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HomeMy WebLinkAbout02.16.16 EDA PacketAGENDA CITY OF HUGO ECONOMIC DEVELOPMENT AUTHORITY Tuesday, February 16 2016 5:00 PM 5:00 pm 1. Call to Order 5:01 pm 2. Roll Call (Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt) 5:02 pm 3. Approval of Minutes • EDA Meeting of January 19, 2016 5:03 pm 4. Discussion on Proposed Legislation to Add Economic Development Powers to Washington County HRA • Melissa Taphorn, Washington County HRA, Deputy Executive Director 5:40 pm 5. Discussion on 2015 EDA Annual Report 5:50 pm 6. Update on Downtown Redevelopment 6:00 pm 7. Adjournment ** Please RSVP for the State of the City Event hosted by the HBA on Wednesday, February 24, 2016 at 7:30 AM at the Blue Heron Grill BACKGROUND MEMO FOR THE EDA MEETING OF TUESDAY, FEBRUARY 16, 2016 3. APPROVAL OF MINUTES Staff recommends approval of the minutes from the January 19, 2016, EDA meeting as presented. 4. DISCUSSION ON PROPOSED LEGISLATION TO ADD ECONOMIC DEVELOPMENT POWERS TO WASHINGTON COUNTY HRA In 2014, Washington County developed an Economic Development Strategic Plan. The plan defines the County's role in economic development. The County Board determined the Washington County HRA to be the best organizational structure to oversee county -wide economic development actives. The Board recommended fiu-ther that the agency should be renamed to the Washington County Development Agency (CDA). The HRA has drafted legislation to amend its enabling law to add economic development powers and requests support from the EDA on the proposed bill. Melissa Taphorn, Deputy Executive Director of the HRA will present the background and overview of the proposed bill. Staff has attached a proposed EDA resolution of support of the bill and recommends the EDA adopt the resolution. 5. DISCUSSION ON 2015 EDA ANNUAL REPORT Staff will provide an overview of the 2015 EDA Annual Report. Staff recommends the EDA review the report and provide feedback to staff. 6. UPDATE ON DOWNTOWN REDEVELOPMENT Staff will provide an update to the EDA on downtown redevelopment. MINUTES FOR THE EDA MEETING OF JANUARY 19.2016 Chair Weidt called the meeting to order at 5:01 pm. PRESENT: Denaway, Gallivan, Houle, Klein, Petty, Puleo, Weidt. ABSENT: None. STAFF: Bryan Bear, City Administrator Rachel Juba, PIanner Rachel Leitz, Community Development Assistant APPROVAL OF MINUTES FOR THE EDA MEETING OF DECEMBER 15 2015 Klein made motion, Gallivan seconded, to approve minutes for the EDA meeting of December 15, 2015. All Ayes. Motion carried DISCUSSION ON 2016 GOALS Juba stated that at the December 15, 2015 meeting, the EDA had a discussion on their 2016 goals. Since the last meeting, Juba put together the ideas discussed into a 2016 goal sheet to review with the EDA. She asked if there were any more thoughts regarding the setting of the 2016 EDA goals. Commissioner Klein asked if staff could reach out to the University of Minnesota for future presentations to the EDA. Houle made motion, Klein seconded, to approve the 2016 EDA Goals. All Ayes. Motion carried. UPDATE ON WASHINGTON COUNTY ECONOMIC DEVELOPMENT EFFORTS Juba stated that in 2014, Washington County developed a strategic plan, which defined the County's role in economic development, established guiding policy principles, and identified specific strategies and goals. In 2015, the County Board determined the Washington County Housing and Redevelopment Authority {HRA} to be the best organizational structure responsible for county -wide economic development activities. Through the County's continued economic development efforts, they would be hiring an economic development director and plan to draft legislation to amend the HRA existing enabling law to add economic development powers. There is an informational meeting at 2:00 p.m., Thursday, January 21, 2016 where the HRA will talk about this process and what the next steps will be. Juba stated that she was also contacted by Melissa Taphorn, Deputy Executive Director with the HRA, to come to the next City of Hugo EDA meeting to give more background on the County's economic development efforts. Weidt asked when the County is looking to hire the new economic development director. Juba stated that the position was budgeted for within the first quarter of 2016. UPDATE ON DOWNTOWN REDEVELOPMENT Juba stated that there has recently been a concept plan submittal regarding the LaValle apartments north of the senior housing and west of Lions Park. This plan went to the Planning