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HomeMy WebLinkAbout2013.03.12 EDA Packet AGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY TUESDAY, MARCH 12, 2013 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call 5:02 pm 3. Approval of Minutes EDA Meeting of February 12, 2013 5:05 pm 4. Children's Hospital Clinic & Health Partners Clinic— 14701 Victor Hugo Blvd • Marilyn Hathaway—Clinic Manager • Randy Gruber—Children's Clinic Network Director 5:20 pm 5. Kidz n' Biz Sponsorship Request 5:35 pm 6. Update on Washington County Economic Development Efforts 5:50 pm 7. Update on Downtown Redevelopment 6:05 pm 8. Adjournment BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY,MARCH 12,2012 3.APPROVAL OF MINUTES Staff recommends approval of the minutes from the February 12, 2013, EDA Meeting as presented. 4. CHILDREN'S HOSPITAL CLINIC & HEALTH PARTNERS CLINIC— 14701 VICTOR HUGO BLVD Staff will introduce Marilyn Hathaway and Randy Gruber, representatives of Children's Hospital Clinic and Health Partners Clinic, to the EDA. The businesses are located in the new office building east of Blue Heron Grill. Marilyn is the Clinic Manager for both Children's Hospital Clinic and Health Partners Clinic and Randy is the Network Director for the Children's Hospital Clinic. 5. KIDZ N' BIZ SPONSORSHIP REQUEST On April 20, 2013, the 9th 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$250. The HBA is asking for the EDA to sponsor in that same amount again this year. " 6. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT EFFORTS Staff and several EDA members attended the Washington County Economic Development workshop that occurred on Tuesday, February 26. The workshop focused on how the County can best cooperate with its local communities to encourage economic growth in the county. Some items such as CDBG Funds, establishing business relationships, tax-exempt financing,tax abatement, and revolving loan funds were discussed as ways in which the County could further participate in economic development efforts. 7. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will update the EDA on the progress of downtown redevelopment. MINUTES FOR THE EDA MEETING OF FEBRUARY 12, 2013 Weidt called the meeting to order at 5:02 pm. PRESENT: Arcand, Bever, Denaway, Klein, Puleo and Weidt ABSENT: Granger STAFF: Bryan Bear, City Administrator Rachel Juba, Planner Liz Hanson, Community Development Intern APPROVAL OF MINUTES FOR THE EDA MEETING OF JANUARY 14, 2013 Klein made motion, Puleo seconded, to approve minutes for the EDA meeting of January 14, 2013. All ayes. Motion carried. SUPERAMERICA — 14815 FOREST BLVD N Staff welcomed and introduced Mark Smith, one of the managers of SuperAmerica, to the EDA. The business recently transitioned over from being 61 Stop to SuperAmerica. The reason for the transition was to provide more reliable, consistent products for the consumers. Becoming a franchise operation made that provision more feasible. Because of this transition the business has seen an influx in customers and sales. The EDA welcomed him to the community. DISCUSSION ON BANNERS Cindy Petty, member of the HBA, discussed with the EDA the desire to have banners along Highway 61. There is a desire from the HBA and Highway 61 businesses to place banners on Highway 61 to match what is currently on Frenchman Road. This could be a way to beautify the area as well as attract development and businesses. Staff stated that there may be potential for beautification efforts while planning the Hardwood Creek Trail with the County. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT EFFORTS Staff updated the EDA on Washington County's economic development efforts. Staff informed the EDA that there will be a Washington County Board meeting on February 26th, and the EDA is welcome to attend. Klein made a motion, seconded by Denaway, to make the February 26th Washington County Board meeting an EDA meeting. All ayes. Motion carried. UPDATE ON DOWNTOWN REDEVELOPMENT Staff updated the EDA on downtown redevelopment. Carpenters property is almost ready to go into tax forfeiture, and the City will try to purchase the property from Cathy Anderson before that process starts. Pete Sampair continues to update staff of his progress using the LCDA Met Council grant for planning development on his site. The project is on hold at this time. Bill Lentsch is still in contact with City staff about his progress in developing the land west of Lions Park. ADJOURNMENT Puleo made a motion, seconded by Bever, to adjourn at 6:03 pm. All ayes. Motion carried. w Y I] April 20, Hugo MN r FREE Carnival Games " • FREE Raffle Prizes FREE Balloon Animals • FREE Face Painter • Family Fun Stage • Zillions of Prizes • FREE Bouncy Castle • Make a Jump Rope! • Carnival Games and more fun for everyone! • Washington County Sheriff's K9 Show • Meet your favorite mascots' • Food & Refreshments SATURDAY, APRIL 20, 2013 Oneka Elementary in Hugo •11:OOam - 2:00pm k' Made Possible by The Hugo Business Association and Hugo Economic Development Authority 2/26/2013 Strategic Planning Action Strategy 1: Identify and provide access to ECONOMIC DEVELOPMENT services that meet the needs and expectations WORKSHOP of our changing community. February 26,2013 Workshop Purpose Definition How best can Washington County, in How a community organizes and applies its cooperation with its local communities and resources to improving the economic well-being others,encourage economic growth in the and quality of life in our community. county? Current Resources Current Resources • Cities • County HRA(assisting small communities of • Economic Development Commissions(Hugo, Newport, Lakeland, Mahtomedi) Oakdale,Woodbury) • Region—Greater MSP • Economic Development Authorities(Cottage • State—Dept. Employment&Economic Grove,Forest Lake) Development • Chambers/Business Organizations(Cottage Grove, Forest Lake, Hugo,Stillwater,Woodbury, Oakdale Business and Professional Association) 1 2/26/2013 Current County Role Current County Activities • Provide Infrastructure • Roads and transit • Create Skilled Employees • Job training(Work Force Center) • steward Cultural&Natural Amenities • Work force housing(HRA,CDBG Program) • Contribute to Quality of Life • HRA financing tools • Historic Courthouse and libraries • Maintain Low Tax Rate • Parks and trails • Provide limited Financing Tools for projects of • Competitive tax rate regional significance Current County Activities Tax Increment Financing County Financing Current County Role 2011-2013 Greater MSP($50,000/yr) • Provides comments on proposed new districts or modifications of existing districts Pre 2010 Metro MSP No authority to approve or deny districts 2007 Development of regional • Supported recent city efforts to expand or modify website($8,500) existing TIF districts Property Tax Funding TIF Financial Impact(Pay 2012) • Districts captured less than 2%of total tax capacity Tax abatement • Loss of$1,700,000 in county tax Tax Abatement New Activities— Low Cost Current Policy • Legislative initiatives • Authority to abate up to 10%of net tax capacity ($2.74 million) • Business relationships • County policy cap of 2%of annual levy($1.7 • Business-friendly appointments to Boards million) • Cities must agree to not create or expand a TIF • CDBG funds for economic development district Financial Impact • Total of$5,689,018 abated over 16 years 2 2/26/2013 New Activities— Moderate Cost New Activities— High Cost • Tax-exempt financing • Countywide marketing campaign • Business retention survey • More tax abatement • Technical assistance to businesses • Countywide fiber optics network • Fund local economic development groups • Countywide assessment and economic • Proactive work on issues development strategy • Revolving loan fund How to Get Things Done Discussion Hire economic development professional Expand HRA authorities Establish new entity • County economic development authority(public entity) • County community development agency • County economic development corporation (public/private) 3 r a' f' M.. } t. COMMERCIAL REAL ESTATE 41, w THE ART OF 1. ECO�NOMIC DEVELOPMENT Creative.funding mechanisms and tax incentives are driving public and private collaborations on real estate deals. BY JACK GORDON f all goes as planned,the St.Paul Saints will open Stadium,and its 12-acre site in the industrial area of tax revenues springing from Energy Park also"made their 2015 baseball season at a brand new 7,000- Energy Park. the city's application[for the state money]stronger seat stadium in Lowertown.Contributing to the When the new ballpark is completed,the Port than it otherwise would have been,"Jambois says. $54 million cost of the regional ballpark will be Authority will knock down Midway Stadium,clean $25 million in state bond funds,$10 million from up the Energy Park site,sell it for commercial or the Saints,and$17 million from the City of St.Paul, industrial use,and use the proceeds to repay itself for Making Things Happen which will own the facility.The project is a high- buying the Diamond Products building. Elsewhere in the state,public officials and community profile example of the public-private partnerships in The beauty of the deal from the standpoint of development specialists are similarly adept at finding real estate that are proving successful around the state. all that is right and good,maintains Port Authority ways to make projects happen.A Cambridge business, Less well-known,but nicely illustrative of the President Louie Jambois,is that Midway Stadium is National Recycling,Inc.,finished construction in 2012 financial mechanics that can underlie such deals,is the not only old and deteriorating,it's in the wrong place on a new 47,000-square-foot building on land pur- story behind the$2 million shortfall suggested by the to begin with."Midway is on a site that should house chased from the city with the help of tax-increment fi- numbers above. industrial development.Diamond Products is on a nancing.The company had to pay only$100,000 down The new ballpark will rise on a site formerly oc- site that should house a ballpark,he says. for the land,says the City of Cambridge's economic cupied by the old Diamond Products building.The Then there are the economics of the deal."Our development director Stan Gustafson.Lower upfront . 600,000-square-foot industrial dinosaur sat empty for history suggests,Jambois says,"that we can put in land costs allow a business to"focus on putting money several years before it was purchased July 31 for at least a 200,000-square-foot building[at Energy into buildings,equipment,and employees,"Gustafson $2 million by the Saint Paul Port Authority,an eco- Park]and create 200 to 300 private-sector jobs."The says.At the same time,"tax-increment financing means nomic development agency established by the Min- development also is projected to bring in an estimated that the city[later]will get paid backf nesota Legislature in 1932. $250,000 in annual property taxes to the city,plus ad- In Lutsen late last year,the Lutsen Mountain Cor- After the purchase,the Port Authority immedi- ditional payroll taxes to the state. poration,which runs the Lutsen ski resort,received ately"flipped"the building to the City of St.Paul in a The land swap with the Port Authority meant that loans from its electricity suppliers to buy new energy- land-swap deal.In return,the city agreed to deed to St.Paul could apply for$25 million in state bond efficient snow-making machinery.The Arrowhead the Port Authority the Saints'current field,Midway funds,not$27 million.The projections about jobs and Electric Cooperative gave the company a loan of MARCH 2013 tcbmag.com TWIN CITIES BUSINESS 8.3 r iO°1°e°e°O°e°e°a°e°e°e°O°O°e�e°e°O°°e°o°iio°i°iii+�e %i�i°ei�i'� i°♦e�i°ii°i!►°iei°+� °�e!•°oi°ie+ei ►,°►®oee•�o+�ei®�°ol�eveoe�!p.°i°ii>° ie!17-11 ,e°i°e°%e�i°si°ie�°i°ii COMMERCIAL 00 .ee• .�.o ds♦� asee ,.►e ♦ ►ta Ov !♦• .ee� ►e♦� ►e� >oeo .O. O� ►c•oo moo ♦ ♦� �e ►ei♦e ►e♦e ♦e ►°off .+_oes ,o♦O`se. do0 a®ooe6 ♦0.►e` >f g►°♦°i°oe �i°i ° '.+♦+� ►�►e+� REAL E STAT E ♦O .oe ♦o ►+ oee, ►oo �� O� r b O♦Oi ♦ 04-1k, �♦! �♦ ►0� ►eOt �eeor O< a0 %1! eoi �e►e +D "MR, �►1 ►O e0e ►+e� o♦♦+ee r0e0� :8„o1e00 2aOe,►�� a ecce �• ♦♦1 �.0♦O O♦ ae e P r>O e i e. r�0���(+� ►�a+ee♦♦� ` O♦O♦� �°♦� ►♦O♦e0 ►eo♦�e♦O♦oeoeoioea♦eeaoio`oeeeo�oioee°♦eoieee�e♦e°oe`♦oedieee,�►e°♦eio�Orio�°re°oe0eee� Bei♦iii�iri•,i��!�ec r �•e,„�+��!�!i. �e`,,i� i���„Oe�e•°i j+r�,•♦e,♦e�ir�!ie°°i°ioi♦i� eee ► ► A:0-1082-MV-d .►i I�. * 0♦ " ♦P�.►°� it I w♦�p�e� �� L•t��0� "IPLOd4�1`U�O`'� lJ�+'� l �"1VVi�9�0°O°e°♦°� AOO�aoooeo@+e+ae006ao0a0aaoa0eeia`a�Ov00a a0e0e ►eO0000eeeOe00ee00000♦e0♦e00e0A♦e0♦OOeee�00ee0A 00000000 ee0eo@0600000000004ee00eee0000o �e•�`e••e -' ►Oe00000e°O♦♦ eee000000e0eo♦ 000 00e0 00.•-� Cambridge,e,National , Oeee�O�e°eo®oeoeoe000+o°000e®eeoee+oe®oee®eeoeeoee0ee�°ee.oeeoee+oee®e*�,� g ♦r` �1e0eee00eee00°e0eee0 ee000000� Recycling, Inc.,finished �O� 0�=��4t��+°10s°®00@°®0®OOe000®O°ee0♦oee°O°e°e�'O°O®� its new building last year ►O Od"�y'1'c re+0000000ee0e00000a> Vie,► ?®!►�,Oa@�0®OO 0♦®0�6�„O�Oae,�,Oa♦A�ee�3♦A,►e°O°Oe°0°O®O`9 on land purchased with O �(••-3.r••�A�{ 1•�i�`�l t u- m4I 40°OOea �Oe0Oo60ea0�'0�'0'►A'fed♦a0oe+eo00e0e0A'��00'�ee.6eee0°♦®0e•° . a the help of tax-uicrement IF,gmme+�eee♦eee®♦♦oeoo®®e®`eeoe0+°000e°oeo®Osco ee0,• '�(` financing. a ; .e. �"�i�!aid!o�°o9°e`o°�000ve®oi0°�ieWIV, eM°oe°°o°ee® winC lesJ. 11 o � ►ho a +.�.. rre+►eee0 Oo0 , ►so'e"�,°oZ 'ove•c'eeee®e�o°O� , ► o.�e.-- - oeeoo♦000e0000eoo°o° 111Cg �%aiooee� �TRUST I off . a , Ms . . OUR RESULTS EARN IT 1 • - . - .1 . - -. - ' OUR RELATIONSHIPS SHOW IT. 1111. . - •. ►. VAII ' .•, Vis,. ,yw y .. - Si Earning trust starts by treating every client as unique,not uniform. So-_wE listen longer and work harder to understand your real estate • a ► requirements and deliver solutions tailored to your business needs... 111- • ► .. - not ours.That s how we build trust,create value,and maintain some ' ;, ,.. � � 111 •. 1 • of the longest,strongest client relationships in the industry. ,, • ', / , At Cushman &Wakefield/NorthMarq,we don't ask for your trust.We earn it. . •• ' • K Get Your Business ' ' -r 00 Shovel-Ready Sites Await Buyers Cambridge Opportunity Indus- seal of approval: "So it's not just trial Park sits on 107 acres 45 me or Cambridge saying that miles north of the Twin Cities. this site is shovel-ready, it's the Most of the park is occupied, State of Minnesota." w but 39 acres remain buildable. Why have only 15 municipali- As an enticement to companies ties invested in certification so looking for a place to set up far?The top reason, economic 7aOO FRANCE shop,the site is certified by the development specialists say, is State of Minnesota as "shovel- probably that many areas lack 7700 France Avenue ! ina ready." sites that are close to meeting That amounts to a promise shovel-ready criteria.The major that most of the unpleasant expense lies in preparing such . Exceptional • • surprises known to delay or sites, not in certifying them. A -Cafeteria with on-site catering services. sabotage commercial develop- sluggish market for commer- ments have been anticipated cial real estate has discouraged -Auditorium and conference facilities for . to 75 peo and eliminated.The planning, property owners from investing zoning,surveys,and title work heavily in site preparation when lockerith •• on a shovel-ready site have been -24/7 on-site security. completed. Public infra- structure needs—roads, -Close tomany • nnts, retail,entertainment, • .sewers, utilities—are in Certification functionsve additional . high place or planned out.All necessary environmental as a third-party density studes and soil have been doneanalysis approval. "It's not dust Shovel-ready sites.are [the city] saying that . attractive to corporate C buyers because they NC "take[some] risk out this Site is Shovel- -3601 Minnesota Dr. • Edina .e of development;" says ' Kevin McKinnon,direc- ready. It+s. the State for of the business and ++ from community develop- of Minnesota. ment division of the Minnesota Departmentupdated . of Employment and there are fewer buyers. Economic Development(DEED). Connexus Energy,headquar- •• • • "Businesses know what they're tered in Ramsey,supplies powerareas throughout. getting into when they try to to 60 cities and has offered to _ develop a site:" pay DEED's shovel-ready certifi- include DEED launched Minnesota's cation fee for a certain number of • conference Shovel-Ready Certified Sites cities each year.A 2011 meeting facilities,cafe with on-site program in 2010. Cambridge's to introduce the idea attracted industrial park is one of 15 certi- representatives from 11 cities.Two catering,fitness center with fied sites to date in cities from of them, Isanti and Centerville, locker rooms, Fairmont in the south to Grand went on to earn DEED certifica- two Rapids in the north. tion,says Brian Burandt,Con- •' kin • "I was sold [on the program] nexus manager of business and touch screen directory. right away," says Stan Gustafson community relations. Easy access from 1-494 of the City of Cambridge. "Years No cities took advantage of ago, manufacturers would look Connexus'offer in 2012.As of and France Avenue. at a site and plan to build on it December,the sites in Isanti, three years later. Now they want Centerville,and Cambridge were to choose a site and dig today, still on the market.Of the 15 and know that they won't say DEED-certified sites in the state, •r a • information, contact: 'Whoops."' only St.Cloud's Airport Industrial DEED does not pay for any Park had found any buyers. Last Sherry preparation, paperwork,test- September,German farm-equip- Hastings ing, or physical improvements ment maker Geringhoff bought Senior Vice President 952-829-3468 needed to make a site shovel- an existing 110,000-square-foot ready;all of that is up to the building at the St.Cloud location landowner and the local govern- and announced that it will invest ment. What DEED certification $20 million in a new manufactur- supplies,for a $3,000 applica- ing operation. tion fee, is consulting on how to Though Geringhoff didn't meet the criteria and marketing dig,sources at DEED say that ;� of certified sites on DEED's web the site's shovel-ready status AUENSHUn site and elsewhere. did factor into the company's Commercial Real The great benefit Gustafson decision because it will greatly sees in certification is that it simplify any future expansion. functions as an independent —J. G. FrauenshuhCornmercial.corn MARCH 4013 tcbmag.com TWIN CITIES BUSINESS 85 r.