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Home My WebLink About2012.06.11 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JUNE 11, 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 May 14, 2012 8:35 am 4. Discussion on Carpenters Property 9:30 am 5. Update on Downtown Redevelopment 10:00 am 6. Business Networking Breakfast Tuesday, June 19, 2012 from 7:30 am—9:00 am 10:30 am 7. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF MONDAY,JUNE 11, 2012 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the May 14, 2012, EDA Meeting as presented. 4.DISCUSSION ON CARPENTERS PROPERTY Staff will provide a presentation on the Carpenters property for the EDA's discussion. 5. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on downtown redevelopment. 6. BUSINESS NETWORKING BREAKFAST TUESDAY,JUNE 19, 2012 FROM 7:30 AM—9:00 AM The EDA is invited to the Business Networking Breakfast on Tuesday, June 19, 2012. The event will be held at Hugo City Hall from 7:30 am to 9:00 am. There will be a continental breakfast provided by Festival Foods. Please RSVP to Liz Hanson at lhanson ,ci.hugo.mn.us or(651) 762-6311, if you would like to attend. r MINUTES FOR THE EDA MEETING OF MAY 14, 2012 Miron called the meeting to order at 8:33 am. PRESENT: Arcand, Bever, Denaway, Klein, Puleo, and Miron ABSENT: Graff STAFF: Bryan Bear, City Administrator Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF APRIL 9, 2012 Klein made motion, Puleo seconded, to approve minutes for the EDA meeting of April 9, 2012 All aye. Motion carried. INSURANCE ADVISORS—GREG YOUNG INSURANCE AGENCY Staff invited Greg Young from Greg Young Insurance Agency, a new business in Hugo. The business is located in the Bald Eagle Industrial Park in Grant Barrett's office building on Fenway Boulevard Circle. A few months ago Mr. Barrett had a vacancy in his building and he created three smaller offices for flexible office space. Mr. Young is leasing one of the offices for his business. Mr. Young stated that he started leasing space from Grant Barrett this year and has been involve with the HBA and BNI over the last few months. He stated that his agency works with over 40 insurance companies to provide the best coverage for each individual. The flexible office space is working well for Mr. Young since his clients are from different cities in the metro area. Miron asked if Mr. Young would buy office space in the future. Mr. Young stated not at this time. The flexible office space is working well for Mr. Young since his clients are from different cities in the metro area and a lot of the work is completed via email. He stated that if he were to acquire more employees he may be open to owning office space. Miron asked what the EDA can do for Mr. Young's business. Mr. Young stated that the City continuing to be involved in business events like Kidz n' Biz fest. The networking between businesses is really important. The EDA welcomed Greg Young as a new business owner in Hugo DISCUSSION ON THE PURCHASE AGREEMENT FOR THE CITY OWNED PROPERTY The development team had discussion with the EDA on a year extension of the purchase agreement for the property. The purchase agreement expires June 6,2012. At its February 13, 2012, meeting the EDA heard from the development team on its marketing efforts for the property. The development team presented several iterations of development plans they have come up with for the site. Their ideas included 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. The EDA generally liked the direction of the development team and encourage them to continue to work on development concepts for the property. Staff recommended the EDA discuss and make a recommendation on the proposed one year extension of the purchase agreement with the development team. Mark Finnemann, Dick Fischer, and Mike Brass attended the EDA meeting and provided background on their marketing of the property. Mike Brass stated that restaurants are opening in existing buildings,but not building new buildings. The market is good for housing and small office buildings. Mark Finnemann showed the EDA a concept plan for the property that included commercial and 26 residential units. He stated that they continue to market the restaurant and event center concept. He stated that they want to incorporate a park like setting within the development. Arcand state that the development team should talk to Pete Sampair who is in the process of planning his property in downtown and to Xcel Energy since they are building a gas and electric training center. The training center will have up to 50 trainees per week. Mr. Brass stated that he will make contact with both parties. Denaway stated that he generally likes that plan,but the residential may be in conflict with the restaurant and event center concept for the property. He stated that this property may the best for commercial users for downtown redevelopment. He stated that the residential shown on the concept may be better suited for office or professional services. Mr. Finnemann stated that they have been trying to formulate the best mix of uses for the property and this is one concept. Residential is one sector of development that is moving right now. Puleo asked what properties were being shown in the concept. Mr. Finnemann stated that they are showing the old Carpenters in the concept because the two properties have the potential to work together. Puleo pointed out that the development team was only showing residential on the City owned property and the commercial on the Carpenters