Commission on January 14, 2016 for infonnal comments. Juba also told the EDA that she has been trying to get a hold of the applicants to provide an update on the construction of O'Reillys Auto Parts. Petty made an announcement that the HBA is moving their monthly meetings to LaVallc Fields. She stated that the February meeting is cancelled due to the Mayor State of the City Address, but the March meeting will be held at the new location. Petty also stated that Warm Hearts for Charity is this Saturday from 5:00-8:00 p.m. Gallivan asked what the status is of DigniCare. Leitz stated that the applicants are still working on getting permits from MnDot, but have been working with staff on getting other information together to start construction in spring. Klein asked about progress on the site west of Kwik Trip where Park Dental was approved to go and about the site west of the Blue Heron. Juba stated that Park Dental has purchased the land for development. Juba also stated that staff has received a Site Plan and PUD for a daycare to the east of Children's Hospital Clinic. /_\ oil 97 i1I'll ►1u I �1► f1�1 Weidt made a motion, seconded by Denaway, to adjourn at 5:47 p.m. All ayes. Motion carried. 4 Memo To: Hugo EDA From: Barbara Dacy, Executive Director Melissa Taphorn, Deputy Executive Director Date: January26, 2016 RE: Proposed Legislation to Add Economic Development Powers to Washington County HRA The Washington County Housing and Redevelopment Authority (HRA) has drafted legislation to amend its enabling law to add economic development powers and requests that the Hugo EDA support a proposed bill (Attachment A) to be introduced during the 2016 legislative session. The proposed bill to empower the HRA to undertake economic development activities has been identified as part of the 2016 legislative agendas for both Washington County and Washington County HRA. Background In 2014, Washington County developed an Economic Development Strategic Plan with the help of a work group consisting of city economic development practitioners and community representatives. The Plan defines the County's role in economic development, establishes guiding policy principles, and identifies specific strategies and goals. In 2015, the County Board determined the Washington County HRA to be the best organizational structure to be responsible for county -wide economic development activities. The Board recommended further that the agency should be renamed to the Washington County Community Development Agency (CDA) to reflect the full scope of responsibilities. Implementina the Washington County Economic Development Strategic Plan Guiding Principles It is envisioned that the Washington County CDA will fill a vital role in coordinating county -level economic development activities and will support communities in the county in working towards their individual economic development goals. The Washington County CDA will also act as the contact with Greater MSP, while promoting and providing access to federal, state, regional, and local economic development programs. The Washington County CDA would adhere to the following economic development guiding principles identified in the Strategic Plan: • The private sector is the lead that drives the economy. 4 The county will not duplicate or replace the work of cities and other public agencies. • The County supports a strong collaborative approach to economic development. Business attraction and business retention are essential policy objectives. • The diversity of the County requires an adaptable and open-minded approach. • A deliberate, purposeful and strategic plan is required. fax 651.458.1G96 1 tel. 651.458.0936 i wwwvvchra.com 1 7645 Currell Boulevard I Woodbury, IMI 55125 Establishing the Washington County CDA The Washington County HRA was created in 1980 under a special enabling law. In order to carry out the recommendation of the 20+ member work group and add economic development powers to the HRA, this enabling law must be amended. The proposed bill will add to the HRA the powers of an economic development authority and will formally establish the Washington County CDA. The proposed Dill follows the same process taken by CDAs established in Dakota, Scott, and Carver counties. Goals and Benefits of Proposed Bill Goals The proposed bill to amend the HRH's enabling law was drafted to fulfill the following goals: • Add powers to enable the County to address economic needs. • Provide flexibility to determine the nature and extent of economic development activities given the diversity of municipalities, large and small. • Maintain current level of control by County Board over levy authorization. • Complement programs of municipal economic development authorities and not impede their activities. • Confer consistent geographic jurisdiction, defined as the boundaries of Washington County, for both HRA and EDA activities. Benefits Adoption of the proposed bill will empower the HRA with the authority necessary to undertake the following Economic Development Strategic Plan goals, which are not currently provided in its existing enabling law: • Implement county marketing and public relations programs. • Implement any economic development studies needed as a basis to document need for financial assistance programs. • Implement financial assistance programs for economic development purposes. Key Aspects of the Proposed Bill Key aspects of the proposed bill include naming of the agency, determining levy authority, establishing relationship to municipal economic development authorities, offering tax -forfeited lands to the CDA, and identifying limitations requiring County Board approval. Agency Renaming In order to adequately represent the combined housing, redevelopment and economic development powers to be bestowed, it is proposed the HRA be renamed the Washington County Community Development Agency (CDA). While this term is not defined in statute, the CDA nomenclature has been adopted by Dakota, Carver and Scott counties in their respective enabling laws. The consistency in terminology across the Minneapolis -St. Paul metropolitan area provides for greater recognition and understanding of a county CDA. ra Levy Authority State Statute permits special levying authority for housing and redevelopment authorities up to 0.0185% upon all taxable property, subject to the consent by resolution of the governing body. In addition, a county may, at the request of an economic development authority, levy a tax of up to 0.01813% upon all taxable property. The EDA levy rate may be increased upon following a procedure detailed in state statutes. The proposed bill, however, retains the County Board consent process currently in place for establishing the levy rate and amount under the HRA limits in section 469.033, subd. 6, and, it waives EDA tax levying authority under section 469.107. But, the proposed language reserves the right to levy the higher of the HRA or EDA permissible rates, as they may be determined by the legislature. This provides the County with future flexibility should there be a program or issue that the County determines is appropriate for this purpose. On an annual basis, the HRA Board has prepared a levy request, within its annual budget, of sufficient size to complete its strategic priorities and financial obligations for approval from the County Board. Under the amended enabling law, the CDA would follow the same process in proposing an annual levy request and obtaining the consent of the County Board. Municipal Economic Development Authorities The HRH's current enabling law requires municipal approval prior to the HRA undertaking a housing development. The proposed bill maintains this requirement and adds the municipal approval requirement prior to exercising economic development powers. Offer of Tax Forfeited Land When the County receives real property through the tax forfeiture process, it may determine the property to be appropriate for a housing, redevelopment, or economic development purpose. Currently, the HRA must purchase forfeited parcels in the same process as the general public. The proposed bill adds that such parcels "may" be offered to the CDA in the same manner it would be offered to a County department with justification of public purpose. Composition of CDA Board The proposed bill offers no change in board composition. The HRA Board is currently composed of seven members: five appointees representing each County district, a representative of the County Board of Commissioners, and a representative of the HRA's public housing and/or rental assistance residents. Next Steps Staffing The HRA will hire a full-time Economic Development Director. The director will work closely with municipalities to supplement and complement their economic development programs and projects. The directorwill lead county -wide economic development efforts and manage county- wide financial assistance programs. Passage of the Proposed Bill The HRA and County are in the process of identifying authors in the both the Minnesota Senate and House of Representatives. The proposed bill is not expected to be controversial if supported by municipalities in Washington County. County Resolution Upon passage of the proposed bill, the County Board will need to pass a resolution to formally confer the EDA powers on the HRA. The resolution will further identify any limitations of EDA powers the County may wish to impose on the CDA. Recommendation The HRA requests support for the proposed bill by adopting the attached resolution. 4 Sec. 1 Laws 1974, Chapter 475, section 1, is amended to read: Section 1. WASHINGTON COUNTY; COMMUNITY DEVELOPMENT AGENCY HOUSING AND REDEVELOPMENT AUT-H0RJT-V-. There is created in Washington county a public body corporate and politic, to be Down as the Washington county housing Aft r-edevelepmeM authority community development agency, having all the powers and duties of a county authority under the provisions of Minnesota Statutes, Sections 469.001 to 469.047, and all powers of a county housing and redevelopment authority under any other provisions of Minnesota law. and Sections 469.001 to 469.047 and 469.090 to 469.1081 apply to the county of Washington. For u oses of qwlyjAg sections 469.090 to 469.1081 to Washington county, the county is considered to be the city and the county board is an-,idered to be the citycouncil. Sec. 2. Laws 1974, chapter 475, section 2, sub&. isior, 1. is amended to read: Subdivision 1. This act shall not limit or restrict any existing housing and redevelopment authority or city economic development authority,. The jurisdiction aitd area of operation of the Washington county community developmeat_,Iggncy heusin --fc:de-,�e}epment auther-ity includes all of the area within the territorial ' boundaries of the county ;ata includes the areas within the boundaries of every city in the county sod the area,-- of operation :-,f city housing and redevelopment authorities and city. gnomic devei e,^t authorities in the ILO- nty, whenever created, and notwithstanding any provt.svc r of Minnesota. Statutes, sections 469.005, subdivision 1, or 469.008, subject, however, to Sectioi 3. The junsd�v,Iion and area of operation of the Washington county community developgient a&ray heusing shall not be affected by any cnnQirrence by the Washings n county c�prnmunity development agency under .miction 46Y G, ,4. ,ubdivision 5. Sec. 3. Laws 1.914, chapter 4"5, section 2. gubdivision 2, is amended to read: Subdi-inion 2a. A it unitixml '+ousing arc` redevelopment authority may request the Washingtem oau tie :otnmun,.t ;ievelo r *mt a ens,- to handle ibe housing aotlos of thu authority aril to such an event, the Washington county commumty development !Igen ht-a-3ia g and redevelopment au&eFt3 shall act and have exclusive jotr:�diction for hotwag in th4 municipality pursuant to the provisions of the municipal housing and ,;)development act, Minnese',a Statutes, Sections 469.001 to 469.047 462.411o 4 62.711, and acts amendatory V�vxeof. A transfer of duties relating to housing shall not transfer any duties relating I,,-. -edevelopw at. Subdivision 2b. A .. m.,unici al economic development authority mgy request the Washington county comnxamty development agency to handle the economic development, housing or redevelopment, duties of the authority and, in such an event, the Washington county community development agency shall act and have exclusive Jurisdiction for such duties in the municivality pursuant to the provisions of the economic development authorities act, Minnesota Statutes, Sections 469.090 to 469.1080 and acts amendatoEy thereof. Sec. 4. Laws 1974, chapter 475, section 3 is amended to read: Sec. 3. MUNICIPAL APPROVAL. Subdivision 1. Housing and redevelopment projects. If any housing or redevelopment project is undertaken in Washington county pursuant to this authorization, and the project is within the boundaries of any statutory or home rule charter city or township, the project and the location of the project shall be subject to approval by the governing body of the city or township. The procedures in section 469.007, subdivision 2, shall apply to the governing body project and location approvals required by this section. Subdivision 2. Economic development projpvtx.,. If any development district or economic development project is undertaken in Wosh••ton county pursuant to this authorization and the project is within the boundarigs,of any srMtotpa or home rule charter city or township, the project shall be subject to the piaaning, zoning,. itary, and building laws, ordinances, and regWations applicable to the ccality in which the �i i)'ect is situated and in addition, prior to the exercise of any powers _pgder Minnesota Statuto,_Sections 469.090 to 469.1080 within the boundaries of the city or town -drip with aspect to a prvVosedproject or the proposed site thereof, the project and the location of r e r.� ect must receive for authorization by resolution of the governing body ..,t 4kc.city or town -2-.X. Sec. 5. Laws 1974, chapter 475, section 2 *q amended b- adding a subdivision to read: Subdivision 4. Wsftgton counh kttmm . ij 0jnM1opnkeat agency. (a) After Deeonber 31, , 016, thea,hmgton county housing and redevelopment authority shall be known as the Wa�in on couj �y community development agency. In addition to the other Wy,ers gxantet! 11 t t� ,��nn, the Washin on count communi develo ment agency slt nave ;114 p wers'_ _on econu iv veiqpment authority under sections 469.090 to 469.1QL, Y_ that are rgKant d tthemeo ggncy by rerAJ%tion adopted by the Washington county board Of comm_„ sioners, except !A p off: in paragraph (b). The enabling resolution may impose the limits upon the actions of the -,iS ncy�_-at are listed in paragraph (c). The agency may exercise any of the pMwj. -j granted to It under sections 469.001 to 469.047 and any of the powers of an economic d2yLlo.�npgnt authority_ anted to it by the Washington county board of commissioners for the purposes dcA r-'�ed in thc-v- sections. (b) The Washin ,,. -,jpunty community development agency may not levy the tax described in _section 469.10 7, but with the approval of the Washington county board may increase its levy of the special tax described in section 469.,033, subdivision 6, to any higher limit authorized under section 469.107. The money in the housing and redevelopment project fund under section 469.033, subdivision 6, may be expended by the Washington county community development agency for the pMMoses of sections 469.001 to 469.047 or sections 469.090 to 469.1081. c The enabling resolution mqy impose the limits u on the actions of the agengy as may be imposed by a municipalfty municipalityunder section 469.092 exc t that the resolution adopted under paragraph (a) may not impose an, limitations on the authority's exercise of its powers under sections 469.001 to 469.047. (d) Section 469.1082 does not apply to the county of Washinglon. Sec. 6. Laws 1974, chapter 475, section 2, is amended by adding a subdivision to read: Subdivision. 5. Offers of tax -forfeited lands. Notwithstanding any other law,, Washington county may offer to the Washington county community development agency, under the conditions and policies established by the county, nonconservation tax -forfeited land pnor to making the properties available to cities in Washington count Sec. 7. EFFECTIVE DATE. This section is -iTeom , the day after the governing body of Washington county and its chief clerical officer timely OLmplete their compliance with Minnesota Statutes, section 654.021, subdivisions ? µid 3. 820053.DOCX y EDA RESOLUTION NO. RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF HUGO, MINNESOTA SUPPORTING PROPOSED LEGISLATION TO AUTHORIZE THE COUNTY OF WASHINGTON TO CONFER ECONOMIC DEVELOPMENT POWERS UPON THE WASHINGTON COUNTY HOUSING AND REVELOPMENT AUTHORITY WHEREAS, the Washington County Housing and Redevelopment Authority (the "WCHRA") is a county housing and redevelopment authority created and existing under Laws 1974, Chapter 475, as amended, which provides and maintains affordable, decent, and safe housing opportunities in Washington County; and WHEREAS, in 2013 the County Board of Commissioners (the "County Board") of the County of Washington (the "County") established a broadly -representative economic development work group comprised of municipal economic development practitioners and community partners to assist the County in developing a county -wide long-range economic development strategy; and WHEREAS, based on the process carried out by the economic development work group, in May of 2014 the County adopted an Economic Development Strategic Plan (the "Economic Development Strategic Plan"); and WHEREAS, in furtherance of the Economic Development Strategic Plan, the County has determined that the WCHRA should have primary responsibility for economic development activities on behalf of the County; and WHEREAS; proposed legislation has been prepared which would authorize the County Board by resolution to confer on the WCHRA the powers of an economic development authority (the "Proposed Law"), thus enabling the County to address economic needs as identified in the Economic Development Strategic Plan; and WHEREAS, adoption of the Proposed Law would empower the WCHRA to undertake economic development activities not authorized by the current WCHRA enabling law, such as, by way of illustration, implementing County marketing and public relations programs relating to economic development, conducting economic development studies to document the need for financial assistance programs, and carrying out financial assistance programs for economic development purposes; and WHEREAS, the Proposed Law would retain the existing County Board consent process for establishing the WHCRA's housing and redevelopment authority levy under Minnesota. Statutes, Section 469.033, subdivision 6, and would preclude the WCHRA from imposing any concurrent or separate economic development authority levy otherwise authorized under Minnesota Statutes, Section 469.107 (while permitting the County Board to consent to a WCHRA levy at a rate equal to the higher of the permissible housing and redevelopment authority levy rate or the permissible economic development authority levy rate as they may be established by the Legislature); and WHEREAS, consistent with existing requirements of the WCHRA's enabling law for local approval of housing projects and redevelopment projects, the Proposed Law would require municipal location and project approval as well for development districts and economic development projects; and WHEREAS, in order to appropriately reflect the combined housing, redevelopment and economic development powers to be conferred, the Proposed Law would change the name of the WCHRA to the Washington County Community Development Agency; and WHEREAS, the Proposed Law would effect no change in the current structure or composition of the WCHRA Board of Commissioners; and WHEREAS, the Proposed Law would authorize the County to offer tax -forfeited real property to the WCHRA on the same basis as such parcels are offered to a County department; and WHEREAS, the County Board has determined to include the Proposed Law as part of the County's legislative initiative for the 2016 Legislature; and WHEREAS, the Board of Commissioners of the Economic Development Authority of the City of Hugo, Minnesota, (EDA) finds that enactment by the Legislature of the Proposed Law, and the carrying out of economic development activities by the WCHRA in the County, including in the city of Hugo, pursuant to the Proposed Law, would be in the public interest and would afford substantial benefit to the residents, businesses, citizens and taxpayers of the city of Hugo; and WHEREAS, the County, the WCHRA and the Hugo EDA contemplate that the WCHRA and Hugo EDA will work together as partners in carrying out economic development activities within the city of Hugo which will be complementary and non -duplicative. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority in and for the City of Hugo, Minnesota adopts this Resolution supporting the proposed legislation described above in furtherance of economic development activities by the WCHRA on behalf of Washington County. Adopted by the Board of Commissioners of the Economic Development Authority this 16'' day or February, 2416 Tom Weidt EDA President ATTEST: Secretary YoWre Invited to a Business Networking Breakfast Hosted By: Hugo Area Business Association Where: Blue Heron trill HIPa'MAS=AnM 14725 Victor Hugo Boulevard Hugo, MN 55038 651-756-1894 When: Wednesday, February 24, 2016 7:30-9:00 A.M. (Paid pre -registration required!) What: State of the City Address: Hugo Mayor Tom Weidt HBA 2016 Business Asgard Ceremony • Business of the Year This award celebrates the business that contributed to our local economy and to the HBA in an outstanding manner. Nominees should have proven exemplified outstanding business savvy. Nominees would include an outstanding business that directly helped in industry growth, showed ingenuity, job creation, entrepreneurship or excelled in sales. • Business Lagacy Award (2o years or more) • Emerging Business (3 years or less) • Volunteer of the year Award Auditor: Liz Wilcox, CPA: Boyum & Barenscheer Award Design: Craig Benson, Micra Manufacturing How to RSVP There is limited`seating for this event. To reserve your spot send your payment by February 18, 2016 to: HBA, P.O. Box 113, Hugo, MN 55039: Questions: Cindy 651-653-5202 HBA Member(s) at $13.00 each Non -HBA Member(s) at $15.00 each.