hugo, MN 55038 www.ci.hugo.mn.us (651) 762-6300
CITY OF H9G *
Page 3
Business Retention and Expansion Program
Implementation Continues in 2011 . . ..
The Business Retention and Expansion (BR&E) Program commenced in April 2010, but the City
continues to implement the action plans from the results of the surveys. The purpose of the pro-
gram was to demonstrate support for local businesses, help solve immediate business concerns,
increase local businesses' ability to compete in the global economy, establish and implement a
strategic plan for economic development, and to build community capacity to sustain growth
and development. There were 38 businesses visited in the City and the survey results were evalu-
ated by economic development professionals of the University of Minnesota. The four implemen-
tation projects include:
1. Market the City of Hugo
The City is working on creating an upgraded EDA section of the City website to market the City.
The section will include information that a business would want to know if they were moving to
Hugo or interested in Hugo.
2. Create, Coordinate, and Encourage Events
The Parks Commission has helped organize the creation of City events that can be beneficial to
businesses. The Commission has implemented exciting low cost recreation programs over the
past two years that has help build the community. All events and programs can be found on the
parks portion of the City's website.
3. Host Business Networking Breakfast Workshops
The City of Hugo is partnering with the Hugo Business Association to accomplish this goal and
there have been five Business Networking Breakfasts over the past year and a half.
4. Address Highway 61 Access Issues and Improve Downtown Hugo
In the survey results, a main concern of business owners was the
amount of blighted buildings in the downtown area. In an effort to
help revitalize the downtown area, the City of Hugo worked with
property owners to remove several of the blighted buildings in
downtown. The Carpenters Restaurant building was a complete
loss due to a fire in January 2010. The antique store building that
was adjacent to the restaurant was demolished that same year.
This opened up the view to Egg Lake and was necessary to prepare
the site for redevelopment. The Ricci's Restaurant building was demolished in 2011. Further
south on Highway 61, the old End Zone restaurant building was demolished and the site was
cleared. The full report of the survey results can be found on the City's website at
www.ci.hugo.mn.us under Business Info.
City of Hugo 14669 Fitzgerald Ave N Hugo, MN 55038 www.ci.hugo.mn.us (651) 762-6300
CITY OF H9GO
Boot Camp for Entrepreneurs was a Success!
On October 18, 2011, the EDA partnered with the Hugo Business Associa-
tion (HBA) and the Hugo Business Networking International (BNI) to host a
Boot Camp for Entrepreneurs. The boot camp was an all day event with
several speakers on topics that included marketing, finance, and business
resources. There were 30 people who attended the event, held at Wild
Wings Hunt Club in Hugo. The attendees and speakers both stated that
this event offered important information on how to start and maintain a
successful business. Spin-off events of the boot camp have been in discus-
sion for the next year.
Met Council Awards LCDA Grant to Hugo...
Since May 2011, staff has been working with Pete Sampair, a property
owner in downtown Hugo, on a grant application to the Metropolitan
Council. The grant monies are in the Livable Communities Demonstration
Account for innovative planning and development.
In December 2011, the City was awarded the grant
for a total of $73,000. The grant will be used for
surveying, title work, stormwater analysis, environ-
mental evaluation, preliminary redevelopment
plans, and land acquisition strategies. The
plan-Hing for the mixed-use redevelopment will start in
2012. Mr. Sampair has put together a concept plan
M - "--�- for the site to give the Metropolitan Council an
.novo sive
idea of the project he would like to complete. The
concept includes housing, commercial, and office uses integrated with a
main street and town center atmosphere.
Commercial and Industrial Design
Guidelines Approved...
In August 2011, the City Council approved the Commercial and Industrial
Design Guidelines. The guidelines include text and graphics to provide de-
velopers with further direction on the desire for quality commercial and
industrial development. The guidelines encourage quality development by
providing direction on building design, color, and material. They also pro-
vide direction on other aspects of the development such as signage,
�► � screening and lighting. All commercial and industrial development shall
meet the guidelines. The guidelines can be found on the City website at
www.ci.hugo.mn.us under Planning/Community Development.
City of Hugo 14669 Fitzgerald Ave N Hugo, MN 55038 www.d.hugo.mn.us (651) 762-6300
Restaurant
Pad Ready Redevelopment Site * Redevelopment Properties in Hugo are not required to pay sanitary sewer trunk charges
9,000 Square Feet-30 SAC Units -1.5 Acre Parcel
1.1 Million Dollar Project
*Downtown
Hugo Hugo Lino Lakes White Bear Lake Forest Lake Woodbury Cottage Grove Oakdale Stillwater
Application Fees (fee+escrow 1
Preliminary Plat $2,220 $2,220 $5,000 $450 $1,000 $5,530 $15,400 $1,050 $3,100
Final Plat $2,220 $2,220 $2,500 $0 $500 $5,530 $200 $1,050 $500
Site Plan $1,350 $1,350 $1,500 $0 $1,000 $5,500 $5,300 $950 $500
Development Fees
Stormwater Trunk Fee $4,573.80 $4,573.80 $12,675.96 N/A N/A $21,502.00 $13,366 N/A N/A
Park Dedication N/A N/A $3,262.50 $5,250 $3,000 $3,200 $3,600 $4,419 $3,600
Sanitary Sewer Trunk Fee $48,960 *$0 N/A N/A $6,675 $10,478 $2,785 N/A $20,250
Water Trunk Fee $58,880 *$0 N/A N/A $4,500 $4,350 $4,380 N/A Incld.in sewer$
Buidling Permit Fees
SAC (sewer availablity charge) $17,640 $17,640 $85,200 $15,000 $39,390 $9,450 $1,977 $16,500 $2,230
WAC (water availablity charge) $20,400 $20,400 $112,800 $15,000 $36,000 $22,500 $3,573 $16,500 $30,000
REC (Met Council Charge) $70,950 $70,950 $70,950 $70,950 $70,950 $70,950 $70,950 $70,950 $70,950
Plan Check Fee $4,124 $4,124 $3,850.44 $3,850.44 $4,131.89 $4,624.95 $4,124 $4,124 $3,850.44
Permit Fee $6,345.25 $6,345.25 $5,923.75 $5,923.75 $6,356.75 $7,115.30 $6,345.25 $6,345.25 $5,923.75
Total $237,663.46 $129,823.46 $303,662.65 $116,424.19 $173,503.64 $170,730.25 $132,000.66 1 $121,888.66 $140,904.19
Proposed Annual Taxes 2012 on 1.5 TMV $53,554.00 $53,554.001 $ 59,457.00 $56,018 $48,674 $55,779 $51,925 $52,517 1 $55,082