property. Bryan Bear stated that the uses in the concept could work well together at a land use standpoint,but he EDA needs to think about what they want. The priority for this property has been commercial. The east side of Highway 61 in that area is good for commercial because of road frontage and access. Denaway stated that he wants to make sure that if residential is incorporated into the plan that is not all we get. Puleo and Bever agreed and stated that what they hear from residents in Hugo is that Hugo needs a restaurant. Denaway stated that Hugo should be able to support another restaurant. Miron agreed. He is not convinced that housing is the best for this location. He stated that he would like to be patient and wait for the market to come back for commercial or a restaurant user for the City owned property. He stated that he is encouraged by the development team, their marketing efforts, and the contacts that they have made along the way. Miron made a motion, seconded by Puleo, to recommends a one year extension on the purchase agreement for the City owned property. All ayes. Motion Carried. DISCUSSION ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT EFFORTS Staff has attended and there have been discussions during Greater MSP meetings regarding what Washington County's role should be for economic development. Molly O'Rourke, County Administrator, has also been at the meeting and stated that she was going to be more active in educating the board members on the importance of economic development. At the next Greater MSP meeting at the County they will be discussing the County's role in economic development. Klein asked if the County was working on providing fiber optics to all property in Washington County. The EDA discussed ways the County could become involved in economic development. • Market Washington County as a place to locate a business • Business attraction • Review tax abatement policy as it relates to businesses locating in Washington County • Create other economic incentives UPDATE ON DOWNTOWN REDEVELOPMENT The bank that owns the Ricci's property is getting ready to list the property Xcel Energy Inc. has applied for site plan approval for Phase 2 of its gas and electric training center. This includes a second building. Glamos Wire has been talking to staff about an expansion on its existing building. MnDOT will be completing a mill/overlay reconstruction project this summer. An open house is scheduled on Monday, May 21"at City Hall. ADJOURNMENT Denaway made a motion, seconded by Klein, to adjourn at 10:45 am. All aye. Motion carried. BID AMOUNT Total Judgment Amount for Eden Builders: $32,527.11 Total Interest at 4% (postjudgment interest):$43 7.88 Total Judgment Amount for Lamperts: $9,708.00 Total Interest at 4% (postjudgment interest):$130.3 8 Attorney Fees: $1,500.00 (projected through sale) (need to figure out preparation of sheriff's certificate, attending sale, and recording certificate) O&E Report $150.00 Certified Copies $28.00 Recording Fees $138.00 Sheriffs Posting Fee $40.00 Sheriff's Sale Fee $60.00 Publication Costs $918.75 TOTAL BID AMOUNT: $45,638.12 Carpenters Parcels (North to South) 2008 pay 2009 2009 pay 2010 2010 pay 2011 2011 pay 2012 2012 pay 2013 Delinquent Taxes (Since 20091 Arces 20.031.21.24.0044 $1,970.31 0.04 Land $11,700 $14,300 $14,300 $14,300 $14,300 Building $0 $0 $0 $0 $0 Total $11,700 $14,300 $14,300 $14,300 $14,300 14583 Forest Blvd 20.031.21.24.0045 $26,738.95 0.27 Land $94,700 $117,500 $95,400 $95,400 $95,400 includes $10,289.46 of assessment Building $164,500 $148,900 $1,000 $0 $0 Total $259,200 $266,400 $96,400 $95,400 $95,400 20.031.21.24.0046 $32,036.03 0.4 Land $115,200 $139,700 $139,700 $139,700 $139,700 includes $10,289.46 of assessment Building $0 $0 $0 $0 $0 Total $115,200 $139,700 $139,700 $139,700 $139,700 14559 Forest Blvd 20.031.21.24.0047 $43,686.15 0.5 Land $145,800 $199,000 $199,000 $199,000 $199,000 Building $188,300 $216,800 $216,800 $0 $0 Total $334,100 $415,800 $415,800 $199,000 $199,000 20.031.21.24.0048 $6,979.02 0.13 Land $38,500 $52,500 $52,500 $52,500 $52,500 Building $0 $0 $0 $0 $0 Total $38,500 $52,500 $52,500 $52,500 $52,500 Total Land $405,900 $523,000 $500,900 $500,900 $500,900 Total Building $352,800 $365,7001 $217,800 $0 $0 Total Acres = 1.34 TOTAL $758,700 $888,7001 $718,700 $500,900 $500,900 58,370.4 sq ft Total Delinquent $111,410.46 Assessement $54,201.44 Lien $45,000.00 Total $210,611.90 Price Per Sq Ft $3.61 Price Per Sq Ft Based on Total Value $8.58 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - I � I I IYou ' re to a ' I � I � : Business Networking Breakfast I I I � - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - IF [ Hosted[ Hosted by: Esq Hugo Business Association & — n Hugo Economic Development Authority ugo tluclntaA—A.U.. 4 • • • • • WHERE: Hugo City Hall 14669 Fitzgerald Avenue N Hugo, MN 55038 WHEN: Tuesday, June 19, 2012 • • • • • @7:30AM - 9:00AM $5.00 at the Door (cash or check) • • • • • WHAT: Small Business Human Resources Tawnya Chandler, SPHR, from Century College will be presenting on a variety of Human Resource topics including current trends, impacts of social media, employment law, and interview do's and don'ts How to RSVP • • • • • There is limited seating for this event. To reserve your spot please RSVP to Liz Hanson at (651) 762-6311 or lhanson@ci.hugo.mn.us - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - A continental breakfast will be served provided by Festival Foods. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -i