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HomeMy WebLinkAbout2013.01.14 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY MONDAY, JANUARY 14, 2013 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 December 10, 2012 8:35 am 4. Oath of Office • Tom Weidt • Phil Klein 8:40 am 5. Officer Elections 8:50 am 6. Gracewood Senior Living—5607 N. 150th Street • Steve Niehaus - House Manager 9:05 am 7. Discussion on 2012 EDA Annual Report 9:15 am 8. Discussion on 2013 EDA Goal Setting 9:40 am 9. Update on Greater MSP 9:50 am 10. Update on Downtown Redevelopment 10:15 am 11. Discussion on EDA Meeting Date & Time 10:30 am 12. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, DECEMBER 10, 2012 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the December 10, 2012, EDA Meeting as presented. 4. OATH OF OFFICE Mayor Tom Weidt and Phil Klein will be taking their oath of office at the meeting. Phil Klein will renew his term, and Mayor Tom Weidt will be a new member. 5. OFFICER ELECTIONS The officers of the EDA shall be president, vice president, treasurer, assistant treasurer, and secretary. The president, vice president and treasurer shall be members of the board of the EDA, and shall be elected annually. Staff recommends the EDA elect the president, vice president and treasurer to the EDA. 6. GRACEWOOD SENIOR LIVING—5607 N. 150TH STREET Staff will introduce Steve Niehaus, House Manager of Gracewood Living, to the EDA. The business is located in the former Suite Living building off of 150`h Street next to the Post Office. Mr. Niehaus will provide the EDA with information on the business and how he would like to be involved in the community. Staff recommends the EDA welcome Mr. Niehaus into the community. 7. DISCUSSION ON 2012 EDA ANNUAL REPORT Staff will present the updated 2012 EDA Annual Report to the EDA. The annual report showcases the City's economic development efforts for 2012. This item was tabled at the last meeting so all commissioners could comment. 8. DISCUSSION ON 2013 EDA GOAL SETTING Staff would like to discuss the EDA goals for 2013. Enclosed are the updated 2013 EDA goals that were worked on at the last meeting for your review. This item was tabled at the last meeting so all commissioners could comment. The EDA's goals for 2013 will be forwarded to the City Council as they discuss their goals for 2013. 9. UPDATE ON GREATER MSP Staff will update the EDA on Greater MSP's Business Retention& Expansion efforts. Staff will also inform the EDA about the meetings Greater MSP will hold that the EDA are welcome to attend. 10. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. 11. DISCUSSION ON EDA MEETING DATE & TIME Staff would like to discuss the future EDA meeting dates and times. 30 MINUTES FOR THE EDA MEETING OF DECEMBER 10,2012 Miron called the meeting to order at 8:55 am. PRESENT: Arcand, Denaway, Puleo and Miron ABSENT: Bever, Granger, and Klein STAFF: Bryan Bear, City Administrator Rachel Juba, Planner APPROVAL OF MINUTES FOR THE EDA MEETING OF NOVEMBER 13, 2012 Arcand made motion, Granger seconded, to approve minutes for the EDA meeting of November 13, 2012 All aye. Motion carried. DISCUSSION ON 2012 EDA ANNUAL REPORT Staff presented the 2012 Annual Report to the EDA. The EDA reviewed the 2012 Annual Report and made suggestions to add information on the progress National Recycling Inc. (NRI)has made the past year. The EDA also wanted to include information on the number of residential building permits were issued in 2012. Denaway made a motion, seconded by Puleo, to table the item until the January 2013 meeting for the rest of the commission to make comments. All aye. Motion carried. DISCUSSION ON 2013 EDA GOAL SETTING The EDA reviewed its goals for 2012. The EDA discussed items for its goals for 2013. Some of the items include meeting the needs of existing businesses, marketing, downtown redevelopment, and planning for future development areas. Staff stated that the goals would be forwarded to the City Council in January for its 2013 goal setting. Puleo made a motion, seconded by Denaway, to table the item until the January 2013 meeting for the rest of the commission to make comments. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on downtown redevelopment. Pete Sampair continues to update staff of his progress on using the LCDA Met Council grant for planning a development on his site. The Carpenters parcels were up for auction and the auction closed. Staff contacted the auction company and they stated they did not accept the offer presented. ADJOURNMENT Denaway made a motion, seconded by Arcand, to adjourn at 10:50 am. All ayes. Motion carried. So BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF HUGO, MINNESOTA ARTICLE I - THE AUTHORITY Section 1. Name of Authority. The name of the Authority shall be the "Economic Development Authority of the City of Hugo, Minnesota" (which may sometimes be referred to as the "EDA" or the "Authority"), and its governing body shall be called the Board of Commissioners (the "Board"). The Board shall be the body responsible for the general governance of the Authority and shall conduct its official business at meetings thereof. Section 2. Seal of Authority. The Authority shall have an official seal, as required by Minnesota Statutes, Section 469.096, Subdivision 1. Section 3. Office of Authority. The offices of the Authority shall be the Hugo City Hall. ARTICLE II - OFFICERS Section 1. Officers. The officers of the Authority shall be a President, a Vice- President, a Treasurer, an Assistant Treasurer and a Secretary. The President, the Vice- President and the Treasurer shall be members of the Board and shall be elected annually, and no Commissioner may be both President and Vice-President simultaneously. The Assistant Treasurer and the Secretary need not be members of the Board. Section 2. President. The President shall preside at all meetings of the Board. Except as otherwise authorized by resolution of the Board,the President and the Secretary (the Vice-President, in the Secretary's absence or incapacity) shall sign all contracts, deeds and other instruments made or executed by the Authority, except that all checks of the Authority shall be signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit such recommendations and information as he or she may consider proper concerning the business, affairs, and policies of the Authority. Section 3. Vice-President. The Vice-President shall perform the duties of the President in the absence or incapacity of the President; and in case of the resignation or death of the President, the Vice-President shall perform such duties as are imposed on the President until such time as the Board shall select a new President. Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board and shall maintain all records of the Authority. The Secretary shall also have such additional duties and responsibilities as the Board may from time to time and by resolution prescribe. Section 5. Treasurer. The Treasurer shall have the care and custody of all funds of the Authority and shall deposit the same in the name of the Authority in such bank or banks as the Board may select. The Treasurer and Assistant Treasurer shall sign all orders and checks for the payment of money and shall pay out and disburse such moneys under the direction of the Board. The Treasurer shall keep regular books of accounts showing receipts and expenditures and shall render to the Board, at least annually (or more often when requested), an account of such transactions and also of the financial condition of the Authority. The Assistant Treasurer shall act as the Treasurer's agent and assistant to perform the above-described duties, subject to the Treasurer's approval thereof. Section 6. Additional Duties. The officers of the Authority shall perform such other duties and functions as may from time to time be required by the Board or the bylaws or rules and regulations of the Authority. Section 7. Vacancies. Should the office of President, Vice-President, Treasurer, Assistant Treasurer or Secretary become vacant, the Board shall elect a successor at the next regular meeting, or at a special meeting called for such purpose, and such election shall be for the unexpired term of said officer. Section 8. Additional Personnel. The Board may from time to time employ such personnel as it deems necessary to exercise its powers, duties, and functions. The selection and compensation of such personnel shall be determined by the Board. ARTICLE III - MEETINGS Section 1. Regular Meetings. The regular meetings of the Board shall occur according to a meeting schedule, if any, adopted or revised from time to time by resolution of the Board. Section 2. Special Meetings. Special meetings of the Board may be called by the President or any two members of the Board for the purpose of transacting any business designated in the call. The call for a special meeting may be delivered at any time prior to the time of the proposed meeting to each member of the Board or may be mailed to the business or home address of each member of the Board at least two (2) days prior to the date of such special meeting. At such special meeting no business shall be considered other than as designated in the call, but if at least four members of the Board are present at a special meeting, any and all business may be transacted at such special meeting. Notice of any special meeting shall be posted and/or published as may be required by law. Section 3. Quorum. The powers of the Authority shall be vested in the Board. Four Commissioners shall constitute a quorum for the purpose of conducting the business and exercising the powers of the Authority and for all other purposes, but a smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in attendance, action may be taken by the Board upon a vote of a majority of the Commissioners present. Section 4. Order of Business. At the regular meetings of the Board the following shall be the order of business: 1. Roll call. 2. Approval of the minutes of previous meeting. 3. Bills and communications. 4. Reports. 5. Unfinished business. 6. New business. 7. Adjournment. All resolutions shall be written or transcribed and shall be retained in the journal of the proceedings maintained by the Secretary. Section 5. Adoption of Resolutions. Resolutions of the Board shall be deemed adopted if approved by not less than a simple majority of all Commissioners present, unless a different requirement for adoption is prescribed by law. Resolutions may but need not be read aloud prior to vote taken thereon and may but need not be executed after passage. Section 6. Rules of Order. The meetings of the Board shall be governed by the most recent edition of Robert's Rules of Order. ARTICLE IV - MISCELLANEOUS Section 1. Amendments to Bylaws. The bylaws of the Authority shall be amended only by resolution approved by at least four of the members of the Board. Section 2. Fiscal Year. The fiscal year of the Authority shall coincide with the fiscal year of the City of Hugo, Minnesota. Adopted on , 2004. �lh``I;i,IVIiIIIWIO,I` � , • City of Hugo 2 012 EDA Annual Report Introduction... This Annual Report is designed to showcase many of the commercial and in- dustrial businesses that have located in Hugo and other economic develop- HCity ofment during 2012. The goal of the Hugo Economic Development Authority ugo (EDA) is to create a thriving community with diverse jobs and tax base, In this brought about by specific emphasis on business retention, business expan- sion, and business attraction. Hugo's business community is rapidly expand- xcel Energy Inc., 2 ing due to strong residential growth and an attractive business environment. Training Center The City had go new residential homes built as well as 9 commercial con- NRI—Continued 2 structions this year. The valuation of the commercial and industrial con- Progress struction completed in 2012 in the City totaled $9,111,656. The City of Hugo Building Expansions 2 and the EDA welcome all of the new businesses to Hugo and are excited about the new jobs and services they provide to the community. In this An- Frenchman Place 2nd 3 nual Report the EDA highlights the projects approved in 2012, the new busi- BR&E Program& 3 nesses that have located in Hugo, EDA events, and the Business Retention International Award and Expansion Program implementation that continued through 2012. Hugo REALTORS 4 2012 EDA Goals... Forum i. Business Retention and Expansion Senior Housing 4 • Implementation of the BR&E Strategies Program Concept Plan • Continue collaboration with HBA • Continue participation in events. (groundbreaking, ribbon-cutting New Businesses 4 ceremonies) 2. Continue Marketing of the City • BR&E Marketing Action Plan 2012 EDA Members: • Downtown Promotions • Greater MSP Fran Miron, Discussion on City Identity President 3. Event Marketing 4. Continue working on downtown redevelopment projects Phil Klein, • Coordinate public infrastructure Vice President . City owned properties • Implementation of the LCDA Grant Jim Bever 5. Establish quality industrial and commercial development • Focus on gateways Frank Puleo Review development policies and incentives within the approval process Jan Arcand 6. Transportation • Interchange @170th St&35E Tom Denaway . Intersection @ HWY 61 &CSAH 4 (170th St) • County Road 8 Trail on the south side Mike Granger 7. Encourage the County on Economic Development Efforts City of Hugo 14669 Fitzgerald Avenue North Hugo,MN 55038 www.ci.hugo.mn.us (651)-762-6300 2012 EDA Annual Report Page 2 Xcel Energy Training Center Locates in Hugo! On November 19, 2012 the City Council approved a third site plan for the Xcel Energy training cen- ter. Three building phases have been approved in 2012, which total approximately 40,000 square feet. Construction is underway, and full comple- tion of the three phases is expected in 2013. The property 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 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 train- ees at the center per each week of training. They will have 9 full time employees that will be working at the training center.The City is excited to have Xcel Energy Inc. as part of its business community. National Recycling, Inc. - Continued Progress This year NRI submitted a revised site plan in 2011 to reconfigure their business operations. Stor- age of scrap will be limited to the bins located within a new storage building, which is currently being built on the eastern portion of the property. Within this new building the scrap will be distributed into stacked bins. There will be no scrap stored outside, and no scrap visible from Highway 61, or adjacent properties. The remainder of the site will be used primarily for parking, traffic circulation, stormwater ponds and landscaping. The City looks forward to the end product and believes it will bring convenience to the business and residents as well as compliance to City Code. Building Additions in Peloquin Industrial Park Glamos Wire Products and JP Enterprises, Industrial businesses located in the Peloquin Industrial Park, had building additions approved in 2012. Glamos Wire was approved for a 22,283 square foot warehouse addition that will be connected to the existing office, manufacturing and warehouse spaces on the property (pictured below). JP Enterprises will be adding on a small building corridor that will connect two separate buildings of its business. '� - - w r ie City of Hugo 14669 Fitzgerald Avenue North Hugo,MN 55038 www.ci.hugo.nm.us (651)-762-6300 City of Hugo Page 3 Frenchman Place 2nd Addition - Medical Office Building The City Council approved a site plan for a one-story, 12,381 square foot medical office building on the property located directly east of the Blue Heron Grill. This is the second phase of the Frenchman Place development, the first phase being the HealthEast Building. The approved plans also include two outlots for future development and construction of a new private drive parallel to CSAH 8 that will connect Victor Gardens North Village with this development. The building will be occupied by Children's Hospitals and Clinic and HealthPartners. These businesses will provide services such as an urgent care facility, a Children's pediatric clinic, a HealthPartners family practice, and chiroprac- tic care. -1 r Hugo Receives BR&E International Award of Excellence! The Business Retention and Expansion (BR&E) Program ended in April 201o,but the City continues to implement the action plans from the results of the surveys. The purpose of the program 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. The full report of the survey results can be found on the City's website at www.ci.hugo.mn.us under Economic Development. On June 20, 2012 the City of Hugo was presented with the Award of Excellence from Business Retention and Expan- sion International during its annual conference for its 2010 BR&E Program. The awards were judged on the success of the marketing and communications plan, improvements to the business climate, measurable results and outcomes, and the business survey plan. Because of all of the collaboration of the local busi- nesses in the BR&E program, it continues to positively influence local economic development. City of Hugo 14669 Fitzgerald Avenue North Hugo,MN 55038 www.ci.hugo.mn.us (651)-762-6300 City of Hugo Hugo REALTORS Forum Hugo On November 8, 2012, the City hosted the Hugo REALTORS Forum. This was a morning course designed to teach and update Realtors on informa- `"6 ` "' tion regarding the City of Hugo. The course focused on the unique aspects of the City that may interest potential buyers. The instructors showcased various City programs and services, community features, school districts, public safety, and the vision of Hugo. Some of the items that were dis- cussed were the City's Focus Goals, the anticipated land uses of the City, and newer projects occurring like Xcel Energy's . o Training Facility. This course allowed partici- pants to have a better understanding of the City of Hugo and the character and quality of life the community offers. w�.•,. �e = Senior Housing Concept Plan Since May 2012, staff has been working with Bill a. Lentsch, a local developer, on a Senior Housing iL� s ARK.vdinu1111�t MM.nEVFLOVMIYf Q concept plan that is planned on three vacant par- P —�-=---= cels of land owned by Marvin LaValle, which are located north of Frenchman Road and west of Lions Park. The concept plan consists of three multi-family residential buildings as well as an ex- pansion to Lions Park (pictured left). The buildings intend to be an As- sisted Living Facility, a Congregate Care Center, and a subsidized Work- Force Apartment Complex. The developer is anticipating to apply for a formal site plan review early next year. New Businesses Continue to Locate in Hugo! The EDA welcomes the new businesses that located in Hugo in 2012! These new businesses included commercial build-outs for their space. Su- per America replaced Hugo One Stop at the 147th Street and Highway 61 intersection. Hugo Equipment Company relocated to the vacant commer- cial space at the 14oth Street and Highway 61 intersection. Children's Hospital and Health Partners are locating in the new Frenchman Place T 2nd Medical Office Building, which will be completed in 2013. Associated Eye Care moved into the vacant tenant space next to HealthEast and opened in November 2012. City of Hugo 14669 Fitzgerald Avenue North Hugo,MN 55038 www.ci.hugo.mn.us (651)-762-6300 B0 2013 EDA Goals 1. Business Retention and Expansion • Implementation of the BR&E Strategies Program • On-going site visits • Communication with businesses on flexibility with regulations • Continue collaboration with HBA a. Business Networking Breakfast b. Kidz N Biz fest • Continue participation in events. (groundbreaking,ribbon-cutting ceremonies) 2. Continue Marketing of the City • BR&E Marketing Action Plan o Updating and expanding City website • Downtown Promotions o Trade shows • Reevaluation/redirection of the City's cable access show • E-mail and social media • Evaluation of 2010 US Census data o Include in marketing information • Greater MSP • Continue involvement with area business chambers • Discussion on community signage o Portable Sign 3. Event Marketing 4. Continue working on downtown redevelopment projects • Coordinate public infrastructure o Stormwater management planning& funding o Trail and sidewalk improvements o Railroad abandonment o City Beautification ■ Evaluate landscaping and lighting needs along Hwy 61 • City owned properties • Implementation of the LCDA Grant 5. Establish quality industrial and commercial development • Focus on gateways • Coordinate site planning for 165th&61 • Begin area plan for 170th&61 (Mixed Use) Submit LCDA Grant Application • Review development policies and incentives within the approval process 6. Transportation • Interchange @170th St& 35E • Intersection @ HWY 61 &CSAH 4 (170th St) o Advocate for businesses impacted by reconstruction • Elmcrest Ave ongoing transportation planning • County Road 8 Trail on the south side o Parks Commission Page 1 of 1 O Liz Hanson From: Bryan Bear Sent: Friday, January 11, 2013 10:38 AM To: Liz Hanson; Rachel Subject: FW: YRN Banners Attachments: YRN Light Pole Banner.jpg I want to talk to the EDA about banners on Monday. Let add this to the mix. From: charles haas [mailto:charies.haas27@gmail.com] Sent: Friday, January 11, 2013 8:35 AM To: Bryan Bear Subject: YRN Banners Brian, Can you ask the mayor and council of their opinion on using a YRN banner (attached photo) when it comes time to replace the banners currently on the light poles. Thanks, Chuck 1/11/2013 Inky rti ---� IP• �� �l. 7-17 .141 pumtqj Ir 16 e r� �•. moi, { .i_ •rte .• �' .� � �L,p� -S,• ',+ w, • •r art ��• � '� �':�' • � �� a •� f L� � R;�, __ Yr it�. +,.., L �. �� _�` . e6 � .•f, f , � - �•+•� .r, � ,�'rel ' 1• i�r IL.. i Y r }•" ,� Pat 4 I�Iw s r> ' GREATER MSP TM Minneapolis Saint Paul Regional Economic Development Partnership .� C LEARN i Join your partners fora REGIONAL BUSINESS JANUARY 22 A: • meeting packed with • • ' • to AM DAKOTA COUNTY RES • INSPIRATION, STRAIGHT DATES • • Lakeville City Hall LCATINS TALK AND PRACTICAL . _ 20195 Holyoke Ave. Lakeville, MN 55044 111,9 l IDEAS. The regionalquestions IDENTIFY 1:30 PM Business Retention and OPPORTUNITIES , • WASHINGTON COUNTY Expansion coordination Woodbury City Hall 8301 Valley Creek Road program will assist you JANUARY 3 Woodbury, MN 55125 STRENGTHEN with reaching out to 9 AM SAINT PAUL JANUARY 30 PARTNERSHIPS the bllisinesses inour y Saint Paul Port Authority 10 AM comrr+unity by helping to Suite 1900 Landmark Towers ANOKA COUNTY 345 St. Peter St Green Haven Golf & Banquet Center identify prospects, coordinate Saint Paul, MN 55102 2800 Greenhaven Road REGIONHELP THE PROSPER visits and provide you with JANUARY 9 Anoka, MN 55303 resources to help your visits 10 AM 1:30 PM g0 smoothly. MINNEAPOLIS CHISAGO/ISANTI COUNTY Minneapolis Chamber of Commerce Minnco Credit Union 81 S 9th St # 200 Cambridge Office THE BR&E PROGRAM ALLOWS PARTNERS T0: Minneapolis, MN 55402 Cambridg235 e, First Ave. Cadge, MN 55008 ❑ Meet and network with other key partners JANUARY 15 2:30 PM JANUARY 31 ❑ Connect with partners who can,assist with inquiries HENNEPIN COUNTY 9 AM regarding utilities, infrastructure, financing and a whole Hennepin county Library - Southdale WRIGHT COUNTY 7001 York Avenue South St. Michael City Hall host of other retention and expansion needs. Edina, MN 55435 11800 Town Center Drive ❑ Build and leverage this network for future opportunities r JANUARY 16 St. Michael, MN 55376 to help businesses prosper. 10 AM 12:30 PM CARVER COUNTY SHERBURNE COUNTY Chaska Community Center Elk River Library Existing businesses are the community's greatest resources. 1661 Park Ridge Drive 13020 Orono Parkway Show them the appreciation they deserve and help them Chaska, MN 55318 Elk River, MN 55330 grow in the region. TOGETHER WE WILL SHOW THAT JANUARY 17 FEBRUARY 20 BUSINESSES AND PEOPLE PROSPER HERE. 11 AM 2:30 PM RAMSEY COUNTY SCOTT COUNTY Roseville Library Prior Lake City Hall 2180 Hamline Avenue North 4646 Dakota St. S.E. GREATER MSPTM Roseville, MN 55113 Prior Lake, MN 55372 Minneapolis Saint Paul Regional Economic Development Partnership r__ ..__.._.,.,._..............b.....,.,. ..., uuuua '- , cGl11LL111Cl11-lll;ll STAFF WRITER "You should have seen it. It was a and bymiTT thvere tt will.1cQ1tanks1GU fulluY, wastewater When the founders of Urban nightmare," said Fred Haberman, a of tilapia and racks lined with fresh from the fish Organics first visited the old Hamm's local public relations executive who is lettuce and herbs. will be pumped brewery on the east side of St.Paul a part of the Urban Organics team. Urban Organics will use an agricul- to the produce year ago, the long-vacant building But Haberinan and his partners saw tural technique known as aquaponics, growing on the racks above, and the was in disrepair.The walls were coy IF year-old build- a symbiotic marriage of aquaculture plants then act as a filter for the water ered with graffiti and thea w,­e ni]P i— ,forming it (raising fish in tanks) and hydropon- before it returns to the fish tanks. of trash left behind by home,ess pew ' -m. Most of ics (growing plants in water). The FARM I PAGE 23 " a= Promise of data-center building boom is sputtering g targeted: BY SAM BLACK new or refurbished data center that rtup'S Cancer-fighting plan STAFF WRITER FYI y r � <�°" s involves at least 30,000 square feet of n't work,so it goes fishing. An expected boom in data-center *"" r r"..z," space and$50 million in investment. construction in the Twin Cities has So far,no projects have been able to iovationM N 16 been slow to materialize despite all it meet those thresholds. has going for it—prepped sites,gov- The first big deal to be announced ernment incentives and favorable na- was in November 2011, when tional trends. PROVIDED BY COLLIERS INTERNATIONAL I MINNEAPOLIS-ST PAUL Charlotte,N.C.-based Five 9s Digital Three large data center projects— M.A.Mortenson has proposed this 125,000-square-foot data said it would develop a $75 million in Washington, Carver and Dakota center in Chaska,but it won't break ground without a tenant. to $100 million, 138,000-square-foot OEX ON PAGE 3 a counties — have been proposed by data center in Eagan that would open developers, but haven't moved be- even with the help of 2011 tax breaks The 2011 law exempts companies in the third quarter of 2012. yond the marketing stage because passed by the Legislature aimed at from paying Minnesota sales tax on Five 9s let its option expire in August there hasnt been enough demand, landing such projects. all purchases of equipment for any DATA CENTERS i PAGE 23 New faces at corporate boards raise costs BY TOM SMITH AND JIM HAMMERAND members,including Best Buy Co.Inc. drop-off at the bottom. STAFF WRITERS and Imation Corp.,and consequently Overall, 16 companies gave pay in- Four Minnesota companies in- paid less in compensation. creases to their boards,and nine paid creased pay to their boards by more Overall, the total compensation less.Furthermore,15 of the 25 report- x �, than 25 percent in their last fiscal year, represented on the Minneapolis/St. ed at least one departure during the largely to bring on.fresh talent. The Paul Business Journars annual Top fiscal year we studied.That 60 percent r ..+ biggest increases were at ValueVision 25 List of the highest-paid corporate ratio tracks with national numbers S0,11tions Il 00 0010S. p Media Inc. and Northern Oil and boards rose by 6 percent this year.A compiled by Equilar.A majority of the Gas Inc. On the other hand, several more significant trend,however,is the S&P 1,500 companies it studied (781 Z public-company boards dropped sharp rise in board pay at the top and BOARDS i PAGE 9 w0 " Providing the people to power technology. U We are specialists in interim staffing,search and. Br contingent workforce management. a 30 ainpower. k 'x 0! hWA a,M� TECHNOLOGY SERVICES" 5 . warets.com • 612.373.5747 74470 97027 9 Digital People I Hunter Hamilton I Pro Staff I Ware 't facilities in Milwaukee.Haider,who was look- to secure state grants and working cioseq w... ing for a more rewarding career after 16 years Urban Organics on the building sale and per- cally needed for traditional fanning. lvomhol(gM40umals.com 1 ebw)Zoo-zw, DATA -ENTERS: Big MN companies have built them here, but developers are left waiting for tenants FROM PAGE 1 states because of its low There's still upside for the data-center mar- million, 24,000-square-foot facility in Duluth risk of natural disasters and ket in the Turin Cities, said Mike Brown, a by Cedar Rapids,Iowa-based Involta. on the farmland it had picked for a site. " E. chilly climate, which helps spokesman for Greater MSP. "The data-center incentive thresholds are "A lot of our potential tenants were look- cool sensitive equipment. There have been about three smaller data- kind of on the high side and those projects just ing for an existing building where they could Several Fortune 500 com- center deals that Greater MSP was involved take longer to complete.I think there will be occupy it quick and at a lower price," said panes already have data with in the past year,but none qualified for the some of those coming down the road,"Brown Five 9s CEO Doug Hollidge. "We listened to centers here, especially in tax breaks,Brown said.Those projects includ- said. the market and transitioned to putting an health care, banking and ed a$25.7 million,33,000-square-foot project 87,000-squafe-f0ot building under contract." retail industries, which by Allina Health System in Anoka and an$11 sblack@bizjoumals.com 1(612)288-2103 Itis now marketing space in a formerTaystee Peterson helps prove the reliability bakery distribution center in Eagan.By using of the area as a data center an existin `-`g bu>jdin g,Frve 1s-could lower asking hub.Minnetonka-based UnitedHealth Group rents from$28 to$14 per square foot per,year. Inc.and Minneapolis-based Target Corp.built The other two projects still waiting for ten- new data centers in the West Metro in 2010 be- ants to start or expand are a data center in fore the data-center economic-development Chaska proposed by M.A.Mortenson Co.and law passed. a building in Washington County that startup firm IronGate Data Centers plans to convert Tax break threshold too high? into a data facility. The data-center tax breaks are helpful, but MINNEAPOLIS Ir ST.PAUL Economic development boosters envi- not game changing,said Dan Peterson,a bro- BUSINESS JOURNAL sioned the data-center tax breaks would land ker at Colliers International I Minneapolis-St. deals that add millions of investment to the Paul and a specialist in the data-center market. state.Data centers are expensive to build and "With at least 13 states with similar incen- equip, with price tags reaching $400 to $700 tives, it's really the price of admission these per square foot. They dont usually generate days for states to have incentives like these a lot of jobs (a staff of 30 can often manage to attract data-center development," said EXECUTIVE a 100,000-square-foot facility), but they pay Peterson, who is marketing a 12-acre site property taxes and consume a lot of energy in Chaska where Golden Valley-based M. A. i sold by local utilities. Mortenson has proposed a 125,000-square- I There's been a national boost in demand for foot data center. data-center space as more and more compa- The Twin Cities is underserved for data-cen- ' , nies store their information off-site and turn ter space and has been pegged as an emerg- L" to cloud-based data storage.The explosion of ing market in the sector by national players, You won'tto miss our - of smartphones also is driving demand. Peterson said."Users are swirling...but we're Year awards luncheon where we w 11 celebrate our 2013 Minnesota has an advantage over some not seeing things land quite yet." I The Minnesota High Tech Association has honoree • recognize their professional discussed trying to amend the 2011 law to get • personal _• ication to the community.This event is an WHAT'S A DATA CENTER? some of the thresholds for the tax breaks low- annual sell out, ' get your • A data center is a facility exclusively built or ered, which could help the incentives match 0011M renovated to house computer,telecommunications up with some of the phased developments thatTuesday,, February and electronic storage systems.It is typically in have been proposed,Peterson said. an expensive,reinforced building,with redundant One such phased project is by Minneapolis- e power supplies and beefed up environmental based IronGate Data Centers,led by developer MINNEAPOLIS controls and security. Ned Abdul.IronGate owns an 85,000-square- foot facility in Washington County and a the 2013 Demand drivers: 25,000-square-foot facility in Hennepin for ' publication where Growth of cloud-based IT storage and smartphone County. (It doesn't disclose the exact locations Executive of •_ announced! use;ongoing concern over disruptions in business to maximize privacy.) due to natural disasters IronGate received some recent coverage for a 270,000-square-foot expansion it an- For more Information, go to: A few large data center proposals: nounced for the Washington County site,but •M.A.Mortenson Co.,Chaska,marketing 125,000 it wont break ground on that until it lands square feet of new construction one of the 100,000-square-foot users from the event, •Five 9s Digital,Eagan,marketing a East Coast that are looking in the market,said ' ' ' ' " ' ring the 187,000-square-foot renovation of a former bakery Rory Johnson, president of IronGate. So far, call Kathy Robideau warehouse IronGate's only deal is for an undisclosed ten- IronGate Data Centers,somewhere in ant that is leasing about 2,000 square feet. SPONSORED _ Washington County,plans to renovate an Greater MSP, the regional economic devel- 85,000-square-foot industrial building and is opment agency,worked with IronGate to pro- marketing 270,000 square feet of new space A vide information about incentives and to help us • • get the word out about its projects. - —— --- - -— - ---- -- vR Digital People • rn 73.5747 �' 1 Hunter Hamilton I pro Staff I Ware tax rate drops Hugo's ���.�, HUGO —While Hugo residents may be breathing a little easier about their pending tax burdens, commercial business owners are feeling the pinch — even as the city's 1144 ye urban tax rate is poised to decline slightly in 2013. The Hugo City Council adopted a general operating 1 tax levy of$3,728,896 at its Dec.3 meeting.When special levies are added in, the city's total tax levy in 2013 will be / $4,749,083,a 4.24 percent decrease from last year. Nevertheless,it was small consolation to two business owners who addressed the Hugo City"Council during a `/ public comment period Dec.3. ;'�G� /vim ��i� �•¢� "The market value stayed the same, (but) taxes went up,"said Glen Kothe said of his property at 17285 Forest c� Blvd. "In other words, it's picking on the business people ���:�y��� �•/--/,' again." —and farmers—a g /��ri �ra✓ �'e�t.+ief �c��f�issie•;9N�2 �.�.� ,iy�.��,.�� Jeff Olson, owner of J. Olson Tool Inc.which builds G f plastic injection molds,said he's experienced a 30-40 per- evI'v /e je�l a G: er yt /��i. ,�o..yr�� C' 7�►'�/ cent decline in sales."Businesses are suffering,"he said.It's �� � getting harder and harder for me to stay in Hugo." X fA/is .0 14 In contrast, 93 percent of the city's residential home- delay the replacement of the former community develop- merit purchases by 2016,to the tune of$747,500. stead dcent of them$e n fact, see theiracity-taxes 0drop by merit assistant,who resigned to take another position. An Not to worry: the finance director said the $400,754 P y 1 across-the-board cost-of-living increase of 4.5 percent was budget surplus from 2012 was just transferred into the more than 5 percent. also implemented for 2013, Finance Director Ron Orkin capital equipment fund for that purpose where,combined Not so the city's commercial parcels which,because of said,although the amount being spent on city salaries will with $336,736 already in the fund, those needs are now the legislature's new Homestead Market Value Exclusion decrease by more than 6 percent next year, fully funded. Program,have shouldered more of the tax burden as home "It's the first adjustment to the salary matrix for cost of Orkin credits his somewhat unorthodox approach market values have declined,Mayor Fran Miron said. living since 2009,"he said.There will be no step increases to city finance planning for the fact that in the past two "The other tax classes that make up the other 32 this year, however. "Our adjustments are intended to keep decades, there was only one year where the city did not percent of the tax classifications are seeing significant in- pace with the general market." achieve a budget surplus at year-end. creases in property taxes, even though our levy is down," "Our budgeting technique over the last 22 years is to the mayor said. conservatively estimate revenues combined with what I call n er the program,as the value of a qualifying home- HUGO FAST FACTS&FIGURES contingency budgeting,'" Orkin explained. "This means stead property drops, a greater percentage of the property we allocate monies in each operating budget for items that is excluded from taxation. Even when cities lower their Total debt service levy for 2013 $776,430 may or may not occur.It's much easier to cover an expendi- tax rate, more of the tax revenue pie comes from taxpay- ture if funds have already been set aside for it." ers whose property is not partly shielded by the exclusion Capital equipment funding needs through 2016 $737,000 Standard&Poor called it the method"favorable tool" program. Bonded debt/capita,2010 $740 in issuing the city's last credit rating report,giving the city In Hugo, the tax on a median residential homestead State average bonded debt/capita,2010 $,891 a long-term bond rating of AA+. with a market value of$190,900 would be $696.75, Or- Hugo LGA received $0 kin said, 16 percent less than the average tax on the same market value homestead among 30 cities in the 7 county Average LGA paid/city,statewide $498,520 metro area($826.02) and 21 percent less than the average 2012 general fund surplus $400,754 HUGO'S URBAN TAX RATES tax among all 853 cities in the state ($883.10). The city lost$46 million in market value in 2012,rep- 2003 38.762% 2009 34.443% resenting a loss of 3.74 percent in tax capacity. 2004 35.966% 2010 34.274% A reduction was also made in the park planning and 2005 35.931% 2011 34.236% Budget declines,2012 surplus programming budget. 2006 35.826% 2012 36.498%* The city's proposed 2013 budget of$4,219,966 is 7.8 The city's public works budget will grow in 2013 by 2007 35.144% 2013 36.467% percent lower than in 2012. 4.3 percent due to increases in the cost of equipment rent- 2008 34.941% An R 9 nerrenr rednrrinn in 2013 veneral vnvernment als.motor fuels,salt/sand,and seasonal hires. * Tha naw HnmP0Pne1 Mnrlrot vnh„ r,,.,...: THugo New housing, retail may happen next year Downtown area Redevelopment • Residents must drive to redevelop the iconic restau- fans on the table White Bear Lake or Forest rant several years ago, but on U.S. 61 is ready p Lake for some basic goods the plans fell through and the Hugo officials are optimistic and services, such as restau- building burned to the ground 'for development that redevelopment plans for rants and a full-service drug in 2010. downtown could move forward store. "The city would like to The property is now another next year.Talks of revitalizing guide some of that (type of) vacant lot in the str'ng of land By Elizabeth Mohr the area have been going on for development to the downtown waiting to be developed. emohr@pioneerpress.com more than a decade. area,"Bear said But downtown isn't entirely •Downtown Hugo once was without life. The redevelopment of down- Areas being considered a vibrant city center but now Hugo Feed Mill,a local favor- town Hugo has for years been for redevelopment has little to draw residents in ite and downtown business a lot of talk without much to — and they've been asking landmark since 1925, stands show. tgU GQ for change."Downtown is sort tall and remains busy_ But some recent developers' jh of a concept u1 the city,"Bear Anew City Hall'was built proposals indicate retail and px�u said_ "At one time,it was the about 10 years ago just north residential construction could g * only focus of activity. Now, oithe feed m , - J W� begin as early as next year. many of those old businesses A-and modern small�;offljce"The pieces are starting tothat characterized downtown buildings pepper the afall into place," city adminis- � x are gone ... and the commu- well as a few`old bonesfrom . trator Bryan Bear said. � �;: 51 nity is still striving for that the on downtown. ' "There's some optimism.The downtown feeling." a Sion or ugo's economy is on a slow climb While plans are gaining renewed city center would up, and there are some pro- steam for the west side of the echo classic American Main posals on the table." PIONEER PRESS downtown stretch of U.S. 61, Street: small shops, pedestri- Two landowners with large the eastern front sits idle. an-filled sidewalks, street parcels on the west side of Over the past couple of parking in front of businesses, U.S. 61 between Frenchman ings were demolished. Plans years, the city has bought a trees and seating areas. Road and 147th Street have and infrastructure were laid string of properties — about Bear said everything is in pitched plans to build multi- out for future connecting 3.5 acres total — between place, and it's now up to the unit housing, senior housing roads_ 145th and 147th streets on the landowners and developers to and a walkable downtown But the recession slowed east side of U.S.61. come forward with solid con- shopping area new development to a crawl Shuttered and blighted struction and financing plans As part of one proposal, The push for redeveloping buildings were demolished, for city approval. Lions Park would be redevel- ,d��tow is three]other and the now-vacant lots sport `'City officials are excited oped and could grow by more • Hugo has retaser- "for sale"signs. but guarded,"Bear said."The than 2 acres. vice-oriented busi , but Much of the land overlooks reality is, it's all talk right And the housing element is very few of them the Egg Lake, and city officials now There's a sense of`let's a crucial one for the revital- downtown corridd all think the space could be per- wait and see.'" ization effort,Bear said. current commercice is feet for a restaurant. In anticipation of proposals full. "It's nice nohave Abutting the south end of Elizabeth Mohr can be reached at such as these, preparations vacant commerciace or the city's land is the site of 651-226'-5162.Follow her at have been made over the pasts tenant space,but oother the once-venerable Carper twitter.com2izlohr. several years. U.S. 61 was hand,space isn't ale for ter's Steak House — a Hugo upgraded and traffic lights businessesthat wmove institution for more than 100 were installed.Blighted build- to the city,"Bear syears. There were plans to /✓���� s�f/�-/yIf✓1�S !'I� �. / il�S L �� VBG � THE CITIZEN WWW.READTHECITIZEN.COM DECEMBER 20,; '?-'•� ^ars ."� +'! Laf �°`'�'. kc�7' {.3-�� IS 'And your re un WiH be . . $880�684993'F by Deb Barnes,Editor flows from July 1, 2008 to ter way of estimating our emailed HUGO — It's not June 30, 2009), a$518,000 flows. (MCES) decided to sug- every day you get a check charge.In 2011,the bill was they needed to check some gest that for almost $900,000 in the $633,000. of their own systems." refunds mail—at least,one you can In a followup interview MCES officials found are due to cash. There is such a check with The Citizen at the the meter at the Forest Lake city rat: in the pipeline for the city time, Public Works Direc- border wasn't working cor- payers. of Hugo.The city of Forest for Scott Anderson said he rectly. S o Lake will receive a whop- was perplexed that calcu- Kennedy said, "We all of us ping$1.3 million. lated sewage flows billed to were getting to the point have been Kennedy The Metropolitan the city exceeded munici- where we were just about o v e r - Council Environmental pal groundwater pumping ready to refine our flow charged and the city gets Services payment to Hugo quantities.He said it didn't estimates. They called us the money?" wrote Terri represents sewage over- make sense,especially since up and said, `Hold the Lavalle of Hugo. "I think charges paid by the city during the same time pe- phone!'" we that were overcharged, for the billing period from riod, more than 200 Hugo Last week, Otkin said, (and) should be reim- 2006-2011 and also in- homes were unoccupied "He kept telling me, 'We're bursed." dudes an adjustment for due to foreclosures and the going to get some money n sai that not all 2012 in the amount of number of building permits back from the Met Council, of the cost increases paid $98,872.09. issued had plunged. we're just figuring out how to MCES were passed on The payment, which The Citizen contacted much' to Hugo customers."Those includes interest, will be MCES and the city engi- "I'm thinking 10 grand, years that we had losses in deposited in the city's water neer to find out more. 20 grand, and all of a sud- the sewer fund, we were and sewer utility fund. Engineer Jay Kennedy den,here came this number. managing that out of the It all started in 2011 said the questions raised And I said,"WHAT??'" monies we had in reserve. when MCES proposed a 22 some flags, and he began Kennedy said, "The "We're going to be percent sewage rate hike, to pursue the matter with good news is, now that the looking at the rate structure which didn't sit kindly with MCES. "(They) had been Met Council found the er- for consumers in March:he Hugo Finance Director estimating our flows for ror with the Forest Lake said. "If there's a possibility Ron Orkin. a number of years mostly ..acter and has repaired that, we can lower the rate,that's Orkin's presentation because the meters on each the city of Hugo will now something we're going to to council showed that in end of town were reading pay for sewage flows based have to look at." 2010, MCES billed the so close together, he said. on actual metering rather Comments on our story? city for 262 million gal- "We went through the ex- than flow estimates." Email citizen@presspubs. lons of wastewater (for ercise of coming up a bet- One Citizen reader com or call 651-407-1226. 70% Rate increase on commercial property tax: in 4 gears is reality- In ealityIn Hugo ! Writing in response to 3 separate articles 1'f Dee 20 2012 - Citizen- (Hugo tai: rate drops) 2"d Dec 20 2012 - Citizen - (And your rebate will be $880,684 ) s'`' Dec 21 2012- - Pioneer Press -( New housing,Retail may happen next: year) Lets start in 2009 - Economy homy poor (YEP!) Recession But what happens in Washington coun-ty/HT GO ? Commercial property market values increase (YEP) So now they can raise property taffies on those; �vrnaining business. To the point where its difficult to survive, Est have to raise rent/lease to coven it. 'But then cant find tenants to rill those spacer (3 buildings jusi north of city hall has 4 open spaces, 1 owned by the city) Or nobody will rebuild after an accidentk Prop'-AY tax % rate -to High ???) Businesses need other businesses in the area to purl people in, 'elle try to provide the local c;omniu ity with services , and or jobs But these constant increase: ( 70% in ]act 4 years ) is out of control! That mould be the equivalent to a $,.93,000 home paying $ 6000.00 +f.. in property tax ( how would you fee]?`?) iVIXYTE IRATE ? And it doesn't matter who you complain to everyone blames it on Someone else city/county/state . Just a shift from residential to conanercial. i=pty downtown) Who would come in even with ( T1 ' ) after these increases are in 'place? So please anyone looking to come hear should be welcomed with. open arms and a hug. Contrary to a statement in the pioneer press ! its nice not to have vacant commercial space or tenant space, but on the other hand space isn't available for businesses that want to move to the city") WHAT ??? Take off the rose colored glasses. Theirs plenty of commercial property for sale or lease,just need to Drive Hwy 61 with your eyes open to see that!! Some property owners may have removed there signs due to lack of interest shown , and the city knows who they are. What about the city owned property across from city hall? That used to have a property tax income where does that income come from now ( maybe shifted to neighboring commercial ??) Now onto the next problem, downtown Hugo needs to look inviting to potential investors. Lets just start with the lighting on hwy 61 from the post office South to 140th ( 18 old looking , overhead wires , outdated)lights cover that area. But from hwy 61 and 14 intersection towards new development theirs 58 modern no wire nice lights lighting about the same Distance. If you take out every other one (29) and replace the old 18 on hwy61 , ( with the 29 we already have) it would give the look of tying in both,( new and established Hugo) as one and would provide a brighter/ safer more inviting feel to the area. That would leave more than enough lighting along both roads in a more efficient manner. That would also give a place to hang welcome to Hugo banners/flower baskets/flags/ x-mas decorations like we used to do Remember when downtown was fun! I realize it cost money ,but according to the article in the citizen the city may receive a 880,684 rebate from the ( MCES) that's the people that overcharged on the sewer services and if that money doesn't go back to the residents (like it should) then use it in a smart way to tie the to areas together as one . These thoughts were provided by a business located just south of the Hugo post office ,which offers 1500+ movie titles at $1.00 a day. The COUNTRY VIDEO BARN has provide the entertainment I For the local community for more than 25 years thank you! COUNTYY VIDEO BARN 14869 FOREST BLVD HUGO, MN ( OR TO SOME MAYBE CONSIDERD AS AN OLD BONE!) ( see pioneer press article ) 7001/0 Rate increase on commercial property tax in 4 years is reality In Hugo ! Writing in response to 3 separate articles 0 Dec; 20 2012 - Citizen- (Flugo tax rate drops) 2nd Dec 20 2012 - Citizen - (i-Ud your rebate will be $880,684 3rd Dec 21 2012 - Pioneer Press -( New bousing,Retail may happen next year) Let's start in 2009 - �-',conomy poor (YEP!) Recession ("YEP!) But what happens in Ww4ifington county[HUGO ? Commercial property market values increase ?"? (YEP) So now they can raise property taxes on those remaining business. To the point where its difficult to survive, or have to raise rent/lease to cover it. But then cant find tenants to fill those spaces (3 buildings just north of city hall has 4 opep. spaces, I owned by the city) Or nobody will rebuild after an accident(Property tax % rate to High M) Businesses need other businesses in the area to pull. people in. We try to provide the local community with services , and or jobs But these constant increase ( 70% in last 4 years ) is out of control! That would be the equivalent to a $193,000 home paying $ 6000.00 +/'- in property tax ( how w,�ould you feel;'?) MAYBE IRATE ? And it doesn't matter who you complain to everyone blames it on. Someone else city/county/state . Just a shift from residential to commercial empql downtown) Who would come in even with ( T.I.F` ) after these increases are 1r) Place? So please anyone looking to come hear should be welcomed with open arms and a hug. Contrary to a statement in the pioneer press ( its nice not to have vacant commercial space or tenant space, but on the other hand space isn't available for businesses that want to move to the city") WHAT ??? Take off the rose colored glasses. Theirs plenty of commercial property for sale or lease,just need to Drive Hwy 61 with your eyes open to see that!! Some property owners may have removed there signs due to lack of interest shown , and the city knows who they are. What about the city owned property across from city hall? That used to have a property tax income where does that income come from now ( maybe shifted to neighboring commercial ??) Now onto the next problem, downtown Hugo needs to look inviting to potential investors. Lets just start with the lighting on hwy 61 from the post office South to 140th ( 18 old looking , overhead wires , outdated)lights cover that area. But from hwy 61 and 14 intersection towards new development theirs 5 8 modern no wire nice lights lighting about the same Distance. If you take out every other one (29) and replace the old 18 on hwy61 , ( with the 29 we already have) it would give the look of tying in both,( new and established Hugo) as one and would provide a brighter/ safer more inviting feel to the area. That would leave more than enough lighting along both roads in a more efficient manner. That would also give a place to hang welcome to Hugo banners/flower baskets/flags/ x-mas decorations like we used to do Remember when downtown was fun! I realize it cost money ,but according to the article in the citizen the city may receive a 880,684 rebate from the ( MCES) that's the people that overcharged on the sewer services and if that money doesn't go back to the residents (like it should) then use it in a smart way to tie the to areas together as one . These thoughts were provided by a business located just south of the Hugo post office ,which offers 1500+ movie titles at $1.00 a day. The COUNTRY VIDEO BARN has provide the entertainment For the local community for more than 25 years thank you! COUNTYY VIDEO BARN 14869 FOREST BLVD HUGO, MN ( OR TO SOME MAYBE CONSIDERD AS AN OLD BONE!) ( see pioneer press article ) A EDA Member Weekly Schedule Monday Tuesday Wednesday Thursday Friday Tom Weidt Phil Klein Open Open Open Open Open Jan Arcand Open Open No Night No Night Open Tom Denaway Open Open Open Open No Night/Morning *Prefers a night meeting (T,W,TH work best) Frank Puleo Open Open No Night No Night Open *Prefers a morning meeting Jim Bever Open Open Open No Morning Open *Prefers a night meeting Mike Granger Open Morning No Night/Morning I No Night/Morning BEST DAY in the Morning No Night/Morning *No night meetings O